USDm | 2024 | 2023 | Change |
Bluetooth | 449.8 | 483.9 | -7.0% |
Proprietary wireless | 37.6 | 34.4 | 9.1% |
Short-range wireless components | 487.3 | 518.3 | -6.0% |
Cellular IoT | 17.0 | 17.6 | -3.4% |
ASIC Components | 2.5 | 4.7 | -45.8% |
Other | 4.6 | 2.3 | 99.1% |
Total | 511.4 | 542.9 | -5.8% |
USDm | 2024 | 2023 | Change |
Consumer | 337.2 | 302.5 | 11.5% |
Industrial | 93.5 | 117.2 | -20.2% |
Healthcare | 65.3 | 103.3 | -36.8% |
Other | 12.9 | 15.2 | -15.1% |
Total | 508.9 | 538.2 | -5.4% |
USDm | 2024 | 2023 | Change |
Gross profit | 242.0 | 283.7 | -14.7% |
Gross margin | 47.3% | 52.3% | -4.9 p.p. |
Adjusted gross profit | 252.0 | 283.7 | -11.2% |
Adjusted gross margin | 49.3% | 52.3% | -3 p.p. |
USDm | 2024 | 2023 | Change |
Payroll expenses | 170.3 | 153.0 | 11.3% |
Other OPEX | 76.9 | 81.7 | -5.9% |
OPEX excl. D&A | 247.2 | 234.7 | 5.3% |
Depr. & Amort. | 40.6 | 44.3 | -8.5% |
Total | 287.8 | 279.0 | 3.1% |
USDm | 2024 | 2023 | Change |
EBITDA | (5.2) | 49.0 | NA |
EBITDA margin | -1.0% | 9.0% | -10.1 p.p. |
Adjusted EBITDA | 8.0 | 53.9 | -85.2% |
Adjusted EBITDA margin | 1.6% | 9.9% | -8.4 p.p. |
Operating profit (EBIT) | (45.8) | 4.7 | NA |
EBIT margin | -9.0% | 0.9% | -9.8 p.p. |
USDm | 2024 | 2023 |
Net interest | -0.9 | 6.0 |
Net financial items | 3.8 | 1.4 |
Total | 2.9 | 7.4 |
USDm | 2024 | 2023 |
Profit before tax | -43.2 | 12.1 |
Income tax expense | 4.7 | -4.4 |
Net profit after tax | -38.5 | 7.6 |
USDm | 2024 | 2023 |
Net cash flow from: | ||
Operating activities | 60.4 | -119.0 |
Investing activities | -29.6 | -53.5 |
Financing activities | -23.2 | 83.7 |
Currency adj. | -10.7 | 0.6 |
Net change in cash and cash equivalents | -3.0 | -88.1 |
Cash and cash equivalents 1.1 | 291.0 | 379.1 |
Cash and cash equivalents 31.12 | 287.9 | 291.0 |
Theme | Risk | Response |
Cyclical nature of the semiconductor industry | The cyclical nature of the semiconductor industry represents an inherent risk factor, characterized by periodic fluctuations in demand and supply that can significantly impact the financial performance and stability of companies operating within this sector. The semiconductor industry faces rapid technological shifts, swift product obsolescence, volatile pricing, evolving standards, short life cycles, and erratic supply and demand, contributing to its inherent instability. The semiconductor industry has experienced significant downturns at times, often in connection with or in anticipation of maturing product cycles of semiconductor companies and their customer's products, as well as declines in general economic conditions. Downturns in the semiconductor industry are typically marked by a decline in product demand, sharp drops in average selling prices, decreased revenues, underutilized production capacity, and increasing inventory levels. Nordic has historically experienced adverse affects on its results of operations and cash flows during such down turns, specifically in the form of decreased revenue because of reduced demand from end-customers and may experience such adverse effects in future downturns, which could be severe and prolonged. The Group’s ability to reduce costs in periods of downturn through reductions in capital expenditures and research and development expenses or other means may be limited because of the need to maintain its competitive position. | Nordic maintains a strong balance sheet with sufficient liquidity to weather periods of reduced demand. Additionally, Nordic is investing in research and development strategically to ensure that the Group stays at the forefront of technological innovation, which can provide a competitive edge and potentially stabilize revenue streams during industry downturns. As a fabless company, Nordic can respond to the cyclical nature of the industry by leveraging its ability to adjust inventory levels more swiftly and with lower overhead costs compared to traditional manufacturers. |
Adverse global economic conditions and geopolitical risks | Nordic's growth is dependent, in part, on demand for its customers’ end products, primarily within the IoT, consumer, healthcare, and industrial sectors. Industry downturns that adversely affect the Group’s customers or their customers, could also adversely affect demand for the Group’s products. Additionally, global or regional economic slowdowns affecting business and consumer confidence generally could cause demand for semiconductor products to decline. Rising tensions and deteriorating military, political and economic relations between China and Taiwan could disrupt the operations of third-party foundries, assembly, and test subcontractors, which could severely impact Nordic's ability to manufacture the majority of our products and as a result, could adversely affect its business, revenues and results of operations. Globally, more than 50% of all semiconductor wafers are sourced from Taiwan, hence, increased tension between China and Taiwan can significantly impact the Group's customers’ ability to manufacture their products and thereby reduce demand for Nordic products. In addition, there are also uncertainties in the global economy due to geopolitical risks related to the recent instability in the Ukraine region, including supply chain disruptions and delays, increases in energy prices globally, increased inflation and continued trade frictions. The conflict in Ukraine, as well as financial sanctions being imposed on Russia by governments including in the United States, the European Union and the United Kingdom, have caused increased volatility in financial markets, and have added to upwards pressure on prevailing energy and some commodity prices, including the availability of certain commodities (for example gases) that are crucial in the manufacturing of semiconductor wafers. The effects of the conflict in Ukraine, and any further escalation of hostilities, on the global economy is difficult to predict, however any of the foregoing could cause or contribute to a broader global economic downturn, which could affect global or regional demand for semiconductor products, which in turn could adversely affect the Group’s business, financial condition and results of operations. | Nordic monitors the situation and seek to mitigate current and potentially continuing economic slowdown by close dialogue with both customers and suppliers, credit risk management and operational cost control. Nordic is continuously monitoring potential implications of geopolitical risks, such as the Russian invasion of Ukraine, the increased tension between China and Taiwan and China and United States respectively to mitigate potential risks. Adding capacity amongst others in Europe can reduce the effects of geopolitical tension. |
Theme | Risk | Response |
Constraints in the supply of wafers | As a fabless semiconductor company, Nordic outsources the capital-intensive production of silicon wafers, packaging, and testing of its products to third-party suppliers, mainly in Asia. The manufacturing pipeline involves multiple stages with multiple suppliers. Disruption at any of these third-party suppliers could negatively affect revenue and customer relationships. Nordic does normally not have long term supply contracts with its suppliers, and delivery of materials and services is dependent on the supplier’s ability to deliver on requested volume. Third-party wafer, assembly, and test subcontractors typically do not guarantee that adequate capacity will be available within the time required to meet demand for the Group's products. Qualification of a new vendor can take at least twelve months and will also require customer involvement, as the customer will need to qualify the vendor as well. Over the recent years, the semiconductor industry has faced significant global demand fluctuations, as well as supply issues of various origins. Increased electrification of cars, the Covid-19 pandemic, the ongoing war in Ukraine, and geopolitical and trade tensions are examples of this. For Nordic Semiconductor, the combined effect of these factors resulted in a prolonged shortage of wafer supply during 2021 and 2022, which in turn resulted in limited delivery capabilities for certain products, notably in the higher-end Bluetooth® Low Energy series. Given current demand and supply forecasts, Nordic Semiconductor expects wafer supply to be sufficient to meet current requirements. | Nordic maintains close dialogue with customers and suppliers to identify and address supply risks. The standard practice of keeping buffer stock of wafers and finished goods continues. Supply chain options are considered when selecting suppliers and technologies to minimize impact of future supply constraints, including sourcing of materials from different regions. Long term supply agreements have been used in connection with introduction of new technologies. Nordic seeks to have insurance to cover financial losses from supply disruptions related to disasters. However, insurance cannot completely mitigate the risk |
Theme | Risk | Response |
Customer concentration | In 2024, Nordic derived around 58% of its total Bluetooth® LE revenue from its 10 largest customers. As a result of our customer concentration and the size of its existing customer base, Nordic's revenue could fluctuate materially and could be materially and disproportionately impacted by the decisions of our largest customers if they were to cancel or reduce their purchase commitments. Furthermore, in the event that Nordic’s largest customers experience a dramatic decline in sales, fail to compete with their competitors due to oversupply or overcapacity in the market, or if they decide to alter the product mix, Nordic’s business, financial condition, and results of operations could be materially and adversely affected. Additionally, customer concentration is a magnifier of other risks, including but not limited to Adverse global economic conditions and geopolitical risks and Trade tensions. | In order to have a healthy mix between large and broad market customers, Nordic strives to maintain allocation to all customers. Nordic seeks to expand its customer base with new platforms and technologies. |
Attraction and retention of key talent | Nordic‘s operational excellence and innovative edge are significantly driven by the expertise and leadership of its senior executives, engineers, and other pivotal staff members. The company's ability to maintain its competitive stance in the high-tech semiconductor industry hinges on the retention of these key individuals and the continuous attraction of new talent, particularly in specialized technical roles essential for product development and technological advancement. As technology advances, the complexity of semiconductor manufacturing increases. Developing smaller, more powerful chips requires significant R&D investment and can strain existing manufacturing capabilities. Competition for qualified employees among companies that rely heavily on engineering and technology is intense, and the loss of qualified employees or an inability to attract, retain and motivate additional highly skilled employees required for the operation and expansion of the Group’s business could hinder its ability to conduct research and development activities successfully and develop marketable products. The Group’s success going forward depends in part on its ability to continue to recruit, train, develop and retain such personnel, and if it loses key personnel to competitors or at a rate greater than it anticipates, or if it has difficulty attracting new, highly talented employees, its reputation and its business, financial condition and results of operations could be affected. | Nordic focuses on talent attraction, recruitment, and retainment, as well as succession planning and continues to develop organizational culture and branding. The Group is continuously improving and adapting its Employer Value Proposition. |
Theme | Risk | Response |
Competitiveness of Nordic products | The semiconductor industry is extremely competitive. Competition is based on product performance, structure, pricing, quality, product features, system-level design capability, engineering expertise, responsiveness, new product innovation, product availability, delivery timing and reliability, customer sales and technical support, product line-up, and customized design capability. Nordic is exposed to competition from existing companies and new entrants, mainly from China. Chinese competition increases as a result of China actively promoting its domestic semiconductor industry through policy changes and investment. In addition, the US Chips Act and EU Chips Act can result in competition from competitors with access to favorably priced products in the US and Europe. Nordic’s competitors range from large, international companies offering a full range of products, to smaller companies specializing in semiconductor products. Such competitors may have greater financial, technological, personnel, and other resources than Nordic has in a particular market or overall, which may influence Nordic’s business, scope of assignments and customer relationships in the future. Nordic expects competition in the markets in which it participates to continue to increase as existing competitors improve or expand their product offerings, or as new participants enter its markets, including those participants that had not historically engaged in such markets. For example, with Bluetooth LE being adopted across more than 25 identified market verticals, it is likely that more focused and specialized competitors gain market share, especially in verticals where Nordic’s position is weaker. Furthermore, there is a risk that Bluetooth becomes unattractive compared to other technologies or is bundled with non-Nordic technologies. The largest immediate threat comes from various Wi- Fi standards tightly integrated with Bluetooth in combo chipsets. There are other wireless standards, such as Ultra-Wide Band, that may be a risk factor in the long term in some of verticals where Bluetooth plays a dominant role today. There is a risk that Nordic may not be successful in executing its strategy to capture the cellular IoT market opportunity in terms of scale, time, and volume. Nordic launched the nRF91 Series at the end of 2018, which is Nordic’s first family of low power devices for cellular IoT. There is still a risk that cellular IoT will not be as successful as Nordic had hoped for, or that the market is skewed toward NB-IoT where simpler, lower cost devices dominate. Customers may also choose competing low power wide area network (LPWAN) technologies or cancel roll-out of products due to lack of LPWAN technologies. If the Group fails to keep pace with the rest of the semiconductor industry, it could lose market share in the markets in which it competes. Any such loss in market share could have a material negative impact on the Group’s financial condition and results of operations. | Nordic continues to invest in developing competitive products, software, software development tools, complementary products and services including investments in cellular technologies. The Group has further developed its products to include support for additional low power, short-range connectivity standards, such as Zigbee and Thread, across its nRF52 Series and its new generation nRF53 Series. Nordic launched two new Bluetooth LE platforms in 2024, both on 22nm process technologies. The first revenue from nRF54 Series products was recognized in late 2024 and will significantly improve our product offering. Nordic’s multiprotocol portfolio ensures that the Group is well positioned to benefit from projects seeking to improve compatibility across different standards. Nordic is a part of the Bluetooth Special Interest Group (Bluetooth SIG), which is continuously developing the Bluetooth standards. Nordic joined the Board of Connectivity Standards Alliance as a Promoter Member, the highest level of membership in 2022. This allows the Group to further shape the Alliance’s continued development of standards such as Matter, which will ensure interoperability between smart home devices and accelerate the mainstream adoption of smart home technologies. In relation to the competition from Wi-Fi chips with Nordic acquisition of the Imagination Wi-Fi assets Nordic has a product roadmap to deliver low power combo chips on the 22nm platform. Nordic will continue to monitor the trends in the market, keeping the product portfolio relevant. Including establishing the new RISC-V initiative. |
Product ramp | There is a risk that Nordic is not able to ramp up production of new products according to customer demand, resulting in reduced or delayed market absorption of products, reduction in revenue growth, and/or high yield loss. | Given the timetables for some key product introductions, tight control over the New Product Introduction process is imperative, including quality assurance during high volume product ramps. In addition, Nordic has invested heavily in its own failure analysis lab to solve any issues as quickly as possible. |
Theme | Risk | Response |
Trade tensions | Nordic has global upstream and downstream operations with customers worldwide. Political and trade tensions among a number of the world’s major economies like the US, China and the EU are increasing, volatile and difficult to predict. This might lead to further implementation of tariffs and non-tariff trade barriers, including export control restrictions and license requirements, and sanctions against certain countries and companies. Trade restrictions might apply to Nordic's supply chain, our products, or affect Nordic's customers. Since 2022, the sanctions and export control limitations imposed on Russia and Russian entities by the EU, Norway, US and UK, and circumvention risks have increased significantly, and provide a complex framework for Nordic to operate in. The ongoing geopolitical and economic uncertainty, in particular but not limited to between the United States and China, and the unknown impact of current and future regulations of international trade and flow of products, may cause disruptions in the semiconductor industry and its supply chain. Such disruptions may increase production costs for the Group’s end-customers and/or limit their ability to source certain components required for the production of their end-products, which may reduce demand for the Group’s products and materially harm the Group’s business, financial condition, and results of operations. In addition, trade tensions can increase protectionism in global trade that can limit the Groups ability to sell in certain regions. Some of the Group’s products are partly assembled in China and increased tensions between the US and China can reduce the Group’s ability to sell to US customers. During fiscal year 2024, the percentage of Nordic's revenue associated with end customers in China was around 10%. | Nordic seeks preparedness and robustness through close customer dialogues, dual sourcing planning, business contingency planning, and a strong balance sheet. Nordic monitors the developments and potential implications for our business operations actively. Nordic implements a sanctions & trade compliance program, and continuously enhances the program, incl. monitoring, to ensure compliance with, and avoid circumvention of, the increasingly complex regulations. |
