NORDIC SEMICONDUCTOR | ANNUAL REPORT 2023 | THIS IS NORDIC
USDm | 2023 | 2022 | Change |
Bluetooth | 483.9 | 669.1 | -27.7% |
Proprietary wireless | 34.4 | 75.7 | -54.5% |
Short-range wireless components | 518.3 | 744.8 | -30.4% |
Cellular IoT | 17.6 | 25.4 | -30.8% |
ASIC Components | 4.7 | 4.6 | 2.0% |
Other | 2.3 | 2.0 | 17.9% |
Total | 542.9 | 776.6 | -30.1% |
USDm | 2023 | 2022 | Change |
Consumer | 302.5 | 483.8 | -37.5% |
Industrial | 117.2 | 191.5 | -38.8% |
Healthcare | 103.3 | 67.6 | 52.8% |
Other | 15.2 | 29.2 | -48.0% |
Total | 538.2 | 772.1 | -30.3% |
USDm | 2023 | 2022 | Change |
Gross Profit | 283.7 | 436.8 | -35.0% |
Gross Margin | 52.3% | 56.2% | -4.0% |
USDm | 2023 | 2022 | Change |
Payroll expenses | 153.0 | 161.4 | -5.2% |
Other OPEX | 81.7 | 69.7 | 17.2% |
OPEX excl. D&A | 234.7 | 231.1 | 1.5% |
Depr. & Amort. | 44.3 | 44.1 | 0.6% |
Total | 279.0 | 275.2 | 1.4% |
USDm | 2023 | 2022 | Change |
EBITDA | 49.0 | 205.7 | -76.2% |
EBITDA margin | 9.0% | 26.5% | -17.5% |
Short-range EBITDA | 115.4 | 262.2 | -56.0% |
Short-range EBITDA margin | 22.0% | 34.9% | -12.9% |
Operating profit (EBIT) | 4.7 | 161.6 | -97.1% |
EBIT margin | 0.9% | 20.8% | -19.9% |
USDm | 2023 | 2022 |
Net interest | 6.0 | 4.9 |
Net financial items | 1.4 | 0.6 |
Total | 7.4 | 5.6 |
USDm | 2023 | 2022 |
Profit before tax | 12.1 | 167.2 |
Income tax expense | -4.4 | -44.8 |
Net profit after tax | 7.6 | 122.3 |
USDm | 2023 | 2022 |
Net cash flow from: | ||
Operating activities | -119.8 | 142.7 |
Investing activities | -53.5 | -30.6 |
Financing activities | 84.5 | -11.3 |
Currency adj. | 0.6 | -1.0 |
Net change in cash and cash equivalents | -88.1 | 99.8 |
Cash and cash equivalents 1.1 | 379.1 | 279.3 |
Cash and cash equivalents 31.12 | 291.0 | 379.1 |
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 other in Europe can reduce the effects of geopolitical tension. |
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. |
Customer concentration | In 2023, Nordic derived around 57% 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. | 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 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. |
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 favorable prices 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 particular semiconductor products. Such competitors may have greater financial, technological, personnel and other resources than Nordic has in a particular market or overall, which again 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 win 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 chipset. There are other wireless standards, such as Ultra-Wide Band, that may be a risk factor in the long term in some of the 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 any of the 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 announced two new Bluetooth LE platforms in 2023, both on 22nm process technologies. The nRF54 products available for delivery in second half 2024 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. |
Theme | Risk | Response |
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. |
Trade tensions | Since 2018, there have been political and trade tensions among a number of the world’s major economies. These tensions have resulted in the implementation of tariffs and non-tariff trade barriers and sanctions, including the use of export control restrictions and sanctions against certain countries and individual companies. In particular, trade tensions between the United States and China have resulted in significant tariff increases, sanctions against specified entities, and the broadening of restrictions and license requirements for specified uses of products. The ongoing geopolitical and economic uncertainty between the United States and China, and the unknown impact of current and future United States and Chinese trade regulations, may cause disruptions in the semiconductor industry and its supply chain or other disruptions. 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 2023, the percentage of Nordic's revenue associated with end customers in China was less than 10%. | Nordic seeks preparedness and robustness through close customer dialogues, dual sourcing planning, business contingency planning and strong balance sheet. Nordic maintains an active, and seek to continuously enhance, sanctions & trade compliance framework to ensure compliance with increasingly complex regulations. |