Acute physical events and natural disasters | The nature of our business as a fabless manufacturer means that Nordic is heavily reliant on semiconductor manufacturing in Taiwan, as well as testing and assembly in Asia. Acute physical events from climate change could affect our suppliers located in Southeast Asia where tropical cyclones and flooding, or natural disasters such as earthquakes, have the potential to damage production facilities and infrastructure. Such events could impact Nordic's delivery capability short-to-medium term. If a major incident occurs, it is unlikely that Nordic would have short-term access to sufficient capacity. | Nordic has established a short-to-medium term strategy for reducing the risk of supply disruptions cased by natural disasters or other severe weather events. In the short term, we maintain a reserve of wafers or finished products to address temporary shortages. For medium-term risk mitigation, Nordic utilizes a second-sourcing strategy to secure against widespread supply disruptions. In addition, Nordic has partial insurance coverage. For long-term risk mitigation, our key manufacturing partners have contingency plans to reduce such chronic risks. |
Information security and cyber risk | Nordic relies heavily on information technology systems across its operations, including for procurement, research and development, sales, delivery, and other processes and transactions. The Group’s ability to effectively manage its business and coordinate the production, distribution, and sale of its products depends significantly on the reliability and capacity of these systems. In addition, the Group may face attempts by others to gain unauthorized access through the Internet or introduce malicious software to its information systems and, if successful, expose the Group and any other affected parties to risk of loss or misuse of proprietary or confidential information or disruptions to the Group’s business operations. The failure of the Group’s information technology systems to operate effectively, transition to upgraded or replacement systems, guard against a material network breach in the security of these systems as a result of a cyberattack or other incident, or any other failure to maintain a continuous and secure cyber network, could result in delays in customer service or a worsening of the Group’s relationships with customers, reducing efficiency in its operations, requiring significant capital investments to remediate the problem, or resulting in negative publicity that could harm its reputation. | Employing world-class data protection is a top priority, in addition to reducing the risk related to human behavior by providing regular awareness training to all employees. Nordic has implemented disaster recovery plans and backup routines in order to mitigate any effects of potential cyberattacks and seeks to maintain appropriate insurance coverage to support the management of potential threats and attacks. Nordic has strong focus on building stronger resilience on internal and externally systems, by identifying and mitigating vulnerabilities. A cyber risk assessment was conducted by the Incidence Response Team in 2024 and will be used as input for the continuous work on mitigating identified risks. Nordic carries out several data governance projects to mitigate the risks related to data loss. |
Theme | Risk | Response |
Credit risk | Nordic is exposed to credit risk pursuant to trade credit arrangements with its distributors and certain customers. The main counterparties are international distributors of electronic components. The Group has not historically suffered any significant credit losses pursuant to its trade credit arrangements with its distributors or customers, however if such distributors or customers were to experience financial difficulties or any deterioration in their ability to satisfy their obligations to the Group, the Group's cash flow could be materially and adversely affected. | Credit monitoring routines are integrated into any new credit lines, requiring security in the form of payment guarantees or advance payment requirements if needed. |
Failure to comply with regulatory requirements | Nordic is subject to the regulatory regimes of each country in which it operates, including, among others, those relating to antitrust, anti-corruption, sanctions and export controls, corporate governance, labor, tax, customs and environmental regulations. Although the Group has internal controls and compliance systems to comply with such laws and regulations, there can be no assurance that such systems, and the Group’s other efforts to promote compliance, will be effective. Any violation of the relevant regulations could result in criminal penalties, sanctions, significant fines, or mandatory suspension from certain business activities. It could also adversely affect the Group’s reputation, business, and results of operations. The Group may also incur significant costs associated with enhancing its compliance functions as regulations and laws change in the countries in which it operates. For example, semiconductor production is known to cause pollution. Potential pollution of air, soil and water in upstream operations due to raw materials mining, smelting, and semiconductor manufacturing is strictly regulated by authorities and adherence to regulations is strictly monitored by the Group’s customers. Failure to meet regulatory and/or customer requirement frameworks related to substances of concern may negatively affect market access and customer's interest towards the Group’s products. | Nordic seeks to continuously enhance its compliance system and programs, internal controls, and risk mitigating measures, including efforts to strengthen its culture of integrity. |
Theme | Risk | Response |
Intellectual property rights | Potential litigation and its impact The semiconductor and software industries have a history of major litigation over patents and other intellectual property rights. If our Group becomes involved in such disputes, this will likely have a negative impact on our business. It is not uncommon for third parties (including non-practicing entities) to claim that our products, our customers’ products, or communication technologies or standards used in our industry infringe on their intellectual property. It also happens that we receive requests from customers requesting us to indemnify them against such allegations brought against them by third parties. Some of these claims have in the past led to the involvement of the Group in litigation. We have certain contractual obligations to defend and indemnify customers against certain infringement claims, which has led to our involvement in the past, and could result in our involvement going forward. Due to the complexities of these technologies, in combination with the unpredictable nature of litigation, there are no guarantees that we would prevail in such disputes. Contrary it could subject the Group to liability, invalidate our intellectual property rights, and harm our competitive advantage. Even if litigation is initiated by us, to protect our intellectual property, such actions could result in counterclaims or countersuits. Any litigation is likely to distract management, take up a lot of R&D resources, and be costly. Such intellectual property litigation could also force the Group to abruptly have to stop the manufacturing and sale of certain products or services, push us into a licensing arrangement with costly royalties, force already scarce R&D resources to be allocated to design-around or develop alternative technologies, and cause conflict with suppliers and device makers to enforce or defend against indemnification rights. Challenges in protecting our intellectual property Our competitive edge depends on our proprietary technology and know-how, and the technical progresses that we make going forward will be in very important to cement Nordic as the technical leader in ultra-low power IoT. Protecting our intellectual property is and will continue to be a crucial element to our success. Our intellectual property is safeguarded by a combination of patents, copyrights, trademarks, trade secrets, confidentiality agreements, and information security processes. As the technology leader, it is still expected that competitors will try to make unauthorized use of the Groups proprietary technology. Despite implementing safeguards, it is far from certain that such third parties are deterred, and there is a significant risk that our technology is duplicated or used by such unauthorized parties. Monitoring and enforcing intellectual property rights is quite challenging, especially given the complexity of the technologies. There is also no certainty that the Groups own pending applications will lead to issued patents, or that any issued patents will properly protect or give sufficient protection from competing products. In addition, there is the risk of patents being circumvented, or challenged and invalidated. Reliance on third-party technology Our products also integrate third-party technologies, including software. While we typically try to include indemnification clauses into these license agreements, liabilities are often limited in scope or otherwise unenforceable. Consequently, the Group could face costly infringement claims, even with regards to technology that we were not involved in the development of. In addition, if such licensed third-party technology does not perform as expected, this would have a negative impact on our sales and our reputation. | Nordic has designated processes for protecting its information and intellectual property rights, including through contractual mitigation. Nordic participates in industry and standard setting groups to engage with the development and implementation of industry standards in the field. |
Theme | Risk | Response |
Product security | There is a risk that released products have security vulnerabilities, and that Nordic does not meet all customers’ expectations with regards to their preferred mitigating measures (which may vary from application to application). Although Nordic certifies products in accordance with security industry standards, there is a risk of loss of reputation and recognition due to cyberattacks in end products. | Nordic continues to invest in security architecture, and we continuously enhance our well-established processes for incident management. Our dedicated Product Security Officer is working with industry standards on security and certifying Nordic products to relevant standards. Our Product Security Incident Response Team Manager manages vulnerability reporting and follows up on our engagement with our external bug bounty program with HackerOne. |
Product liability and warrant claims | The Group makes highly complex electronic components and, accordingly, there is a risk that defects may occur in its products that are not detected during the development and manufacturing process. Such defects can give rise to significant costs for the Group, including expenses relating to recalling products; replacing defective items; writing down defective inventory; delays in, cancellations of, rescheduling or return of orders or shipments; and loss of potential sales. In addition, the occurrence of such defects may give rise to product liability and warranty claims, including liability for damages caused by such defects. Moreover, since the cost of replacing defective products is often much higher than the value of the products themselves, the Group may at times face damage claims from customers in excess of its warranty obligations or the relevant sales amounts, including consequential damages. The Group also faces exposure to potential liability resulting from how its customers typically integrate the semiconductors it sells into numerous products, which are then in turn sold on the marketplace. These end products are often highly complex and may occasionally involve the use of the Group’s product in ways not originally envisioned by it. In these cases, the Group’s products can only be fully tested when deployed in the end products, and its customers may discover defects or errors only after the end products have been deployed. In addition, the Group may be named in product liability claims relating to such end products even if there is no evidence that the Group’s products caused a loss. Product liability claims could result in large expenses relating to defense costs or damages awards. Such events could have a material negative impact on the Group’s reputation, business, financial condition, and results of operations. | Nordic follows very high standards in terms of quality assurance. Investing in lab equipment and testers reduces time used on fault-finding, enables workarounds to be implemented faster, and effectively screens production defects. Nordic aims to limit the contractual liability to an acceptable level in the industry and seek adequate insurance coverage. |
Exchange rate and interest rate risk | Nordic operates globally and is exposed to foreign currency risk, as its sales revenue and direct production costs are almost entirely denominated in USD, whereas approximately 40% and 20% of its operating expenses were denominated in NOK and EUR, respectively, in 2024. Fluctuations in the exchange rates between the USD, NOK or EUR currencies may have an adverse effect on the Group. 10% change in USD/NOK exchange rates impact around USD 0.8 million in monthly cost. | Nordic keeps most funds in USD, but seeks to have available NOK and EUR to fulfill ongoing obligations. The bond proceeds are in NOK, which is a natural hedge of the bond nominated in NOK. |
Core elements of due diligence | Pages in the Sustainability Statement | Does the disclosure relate to people and/or the environment? |
a) Embedding due diligence in governance, strategy, and business model | ESRS 2 GOV-2, pages 43-44 | People and environment |
ESRS 2 GOV-3, page 44 | People and environment | |
ESRS 2 SBM-3, pages 53-61 | People and environment | |
E1-ESRS 2 SBM-3, pages 76-78 E2-ESRS 2 SBM-3, page 89 E3-ESRS 2 SBM-3, page 93 E5-ESRS 2 SBM-3, pages 95-96 | Environment | |
S1-ESRS 2 SBM-3, pages 107-108 S2-ESRS 2 SBM-3, pages 117-118 S4-ESRS 2 SBM-3, pages 122-124 | People | |
G1-ESRS 2 SBM-3, pages 129-130 | People and environment | |
b) Engaging with affected stakeholders in all key steps of the due diligence | ESRS 2 GOV-2, pages 43-44 | People and environment |
ESRS 2 SBM-2, pages 51-52 | People and environment | |
ESRS 2 IRO-1, pages 62-66 | People and environment | |
ESRS 2 MDR-P: E1-2, page 78 E2-1, pages 89-90 E3-1, page 93 E5-1, page 96 | Environment | |
ESRS 2 MDR- P: S1-1, pages 109-110 S2-1, pages 118-119 S4-1, page 124 | People | |
Topical ESRS: G1-1, pages 130-131 | People and environment | |
Topical ESRS: S1-2, page 110 S2-2, pages 119-120 S4-2, pages 124-125 | People | |
c) Identifying and assessing adverse impacts | ESRS 2 IRO-1, pages 62-66 | People and environment |
ESRS 2 SBM-3, pages 53-61 | People and environment | |
E1-ESRS 2 SBM-3, pages 76-78 E2-ESRS 2 SBM-3, page 89 E3-ESRS 2 SBM-3, page 93 E5-ESRS 2 SBM-3, pages 95-96 | Environment | |
S1-ESRS 2 SBM-3, pages 107-108 S2-ESRS 2 SBM-3, pages 117-118 S4-ESRS 2 SBM-3, pages 122-124 | People | |
G1-ESRS 2 SBM-3, pages 129-130 | People and environment |
Core elements of due diligence | Pages in the Sustainability Statement | Does the disclosure relate to people and/or the environment? |
d) Taking actions to address those adverse impacts | ESRS 2 MDR-A: E1-3, pages 78-79 E2-2, pages 90-91 E3-2, pages 93-94 E5-2, page 96 | Environment |
ESRS 2 MDR-A: S1-4, pages 111-113 S2-4, pages 120-121 S4-4, pages 125-126 | People | |
Topical ESRS: E1-1, page 76 | Environment | |
Topical ESRS: G1-1, pages 130-131 G1-3, page 131 | People and environment | |
e) Tracking the effectiveness of these efforts and communicating | ESRS 2 MDR-M: E1-5, page 82 E1-6, pages 82-86 E2-5, pages 91-92 E5-4, page 97 E5-5, pages 97-98 | Environment |
ESRS 2 MDR-M: S1-9, page 115 S1-13, page 115 S1-15, page 115 S1-16, pages 115-116 S1-17, page 116 | People | |
ESRS 2 MDR-M: G1-4, page 131 | People and environment | |
ESRS 2 MDR-T: E1-4, pages 80-81 E2-3, page 91 E3-3, page 94 E5-3, page 96 | Environment | |
ESRS 2 MDR-T: S1-5, page 113 S2-5, page 121 S4-5, page 127 | People | |
Topical ESRS: Entity-specific metrics: value chain workers, page 121 Entity-specific metrics: cybersecurity, page 131 | People |
Category | Key stakeholders | How engagement is organized | Purpose of engagements | How outcomes inform our business |
Market | Suppliers Distributors Customers End-users Competitors Stock exchange Insurers & banks Value chain workers | Supplier meetings & surveys (annual + ad hoc) RBA questionnaire & audit (annual) Distributor daily interaction & quarterly reviews Customer meetings (1-2x/year) Membership forums for competitors Annual insurance negotiations Sustainability-Linked RCF | Gather information for due diligence Support ESG framework Enable product distribution Address customer requirements Discuss environmental risks Monitor sustainability KPIs | GHG data informs supplier selection and development plans Compliance results guide supplier management strategies Distribution feedback shapes logistics planning Customer input drives product development priorities Risk assessments direct mitigation investments KPI results determine management targets |
Society | Local communities Industry associates NGOs Authorities Media Nature | Student fairs & workshops (1-2x/month) Industry forum participation Regulatory presentations Press releases & interviews Environmental impact assessments Resource use monitoring | Share company information Develop industry standards Ensure compliance Generate awareness Build relationships Protect natural resources Minimize environmental impact | Recruitment data shapes talent strategies Standards input guides product development Compliance requirements inform policies Media feedback influences communication strategy Environmental data guides resource management |
Internal | Board of Directors Employee representatives Employees | Board meetings (calendar-based) Committee work Employee representative forums (monthly) Annual engagement survey Exit interviews | Strategic oversight Address workplace matters Monitor employee satisfaction Gather feedback | Board input directs ESG strategy implementation Employee feedback shapes workplace policies Survey results guide talent retention programs Exit data informs HR policy updates |
Owners | Shareholders Analysts Rating agencies | Annual meetings (5-10) ESG reporting Annual rating reviews Regular analyst meetings | Meet ESG requirements Share performance data Guide decision-making Maintain transparency | Rating feedback shapes ESG priorities Shareholder input guides governance updates Analyst insights inform strategic planning Performance data drives investment decisions |
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Emissions from office energy consumption In Nordic’s own operations, GHG emissions are generated from purchased electricity and heating. As a fabless company, energy usage in our own operations is only related to office work. Although more than 90% of our purchased energy is renewable, a fraction of it remains derived from fossil fuels, leading to the depletion of non-renewable resources. | Actual negative impact | l | l | l | |||
Emissions from outsourced manufacturing operations The semiconductor manufacturing process is energy-intensive, particularly through electricity consumption, contributing to significant emissions. To address and mitigate production-related climate impacts, engagement and collaboration with our manufacturing suppliers to achieve GHG reduction targets are key. Many of our suppliers are already transitioning to renewable energy, but emissions from manufacturing are still significant. This is a critical area for Nordic to address, as the scale of these emissions is high, and reversing the impact is difficult due to the complexity of manufacturing operations. | Actual negative impact | l | l | l | l | ||
Reducing emissions with low-power IoT technology While our path to net zero is ambitious and challenging, it also presents opportunities for sustainable growth through product innovation, where low-power IoT technology has a remarkable role. Developing our IoT product portfolio with low-energy solutions lets us empower our customers to produce end devices with a reduced carbon footprint. For example, the use of smart lighting, powered by Nordic’s technology, has enabled customers to reduce emissions and support their decarbonization efforts. Nordic’s technology solutions, particularly those enabling better tracking and monitoring, could help customers design products that will reduce substantial CO2 emissions. | Potential positive impact | l | l | l | l | ||
Opportunities in climate-resilient products Growing climate adaptation needs across sectors present Nordic with significant revenue potential through specialized product development. Nordic can expand its market share and command premium pricing for products that help end-users manage climate risks. Nordic’s existing technical expertise and customer relationships position it well to capture this growing market, with the potential for both increased sales volumes and higher margins. This opportunity is particularly relevant as regulatory and market pressures drive increased customer spending on climate adaptation. | Opportunity | l | l | ||||
Financial risks from customer GHG expectations Nordic faces financial risks related to customer expectations and regulatory requirements regarding GHG reductions. If Nordic’s products and supply chain fail to meet customer demands for reduced emissions or renewable energy sourcing, the company may lose business or face strained relationships with key customers. Additionally, failure to comply with obligations relevant to renewable energy targets could result in increased costs related to carbon taxes, reduced access to capital, and reputational damage. Nordic’s ability to manage these expectations is critical to maintaining market share and customer trust. | Risk | l | l | ||||
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Air emissions in the production process Air pollution is generated during the semiconductor manufacturing process, particularly through the emission of volatile organic compounds (VOCs) during wafer processing. The scale of air emissions is moderate, and our suppliers are actively working to reduce and control emissions by adopting new technologies. However, due to the inherent nature of semiconductor manufacturing, eliminating these emissions remains challenging. | Actual negative impact | l | l | l | l | ||
Hazardous substances in products Certain hazardous substances, such as NMP, PFAS, boron oxide, and lead oxide, are present in Nordic products. Toxic characteristics of these substances pose potential risks to health and the environment, including pollution and harm to living organisms. While the quantities of these substances in products are relatively small, their characteristics, such as bioaccumulation and persistence, can lead to significant long-term health and environmental consequences. | Actual negative impact | l | l | l | l | ||
Air pollution from the transportation of products The use of fossil fuels in the downstream transportation of Nordic products generates harmful pollutants, including NOx, SO2, ozone, and particulate matter. While the company's products are lightweight and primarily transported by air, this still contributes to air pollution. The emissions are limited due to the lightweight nature of the products, but transportation remains a significant source of pollution in the value chain, both in the short and long term, due to the ongoing reliance on fossil fuels. The transportation of Nordic products downstream is done by the distributors and Nordic customers, and Nordic does not have the means to control that. | Actual negative impact | l | l | l | l | ||
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
High water consumption in semiconductor production Nordic’s suppliers use significant amounts of fresh water for cooling and cleaning during the semiconductor manufacturing process. This high level of water consumption contributes to the depletion of freshwater resources, particularly in regions with water stress. While suppliers have implemented water treatment and recycling mechanisms, the overall demand for water remains substantial. The semiconductor industry consumes approximately 1 liter of water per chip produced, leading to significant water usage, especially in areas that rely on groundwater sources. | Actual negative impact | l | l | l | l | ||
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Raw material extraction Integrated circuits are manufactured using raw materials such as metals, silicon, and rare minerals. These materials are often extracted through global mining operations, which contributes to resource depletion and environmental degradation. Moreover, incorporating recycled materials into production is difficult due to the strict purity standards required for semiconductor manufacturing, which further deepens the reliance on virgin resources and accelerates the depletion of finite materials, such as rare metals. | Actual negative impact | l | l | l | l | ||
Packaging materials contribute to resource depletion In Nordic’s own operations and value chain, plastic and cardboard are the primary materials used for packaging and shipping products. Although a large portion of the packaging material is made from recycled or recyclable resources, the overall demand still contributes to the depletion of natural resources. A considerable amount of these materials is sourced globally, including regions like Asia, where resource extraction and production are more resource-intensive. | Actual negative impact | l | l | l | l | l | |
Waste from packaging material Handling waste from packaging equipment by Nordic’s direct customers and distributors can have environmental impacts. Improper waste management, such as related to incineration, landfilling, or recycling, may lead to the release of pollutants. While some recycling efforts are in place, effective waste management and continued use of plastic packaging materials remain challenges. | Actual negative impact | l | l | l | l | ||
Waste from production Waste is generated during the semiconductor manufacturing process from the use of materials and components. This waste includes offcuts and defective products, which the manufacturing suppliers manage through established recycling processes. Nevertheless, the production waste still contributes to Nordic's overall environmental footprint. | Actual negative impact | l | l | l | l | ||
E-waste from end-user disposal Downstream customers assemble Nordic’s components into final products. When end-users or customers improperly dispose of electronic waste (e-waste), hazardous chemicals might be released into the air and contaminate soil and water sources, especially if hazardous substances are incinerated or disposed of in landfills. While Nordic provides information on responsible waste handling through product data sheets, the company has limited control over how its products are disposed of at the end of their lifecycle. | Potential negative impact | l | l | l | l | ||
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Organizational transformation processes Nordic is currently undergoing a major transformation and has implemented changes in its organizational structure. While some measures are concentrated on specific areas and/or locations, the transformation process has affected our entire workforce. Negative impacts include short-term uncertainty about the future and concerns about job security, as well as more medium-term impacts such as the stress of transitioning to new roles and adapting to new teams, temporarily increasing workload during the restructuring processes. | Actual negative impact | l | l | l | |||
Decentralized approach to skill development As an engineering company, technical skill development is baked into our daily work, making upskilling agile and flexible. However, we recognize that our strong growth has created an increasing demand for structured learning opportunities for all. Given our size, a decentralized, needs-based approach may limit broader skill development and prevent equal access to learning and advancement opportunities. This can have both a short- and long-term negative impact on employee growth, daily work performance, and overall satisfaction, particularly affecting support-function employees and our people leaders. | Actual negative impact | l | l | l | l | ||
Gaps in representation and equal opportunity Headquartered in Norway, we have a diverse workforce located in different locations around the world. This diversity is instrumental in leveraging our innovation potential and long-term organizational success. However, we recognize that limited awareness and unconscious bias may affect the feeling of inclusion or create challenges in career advancement for underrepresented groups. These effects can have short-, medium-, and long-term impacts on employee well-being and commitment. These impacts are likely to particularly affect women, who are underrepresented in our workforce. | Potential negative impact | l | l | l | l | ||
Strategic talent development & career planning Our staff's continuous learning is critical to boosting innovation and optimizing execution. Systematically developing talents and providing career opportunities support personal development and professional growth, which can promote employee satisfaction and job performance. This helps to reduce employee turnover and recruitment costs. Having talented people in key positions is expected to enhance business revenues by boosting innovation and driving operational excellence. Hence, recognizing, supporting, and investing in talent contributes to business growth and can improve financial performance in the long term. | Opportunity | l | l | l | |||
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Labor rights and safety risks in the upstream supply chain Workers in the furthest upstream segments of our supply chain, particularly in raw material extraction and early-stage processing, face risks to their rights and safety. In raw material production, several tiers removed from our direct suppliers, workers might be exposed to hazardous conditions, including heavy machinery, chemicals, toxic dust, and underground work. At these levels of the supply chain, workers face increased risks of insecure employment, long working hours, and inadequate wages, particularly in regions with developing regulatory frameworks. Child labor and forced labor are significant industry-wide concerns in raw material extraction and processing, especially affecting vulnerable groups like migrant workers in the mining and processing of materials like copper, tin, gold, plastics, and tungsten. | Potential negative impact | l | l | l | |||
Gender disparities in Tier 1 factories Based on industry assessments and supplier engagement data, semiconductor manufacturing facilities show gender distribution patterns where female workers predominantly hold operator positions, while engineering and management positions tend to be male- dominated. This gender disparity, combined with unequal training and development opportunities, increases the risk of discrimination and unequal treatment in these work environments, potentially affecting worker well-being and retention. | Potential negative impact | l | l | l | |||
Unsafe working conditions for transport workers Workers involved in the transportation of materials face occupational risks common to the logistics industry. These risks particularly affect third-party logistics providers and their subcontractors, with specific attention needed for temporary or contracted workers. | Potential negative impact | l | l | l | l | l | |
Worker safety and forced labor risks in Tier 1 suppliers Workers in Tier 1 supplier facilities engage with safety considerations inherent to semiconductor manufacturing environments. This includes working with specialized equipment, materials, and chemicals in manufacturing environments. The semiconductor industry's global nature means the workforce often includes migrant workers, particularly in key manufacturing locations across Asia, requiring attention to accommodation and recruitment practices. Migrant workers can face negative impacts related to substandard housing conditions, including overcrowding, poor sanitation, and inadequate facilities. Where worker housing is provided, industry standards require these facilities to meet appropriate health and safety requirements, though monitoring and enforcement remain ongoing challenges. | Potential negative impact | l | l | l | |||
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Product security and end-user data protection risks Nordic’s products provide connectivity in a wide range of IoT and connected devices. If there are vulnerabilities related to product security in the product design or technical architecture (e.g., weak encryption or unpatched firmware), this could expose users to cyberattacks or unauthorized access. As customers increasingly rely on Nordic's products for data-intensive applications, resilient product security to protect end-user data becomes particularly critical. A security breach could compromise user data, disrupt services, or result in legal liabilities. Ensuring robust security features is crucial to avoiding reputational harm, loss of customer trust, and potential regulatory action. The protection of end-user data privacy is especially critical, given increasing regulatory scrutiny and compliance requirements. This risk is covered by ESRS Disclosure Requirements as part of information-related impacts for consumers. | Risk | l | l | l | |||
Enhancing sustainability for customers with low-energy products Nordic’s products and applications for ultra-low and low-energy connectivity and computing enable sustainable applications in various sectors, including agriculture, health, and resource management. By offering better tracking and measuring systems, these solutions improve access to data, reduce costs, and enhance resource efficiency. This benefits end-users and customers in both environmental and operational ways. The global scalability of these applications not only helps drive customer satisfaction and sustainability efforts but also presents significant market opportunities as demand for energy-efficient IoT solutions continues to grow, aligning with our strategic focus on sustainable innovation. | Potential positive impact and Opportunity | l | l | l | l | l | l |
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Cybersecurity risks across the value chain Cybersecurity incidents, including both external attacks and internal breaches, pose significant risks to Nordic’s operations and data security. These incidents may lead to unauthorized access to sensitive information, data loss, intellectual property theft, and the potential publication of confidential data. For employees, such incidents can severely impact their ability to perform daily tasks due to system inaccessibility and create stress around data privacy. The consequences of breaches could include reputational damage, financial loss due to fines and litigation, regulatory penalties, and loss of customer trust. Additionally, there is a high risk of business disruption and the need for substantial resources to manage investigations and enhance cybersecurity measures. Both external cyberattacks and insider threats are significant risks. This risk and potential negative impact are covered through entity-specific disclosures. | Risk and Potential negative impact | l | l | l | l | l | |
Building a strong and transparent corporate culture A strong and transparent corporate culture at Nordic fosters a sense of belonging and trust among employees. By establishing clear policies on business conduct and promoting corporate values, such as integrity and ethical behavior, the company enhances employee engagement, workplace efficiency, and retention. A cohesive corporate culture, particularly after organizational changes, contributes to robust governance and compliance, ensuring employees align with the company's mission and values while driving higher levels of engagement and productivity. | Opportunity | l | l | l | |||
Protecting whistleblowers from retaliation risks Retaliation against whistleblowers can have serious negative consequences for the individuals involved, including psychological stress, workplace isolation, career impediments, and potential economic hardship. Such retaliation can also create a culture of fear that deters others from reporting issues or concerns within the company, potentially leading to increased anxiety and stress among employees who witness misconduct. | Potential negative impact | l | l | l | |||
Corruption risks in global operations and partnerships Nordic operates globally, including in jurisdictions with perceived medium and high corruption risk. There are inherent risks related to public or private corruption and bribery linked to Nordic’s operations, which need to be mitigated. Corruption incidents, or the suspicion of such, could result in reputational damage, financial penalties, and lost business opportunities. Both internal misconduct and corruption involving third-party partners could lead to substantial fines and project delays. | Risk | l | l | l | l | l | |
Mitigating reputational damage through corporate culture development A lack of a safe, transparent corporate culture could result in reputational damage, high employee turnover, and difficulties in attracting and retaining talent. Additionally, a negative corporate culture may lead to reduced innovation, fewer new ideas, and longer project timelines, impacting overall business efficiency and growth. | Risk | l | l | l | |||
List of material DRs | Page number |
ESRS 2 - General Disclosures | |