Acute physical events and natural disasters - climate | 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 in the short term would get 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 shortage. For medium-term risk mitigation, Nordic utilizes a second-sourcing strategy to secure against widespread supply disruptions. In addition, Nordic is seeking to maintain 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 various 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 the addition, the Group may face attempts by others to gain unauthorized access through the internet, or to introduce malicious software, to its information systems and, if successful, could expose the Group and any other affected parties to risk of loss or misuse of proprietary or confidential information or disruptions of the Group’s business operations. The failure of the Group’s information technology systems to operate effectively, problems with transitioning to upgraded or replacement systems, a material network breach in the security of these systems as a result of a cyber-attack 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 in the Group’s relationships with customers, reduce efficiency in its operations, require significant capital investments to remediate the problem or result 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 cyber-attacks and seeks to maintain appropriate insurance coverage to support the management of potential threats and attacks. |
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, corporate governance, labor, customs and environmental regulations. Although the Group has in place internal controls and compliance systems for the purpose of complying 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 and 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 affect pollution. Potential pollution of air, soil and water in upstream operations due to raw material 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 framework related to substances of concern may negatively affect the market access and customer's interest towards the Group’s products. | Nordic seek to continuously enhance its compliance system and programs, internal controls and risk mitigating measures, including efforts to strengthen its culture of integrity. |
Intellectual property rights | The Group’s ability to compete in the semiconductor industry depends heavily on its technologies and know-how. The Group commits significant resources to secure protection for such technologies and know-how through patents and other forms of intellectual property rights, and to prevent dissemination of unpatented trade secrets and other proprietary information, including by entering into confidentiality agreements with its employees and controlling access to its offices and facilities. However, there can be no assurance that the measures the Group are taking will effectively deter competitors from improper use of its intellectual property, particularly in countries and areas where intellectual property may not be adequately protected. The Group’s competitors may misappropriate its intellectual property, or its intellectual property may become known or independently developed by its competitors. In addition, disputes may arise concerning the ownership of the Group’s intellectual property or the applicability or enforceability of its confidentiality agreements, and there can be no assurance that any such disputes would be resolved in the Group’s favor. Even if the Group is successful in any such disputes, it cannot be certain that it will have adequate remedies for any such breach. If the Group is unable to adequately protect its intellectual property where relevant, it could negatively impact the Group’s competitiveness and adversely affect its business and future prospects. The Group’s hardware products include and rely on a number of technologies licensed from third party suppliers. Failure to maintain such licensing arrangements can prevent the Group from developing, manufacturing or selling its products and services. Most of these technologies are offered openly on the market on a non-exclusive basis, and Nordic’s position is to arrange licenses for all technologies it relies on. One of these technologies, the Bluetooth standard, is arranged so that all patents relevant for the standard is licensed to all members of the Bluetooth Special Interest Group (SIG), of which the Group is a member. For the Cellular and Wi-Fi standards, the patent owners have directed their licensing efforts towards end-product makers instead of component makers such as Nordic Semiconductor. It is therefore up to the Group’s customers to obtain licenses to these standards. Access to the necessary patents must be granted on “Fair, Reasonable and Non-Discriminatory terms” (or FRAND). Consequently, the risk of the Group being the target of legal proceedings for failure to obtain license to the Cellular and Wi-Fi standards should be small. In the event of legal proceedings related to the Cellular and Wi-Fi standard, the claim would like be for a reasonable license fee rather than a “cease and desist” of selling a product line. Outside of these established technology standards (Wi-Fi and Cellular) and industry organizations (Bluetooth SIG), there may be patent holders who will assert their rights towards the Group. Such claims can also arise from “non-practicing entities” who broadly assert patent portfolios accrued from third parties. Claims of patent infringement involve the risk of litigation and can prevent or affect the Group’s ability to sell its established line of products. However, patent holders will likely accept a license fee in exchange for a right to use their patent. Historically, all disputes have seen amicable solutions, where a claim has either been dismissed by a court