BP-1 General basis for preparation of the sustainability statement | Page 41 |
BP-2 Disclosures in relation to specific circumstances | Page 41 |
GOV-1 The role of the administrative, management and supervisory bodies | Pages 42-43 |
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies | Pages 43-44 |
GOV-3 Integration of sustainability-related performance in incentive schemes | Page 44 |
GOV-4 Statement on due diligence | Pages 45-47 |
GOV-5 Risk management and internal controls over sustainability reporting | Page 48 |
SBM-1 Strategy, business model and value chain | Pages 49-50 |
SBM-2 Interests and views of stakeholders | Pages 51-52 |
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model | Pages 53-61 |
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities | Page 62 |
IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement | Pages 66-74 |
E1 - Climate change | |
ESRS 2 GOV-3-E1 Integration of sustainability-related performance in incentive schemes | Page 44 |
E1-1 Transition plan for climate change mitigation | Page 76 |
E1-ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model | Pages 76-78 |
ESRS 2 IRO-1-E1 Description of the processes to identify and assess material climate-related impacts, risks, and opportunities | Pages 62-63 |
E1-2 Policies related to climate change mitigation and adaptation | Page 78 |
E1-3 Actions and resources in relation to climate change policies | Pages 78-79 |
E1-4 Targets related to climate change mitigation and adaptation | Pages 80-81 |
E1-5 Energy consumption and mix | Page 82 |
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions | Pages 82-86 |
E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities | Page 86 |
E2 - Pollution | |
E2-ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model | Page 89 |
ESRS 2 IRO-1-E2 Description of the processes to identify and assess material pollution-related impacts, risks, and opportunities | Page 64 |
E2-1 Policies related to pollution | Pages 89-90 |
List of material DRs | Page number |
E2-2 Actions and resources related to pollution | Pages 90-91 |
E2-3 Targets related to pollution | Page 91 |
E2-5 Substances of concern and substances of very high concern | Pages 91-92 |
E3 - Water and marine resources | |
E3-ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model | Page 93 |
ESRS 2 IRO-1-E3 Description of the processes to identify and assess material water and marine resources-related impacts, risks, and opportunities | Page 65 |
E3-1 Policies related to water and marine resources | Page 93 |
E3-2 Actions and resources related to water and marine resources | Pages 93-94 |
E3-3 Targets related to water and marine resources | Page 94 |
E4 - Biodiversity and ecosystems | |
ESRS 2 IRO-1-E4 Description of the processes to identify and assess material biodiversity and ecosystem-related impacts, risks, and opportunities | Page 65 |
E5- Resource use and circular economy | |
E5-ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model | Pages 95-96 |
ESRS 2 IRO-1-E5 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks, and opportunities | Pages 65-66 |
E5-1 Policies related to resource use and circular economy | Page 96 |
E5-2 Actions and resources related to resource use and circular economy | Page 96 |
E5-3 Targets related to resource use and circular economy | Page 96 |
E5-4 Resource inflows | Page 97 |
E5-5 Resource outflows | Pages 97-98 |
S1- Own workforce | |
ESRS 2 SBM-2-S1 Interests and views of stakeholders | Page 52 |
S1-ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model | Pages 107-108 |
S1-1 Policies related to own workforce | Pages 109-110 |
S1-2 Processes for engaging with own workforce and workers' representatives about impacts | Page 110 |
S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns | Pages 110-111 |
S1-4 Taking action on material impacts on own workforce, approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | Pages 111-113 |
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | Page 113 |
S1-6 Characteristics of the undertaking’s employees | Page 114 |
S1-7 Characteristics of non-employees in the undertaking’s own workforce | Page 115 |
S1-9 Diversity metrics | Page 115 |
S1-13 Training and skills development metrics | Page 115 |
S1-15 Work-life balance metrics | Page 115 |
S1-16 Remuneration metrics (pay gap and total remuneration) | Pages 115-116 |
S1-17 Incidents, complaints, and severe human rights impacts | Page 116 |
S2- Workers in the value chain | |
ESRS 2 SBM-2-S2 Interests and views of stakeholders | Page 52 |
List of material DRs | Page number |
S2-ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model | Pages 117-118 |
S2-1 Policies related to value chain workers | Pages 118-119 |
S2-2 Processes for engaging with value chain workers about impacts | Pages 119-120 |
S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns | Page 120 |
S2-4 Taking action on material impacts on value chain workers, approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions | Pages 120-121 |
S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | Page 121 |
S4- Consumers and End-users | |
ESRS 2 SBM-2-S4 Interests and views of stakeholders | Page 52 |
S4-ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model | Pages 122-124 |
S4-1 Policies related to consumers and end-users | Page 124 |
S4-2 Processes for engaging with consumers and end-users about impacts | Pages 124-125 |
S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns | Page 125 |
S4-4 Taking action on material impacts on consumers and end-users, approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions | Pages 125-126 |
S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | Page 127 |
G1 - Business Conduct | |
G1-ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model | Pages 129-130 |
ESRS 2 GOV-1-G1 The role of the administrative, management, and supervisory bodies | Page 43 |
ESRS 2 IRO-1-G1 Description of the processes to identify and assess material business conduct and corporate culture-related impacts, risks, and opportunities | Page 66 |
G1-1 Business conduct policies and corporate culture | Pages 130-131 |
G1-3 Prevention and detection of corruption and bribery | Page 131 |
G1-4 Incidents of corruption or bribery | Page 131 |
Disclosure requirement and related datapoints | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Material / Not material | Page number |
ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) | Indicator number 13 of Table #1 of Annex 1 | Commission Delegated Regulation (EU) 2020/1816, Annex II | Material | Page 43 | ||
ESRS GOV-1 Percentage of board members who are independent paragraph 21 (e) | Delegated Regulation (EU) 2020/1816, Annex II | Material | Page 43 | |||
ESRS 2 GOV-4 Statement on due diligence paragraph 30 | Indicator number 10 Table #3 of Annex 1 | Material | Pages 45-47 | |||
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i | Indicator number 4 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013: Commission Implementing Regulation (EU) 2022/2453 Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk | Delegated Regulation (EU) 2020/1816, Annex II | Not material | ||
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii | Indicator number 9 Table #2 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II | Not material | |||
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii | Indicator number 14 Table #1 of Annex 1 | Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II | Not material | |||
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv | Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II | Not material | ||||
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 | Regulation (EU) 2021/1119, Article 2(1) | Material | Page 76 | |||
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 12.1 (d) to (g), and Article 12.2 | Material | Page 76 | ||
ESRS E1-4 GHG emission reduction targets paragraph 34 | Indicator number 4 Table #2 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 6 | Material | Pages 80-81 |
Disclosure requirement and related datapoints | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Material / Not material | Page number |
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 | Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 | Not material | ||||
ESRS E1-5 Energy consumption and mix paragraph 37 | Indicator number 5 Table #1 of Annex 1 | Material | Page 82 | |||
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 | Indicator number 6 Table #1 of Annex 1 | Not material | ||||
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 | Indicators number 1 and 2 Table #1 of Annex 1 | Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) | Material | Pages 82-83 | |
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 | Indicator number 3 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 8(1) | Material | Page 84 | |
ESRS E1-7 GHG removals and carbon credits paragraph 56 | Regulation (EU) 2021/1119, Article 2(1) | Not material | ||||
ESRS E1-9 Exposure of the benchmark portfolio to climate- related physical risks paragraph 66 | Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II | Not material | ||||
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. | Not material |
Disclosure requirement and related datapoints | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Material / Not material | Page number |
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2: Banking book - Climate change transition risk: Loans collateralized by immovable property - Energy efficiency of the collateral | Not material | ||||
ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69 | Delegated Regulation (EU) 2020/1818, Annex II | Not material | ||||
ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water, and soil, paragraph 28 | Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 | Not material | ||||
ESRS E3-1 Water and marine resources paragraph 9 | Indicator number 7 Table #2 of Annex 1 | Material | Page 93 | |||
ESRS E3-1 Dedicated policy paragraph 13 | Indicator number 8 Table 2 of Annex 1 | Not material | ||||
ESRS E3-1 Sustainable oceans and seas paragraph 14 | Indicator number 12 Table #2 of Annex 1 | Not material | ||||
ESRS E3-4 Total water recycled and reused paragraph 28 (c) | Indicator number 6.2 Table #2 of Annex 1 | Not material | ||||
ESRS E3-4 Total water consumption in m^3 per net revenue on own operations paragraph 29 | Indicator number 6.1 Table #2 of Annex 1 | Not material | ||||
E4-ESRS 2 SBM-3 paragraph 16 (a) i | Indicator number 7 Table #1 of Annex 1 | Not material | ||||
E4-ESRS 2 SBM-3 paragraph 16 (b) | Indicator number 10 Table #2 of Annex 1 | Not material | ||||
E4-ESRS 2 SBM-3 paragraph 16 (c) | Indicator number 14 Table #2 of Annex 1 | Not material | ||||
ESRS E4-2 Sustainable land/ agriculture practices or policies paragraph 24 (b) | Indicator number 11 Table #2 of Annex 1 | Not material | ||||
ESRS E4-2 Sustainable oceans/ seas practices or policies paragraph 24 (c) | Indicator number 12 Table #2 of Annex 1 | Not material |
Disclosure requirement and related datapoints | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Material / Not material | Page number |
ESRS E4-2 Policies to address deforestation paragraph 24 (d) | Indicator number 15 Table #2 of Annex 1 | Not material | ||||
ESRS E5-5 Non-recycled waste paragraph 37 (d) | Indicator number 13 Table #2 of Annex 1 | Not material | ||||
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 | Indicator number 9 Table #1 of Annex 1 | Not material | ||||
ESRS 2 SBM2-S1 Risk of incidents of forced labor paragraph 14 (f) | Indicator number 13 Table #3 of Annex I | Not material | ||||
ESRS 2 SBM2-S1 Risk of incidents of child labor paragraph 14 (g) | Indicator number 12 Table #3 of Annex I | Not material | ||||
ESRS S1-1 Human rights policy commitments paragraph 20 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I | Material | Pages 109-110 | |||
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8, paragraph 21 | Delegated Regulation (EU) 2020/1816, Annex II | Material | Pages 109-110 | |||
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22 | Indicator number 11 Table #3 of Annex I | Material | Page 109-110 | |||
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23 | Indicator number 1 Table #3 of Annex I | Material | Page 109 | |||
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c) | Indicator number 5 Table #3 of Annex I | Material | Pages 110-111 | |||
ESRS S1-14 Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c) | Indicator number 2 Table #3 of Annex I | Delegated Regulation (EU) 2020/1816, Annex II | Not material | |||
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) | Indicator number 3 Table #3 of Annex I | Not material | ||||
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) | Indicator number 12 Table #1 of Annex I | Delegated Regulation (EU) 2020/1816, Annex II | Material | Page 115-116 | ||
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) | Indicator number 8 Table #3 of Annex I | Material | Page 116 | |||
ESRS S1-17 Incidents of discrimination paragraph 103 (a) | Indicator number 7 Table #3 of Annex I | Material | Page 116 |
Disclosure requirement and related datapoints | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Material / Not material | Page number |
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a) | Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) | Material | Page 116 | ||
S2-ESRS 2 SBM-3 Significant risk of child labor or forced labor in the value chain paragraph 11 (b) | Indicators number 12 and n. 13 Table #3 of Annex I | Material | Pages 117-118 | |||
ESRS S2-1 Human rights policy commitments paragraph 17 | Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 | Material | Pages 118-119 | |||
ESRS S2-1 Policies related to value chain workers paragraph 18 | Indicator number 11 and n. 4 Table #3 of Annex 1 | Material | Page 118 | |||
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 | Indicator number 10 Table #1 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | Material | Page 119 | ||
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8, paragraph 19 | Delegated Regulation (EU) 2020/1816, Annex II | Material | Pages 118-119 | |||
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 | Indicator number 14 Table #3 of Annex 1 | Material | Page 121 | |||
ESRS S3-1 Human rights policy commitments paragraph 16 | Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 | Not material | ||||
ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 | Indicator number 10 Table #1 Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | Not material | |||
ESRS S3-4 Human rights issues and incidents paragraph 36 | Indicator number 14 Table #3 of Annex 1 | Not material | ||||
ESRS S4-1 Policies related to consumers and end-users paragraph 16 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 | Material | Page 124 | |||
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 | Indicator number 10 Table #1 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | Material | Page 124 | ||
ESRS S4-4 Human rights issues and incidents paragraph 35 | Indicator number 14 Table #3 of Annex 1 | Not material, but disclosed | Page 126 |
Disclosure requirement and related datapoints | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU climate law reference | Material / Not material | Page number |
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) | Indicator number 15 Table #3 of Annex 1 | Material | Page 130 | |||
ESRS G1-1 Protection of whistle- blowers paragraph 10 (d) | Indicator number 6 Table #3 of Annex 1 | Material | Page 131 | |||
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) | Indicator number 17 Table #3 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II) | Material | Page 131 | ||
ESRS G1-4 Standards of anti- corruption and anti-bribery paragraph 24 (b) | Indicator number 16 Table #3 of Annex 1 | Material | Page 131 |
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Emissions from office energy consumption | Actual negative impact | l | l | l | |||
Emissions from outsourced manufacturing operations | Actual negative impact | l | l | l | l | ||
Reducing emissions with low- power IoT technology | Potential positive impact | l | l | l | l | ||
Opportunities in climate-resilient products | Opportunity | l | l | ||||
Financial risks from customer GHG expectations | Risk | l | l | ||||
Target identifier | Scope | Baseline | Target | ||||||
Year | Value | Unit | Year | Reduction | Target value | Unit | Absolute max value (tons CO2e) | ||
NT ABS1 | Scope 1+2 (market-based) | 2019 | 717 | tons CO2e | 2030 | 60% | 287 | tons CO2e | 287 |
NT INT1 | Scope 3 (all categories) | 2019 | 692 | tons CO2e per MUSD value added* | 2030 | 60% | 277 | tons CO2e per MUSD value added* | 0 |
LT ABS1 | Scope 1+2+3 | 2019 | 79577 | tons CO2e | 2050 | 90% | 7958 | tons CO2e | 7958 |
NZ | Scope 1+2+3 | 2019 | 79577 | tons CO2e | 2050 | 100% | 0 | tons CO2e | 0 |
Energy consumption and mix | 2024 |
Total electricity consumption from fossil sources (MWh) | 53 |
Share of fossil sources in total energy consumption (%) | 0.8 |
Total electricity consumption from nuclear sources (MWh) | 5 |
Share of consumption from nuclear sources in total energy consumption (%) | 0.1 |
Total heating from non-renewable sources (MWh) | 279 |
Total non-renewable energy consumption (MWh) | 337 |
Fuel consumption for renewable sources, including biomass (MWh) | 0 |
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) | 6487 |
Consumption of self-generated non-fuel renewable energy (MWh) | 43 |
Total renewable energy consumption (MWh) | 6530 |
Share of renewable sources in total energy consumption (%) | 95 |
Total energy consumption (MWh) | 6867 |
Energy consumption per revenue (MWh/MUSD) | 12.6 |
GHG emissions for the period 2024-01-01 to 2024-12-31 | Retrospective | Milestones and target years | ||||||
Base year (2019) | Comparative (2023) | 2024 | % 2024/ 2023 | 2025 | 2030 | 2050 | Annual % target / Base year | |
Scope 1 GHG emissions | ||||||||
Gross scope 1 GHG emissions (tCO2eq) | 0,7 | - | 0 | - | 0.5 | 0 | 0 | 0% |
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) | 0% | - | 0% | - | ||||
Scope 2 GHG emissions | ||||||||
Gross location-based Scope 2 GHG emissions (tCO2eq) | 324 | - | 1352 | - | ||||
Gross market-based Scope 2 GHG emissions (tCO2eq) | 717 | - | 41 | - | 482 | 287 | 72 | 5% |
Significant Scope 3 GHG emissions | ||||||||
Total gross indirect (Scope 3) GHG emissions (tCO2eq) | 78860 | - | 95870 | - | 7886 | 5% | ||
1. Purchased Goods and Services | 59371 | - | 84201 | - | ||||
2. Capital goods | 13593 | - | 5183 | - | ||||
3. Fuel- and energy-related activities (not included in Scope 1 or Scope 2) | 38 | - | 43 | - | ||||
4. Upstream transportation and distribution | 101 | - | 87 | - | ||||
5. Waste generated in operations | 2 | - | 3 | - | ||||
6. Business travel | 1896 | - | 1128 | - | ||||
7. Employee commuting | 205 | - | 413 | - | ||||
8. Upstream Leased Assets | 198 | - | 341 | - | ||||
9. Downstream transportation and distribution | 1005 | - | 1122 | - | ||||
10. Processing of sold products | 149 | - | 155 | - | ||||
11. Use of sold products | 2279 | - | 3172 | - | ||||
12. End-of-life treatment of sold products | 21 | - | 22 | - | ||||
13. Downstream leased assets | - | - | - | - | ||||
14. Franchises | - | - | - | - | ||||
15. Investments | - | - | - | - | ||||
Total GHG emissions | ||||||||
Total GHG emissions (location-based) (tCO2eq) | 79185 | - | 97222 | |||||
Total GHG emissions (market-based) (tCO2eq) | 79577 | - | 95911 | 7958 | ||||
GHG intensity per net revenue | 2024 |
Total GHG emissions (location-based) per net revenue (tCO2eq/USD 1000) | 0.190 |
Total GHG emissions (market-based) per net revenue (tCO2eq/USD 1000) | 0.188 |
Transition risks and opportunities related to the transition to a low-carbon economy | |
Risks | Opportunities |
Policy and legal | Resource/Product energy efficiency |
Financial risks from customer GHG expectations: Nordic faces financial risks related to customer expectations and regulatory requirements concerning GHG reductions. If Nordic’s products and supply chain fail to meet customer demands for reduced GHG emissions or renewable energy sourcing, the company may face loss of business or strained relationships with key customers. Additionally, failure to meet renewable energy-related contractual requirements with customers could result in increased costs from carbon taxes, reduced access to capital, and reputational damage. Nordic’s ability to manage these expectations is critical to maintaining market share and customer trust. Climate-related customer and regulatory risks are identified and assessed, and risk-mitigating activities are defined through Nordic's ERM process. | Nordic strives to make its products more intelligent and efficient while continuously targeting to reduce the power consumption of products. Through low-power Internet of Things (IoT) solutions, Nordic has an opportunity to contribute to solutions for energy efficiency and energy management, attract new customers and increase demand for its products. These present an opportunity to capitalize on the market's demand for lower energy consumption in end-user devices and expand the energy-saving capabilities of our IoT solutions. Opportunities in climate-resilient products: Nordic has the opportunity to develop and market products and services that support customers' efforts to adapt to climate change impacts. This could include climate-resilient technologies, such as smart sensors, cellular IoT and energy harvesting, and infrastructure designed to withstand extreme weather or changing environmental conditions. Such innovation helps businesses prepare for climate risks, strengthen customer relationships, and open new revenue streams. As more sectors recognize the importance of resilience, demand for such solutions is expected to grow. |
Technology | Energy source |
As a fabless company with outsourced production, the ability to adapt, invest, and support new energy- saving/GHG emissions reduction technologies lies with our manufacturing suppliers. Nordic's business model is not impacted by technological shifts towards a low-carbon economy, which allows us to take advantage of these advancements without carrying the risks ourselves. | Nordic is working to increase the use of renewable energy and reduce GHG emissions in its offices. In our European offices, most of the energy comes from renewable sources. More than 50% of our employees work in energy-efficient buildings with green-building certifications like BREEAM and LEED. Outsourced manufacturing partners are focused on implementing new energy-saving measures to increase energy efficiency and use of renewable energy in the production process. |
Market | |
Semiconductor manufacturing consumes a significant amount of energy. The markets indicate the increased cost of energy alongside growing demand for products with a low carbon footprint. Nordic has taken actions to lower its carbon footprint by purchasing renewable energy verified by Guarantees of Origin (GOO), International Renewable Energy Certificates (I-REC), Taiwan Renewable Energy Certificates (T-REC), Renewable Energy Guarantees of Origin certificates (REGO), and Renewable Gas Guarantees of Origin certificates (RGGO). In 2024, Nordic's science-based GHG emission targets were approved by the Science Based Targets initiative (SBTi). As part of Nordic's long- term strategy and to minimize the risk of losing market share, the SBTi targets aim to achieve net-zero emissions by 2050. | |
Reputation | |
Taking environmental and climate change effects into account is crucial for our brand recognition. Poor performance or increased concern/negative feedback regarding climate change and GHG emissions could harm our brand value and lead to loss of customers due to changing preferences and expectations towards climate change. Nordic's strategy involves engaging and maintaining close relationships with suppliers, conducting annual carbon accounting, regularly reviewing operations, implementing GHG reduction initiatives, and being transparent in reporting. | |
Physical risks related to climate change | |
Acute risks (event-driven) | Resilience |
Acute physical events from climate change could affect our manufacturing suppliers, especially those located in Southeast Asia, where tropical cyclones and floods have the potential to damage production facilities and infrastructure. Such events are likely to impact suppliers' production capacity and our delivery capability in the short-to-medium term and potentially have a negative effect on Nordic's revenue. | Nordic has established a short to medium-term strategy for reducing the risk of supply disruptions caused by natural disasters. These are addressed in Nordic's enterprise risk assessment and business continuity plans. In the short term, we maintain a reserve of wafers and finished products to operate under extreme weather conditions and address any temporary shortage. For medium-term risk mitigation, Nordic uses a dual-sourcing strategy to protect against widespread supply disruptions. For long-term risk mitigation, our key manufacturing partners have their own business continuity plans to reduce such chronic risks. |
Chronic risks (long-term shifts in climate patterns) | |
Long-term changes and extreme variability in climate patterns, as well as events like droughts and floods, can potentially impact accessibility to clean water and affect Nordic’s manufacturing suppliers and their production capacity. Such events potentially impact our ability to deliver products to our customers and lead to reduced/delayed revenue. We have already experienced incidents of water rationing within some of the countries in which our manufacturing suppliers operate. | |
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Air emissions in the production process | Actual negative impact | l | l | l | l | ||
Hazardous substances in products | Actual negative impact | l | l | l | l | ||
Air pollution from the transportation of products | Actual negative impact | l | l | l | l | ||
Substance group | Hazard class | Total weight in Nordic products 2024 (g) |
Substances of concern | Carcinogenicity, categories 1 and 2 | 1663.23 |
Germ cell mutagenicity category 2 | 993.90 | |
Reproductive toxicity category 1 | 993.90 | |
Respiratory sensitization category 1 | 993.90 | |
Skin sensitization category 1 | 1645.47 | |
Chronic hazard to the aquatic environment categories 1 to 4 | 8236.12 | |
Specific target organ toxicity - repeated exposure categories 1 and 2 | 651.57 | |
Substances of very high concern | Carcinogenicity categories 1 and 2 | 16190.85 |
Reproductive toxicity category 1 | 16391.97 | |
Persistent, Bioaccumulative, and Toxic (PBT) | 16190.85 | |
Endocrine disruption for human health | 16190.85 |
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
High water consumption in semiconductor production | Actual negative impact | l | l | l | l | ||
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Raw material extraction | Actual negative impact | l | l | l | l | ||
Packing materials contribute to resource depletion | Actual negative impact | l | l | l | l | l | |
Waste from packing material | Actual negative impact | l | l | l | l | ||
Waste from production | Actual negative impact | l | l | l | l | ||
E-waste from end-user disposal | Potential negative impact | l | l | l | l | ||
Financial Year N | Year | Substantial Contribution Criteria | DNSH criteria (Does Not Significantly Harm) (h) | ||||||||||||||||
Economic Activities (1) | Code (2) (a) | Opex (3) | Proportion of Opex, year N (4) | Climate Change Mitigation (5) | Climate Change Adaptation (6) | Water (7) | Pollution (8) | Circular Economy (9) | Biodiversity (10) | Climate Change Mitigation (11) | Climate Change Adaptation (12) | Water (13) | Pollution (14) | Circular Economy (15) | Biodiversity (16) | Minimum Safeguards (17) | Category enabling activity (19) | Category transitional activity (20) | |
Text | Currency | % | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T | |
A. TAXONOMY-ELIGIBLE ACTIVITIES | |||||||||||||||||||
A.1 Environmentally sustainable activities (Taxonomy-aligned) | |||||||||||||||||||
Opex of environmentally sustainable activities (Taxonomy- aligned) (A.1) | - | 0.0% | 0.0% | ||||||||||||||||
Of which Enabling | - | 0.0% | 0.0% | E | |||||||||||||||
Of which Transitional | - | 0.0% | 0.0% | T | |||||||||||||||
A.2 Taxonomy Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g) | |||||||||||||||||||
EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | ||||||||||||||
Data processing, hosting and related activities | CCM 8.1 | 32 | 0.1% | 0.0% | |||||||||||||||
Opex of Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 32 | 0.1% | 0.0% | ||||||||||||||||
A. Opex of Taxonomy eligible activities (A.1+A.2) | 32 | 0.1% | 0.0% | ||||||||||||||||
B. TAXONOMY NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
Opex of Taxonomy non-eligible activities | 41,783 | 99.9% | |||||||||||||||||
TOTAL | 41,815 | 100% | |||||||||||||||||
Financial Year N | Year | Substantial Contribution Criteria | DNSH criteria (Does Not Significantly Harm) (h) | ||||||||||||||||
Economic Activities (1) | Code (2) (a) | CapEx (3) | Proportion of CapEx, year N (4) | Climate Change Mitigation (5) | Climate Change Adaptation (6) | Water (7) | Pollution (8) | Circular Economy (9) | Biodiversity (10) | Climate Change Mitigation (11) | Climate Change Adaptation (12) | Water (13) | Pollution (14) | Circular Economy (15) | Biodiversity (16) | Minimum Safeguards (17) | Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) CapEx, year N-1 (18) | Category enabling activity (19) | Category transitional activity (20) |
Text | Currency | % | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T | |
A. TAXONOMY-ELIGIBLE ACTIVITIES | |||||||||||||||||||
A.1 Environmentally sustainable activities (Taxonomy-aligned) | |||||||||||||||||||
Acquisition and ownership of buildings | CCM 7.7 | 3,585 | 9.5% | Y | N | N/EL | N/EL | N/EL | N/EL | Y | Y | Y | Y | Y | Y | Y | 8.9% | ||
CapEx of environmentally sustainable activities (Taxonomy- aligned) (A.1) | 3,585 | 9.5% | 8.9% | ||||||||||||||||
Of which Enabling | - | 0.0% | 0.0% | E | |||||||||||||||
Of which Transitional | - | 0.0% | 0.0% | T | |||||||||||||||
A.2 Taxonomy Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g) | |||||||||||||||||||
EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | ||||||||||||||
Acquisition and ownership of buildings | CCM 7.7 | 7,277 | 19.2% | 37.3% | |||||||||||||||
CapEx of Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 7,277 | 19.2% | 37.3% | ||||||||||||||||
A. CapEx of Taxonomy eligible activities (A.1+A.2) | 10,863 | 28.7% | 46.2% | ||||||||||||||||
B. TAXONOMY NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
CapEx of Taxonomy non-eligible activities | 27,048 | 71.3% | |||||||||||||||||
TOTAL | 37,911 | 100.0% | |||||||||||||||||
Financial Year N | Year | Substantial Contribution Criteria | DNSH criteria (Does Not Significantly Harm) (h) | ||||||||||||||||
Economic Activities (1) | Code (2) (a) | Turnover (3) | Proportion of Turnover, year N (4) | Climate Change Mitigation (5) | Climate Change Adaptation (6) | Water (7) | Pollution (8) | Circular Economy (9) | Biodiversity (10) | Climate Change Mitigation (11) | Climate Change Adaptation (12) | Water (13) | Pollution (14) | Circular Economy (15) | Biodiversity (16) | Minimum Safeguards (17) | Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) Turnover, year N-1 (18) | Category enabling activity (19) | Category transitional activity (20) |
Text | Currency | % | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y; N; N/EL (b) (c) | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T | |
A. TAXONOMY-ELIGIBLE ACTIVITIES | |||||||||||||||||||
A.1 Environmentally sustainable activities (Taxonomy-aligned) | |||||||||||||||||||
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) | - | 0.0% | 0.0% | ||||||||||||||||
Of which Enabling | - | 0.0% | 0.0% | E | |||||||||||||||
Of which Transitional | - | 0.0% | 0.0% | T | |||||||||||||||
A.2 Taxonomy Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g) | |||||||||||||||||||
EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | EL; N/ EL (f) | ||||||||||||||
Data processing, hosting and related activities | CCM 8.1 | 284 | 0.1% | 0.0% | |||||||||||||||
Turnover of Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 284 | 0.1% | 0.0% | ||||||||||||||||
A. Turnover of Taxonomy eligible activities (A.1+A.2) | 284 | 0.1% | 0.0% | ||||||||||||||||
B. TAXONOMY NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
Turnover of Taxonomy non-eligible activities | 511,131 | 99.9% | |||||||||||||||||
TOTAL | 511,415 | 100.0% | |||||||||||||||||
Row | Nuclear energy related activities | |
1 | The undertaking carries out, funds, or has exposure to research, development, demonstration, and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | No |
2 | The undertaking carries out, funds, or has exposure to the construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using the best available technologies. | No |
3 | The undertaking carries out, funds, or has exposure to the safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | No |
Fossil gas-related activities | ||
4 | The undertaking carries out, funds, or has exposure to the construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | No |
5 | The undertaking carries out, funds, or has exposure to the construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | No |
6 | The undertaking carries out, funds, or has exposure to the construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | No |
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Organizational transformation processes | Actual negative impact | l | l | l | |||
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Gaps in representation and equal opportunity | Potential negative impact | l | l | l | l | ||
Decentralized skill development | Potential negative impact | l | l | l | |||
Strategic talent development & career planning | Opportunity | l | l | l | |||
2024 | |
Employee turnover rate | 7% |
Number of employees who left voluntarily | 101 |
Gender | Number of employees (head count) |
Male | 1133 |
Female | 238 |
Other | 0 |
Not reported | 0 |
Total employees | 1371 |
Country | Number of employees (head count) |
Norway | 564 |
Finland | 305 |
Poland | 112 |
UK | 49 |
Taiwan | 59 |
USA | 62 |
India | 48 |
Sweden | 34 |
Germany | 5 |
China | 28 |
Hong Kong | 12 |
Japan | 5 |
South Korea | 4 |
Singapore | 8 |
Philippines | 62 |
Denmark | 3 |
Australia | 2 |
Netherlands | 2 |
France | 2 |
Spain | 3 |
Canada | 1 |
Bulgaria | 1 |
Female | Male | Other | Not disclosed | Total | |
Number of employees (head count) | 238 | 1133 | 0 | 0 | 1371 |
Number of permanent employees (head count) | 235 | 1128 | 0 | 0 | 1363 |
Number of temporary employees (head count) | 3 | 5 | 0 | 0 | 8 |
Number of non-guaranteed hours employees (head count) | 0 | 0 | 0 | 0 | 0 |
Number of full-time employees (head count) | 228 | 1105 | 0 | 0 | 1333 |
Number of part-time employees (head count) | 7 | 23 | 0 | 0 | 30 |
2024 | |
Total number of non-employees | 51 |
2024 | |
Gender diversity | |
Women in top management | 1 (9%) |
Distribution of employees by age group | |
Under 30 years old | 13% |
Between 30-50 years old | 65% |
Over 50 years old | 22% |
2024 | |
Employees entitled to parental leave | 100% |
Entitled employees who took parental leave | 4% |
of which % were men | 71% |
of which % were women | 29% |
Category | Male | Female | Gender pay ratio |
Overall (excl. EMT) | 1117 | 234 | 75% |
Executive Management Team | 10 | 2 | 78% |
Business Support | 67 | 45 | 81% |
R&D | 891 | 116 | 81% |
Sales | 107 | 29 | 76% |
Supply Chain | 54 | 42 | 46% |
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Labor rights and safety risks in the upstream supply chain | Potential negative impact | l | l | l | |||
Gender disparities in Tier 1 factories | Potential negative impact | l | l | l | l | ||
Unsafe working conditions for transport workers | Potential negative impact | l | l | l | |||
Worker safety and forced labor risks in Tier 1 suppliers | Potential negative impact | l | l | l | |||
Metric | 2024 value | Methodology & Limitations | External validation |
Supplier assessment coverage | Batch 1: 8 Batch 2: 10 | Based on the supplier management system using KPMG's HRDD tool for risk assessment; self- reported data | None |
RBA Code commitment | 100% | Direct verification of signed commitments; measures commitment only | RBA membership verification |
RMI membership | 70% | RMI member directory verification | RMI verification |
Conflict minerals reporting | 100% | RMI reporting template completion; based on supplier declarations | RMI conformant smelter verification |
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Enhancing sustainability for customers with low-energy products | Potential positive impact and opportunity | l | l | l | l | l | l |
Product security vulnerabilities expose users to cyber risks | Risk | l | l | l | |||
Location in the value chain | Time horizon | ||||||
Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
Building a strong and transparent corporate culture | Opportunity | l | l | l | |||
Cybersecurity risks across the value chain | Risk and Potential negative impact | l | l | l | l | l | |
Protecting whistleblowers from retaliation risks | Potential negative impact | l | l | l | |||
Corruption risks in global operations and partnerships | Risk | l | l | l | l | l | |
Mitigating reputational damage through corporate culture development | Risk | l | l | l | |||
Indicator | 2024 |
Convictions for anti-corruption law violations | 0 |
Fines for anti-corruption law violations (EUR) | 0 |
Confirmed incidents of corruption or bribery | 0 |
Employee dismissals/discipline for corruption | 0 |
Business partner contracts terminated due to corruption | 0 |
Public legal cases regarding corruption | 0 |
Metric | 2024 | Target |
Security awareness campaign completion rate (%) | 96 | 90 |
Security incidents by severity*: | ||
- High | 0 + 10soc | NA |
- Medium | 1 + 24soc | NA |
- Low | 0 + 24soc | NA |
Oslo, March 19, 2025 | ||
Anita Huun | Birger Steen | Inger Berg Ørstavik |
Board member, Audit Com. Chair | Chair | Board member, Sustainability Com. Chair |