or the Group has paid a reasonable license fee. Nevertheless, if the Group is unable to renew its existing technology licensing arrangements on acceptable terms, or if such arrangements are terminated for any reason, the Group may lose the legal right to sell certain of its products. The Group is therefore continuously evaluating second sourcing and new interest groups to decrease dependency on such providers. In the future, the Group may need to obtain additional licenses for new or existing technologies. The Group has made progress and signed license agreements on a component level and on behalf of customers over the last year, but cannot provide assurance that certain license agreements can be obtained on acceptable terms or at all. The Group’s business and operating results can be affected by such refusal, for example by patent owners to license component manufacturers directly. The Group’s customers might choose other suppliers with better indemnification protection for such risk. This is a wider industry problem, and not only a risk for the Group specifically. | Nordic is a willing licensee and invites the owners of standard essential patents to NB-IoT and LTE-M to license Nordic’s products on FRAND terms on component level, or to enable access to such license to its customers. Nordic Semiconductor plays an active part in raising awareness around the implications which the lack of licenses has on the industry. Furthermore, Nordic is and has always been active in, and contributing to, standard setting organizations, promoting openness and availability for all to standard essential patents. |
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 that 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 cyber-attacks 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 into 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 35% and 20% of its operating expenses were denominated in NOK and EUR, respectively, in 2023. Fluctuations in the exchange rates between the USD, NOK or EUR currencies may have an adverse effect on the Group. | 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. |
Environmental | The Group's operations, including those of our manufacturing partner, can have a negative impact on the environment. Nordic recognizes that its customers, employees and other stakeholders place importance on integrating renewable energy solutions throughout the supply chain. Shifts in perspectives may influence production expenses, including the costs associated with adopting new production technologies and acquiring renewable energy certificates. There is a risk that failure to meet diverse regulations could reduce Nordic's profit margins. | Nordic has set clear sustainability goals that align with industry standards and stakeholder expectations, aiming to reduce carbon footprint and enhance energy efficiency Nordic is working closely with its manufacturing suppliers to encourage and support them in adopting sustainable practices, thereby reducing the environmental impact across the entire value chain. |
Core elements of due diligence | Sections in the Sustainability report |
a) Embedding due diligence in governance, strategy and business | |
b) Engaging with affected stakeholders in all key steps of the due diligence | |
c) Identify and assessing adverse impacts | |
d) Taking actions to address those adverse impacts | |
e) Tracking the effectiveness of these efforts and communicating |
Stakeholder | Affected by/affected operations | Users of info. | Example of stakeholder engagement | |
Market | Suppliers Distributors Customers End users Competitors Stock exchange Insurers & banks | x x x x x x | x x x x x | Supplier engagement, requirements & audits Distributor engagement Direct dialogue and surveys Market intelligence/desktop analysis Market intelligence/desktop analysis Direct dialogue Direct dialogue, contractual requirements |
Society | Local communities Industry associates NGOs Authorities Media | x x x | x x | Outreach to educational institutions Technology development collaboration Monitoring standards, direct engagement Monitoring development, direct interact. Monitoring, direct interaction |
Internal | Board of Directors Employee representatives Employees | x x x | Direct engagement Engagement through established forums Direct engagement and surveys | |
Owners | Shareholders Analysts Rating agencies | x | x x | Regular reporting, direct engagement Regular reporting, direct engagement Annual reports, direct engagement |
Target identifier | Scope | Baseline | Target | Target status | ||||||
Year | Value | Unit | Year | Reduction | Value | Unit | Absolute value (tons CO2e) | |||
ST ABS1 | Scope 2 | 2022 | 407 | tons CO2e | 2023 | 50% | 204 | tons CO2e | 204 | Completed, achieved |
ST INT1 | Scope 3 (all categories) | 2020 | 193 | tons CO2e per USD revenue | 2023 | 40% | 116 | tons CO2e per USD revenue | 62 845 | Abandoned |
NT ABS1 | Scope 1+2 (market based) | 2019 | 717 | tons CO2e | 2030 | 60% | 287 | tons CO2e | 287 | New, underway |
NT INT1 | Scope 3 (all categories) | 2019 | 638 | tons CO2e per USD value added* | 2030 | 60% | 255 | tons CO2e per USD value added* | 112 034 | New, underway |