Snorre Kjesbu | Vegard Wollan | Annastiina Hintsa |
Board member | Chief Executive Officer | Board member, People and Compensation Com. Chair |
Jon Helge Nistad | Anja Dekens | Morten Dammen |
Board member, employee | Board member, employee | Board member, employee |
Dieter May | Dr. Helmut Gassel | Monika Lie Larsen |
Board member | Board member | Board member, employee |
GROUP | PARENT | |||||
2024 | 2023 | Amount in USD 1000 | Note | 2024 | 2023 | |
Total Revenue | 5 | 477 595 | 508 026 | |||
- | - | Cost of materials | 6 | -269 415 | -259 158 | |
Gross profit | 208 179 | 248 868 | ||||
- | - | Payroll expenses | 7/8/12/22 | -73 026 | -61 443 | |
- | - | Other operating expenses | 9/13 | -176 714 | -174 914 | |
- | - | Depreciation, amortization and impairments | 6/13/12/14 | -27 989 | -33 710 | |
- | Operating profit | -69 550 | -21 199 | |||
- | Share of profit from associates | 15 | -260 | 0 | ||
Financial income | 10/25/26 | 22 078 | 9 361 | |||
- | - | Financial expenses | 10/14/25/26 | -12 175 | -3 364 | |
Net foreign exchange gains (losses) | 10/25 | 4 022 | 1 362 | |||
- | Profit before tax | -55 885 | -13 841 | |||
- | Income tax expense | 11 | 8 107 | -2 116 | ||
- | Net profit after tax | -47 779 | -15 957 | |||
Attributable to: | ||||||
- | Equity holders of the parent | -47 779 | -15 957 | |||
- | Ordinary earnings per share (USD) | 21 | -0.25 | -0.08 | ||
- | Fully diluted earnings per share (USD) | 21 | -0.25 | -0.08 | ||
2024 | 2023 | Statement of comprehensive income | 2024 | 2023 | ||
- | Net profit after tax | -47 779 | -15 957 | |||
- | - | Actuarial gains (losses) on defined benefit plans (before tax) | -132 | -37 | ||
Income tax effect | 11 | 29 | 8 | |||
- | - | Items that may not be reclassified to the income statement | -103 | -29 | ||
- | Currency translation differences | |||||
- | Items that may be reclassified to the income statement | |||||
- | Other comprehensive income | -103 | -29 | |||
- | Total Comprehensive Income | -47 882 | -15 986 | |||
Attributable to: | ||||||
- | Equity holders of the parent | -47 882 | -15 986 | |||
GROUP | PARENT | ||||
2024 | 2023 | Amount in USD 1000 | Note | 2024 | 2023 |
ASSETS | |||||
Non-current assets | |||||
Goodwill | 12 | 249 | 249 | ||
Capitalized development expenses | 12 | 50 076 | 38 938 | ||
Software and other intangible assets | 12 | 12 610 | 17 010 | ||
Deferred tax assets | 11 | 12 181 | 4 948 | ||
Right of use assets | 14 | 43 288 | 45 527 | ||
Fixed assets | 13/25/26 | 15 329 | 18 498 | ||
Investments in subsidiaries and joint ventures | 1/15 | 13 799 | 13 629 | ||
Other long term assets | 14/16 | 91 140 | 94 473 | ||
Total non-current assets | 238 672 | 233 271 | |||
Current assets | |||||
Inventory | 6 | 171 907 | 163 090 | ||
Accounts receivable | 17/25/26 | 1 037 | 983 | ||
Other current receivables | 16/18/25/26 | 123 914 | 128 785 | ||
Cash and cash equivalents | 19/25/26 | 185 633 | 267 553 | ||
Total current assets | 482 490 | 560 411 | |||
TOTAL ASSETS | 721 162 | 793 682 | |||
EQUITY | |||||
Share Capital | 20 | 317 | 317 | ||
Share premium | 20 | 235 448 | 235 448 | ||
Other components of equity | 279 286 | 319 117 | |||
Total equity | 515 052 | 554 883 | |||
LIABILITIES | |||||
Non-current liabilities | |||||
Pension liabilities | 22 | 578 | 403 | ||
Borrowings | 25/26 | 87 336 | 97 491 | ||
Non-current lease liabilities | 14/25/26 | 38 957 | 42 127 | ||
Total non-current liabilities | 126 870 | 140 021 | |||
Current liabilities | |||||
Accounts payable | 24/25/26 | 22 903 | 15 403 | ||
Income taxes payable | 11/26 | 0 | 3 939 | ||
Public duties | 24/26 | 4 577 | 4 579 | ||
Current lease liabilities | 14/25/26 | 5 865 | 5 963 | ||
Other current liabilities | 18/24/25/26 | 45 895 | 68 894 | ||
Total current liabilities | 79 240 | 98 778 | |||
Total liabilities | 206 110 | 238 799 | |||
TOTAL EQUITY AND LIABILITIES | 721 162 | 793 682 |
Oslo, March 19, 2025 | ||
Anita Huun | Birger Steen | Inger Berg Ørstavik |
Board member, Audit Com. Chair | Chair | Board member, Sustainability Com. Chair |
Snorre Kjesbu | Vegard Wollan | Annastiina Hintsa |
Board member | Chief Executive Officer | Board member, People and Compensation Com. Chair |
Jon Helge Nistad | Anja Dekens | Morten Dammen |
Board member, employee | Board member, employee | Board member, employee |
Dieter May | Dr. Helmut Gassel | Monika Lie Larsen |
Board member | Board member | Board member, employee |
Amount in USD 1000 | Share capital | Treasury shares | Share premium | Other paid in capital | Currency translation reserve | Retained earnings | Total equity |
Equity as of 01.01.2023 | - | - | |||||
Net profit for the period | |||||||
Other comprehensive income | - | ||||||
Share based compensation | 0 | ||||||
Consideration shares in business combination | 0 | ||||||
Equity as of 31.12.2023 | - | - | |||||
Net profit for the period | - | - | |||||
Other comprehensive income | - | - | - | ||||
Share based compensation | 0 | ||||||
Consideration shares in business combination | 0 | ||||||
Repurchase of own shares | 0 | - | - | ||||
Equity as of 31.12.2024 | - | - |
Amount in USD 1000 | Share capital | Treasury shares | Share premium | Other paid in capital | Retained earnings | Total equity |
Equity as of 01.01.2023 | 317 | -2 | 235 448 | 3 456 | 321 856 | 561 074 |
Net profit for the period | -15 957 | -15 957 | ||||
Other comprehensive income | -29 | -29 | ||||
Share based compensation | 0 | 6 652 | 6 652 | |||
Consideration shares in business combination | 0 | 3 141 | 3 142 | |||
Equity as of 31.12.2023 | 317 | -1 | 235 448 | 13 250 | 305 870 | 554 883 |
Net profit for the period | -47 779 | -47 779 | ||||
Other comprehensive income | -103 | -103 | ||||
Share based compensation | 0 | 11 499 | 11 499 | |||
Repurchase of own shares | 0 | -3 808 | -3 808 | |||
Consideration shares in business combination | 0 | 359 | 359 | |||
Equity as of 31.12.2024 | 317 | -1 | 235 448 | 25 107 | 254 181 | 515 052 |
GROUP | PARENT | ||||
2024 | 2023 * | Amount in USD 1000 | Note | 2024 | 2023 |
Cash flows from operating activities | |||||
- | Profit before tax | -55 885 | -13 841 | ||
- | - | Taxes paid for the period | 11 | -3 717 | -40 300 |
Depreciation and amortization | 13/12/14 | 27 989 | 33 710 | ||
- | Change in inventories, trade receivables and payables | 6/17/24/25 | -18 904 | 119 359 | |
Share-based compensation | 11 084 | 6 582 | |||
- | Pension fund payments | 175 | -27 | ||
- | Net interest | -9 904 | -5 997 | ||
Interests received | 10 895 | 8 564 | |||
- | Prepayments | 0 | -100 000 | ||
- | - | Other operations related adjustments | 1 352 | -152 145 | |
- | Net cash flows from operating activities | -36 915 | -144 096 | ||
Cash flows used in investing activities | |||||
- | - | Capital expenditures (including software) | 13/12 | -7 225 | -19 440 |
- | - | Capitalized development expenses | 12 | -19 343 | -21 973 |
- | - | Investment in associate company | -431 | -4 362 | |
- | Business Combination, net of cash acquired | 27 | 0 | 0 | |
- | - | Net cash flows used in investing activities | -26 998 | -45 775 | |
Cash flows from financing activities | |||||
- | Repurchase of treasury shares | 20 | -3 808 | 0 | |
Dividend from subsidiary | 10 830 | 0 | |||
Proceeds from bond issue | 0 | 92 935 | |||
- | Payment of interest | -7 353 | 0 | ||
- | - | Payment of principal portion of lease liabilities | -3 071 | -3 181 | |
- | - | Payment of interest portion of lease liabilities | -2 958 | -1 229 | |
- | - | Credit facility fee | -1 120 | -811 | |
- | Net cash flows from financing activities | -7 480 | 87 714 | ||
- | Effects of exchange rate changes on cash and cash equivalents | -10 527 | 0 | ||
- | - | Net change in cash and cash equivalents | -81 919 | -102 157 | |
Cash and cash equivalents as of 1.1. | 267 553 | 369 709 | |||
Cash and cash equivalents as of 31.12. | 19/25 | 185 633 | 267 553 | ||
GROUP | PARENT | |||
2024 | 2023 | Revenue | 2024 | 2023 |
337 150 | 302 486 | Consumer | 314 854 | 283 076 |
93 535 | 117 203 | Industrial | 87 349 | 109 682 |
65 313 | 103 325 | Healthcare | 60 994 | 96 695 |
12 869 | 15 153 | Other | 12 018 | 14 181 |
508 868 | 538 168 | Wireless components | 475 215 | 503 634 |
2 547 | 4 701 | ASIC components | 2 379 | 4 399 |
— | — | Management fee | — | -9 |
511 415 | 542 869 | Total revenue from contracts with customers | 477 595 | 508 026 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
35 438 | 59 933 | Europe | 33 094 | 56 086 |
84 717 | 120 571 | Americas | 79 114 | 112 833 |
391 260 | 362 365 | Asia/Pacific | 365 386 | 339 107 |
511 415 | 542 869 | Total revenue from contracts with customers | 477 595 | 508 026 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
511 415 | 542 869 | Goods transferred at a point in time | 477 595 | 508 035 |
— | — | Services transferred over time | — | -9 |
511 415 | 542 869 | Total revenue from contracts with customers | 477 595 | 508 026 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
66 412 | 133 316 | Trade receivables | 1 037 | 983 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
22 363 | 30 010 | Refund liability – from ship & debit | — | — |
3 679 | 25 294 | Refund liability – from end-customer rebates | — | — |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
266 413 | 316 788 | Purchased materials | 266 382 | 316 788 |
-8 817 | -60 999 | Changes in inventory | -8 817 | -60 999 |
11 850 | 3 368 | Write-down in inventory | 11 850 | 3 368 |
269 446 | 259 157 | Cost of materials | 269 415 | 259 157 |
89 615 | 95 043 | Raw materials | 89 615 | 95 043 |
35 435 | 9 907 | Work in Progress | 35 435 | 9 907 |
46 857 | 58 139 | Finished goods | 46 857 | 58 139 |
171 907 | 163 090 | Total inventory | 171 907 | 163 090 |
GROUP | PARENT | |||
2024 | 2023 | Combined expenses for salary and other compensation are distributed as follows: | 2024 | 2023 |
137 679 | 126 961 | Salary and vacation pay | 55 930 | 53 728 |
20 737 | 18 845 | Other compensation | 16 366 | 12 937 |
14 429 | 14 759 | Payroll tax | 9 889 | 9 217 |
— | -397 | Tax grant | — | -397 |
11 175 | 11 502 | Defined contribution pension | 4 541 | 4 639 |
-13 699 | -18 680 | Capitalized development expenses (hourly costs) | -13 699 | -18 680 |
170 321 | 152 990 | Total | 73 026 | 61 443 |
1 405 | 1 481 | Weighted average number of full time employees | 579 | 620 |
GROUP | PARENT | |||
2024 | 2023 | Employees as of December 31, are distributed as follows: | 2024 | 2023 |
558 | 631 | Norway | 558 | 631 |
304 | 318 | Finland | — | — |
112 | 113 | Poland | — | — |
48 | 47 | India | — | — |
62 | 72 | USA | — | — |
58 | 55 | Taiwan | — | — |
49 | 77 | UK | — | — |
62 | 55 | Philippines | 1 | 1 |
34 | 45 | Sweden | — | — |
28 | 28 | China | — | — |
12 | 12 | Hong Kong | 1 | 1 |
4 | 3 | South Korea | 3 | 3 |
5 | 5 | Germany | — | — |
5 | 5 | Japan | — | — |
2 | 2 | The Netherlands | 2 | 2 |
3 | 16 | Denmark | — | — |
2 | 2 | Australia | 2 | 2 |
8 | 7 | Singapore | — | — |
1 | Bulgaria | 1 | ||
1 363 | 1 493 | Total | 574 | 640 |
Total compensation* expensed during the year for the CEO and other executives: | ||||||
2024 | Salary | Bonus | RSUs & PSUs | Other Comp. | Pension expenses | Total |
Vegard Wollan, CEO** | 358 | 158 | 157 | 3 | 70 | 747 |
Pål Elstad, CFO/EVP Finance | 246 | 78 | 109 | 3 | 43 | 479 |
Svein Egil Nielsen, CTO/EVP R&D and Strategy | 618 | — | -204 | 1 | 33 | 448 |
Geir Langeland, EVP Sales & Marketing | 262 | 93 | 121 | 4 | 42 | 521 |
Ole Fredrik Morken, EVP Supply Chain*** | 273 | 74 | 88 | 5 | 34 | 474 |
Ståle Ytterdal, SVP IR & Strategic Sales | 165 | 51 | 71 | 4 | 23 | 314 |
Kjetil Holstad, EVP Product Management | 233 | 74 | 97 | 4 | 44 | 452 |
Katarina Finneng, EVP People & Communication | 257 | 43 | -73 | 2 | 33 | 263 |
Sonja Kusmin, SVP People & Culture | 150 | 31 | 33 | 0 | 28 | 243 |
Linda Pettersson, SVP Legal & Compliance | 50 | — | -20 | 0 | 4 | 35 |
Ola Boström, SVP Quality & Sustainability | 164 | 51 | 57 | 2 | 24 | 298 |
Joakim Ferm, SVP BU WI-FI | 145 | 43 | 38 | 4 | 20 | 250 |
Øyvind Strøm, EVP BU Short-Range | 155 | 57 | 29 | 1 | 29 | 272 |
Øyvind Birkenes, EVP BU Long-Range | 163 | 59 | 29 | 4 | 30 | 284 |
Total | 3 239 | 812 | 532 | 37 | 458 | 5 079 |
2023 | Salary | Bonus | RSUs & PSUs | Other Comp. | Pension expenses | Total |
Svenn-Tore Larsen, CEO** | 1 707 | — | -66 | 1 | 73 | 1 716 |
Pål Elstad, CFO/EVP Finance | 250 | — | 104 | 3 | 39 | 397 |
Svein Egil Nielsen, CTO/EVP R&D and Strategy | 283 | — | 117 | 5 | 46 | 450 |
Geir Langeland, EVP Sales & Marketing | 266 | — | 128 | 4 | 42 | 440 |
Ole Fredrik Morken, EVP Supply Chain*** | 241 | — | 79 | 3 | 27 | 351 |
Ståle Ytterdal, SVP IR & Strategic Sales | 168 | — | 69 | 3 | 22 | 262 |
Kjetil Holstad, EVP Product Management | 213 | — | 79 | 4 | 26 | 322 |
Katarina Finneng, EVP People & Communication | 209 | — | 86 | 3 | 31 | 329 |
Linda Pettersson, SVP Legal & Compliance**** | 154 | — | 16 | 1 | 20 | 192 |
Ola Boström, SVP Quality & Sustainability**** | 165 | — | 34 | 3 | 20 | 222 |
Total | 3 656 | — | 646 | 31 | 349 | 4 681 |
The Group has granted EMT members the following RSUs and performance shares (PSUs):* | ||||
EMT member | 2024 | 2023 | ||
Vegard Vollan, CEO | 10 493 RSUs | 10 493 PSUs | 11 240 RSUs | 11 240 PSUs |
Svenn-Tore Larsen, CEO | — | — | 9 184 RSUs | 9 184 PSUs |
Pål Elstad, CFO/EVP Finance | 4 830 RSUs | 4 830 PSUs | 4 520 RSUs | 4 520 PSUs |
Katarina Finneng, EVP People & Communication | 4 028 RSUs | 4 028 PSUs | 3 769 RSUs | 3 769 PSUs |
Svein Egil Nielsen, CTO/EVP R&D and Strategy | 5 110 RSUs | 5 110 PSUs | ||
Geir Langeland, EVP Sales & Marketing | 5 112 RSUs | 5 112 PSUs | 4 783 RSUs | 4 783 PSUs |
Ole Fredrik Morken, EVP Supply Chain** | 4 629 RSUs | 4 629 PSUs | 3 439 RSUs | 3 439 PSUs |
Ståle Ytterdal, SVP IR & Strategic Sales | 3 158 RSUs | 3 158 PSUs | 2 955 RSUs | 2 955 PSUs |
Kjetil Holstad, EVP Product Management | 4 629 RSUs | 4 629 PSUs | 4 332 RSUs | 4 332 PSUs |
Ola Bostøm, SCP Quality & Sustainability | 3 148 RSUs | 3 148 PSUs | 2 946 RSUs | 2 946 PSUs |
Linda Petterson, SVP Legal | 2 823 RSUs | 2 823 PSUs | ||
Joakim Ferm, SVP BU WI-FI | 3 148 RSUs | 3 148 PSUs | ||
Øyvind Strøm, EVP BU Short-Range | 5 000 RSUs | 5 000 PSUs | ||
Øyvind Birkenes, EVP BU Long-Range | 5 000 RSUs | 5 000 PSUs | ||
Sonja Kusmin, SVP People & Culture | 2 203 RSUs | 1 000 PSUs | ||
Executives | Grant year | Number of RSU Exercised | Share price at time of release in NOK | Cash payout in USD 1000 |
Pål Elstad, CFO/EVP Finance | 2021 RSU | 3 056 | 127.74 | 37 |
2021 PSU | — | — | ||
Geir Langeland, EVP Sales & Marketing | 2021 RSU | 6 621 | 127.74 | 74 |
2021 PSU | — | — | ||
Katarina Finneng, EVP People & Communication | 2021 RSU | 2 524 | 127.74 | 30 |
2021 PSU | — | — | ||
Ole Fredrik Morken, EVP Supply Chain** | 2021 RSU | 2 325 | 127.74 | 28 |
2021 PSU | — | — | ||
Ola Bostrøm, SVP Quality & Sustainability | 2021 RSU | 2 381 | 127.74 | 29 |
2021 PSU | — | — | ||
Ståle Ytterdal, SVP IR & Strategic Sales | 2021 RSU | 2 066 | 127.74 | 25 |
2021 PSU | — | — | ||
Kjetil Holstad, EVP Product Management | 2021 RSU | 2 156 | 127.74 | 26 |
2021 PSU | — | — | — |
Total compensation expensed for Board Members* | 2024 | 2023 |
Birger Steen, Chair | 128 | 126 |
Inger Berg Ørstavik, Board Member | 62 | 57 |
Endre Holen, Board Member | — | 18 |
Snorre Kjesbu, Board member | 62 | 38 |
Jan Magnus Frykhammar, Board Member | — | 41 |
Øyvind Birkenes, Board Member | — | 12 |
Annastiina Hintsa, Board Member | 61 | 56 |
Anita Huun, Board Member | 62 | 60 |
Helmut Gassel, Board Member | 49 | 0 |
Dieter May, Board Member | 49 | 0 |
Jon Helge Nistad, Board Employee Representative (Board remuneration only) | 15 | 15 |
Morten Dammen, Board Employee Representative (Board remuneration only) | 15 | 15 |
Anja Dekens, Board Employee Representative (Board remuneration only) | 15 | 15 |
Gro Fykse, Board Employee Representative (Board remuneration only) | 0 | 15 |
Krishna Shingala, Board Employee Representative (Board remuneration only) | 5 | 0 |
Total | 524 | 466 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
30 284 | 31 374 | Service and maintenance | 26 132 | 29 094 |
18 031 | 22 360 | Other consultancy fees | 15 409 | 15 470 |
3 582 | 3 140 | Office expenses | 2 456 | 1 349 |
1 138 | 1 748 | Office equipment | 815 | 1 201 |
12 297 | 11 746 | Material and components | 11 790 | 8 747 |
— | -70 | Tax grant | — | -70 |
-5 643 | -3 293 | Capitalized development expenses | -5 643 | -3 293 |
3 115 | 2 712 | Travel and meeting expenses | 1 322 | 1 262 |
14 076 | 11 974 | Other operating expenses | 9 145 | 10 751 |
— | — | Other operating expenses intercompany | 115 287 | 110 402 |
76 880 | 81 691 | Total other operating expenses | 176 714 | 174 914 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
309 | 159 | Audit services | 216 | 119 |
95 | — | Other attestation Services/CSRD | 95 | — |
22 | 35 | Tax advisory Services | 5 | 26 |
26 | 36 | Other Non Audit service | 26 | 36 |
451 | 230 | Total audit fee | 341 | 181 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
11 079 | 9 670 | Interest income | 11 150 | 9 313 |
40 | — | Interest income on lease receivables | 40 | — |
— | — | Dividend received from group companies | 10 830 | — |
58 | 57 | Other financial income | 58 | 48 |
11 177 | 9 726 | Financial income | 22 078 | 9 361 |
3 514 | 1 550 | Interest expenses on lease liabilities | 2 958 | 1 229 |
— | — | Interest expenses on intercompany loans | 668 | — |
7 239 | 756 | Bond interest expense | 7 239 | 756 |
1 366 | 1 384 | Other financial expense | 1 310 | 1 380 |
12 119 | 3 690 | Financial expense | 12 176 | 3 365 |
3 819 | 1 358 | Foreign exchange gain(loss) | 4 022 | 1 362 |
-260 | — | Share of gain (loss) from joint venture | -260 | — |
2 617 | 7 394 | Net financial | 13 665 | 7 358 |
GROUP | PARENT | |||
2024 | 2023 | Tax consists of | 2024 | 2023 |
4 294 | 6 339 | Current tax expense | 251 | 3 366 |
-8 979 | -1 892 | Change in deferred tax | -8 358 | -1 251 |
-4 685 | 4 447 | Tax expense (income) | -8 107 | 2 115 |
GROUP | PARENT | |||
2024 | 2023 | Reconciliation of nominal and actual tax expense | 2024 | 2023 |
-43 189 | 12 096 | Profit before tax | -55 885 | -13 841 |
-9 502 | 2 661 | Computed tax at parent's nominal tax rate of 22% | -12 295 | -3 045 |
-722 | -702 | Differences due to different tax rates | — | — |
1 702 | 1 256 | Non taxable income/non deductible expenses | -863 | 360 |
— | — | Credit for tax paid | — | — |
-1 373 | -2 646 | Tax incentives | — | — |
-170 | -1 082 | Adjustment previous years | 291 | -392 |
4 902 | 4 960 | Currency translation differences | 4 760 | 5 193 |
478 | — | Other items | — | — |
-4 685 | 4 447 | Total tax expense (income) | -8 107 | 2 116 |
GROUP | ||||||
Deferred taxes: | Balance sheet | Income statement | Other. Comp. income | |||
31.12.2024 | 31.12.2023 | 2024 | 2023 | 2024 | 2023 | |
Inventory | 2 593 | 751 | -2 063 | -17 | — | — |
Fixed Assets | 4 302 | 4 188 | -616 | -1 167 | — | — |
Right-of-use assets | -9 511 | -10 394 | 214 | 8 031 | — | — |
Lease liabilities | 9 965 | 10 606 | -496 | -8 071 | — | — |
Social security tax (RSUs) | 176 | 130 | -63 | 145 | — | — |
Pension obligation | 127 | 89 | -51 | 3 | -29 | -8 |
Financial instruments | — | — | — | -57 | — | — |
Accruals | 84 | 202 | 33 | 120 | — | — |
Deferred tax benefit - gross | 7 746 | 5 890 | -3 152 | -1 985 | -29 | -8 |
Gain and loss account | -13 | 18 | -4 | 5 | — | — |
Net other tax-obligations | — | — | — | 0 | — | — |
Financial instrument | 5 364 | 0 | -5 765 | 0 | — | — |
Deferred tax obligation - gross | 5 351 | 18 | -5 769 | 5 | 0 | 0 |
Currency effect of translation to USD | -58 | 98 | ||||
Net deferred tax benefit (obligation) | 13 097 | 5 872 | ||||
Deferred tax expense (income) | -8 979 | -1 892 | -29 | -8 | ||
PARENT | ||||||
Deferred taxes: | Balance sheet | Income statement | Other. Comp. income | |||
31.12.2024 | 31.12.2023 | 2024 | 2023 | 2024 | 2023 | |
Inventory | 2 593 | 751 | -2 064 | -17 | — | — |
Fixed assets | 3 453 | 3 774 | -77 | -1 026 | — | — |
Leasing | 451 | 209 | -283 | -42 | — | — |
Social security tax (RSUs) | 176 | 130 | -64 | 145 | — | — |
Pension obligation | 127 | 89 | -51 | 3 | -29 | -8 |
Financial instrument | — | — | — | -57 | — | — |
Accruals | 30 | 13 | -19 | 16 | — | — |
Deferred tax benefit - gross | 6 830 | 4 967 | -2 558 | -978 | -29 | -8 |
Gain and loss account | -13 | -18 | -3 | -5 | — | — |
Net other tax-obligations | — | — | 30 | -276 | — | — |
Financial instrument | 5 364 | — | -5 765 | — | — | — |
Deferred tax obligation - gross | 5 351 | -18 | -5 738 | -281 | 0 | 0 |
Currency effect of translation to USD | -62 | 8 | ||||
Net deferred tax benefit (obligation) | 12 181 | 4 948 | ||||
Deferred tax expense (income) | -8 358 | -1 251 | -29 | -8 | ||
GROUP | PARENT | |||
2024 | 2023 | Reconciliation of net deferred tax obligation | 2024 | 2023 |
5 872 | 4 554 | Opening balance as of 1.1 | 4 948 | 3 808 |
8 979 | 1 892 | Tax expense recognized in the P&L | 8 358 | 1 251 |
29 | 8 | Tax expense recognized in OCI | 29 | 8 |
-1 783 | -582 | Currency effect from translation to USD | -1 154 | -119 |
13 097 | 5 872 | Net deferred tax benefit (obligation) as of 31.12 | 12 181 | 4 948 |
GROUP | PARENT | |||
2024 | 2023 | Net deferred tax recognized in OCI as of 31.12 | 2024 | 2023 |
-29 | -8 | Net gain on actuarial gains and losses | -29 | -8 |
-29 | -8 | Total tax expense (income) in OCI | -29 | -8 |
Valuation | Value |
Market value | 1 705 649 |
Book value | 569 766 |
GROUP | ||||
2024 | Software and other intangible assets | Capitalized development expenses | Goodwill | Total |
Acquisition cost | ||||
Opening balance | 44 731 | 78 988 | 10 891 | 134 611 |
Additions | 2 257 | 19 343 | — | 21 600 |
Currency translation differences | — | — | -11 | -11 |
Acquisition cost as of 31.12 | 46 988 | 98 331 | 10 880 | 156 200 |
Accumulated amortization | ||||
Opening balance | 25 668 | 40 051 | — | 65 719 |
Amortization expenses | 7 203 | 8 205 | — | 15 408 |
Impairment expenses | 431 | — | — | 431 |
Currency translation differences | -77 | — | — | -77 |
Accumulated amortization and impairment as of 31.12 | 33 226 | 48 255 | — | 81 482 |
Net carrying value as of 31.12 | 13 762 | 50 076 | 10 880 | 74 718 |
PARENT | ||||
2024 | Software and other intangible assets | Capitalized development expenses | Goodwill | Total |
Acquisition cost | ||||
Opening balance | 40 217 | 78 988 | 249 | 119 454 |
Additions | 2 381 | 19 343 | — | 21 723 |
Acquisition cost as of 31.12 | 42 599 | 98 331 | 249 | 141 177 |
Accumulated depreciation | ||||
Opening balance | 23 208 | 40 051 | — | 63 259 |
Amortization expenses | 6 349 | 8 205 | — | 14 554 |
Impairment expenses | 431 | — | — | 431 |
Accumulated amortization and impairment as of 31.12 | 29 989 | 48 255 | — | 78 244 |
Net carrying value as of 31.12 | 12 610 | 50 076 | 249 | 62 936 |
Estimated useful life | 3 - 10 years | 1 - 5 years | No depreciation | |
Depreciation method | Straight-line | Straight-line | NA |
GROUP | R&D expenses: | PARENT |
107 661 | Personnel expenses | 45 641 |
39 722 | Other operating expenses | 33 075 |
147 384 | Total cost recognized in income statement | 78 715 |
166 727 | Total cost for R&D (incl. capitalized development cost) | 98 058 |
GROUP | ||||
2023 | Software and other intangible assets | Capitalized development expenses | Goodwill | Total |
Acquisition cost | ||||
Opening balance | 31 121 | 57 015 | 2 284 | 90 420 |
Additions | 11 520 | 21 973 | 50 | 33 544 |
Acquisition cost as of 31.12 | 44 731 | 78 986 | 10 891 | 134 612 |
Accumulated depreciation | ||||
Opening balance | 19 466 | 30 408 | — | 49 874 |
Amortization expenses | 6 202 | 9 644 | — | 15 847 |
Accumulated amortization as of 31.12 | 25 668 | 40 051 | — | 65 719 |
Net carrying value as of 31.12 | 19 063 | 38 938 | 10 891 | 68 892 |
PARENT | ||||
2023 | Software and other intangible assets | Capitalized development expenses | Goodwill | Total |
Acquisition cost | ||||
Opening balance | 28 839 | 57 015 | 249 | 86 104 |
Additions | 11 378 | 21 973 | — | 33 351 |
Acquisition cost as of 31.12 | 40 217 | 78 988 | 249 | 119 454 |
Accumulated depreciation | ||||
Opening balance | 18 114 | 30 408 | — | 48 522 |
Amortization expenses | 5 094 | 9 644 | — | 14 738 |
Accumulated amortization as of 31.12 | 23 208 | 40 051 | — | 63 259 |
Net carrying value as of 31.12 | 17 010 | 38 938 | 249 | 56 196 |
Estimated useful life | 3 - 10 years | 1 - 5 years | No depreciation | |
Amortization method | Straight-line | Straight-line | NA |
GROUP | R&D expenses: | PARENT |
91 689 | Personnel expenses | 34 641 |
45 476 | Other operating expenses | 36 386 |
137 165 | Total cost recognized in income statement | 71 027 |
159 138 | Total cost for R&D (incl. capitalized development cost) | 93 000 |
GROUP | |||||
2024 | Office and lab equipment | Computer equipment and machinery | Fixture and fittings | Property | Total |
Opening balance | 46 687 | 49 703 | 6 858 | 333 | 103 581 |
Additions | 2 003 | 3 209 | 199 | — | 5 411 |
Disposals | -312 | — | -80 | — | -392 |
Acquisition cost as of 31.12 | 48 378 | 52 913 | 6 977 | 333 | 108 600 |
Opening balance | 33 436 | 37 393 | 3 656 | — | 74 485 |
Depreciation expenses | 7 409 | 5 911 | 1 062 | — | 14 382 |
Disposals | -202 | — | -65 | — | -267 |
Currency translation differences | -1 217 | -668 | -69 | — | -1 954 |
Accumulated depreciation as of 31.12 | 39 426 | 42 636 | 4 584 | — | 86 646 |
Net carrying value as of 31.12 | 8 952 | 10 278 | 2 393 | 333 | 21 955 |
PARENT | |||||
2024 | Office and lab equipment | Computer equipment and machinery | Fixture and fittings | Property | Total |
Opening balance | 21 177 | 45 080 | 3 578 | 333 | 70 168 |
Additions | 1 832 | 3 929 | 86 | — | 5 847 |
Disposals | — | -487 | -80 | — | -566 |
Acquisition cost as of 31.12 | 23 009 | 48 518 | 3 585 | 333 | 75 444 |
Opening balance | 15 724 | 33 873 | 2 074 | — | 51 671 |
Depreciation expenses | 2 538 | 5 701 | 395 | — | 8 635 |
Disposals | — | -126 | -65 | — | -190 |
Accumulated depreciation as of 31.12 | 18 262 | 39 448 | 2 405 | — | 60 116 |
Net carrying value as of 31.12 | 4 746 | 9 070 | 1 180 | 333 | 15 329 |
GROUP | |||||
2023 | Office and lab equipment | Computer equipment and machinery | Fixture and fittings | Property | Total |
Opening balance | 39 843 | 44 673 | 6 138 | 333 | 90 987 |
Additions | 6 823 | 5 017 | 707 | — | 12 546 |
Additions from business combinations | 21 | 14 | 15 | — | 51 |
Acquisition cost as of 31.12 | 46 687 | 49 703 | 6 858 | 333 | 103 580 |
Opening balance | 24 845 | 26 138 | 2 448 | — | 53 431 |
Depreciation expenses | 8 110 | 11 097 | 1 187 | — | 20 389 |
Currency translation differences | 481 | 158 | 22 | — | 661 |
Accumulated depreciation as of 31.12 | 33 436 | 37 393 | 3 656 | — | 74 480 |
Net carrying value as of 31.12 | 13 251 | 12 309 | 3 202 | 333 | 29 095 |
PARENT | |||||
2023 | Office and lab equipment | Computer equipment and machinery | Fixture and fittings | Property | Total |
Opening balance | 18 262 | 40 555 | 2 977 | 333 | 62 126 |
Additions | 2 915 | 4 538 | 861 | — | 8 313 |
Disposals | — | -12 | -259 | — | -271 |
Acquisition cost as of 31.12 | 21 177 | 45 080 | 3 578 | 333 | 70 167 |
Opening balance | 12 212 | 23 127 | 1 517 | — | 36 856 |
Depreciation expenses | 3 512 | 10 751 | 571 | — | 14 835 |
Disposals | — | -5 | -14 | — | -19 |
Accumulated depreciation as of 31.12 | 15 724 | 33 873 | 2 074 | 0 | 51 672 |
Net carrying value as of 31.12 | 5 453 | 11 208 | 1 504 | 333 | 18 498 |
GROUP AND PARENT | |||||
Estimated useful life | 3 - 5 years | 3 - 5 years | 5 years | ||
Depreciation method | Straight-line | Straight-line | Straight-line | No depreciation | |
GROUP | Carrying amount | Contractual cash flow | Less than one year | One to five years | More than five years |
Office space | — | 4 189 | 270 | 2 598 | 1 320 |
Office equipment | — | — | — | — | — |
Total | — | 4 189 | 270 | 2 598 | 1 320 |
PARENT | Carrying amount | Contractual cash flow | Less than one year | One to five years | More than five years |
Office space | — | 3 304 | 194 | 1 931 | 1 179 |
Office equipment | — | — | — | — | — |
Total | — | 3 304 | 194 | 1 931 | 1 179 |
GROUP | Carrying amount | Contractual cash flow | Less than one year | One to five years | More than five years |
Lease payments receivables* | 2 699 | 7 602 | 600 | 4 512 | 2 490 |
Total | 2 699 | 7 602 | 600 | 4 512 | 2 490 |
PARENT | Carrying amount | Contractual cash flow | Less than one year | One to five years | More than five years |
Lease payments receivables* | 2 699 | 7 602 | 600 | 4 512 | 2 490 |
Total | 2 699 | 7 602 | 600 | 4 512 | 2 490 |
GROUP | |||
2024 | Office space | Office equipment and machinery | Total |
Acquisition cost | |||
Opening balance | 83 580 | — | 83 580 |
Additions | 5 488 | 370 | 5 858 |
Adjustments | 5 042 | — | 5 042 |
Net investment in the lease | -2 835 | — | -2 835 |
Acquisition cost as of 31.12 | 91 274 | 370 | 91 645 |
Accumulated depreciation | |||
Opening balance | 28 910 | — | 28 910 |
Depreciation expenses | 8 960 | 74 | 9 034 |
Impairment expenses | 1 318 | — | 1 318 |
Accumulated depreciation and impairment as of 31.12 | 39 187 | 74 | 39 261 |
Net carrying value as of 31.12 | 52 062 | 296 | 52 358 |
PARENT | |||
2024 | Office space | Office equipment and machinery | Total |
Acquisition cost | |||
Opening balance | 63 250 | — | 63 250 |
Additions | 36 | 370 | 407 |
Adjustments | 4 538 | — | 4 538 |
Net investment in finance lease | -2 835 | — | -2 835 |
Acquisition cost as of 31.12 | 64 989 | 370 | 65 360 |
Accumulated depreciation | |||
Opening balance | 17 724 | — | 17 724 |
Depreciation expenses | 4 274 | 74 | 4 348 |
Impairment expenses | — | — | — |
Accumulated depreciation and impairment as of 31.12 | 21 998 | 74 | 22 072 |
Net carrying value as of 31.12 | 42 991 | 296 | 43 288 |
GROUP | |||
2023 | Office space | Office equipment and machinery | Total |
Acquisition cost | |||
Opening balance | 42 286 | — | 42 286 |
Additions | 28 826 | — | 28 826 |
Adjustments | 12 468 | — | 12 468 |
Acquisition cost as of 31.12 | 83 580 | — | 83 580 |
Accumulated depreciation | |||
Opening balance | 20 816 | — | 20 816 |
Depreciation expenses | 8 094 | — | 8 094 |
Accumulated depreciation and impairment as of 31.12 | 28 910 | — | 28 910 |
Net carrying value as of 31.12 | 54 670 | — | 54 670 |
PARENT | |||
2023 | Office space | Office equipment and machinery | Total |
Acquisition cost | |||
Opening balance | 25 662 | — | 25 662 |
Additions | 25 761 | — | 25 761 |
Adjustments | 11 827 | — | 11 827 |
Acquisition cost as of 31.12 | 63 250 | — | 63 250 |
Accumulated depreciation | |||
Opening balance | 13 586 | — | 13 586 |
Depreciation expenses | 4 138 | — | 4 138 |
Accumulated depreciation and impairment as of 31.12 | 17 724 | — | 17 724 |
Net carrying value as of 31.12 | 45 527 | — | 45 527 |
GROUP | PARENT | |
— | Lease payment receivables as of 1 January 2024 | — |
-59 | Lease payments | -59 |
2 825 | Acquisitions and adjustments | 2 825 |
— | Disposals | — |
27 | Interest | 27 |
-94 | Foreign exchange adjustments | -94 |
2 699 | Lease payment receivables as of 31 December 2024 | 2 699 |
GROUP | PARENT | |||
2024 | 2023 | Lease liabilities | 2024 | 2023 |
10 360 | 9 897 | Current | 5 865 | 5 963 |
45 752 | 47 864 | Non-Current | 38 957 | 42 127 |
56 112 | 57 762 | Total lease liabilities | 44 822 | 48 090 |
GROUP | PARENT | |
57 762 | Net liabilities as of 1 January 2024 | 48 090 |
-10 878 | Lease payments | -6 029 |
11 069 | Acquisitions and adjustments | 4 955 |
— | Disposals | — |
3 556 | Interest | 2 958 |
-5 397 | Foreign exchange adjustments | -5 152 |
56 112 | Net liabilities as of 31 December 2024 | 44 821 |
GROUP | PARENT | |||
2024 | 2023 | Other items from operational leases and subleasing | 2024 | 2023 |
59 | — | Income from subleasing right-of-use assets | 59 | — |
27 | — | Interest income from net investment in finance leases | 27 | — |
86 | — | Total items from subleasing | 86 | — |
397 | 405 | Expenses relating to short-term leases | 75 | 138 |
932 | 735 | Expenses relating to leases of low-value assets | 269 | 293 |
3 555 | 1 597 | Interest expense on lease liabilities | 2 958 | 1 229 |
4 884 | 2 737 | Total items from operational leases | 3 302 | 1 660 |
12 148 | 9 567 | The total cash outflow for leases | 6 314 | 4 842 |
Subsidiaries consolidated in | Established Year | Location | Share Ownership | Voting Rights |
Nordic Semiconductor Inc | 2006 | USA | 100% | 100% |
Nordic Semiconductor Poland S.P z o.o | 2013 | Poland | 100% | 100% |
Nordic Semiconductor Finland OY | 2014 | Finland | 100% | 100% |
Nordic Semiconductor KK | 2017 | Japan | 100% | 100% |
Nordic Semiconductor Germany GmbH | 2018 | Germany | 100% | 100% |
Nordic Semiconductor Norway AS | 2020 | Norway | 100% | 100% |
Nordic Semiconductor UK Limited | 2020 | UK | 100% | 100% |
Nordic Semiconductor India Pvt. Ltd | 2020 | India | 100% | 100% |
Nordic Semiconductor Sweden AB | 2020 | Sweden | 100% | 100% |
Nordic Semiconductor Hong Kong Limited | 2021 | Hong Kong | 100% | 100% |
Nordic Semiconductor (Shenzhen) Limited | 2021 | China | 100% | 100% |
Nordic Semiconductor Singapore Pte Ltd | 2022 | Singapore | 100% | 100% |
Nordic Semiconductor Denmark ApS | 2022 | Denmark | 100% | 100% |
Nordic Semiconductor Philippines, Inc. | 2022 | Philippines | 100% | 100% |
Subsidiaries as of 31 December 2024 | Ownership | Share of votes | Net profit 2024 | Equity 31. Dec 2024 |
Nordic Semiconductor Inc, USA | 100% | 100% | 1 821 | 7 002 |
Nordic Semiconductor Poland S.P z o.o | 100% | 100% | 2 196 | 10 358 |
Nordic Semiconductor Finland OY | 100% | 100% | 4 548 | 15 212 |
Nordic Semiconductor KK | 100% | 100% | 44 | 163 |
Nordic Semiconductor Germany GmbH | 100% | 100% | 39 | 178 |
Nordic Semiconductor Norway AS | 100% | 100% | 363 | 8 029 |
Nordic Semiconductor UK Limited | 100% | 100% | 841 | 4 557 |
Nordic Semiconductor India Pvt. Ltd | 100% | 100% | 651 | 2 546 |
Nordic Semiconductor Sweden AB | 100% | 100% | 482 | 1 635 |
Nordic Semiconductor Hong Kong Limited | 100% | 100% | 103 | 353 |
Nordic Semiconductor (Shenzhen) Limited | 100% | 100% | 322 | 853 |
Nordic Semiconductor Singapore Pte Ltd | 100% | 100% | 10 601 | 22 603 |
Nordic Semiconductor Denmark ApS | 100% | 100% | 46 | 282 |
Nordic Semiconductor Philippines, Inc. | 100% | 100% | 245 | 357 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
66 412 | 133 316 | Gross receivables | 1 037 | 983 |
— | — | Provision for doubtful accounts | — | — |
66 412 | 133 316 | Accounts receivable, net | 1 037 | 983 |
PARENT | 2024 | 2023 |
Loans to group companies | 3 032 | 6 145 |
Receivables group companies | 99 301 | 105 406 |
Total receivable | 102 333 | 111 551 |
Accounts payable, group companies | 28 395 | 55 148 |
Total payables | 28 395 | 55 148 |
PARENT | 2024 | 2023 |
Sale of goods | 474 356 | 521 464 |
Total revenue | 474 356 | 521 464 |
Cost of goods sold | 261 125 | 268 237 |
Total cost of goods sold | 261 125 | 268 237 |
Service fee for R&D and product promotion | 115 288 | 110 402 |
Total other operating expenses | 115 288 | 110 402 |
Interest income from loans to group companies | 353 | 371 |
Total financial income | 353 | 371 |
GROUP | PARENT | |||
2024 | 2023 | Cash and cash equivalents as of the balance sheet date were as follows: | 2024 | 2023 |
192 445 | 189 853 | Cash at bank | 90 164 | 166 449 |
2 256 | 2 372 | Restricted cash (withholding tax account) | 2 256 | 2 372 |
93 213 | 98 731 | Money market funds | 93 213 | 98 731 |
287 914 | 290 957 | Cash and cash equivalents in statement of financial position | 185 633 | 267 553 |
GROUP | Number of shares | Share capital (USD 1000) | Treasury shares (USD 1000) | Share premium (USD 1000) | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Holdings as of 1.1 | 192 781 600 | 192 781 600 | 317 | 317 | -1 | -2 | 235 448 | 235 448 |
Change during the year | — | — | — | — | 0 | 1 | — | — |
Holdings as of 31.12 | 192 781 600 | 192 781 600 | 317 | 317 | -1 | -1 | 235 448 | 235 448 |
Shareholder | Shares | Percentage |
Folketrygdfondet | 23 716 239 | 12.3% |
DNB Asset Management AS | 21 722 619 | 11.3% |
Accelerator Limited | 17 472 950 | 9.1% |
The Vanguard Group, Inc. | 7 244 165 | 3.8% |
BlackRock Fund Advisors | 5 719 504 | 3.0% |
KLP Kapitalforvaltning AS | 5 214 809 | 2.7% |
Eika Kapitalforvaltning AS | 4 481 082 | 2.3% |
Danske Bank Investment Management | 4 108 926 | 2.1% |
Handelsbanken Fonder AB | 3 546 461 | 1.8% |
The Hongkong & Shanghai Banking Corp . Ltd | 3 415 437 | 1.8% |
Storebrand Asset Management AS | 3 224 060 | 1.7% |
Skandia Fonder AB | 3 217 099 | 1.7% |
Robeco Institutional Asset Management B.V. | 2 829 065 | 1.5% |
Alfred Berg Kapitalforvaltning AS | 2 590 962 | 1.3% |
E. Öhman J :or Fonder AB | 2 496 899 | 1.3% |
Bluepearl Map I LP | 2 402 622 | 1.2% |
Svenn Tore Larsen | 1 947 142 | 1.0% |
Odin Forvaltning AS | 1 924 548 | 1.0% |
TTC Invest AS | 1 772 000 | 0.9% |
Merrill Lynch International | 1 757 869 | 0.9% |
Total for the 20 largest shareholders | 120 804 458 | 62.7% |
Other shareholders | 71 977 142 | 37.3% |
Total shares outstanding | 192 781 600 | 100.0% |
Board of Directors | Shares | Executive Management | Shares |
Birger Steen | 270 907 | Vegard Wollan | 131 000 |
Anita Huun | 14 683 | Geir Langeland | 222 722 |
Inger Berg Ørstavik | 7 283 | Ole Fredrik Morken | 206 507 |
Annastiina Hintsa | 5 683 | Ståle Ytterdal | 142 665 |
Snorre Kjesbu | 7 425 | Ola Bostrøm | 5 927 |
Jon Helge Nistad | 958 | Pål Elstad | 50 945 |
Anja Dekens | 570 | Øyvind Birkenes | 9 540 |
Morten Dammen | 2 507 | Kjetil Holstad | 17 479 |
Dieter May | 6 264 | Joakim Ferm | 1 801 |
Helmut Gassel | 764 | Sonja Kusmin | 600 |
Monika Lie Larsen | 1 051 | Øyvind Strøm | 6 000 |
Total | 318 095 | Total | 795 186 |
Basis for calculation of basic earnings per share | 2024 | 2023 |
Earnings for the year (USD ‘000) | -38 504 | 7 650 |
Weighted average number of outstanding shares (‘000) | 192 196 | 192 085 |
Earnings per share (USD) | -0.20 | 0.04 |
Basis for calculation of fully diluted earnings per share | ||
Earnings for the year (USD ‘000) | -38 504 | 7 650 |
Weighted average number of outstanding shares (‘000) | 194 717 | 193 350 |
Earnings per share (USD) | -0.20 | 0.04 |
Date | Shares issued | Shares outstanding | |
01.01.2024 | Opening balance | 192 781 600 | 192 399 498 |
31.12.2024 | Closing balance | 192 781 600 | 192 262 908 |
A summary of RSUs transactions during 2024 and 2023 below: | 2024 | 2023 |
Outstanding RSUs 1.1 | 1 404 565 | 1 002 504 |
Granted | 1 355 419 | 958 462 |
Forfeited | 462 508 | 146 600 |
Released | 375 650 | 409 801 |
Outstanding RSUs 31.12 | 1 921 826 | 1 404 565 |
A summary of performance shares during 2024 and 2023 below: | 2024 | 2023 |
Outstanding performance shares 1.1 | 77 357 | 109 632 |
Granted | 516 983 | 43 861 |
Forfeited | 69 431 | 21 929 |
Performance adjusted | -169 120 | 43 371 |
Released | — | 97 578 |
Outstanding performance shares 31.12 | 355 789 | 77 357 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
23 918 | 12 201 | Accounts payable | 22 903 | 15 403 |
— | — | Accounts payable from subsidiaries | 28 280 | 55 148 |
1 799 | 5 640 | Taxes payable | — | 3 939 |
14 940 | 1 390 | Employee benefit obligations | 6 074 | 319 |
6 737 | 6 334 | Social security tax and payroll tax | 5 259 | 4 579 |
8 831 | 11 113 | Holiday pay | 4 845 | 6 405 |
22 363 | 30 010 | Ship and debit | — | — |
3 679 | 25 294 | End-customer rebate | — | — |
3 320 | 4 398 | Restructuring costs | 2 116 | 2 811 |
10 360 | 9 897 | Current lease liabilities | 5 865 | 5 963 |
627 | 741 | Accrued interest bond | 627 | 741 |
5 514 | 5 514 | Accrued expenses | 3 271 | 3 325 |
1 000 | 1 620 | Other current liabilities | — | 147 |
103 087 | 114 151 | Total current liabilities | 79 240 | 98 778 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
569 766 | 602 077 | Total equity | 515 052 | 554 883 |
806 706 | 862 245 | Total assets | 721 162 | 793 682 |
71% | 70% | Equity share | 71% | 70% |
GROUP | PARENT | |||
2024 | 2023 | Amortized cost | 2024 | 2023 |
2 699 | — | Net investment in finance leases | 2 699 | — |
66 412 | 133 316 | Accounts receivable | 1 037 | 984 |
3 179 | 4 389 | Other current receivables | 103 281 | 113 795 |
194 701 | 192 225 | Cash at bank | 92 420 | 168 822 |
266 991 | 329 931 | Total financial assets at amortized cost | 199 437 | 283 601 |
GROUP | PARENT | |||
2024 | 2023 | Fair value through profit or loss | 2024 | 2023 |
93 213 | 98 731 | Money market fund | 93 213 | 98 731 |
93 213 | 98 731 | Total financial assets at fair value through profit or loss | 93 213 | 98 731 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
98 731 | 48 725 | As at 1 January | 98 731 | 48 725 |
— | -44 205 | Disposal of financial instruments | — | -44 205 |
— | 93 064 | Acquisition of financial instruments | — | 93 064 |
5 008 | 426 | Changes in fair value | 5 008 | 426 |
-10 526 | 721 | Currency translation differences | -10 526 | 721 |
93 213 | 98 731 | As at 31 December | 93 213 | 98 731 |
GROUP | PARENT | |||
2024 | 2023 | Amortized cost | 2024 | 2023 |
87 336 | 97 491 | Bond | 87 336 | 97 491 |
23 918 | 12 201 | Accounts payable | 22 902 | 15 403 |
626 | 741 | Current financial liabilities | 626 | 741 |
66 383 | 79 345 | Other current liabilities | 48 414 | 68 153 |
45 752 | 47 864 | Non-current lease liabilities | 5 865 | 42 127 |
10 360 | 9 897 | Current lease liabilities | 38 957 | 5 963 |
234 375 | 247 539 | Total financial liabilities at amortized cost | 204 100 | 229 878 |
GROUP | PARENT | |||
2024 | 2023 | Gross total | 2024 | 2023 |
56 604 | 93 606 | Not due | 782 | 630 |
8 151 | 37 107 | Past due 0-30 days | 161 | 10 |
1 607 | 2 332 | Past due 31-120 days | 44 | 73 |
50 | 271 | Over 120 days | 50 | 271 |
66 412 | 133 316 | Total | 1 037 | 984 |
GROUP | PARENT | |||
2024 | 2023 | 2024 | 2023 | |
66 412 | 133 316 | Accounts receivable | 1 037 | 983 |
27 029 | 21 874 | Other current receivables | 123 914 | 128 785 |
287 914 | 290 957 | Cash and cash equivalents | 185 633 | 267 553 |
381 355 | 446 147 | Total | 310 583 | 397 321 |
GROUP | Carrying amount | Contractual cash flow | Less than one year | One to five years | More than five years |
Bond - payment of principal | 87 336 | 88 079 | — | 88 079 | — |
Bond - payment of interest* | 626 | 24 327 | 6 572 | 17 755 | — |
Accounts payable | 23 918 | 23 918 | 23 918 | — | — |
Other current liabilities | 68 182 | 68 182 | 67 182 | 1 000 | — |
Lease liabilities** | 56 112 | 71 323 | 10 394 | 30 782 | 30 147 |
Total | 236 174 | 275 829 | 108 066 | 137 616 | 30 147 |
PARENT | Carrying amount | Contractual cash flow | Less than one year | One to five years | More than five years |
Bond - payment of principal | 87 336 | 88 079 | — | 88 079 | — |
Bond - payment of interest* | 626 | 24 327 | 6 572 | 17 755 | — |
Accounts payable | 22 903 | 22 903 | 22 903 | — | — |
Accounts payable subsidiaries | 23 050 | 23 050 | 23 050 | — | — |
Other current liabilities | 26 795 | 26 795 | 26 795 | — | — |
Lease liabilities** | 44 822 | 58 999 | 5 774 | 23 077 | 30 147 |
Total | 205 533 | 244 154 | 85 095 | 128 911 | 30 147 |
2024 | 2023 | |
Interest rate (3 months NIBOR) | Effect on profit before tax | Effect on profit before tax |
+50 basis points | -440 | -492 |
-50 basis points | 440 | 492 |
Profit before tax | |
NOK exchange rate +/- 10% | '+/- 3 534 |
GROUP | 2024 | 2023 | ||||
Local currency (1,000) | USD (1,000) | Share of total revenue in % | Local currency (1,000) | USD (1,000) | Share of total revenue in % | |
USD | 511 189 | 511 189 | 100.0% | 542 830 | 542 830 | 100.0% |
EUR | 162 | 169 | —% | 11 | 11 | —% |
Other | 549 | 57 | —% | 282 | 28 | —% |
Total | 511 415 | 100.0% | 542 869 | 100.0% | ||
PARENT | 2024 | 2023 | ||||
Local currency (1,000) | USD (1,000) | Share of total revenue in % | Local currency (1,000) | USD (1,000) | Share of total revenue in % | |
USD | 477 374 | 477 374 | 100.0% | 507 986 | 507 986 | 100.0% |
EUR | 162 | 169 | —% | 11 | 11 | —% |
Other | 547 | 51 | —% | 282 | 28 | —% |
Total | 477 595 | 100.0% | 508 026 | 100.0% | ||
GROUP | 2024 | 2023 | ||
Accounts receivable | Accounts payables | Accounts receivable | Accounts payables | |
USD | 66 250 | 20 606 | 133 313 | 8 009 |
EUR | 156 | 1 523 | — | 596 |
NOK | 6 | 1 620 | 3 | 3 219 |
Other | — | 169 | — | 377 |
Total | 66 412 | 23 918 | 133 316 | 12 201 |
PARENT | 2024 | 2023 | ||
Accounts receivable | Accounts payables | Accounts receivable | Accounts payables | |
USD | 981 | 20 606 | 981 | 11 900 |
EUR | 156 | 590 | — | 284 |
NOK | 6 | 1 620 | 2 | 3 219 |
Other | — | 87 | — | — |
Total | 1 037 | 22 903 | 983 | 15 403 |
GROUP | 2024 | 2023 | ||
Book value | Fair market value | Book value | Fair market value | |
Financial liabilities | ||||
Bond | 87 336 | 90 900 | 97 491 | 99 178 |
PARENT | 2024 | 2023 | ||
Book value | Fair market value | Book value | Fair market value | |
Financial liabilities | ||||
Bond | 87 336 | 90 900 | 97 491 | 99 178 |
GROUP | 2024 | 2023 |
Gross profit | 242.0 | 283.7 |
Total revenue | 511.4 | 542.9 |
Gross margin | 47.3% | 52.3% |
GROUP | 2024 | 2023 |
Operating profit | -45.8 | 4.7 |
Depreciation, amortization and impairments | 40.6 | 44.3 |
EBITDA | -5.2 | 49.0 |
GROUP | 2024 | 2023 |
EBITDA | -5.2 | 49.0 |
Total revenue | 511.4 | 542.9 |
EBITDA margin | (1.0%) | 9.0% |
GROUP | 2024 | 2023 |
Payroll expenses | 170.3 | 153.0 |
Other operating expenses | 76.9 | 81.7 |
Depreciation, amortization and impairments | 40.6 | 44.3 |
Total operating expenses | 287.8 | 279.0 |
Depreciation, amortization and impairments | -40.6 | -44.3 |
Option expense | -11.7 | -6.5 |
Capitalized expenses | 19.3 | 22.0 |
Cash operating expenses | 254.9 | 250.1 |
GROUP | 2024 | 2023 |
Reported EBITDA | -5.2 | 49.0 |
Long range (cellular IoT) EBITDA loss | 55.3 | 43.7 |
Wi-Fi expense | 16.8 | 16.5 |
Restructuring costs | 3.2 | 4.9 |
Adjusted EBITDA | 70.1 | 114.1 |
Total revenue (excluding cellular IoT revenue) | 494.5 | 525.3 |
Adjusted EBITDA margin | 14.2% | 21.7% |
GROUP | 2024 | 2023 |
Total operating expenses | 287.8 | 279.0 |
Depreciation, amortization and impairments | -40.6 | -44.3 |
Operating expenses excluding depreciation and amortization | 247.2 | 234.7 |
Total revenue | 511.4 | 542.9 |
LTM opex / LTM revenue | 48.3% | 43.2% |
GROUP | 2024 | 2023 |
Current assets | 553.3 | 609.2 |
Cash and cash equivalents | -287.9 | -291.0 |
Current financial assets | -0.8 | 0.0 |
Current liabilities | -103.1 | -114.2 |
Current financial liabilities | 0.6 | 0.7 |
Current lease liabilities | 10.4 | 9.9 |
Income taxes payable | 1.8 | 5.6 |
Net working capital | 174.2 | 220.4 |
Total revenue | 511.4 | 542.9 |
NWC / LTM revenue | 34.1% | 40.6% |
GROUP | 2024 | 2023 |
Gross profit | 242.0 | 283.7 |
Write down | 10.0 | — |
Adjusted gross profit | 252.0 | 283.7 |
Total revenue | 511.4 | 542.9 |
Adjusted gross margin | 49.3% | 52.3% |
2024 | 2023 | |
Reported EBITDA | -5.2 | 49.0 |
Write down | 10.0 | — |
Restructuring costs | 3.2 | 4.9 |
Adjusted EBITDA | 8.0 | 53.9 |
Oslo, March 19, 2025 | ||
Anita Huun | Birger Steen | Inger Berg Ørstavik |
Board member, Audit Com. Chair | Chair | Board member, Sustainability Com. Chair |
Snorre Kjesbu | Vegard Wollan | Annastiina Hintsa |
Board member | Chief Executive Officer | Board member, People and Compensation Com. Chair |
Jon Helge Nistad | Anja Dekens | Morten Dammen |
Board member, employee | Board member, employee | Board member, employee |
Dieter May | Dr. Helmut Gassel | Monika Lie Larsen |
Board member | Board member | Board member, employee |
Board members’ attendance | Board of Directors | People & Compensation Committee | Audit Committee | Sustainability Committee |
Number of meetings | 11 | 4 | 7 | 5 |
Elected by shareholders at the Annual General Meeting | ||||
Birger Steen (Chairman of the board) | 11/11 | 4/4 | 7/7 | - |
Helmut Gassel (Elected on AGM in April 2024) | 9/9 | - | - | - |
Annastiina Hintsa (People and Compensation Committee chair) | 11/11 | 4/4 | - | 5/5 |
Anita Huun (Audit Committee chair) | 11/11 | - | 7/7 | - |
Snorre Kjesbu | 10/11 | - | - | - |
Dieter May (Elected on AGM in April 2024) | 8/9 | 3/3 | - | - |
Inger Berg Ørstavik (Sustainability Committee chair) | 11/11 | - | 7/7 | 5/5 |
Employee Elected Board members | ||||
Morten Dammen | 11/11 | 4/4 | - | - |
Anja Dekens | 11/11 | - | - | 5/5 |
Monika Lie Larsen (Elected in 2025) | 0/0 | - | - | - |
Jon Helge Nistad | 11/11 | - | - | - |
Description | Developments and events during the reporting year | References |
General Meeting | ||
Company shareholders exercise ultimate authority through the Annual General Meeting. The General Meeting shall: 1. Adopt the annual accounts and report, including the application of the annual surplus or covering of loss pursuant to the adopted balance sheet, and the distribution of dividend. 2. Elect members of the Board of Directors and members of the Nomination Committee. 3. Adopt renumeration to the members of the Board of Directors and approve the remuneration to the auditor. 4. Address and decide any other matters referred to in the notice of the General Meeting. | The General Meeting was held on April 24, 2024. | |
Nomination Committee | ||
The company has a Nomination Committee according to its Articles of Association. The General Meeting stipulates instructions for the Nomination Committee, elects the chair and members, and stipulates the committee’s renumeration. The Nomination Committee shall make proposals to the General Meeting regarding candidates to the Board of Directors and the remuneration to the Board of Directors. | The Nomination Committee has held 17 meetings during 2024. Members: a. Viggo Leisner (Chair) b. Eivind Lotsberg c. Fredrik Thorsen | Articles of Association, §8 can be found on the company’s website: |
Board of Directors | ||
The Board of Directors consists of 11 members. Seven are elected by the General Meeting and four are employees elected by other employees for a term of up to two years. In accordance with the Norwegian Public Companies Act, the Board of Directors assumes the overall governance of the company, ensures that appropriate management and control systems are in place, and supervises the day-to-day management as carried out by the CEO. All shareholder-elected members are external. No employee-elected members are part of the company’s executive management. Employee-elected members have no other service agreements with the company outside of their employment contracts, though they are subject to their duties as board members. | The Board of Directors held 11 meetings in 2024. The Board of Directors has an annual plan for its work that includes strategy, sustainability and business review, risk and compliance oversight, financial reporting, people agenda and succession planning. The Board of Directors shall conduct an annual self-assessment of its work and competence within a reasonable time prior to the Annual General Meeting in 2024. High on the Board of Directors' agenda in 2024 was strategic realignment and cost containment measures, as well as risk management and organizational resilience, customer and market focus, sustainability strategy, and strategic acquisitions. Dieter May and Helmut Gassel were appointed as shareholder-elected board members at an extraordinary General Meeting in February 2024. Anja Dekens and Krishna Shingala were appointed as employee-elected board members in September. Krishna Shingala resigned from Nordic Semiconductor in December with deputy Monika Larsen succeeding as employee-elected board member with immediate effect. All shareholder-elected members were deemed in 2024 to be independent, according to the Norwegian Code of Practice. None of the company’s non- employee board members had any other service contractual agreements with the company. | The Rules of Procedure of the Board of Directors can be found on the company’s website: Biographical information on the board members can be found in the Board of Directors section of this report and on the company’s website: Board of directors - |
Description | Developments and events during the reporting year | References |
Audit Committee | ||
The Audit Committee consists of three members from the Board of Directors. The Audit Committee is a preparatory body that supports the Board of Directors in fulfilling its responsibilities with respect to financial reporting, auditing, and control. Its supervisory area includes adequate company policies, procedures, systems, and measures to prevent violations of relevant rules and regulations, including anti-corruption, data privacy, and human rights. The committee shall be informed and evaluate material risks and issues related to tax. The committee also supports the Board in the evaluation of IT and cyber security risk in the company. The committee supervises the company’s external reporting, including the integrated annual report and its alignment with relevant regulations and international guidance to ensure transparent and reliable data. The Audit Committee reviews and approves all non-audit fees paid to the companies elected auditor. The Nordic Group Compliance Officer has a dotted reporting line to, and meets regularly with, the Audit Committee. | The Audit Committee has held 7 meetings during 2024. In 2024, the committee focused on reviewing the Group's internal controls in connection with higher digitalization of reporting functions, as well as reviewing processes to mitigate increased cyber threat. The audit committee plays a critical role in ensuring that the company adheres to the new CSRD regulations. By staying informed, evaluating current practices, integrating sustainability with financial reporting, and engaging with stakeholders, the committee Nordic's overall sustainability performance. Members: a. Anita Huun (Chair) b. Inger Berg Ørstavik c. Birger K. Steen (Observer) The members meet the Norwegian requirements for independence and competence. | |
People & Compensation Committee | ||
The People & Compensation Committee consists of three members of the Board of Directors. The committee shall assist the Board of Directors in exercising its oversight responsibility, in particular regarding compensation matters pertaining to the CEO and other members of the Executive Management Team. The committee handles other compensation issues of principal importance, such as coherent renumeration policies and practices to enable the company to attract and retain executives and employees who will create value for shareholders. It supports the Board of Director and supervises management on human capital development, working conditions, and diversity, equity, and inclusion (DE&I). | The People & Compensation Committee held 4 meetings in 2024. Important focus areas for the People & Compensation Committee during 2024 were succession planning including leadership framework, performance and growth management including job architecture fundamentals, and continued development and review of the people and compensation agenda including reward structures. Members: a. Anastiina Hintsa (Chair) b. Birger K. Steen c. Dieter May d. Morten Dammen The members of the committee are selected to ensure that the compensation programs are fair and appropriate, but also reflect the challenges related to attracting and retaining key talent in a global technology market for engineers. Therefore, the committee includes both an employee-elected director and three shareholder-elected directors with extensive experience from the global technology space. | The People & Compensation Committee charter can be found on the company’s website: |
Description | Developments and events during the reporting year | References |
Sustainability Committee | ||
The Sustainability Committee consists of three members of the Board of Directors. The Sustainability Committee is a preparatory body for the Board in fulfilling the Board's responsibilities with respect to considering sustainability within the activities and value creation of the company. The committee supervises the integration of sustainability into Nordic strategy and business activities, reflected in adequate follow-up of ESG metrics to measure and monitor its sustainability performance. | The Sustainability Committee held 5 meetings in 2024. In 2024 the Sustainability Committee continued the discussion around establishing specific sustainability strategy or continuing with integration of relevant sustainability elements into overall company strategy. Hereunder, to further develop Nordic's approach to sustainability risk management, to understand and develop plan for preparedness for the new reporting regulations, in particular the EU Corporate Social Reporting Directive (CSRD), to prepare proposals for ESG related KPIs for approval by the Board as well as Nordic's commitment to the Science Based Target Initiative. Members: a. Inger Berg Ørstavik (chair) b. Annastiina Hinsta c. Anja Dekens | |
CEO & Executive Management Team | ||
According to Norwegian corporate law, the CEO constitutes the formal governing body responsible for the daily management of the company. The CEO leads the company with the assistance of the Executive Management Team. The division of functions and responsibilities between the CEO and the Board of Directors is defined in greater detail in the Rules of Procedure for the Board of Directors of the company. | The Executive Management Team held 41 meetings in 2024. In 2024, Nordic Semiconductor appointed Øyvind Strøm as EVP BU Short- Range, Øyvind Birkenes as EVP BU Long-Range, Joakim Ferm as SVP BU Wi-Fi. CTO Svein-Egil Nielsen, EVP People & Communication Katarina Finneng and SVP Legal & Compliance Linda Pettersson resigned from Nordic Semiconductor in 2024. | Biographical information on the CEO and Executive Management Team can be found in the Executive Management section of this report and on the Company’s website at: |