LT ABS1 | Scope 1+2+3 | 2019 | 73.372 | tons CO2e | 2050 | 90% | 7 337 | tons CO2e | 7 337 | New, underway |
NZ | Scope 1+2+3 | 2019 | 73.372 | tons CO2e | 2050 | 100% | tons CO2e | New, underway | ||
GHG emissions for period 2023-01-01 to 2023-12-31 | Retrospective | Milestones and target years | |||||
2019 | 2022 | 2023 | % change from 2022 | 2030 | 2050 | Annual % target / Base year | |
Scope 1 GHG emission | |||||||
Gross scope 1 GHG emissions (tCO2e) | 0.7 | — | — | —% | 0 | 0 | 0 |
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) | —% | —% | —% | —% | |||
Scope 2 GHG emission | |||||||
Gross location-based Scope 2 GHG emissions (tCO2eq) | 324 | 1 258 | 1 388 | 10% | |||
Gross market-based Scope 2 GHG emissions (tCO2eq) | 717 | 407 | 185 | -54% | 287 | 72 | -5% |
Significant scope 3 GHG emissions | |||||||
Total Gross indirect (Scope 3) GHG emissions (tCO2eq) | 72 654 | 90 329 | 73 330 | -19% | 112 034 | 7 265 | -5% |
01. Purchased Goods and Services | 54 917 | 71 889 | 59 045 | -18% | |||
02. Capital goods | 13 593 | 12 996 | 9 688 | -25% | |||
03. Fuel- and energy-related activities (not included in scope 1 or scope 2) | 38 | 85 | 70 | -17% | |||
04. Upstream transportation and distribution | 42 | 56 | 27 | -51% | |||
05. Waste generated in operations | 0.7 | 1.1 | 1.8 | 66% | |||
06. Business travel | 1 430 | 908 | 948 | 4% | |||
07. Employee commuting | 210 | 392 | 389 | -1% | |||
08. Upstream Leased Assets | 198 | 289 | 276 | -5% | |||
09. Downstream transporation and distribution | 46 | 55 | 64 | 16% | |||
10. Processing of sold products | — | — | — | —% | |||
11. Use of sold products | 2 180 | 3 657 | 2 821 | -23% | |||
12. End-of-life treatment of sold products | 0.6 | 1.1 | 0.7 | -34% | |||
13. Downstream leased assets | — | — | — | —% | |||
14. Franchises | — | — | — | —% | |||
15. Investments | — | — | — | —% | |||
Total GHG emissions | |||||||
Total GHG emissions (location- based) (tCO2eq) | 72 980 | 91 587 | 74 719 | -18% | |||
Total GHG emissions (market- based) (tCO2eq) | 73 372 | 90 736 | 73 516 | -19% | 112 320 | 7 337 | -5% |
2019 (base year) | 2020 | 2021 | 2022 | 2023 | |
Total GHG emissions (market based) | 73 372 | 78 513 | 83 066 | 90 736 | 73 516 |
GHG emissions intensity based on revenue | 254 | 194 | 136 | 116 | 135 |
Year-on-year change in GHG emission intensity (%) | — | (24)% | (30)% | (15)% | 16% |
Total energy consumption from non-renewable sources (MWh) | 727 |
Total heating from non-renewable fuel sources (MWh) | 566 |
Total District heating from non-renewable sources (MWh) | 396 |
Total non-renewable energy for gas heating in office building (MWh) | 170 |
Total electricity consumption from local grid mix (MWh) | 161 |
Total electricity consumption from fossil sources (MWh) | Unknown |
Total electricity consumption from nuclear sources (MWh) | Unknown |
Consumption of self-generated non-renewable energy (MWh) | 0 |
Total energy consumption from renewable sources (MWh) | 5737 |
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) | 5694 |
Sum of GOO purchase (MWh) | 4205 |
Sum of RGGO certificate purchase (MWh) | 230 |
Sum of I-REC compensation (MWh) | 1259 |
Consumption of self-generated non-fuel renewable energy (MWh) | 43 |
Total energy consumption related to own operations (MWh) | 6464 |
Percentage of energy consumption from nuclear sources in total energy consumption (%) | Unknown |
Percentage of fossil sources in total energy consumption (%) | Unknown |
Percentage of renewable sources in total energy consumption (%) | 0.89 |
Energy consumption per revenue (MWh/MUSD) | 11.91 |
Transition risks and opportunities related to the transition to a low carbon-economy | |
Risks | Opportunities |
Policy and legal l | Resource/Product energy efficiency ↗ |
The regulatory risks relevant to Nordic's value chain fall under the categories of ESG reporting regulations, standards, and frameworks such as Corporate Sustainability Directive (CSRD) and EU Taxonomy, and carbon taxes/carbon fee in manufacturing locations. These risks are identified and assessed and risk mitigating activities defined through Nordic's enterprise risk management process. The Group's strategy is to partner with leading manufacturing suppliers and ensure that they comply with current and future development trends such as carbon pricing. The risk management also evaluates risks from climate-related contractual requirements from customers. | Through low-power Internet of Things (IoT) designs, Nordic has a competitive advantage in contributing to solutions for energy efficiency and energy management. These present a unique 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, such as smart lighting and energy harvesting. By contributing to sustainable solutions and improving the resource efficiency of our customers’ end devices, Nordic upholds its commitment to addressing climate challenges. |
Technology l | Energy source → |
As a fabless company with outsourced production, the ability to adapt, invest, and support new energy saving/carbon 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 bearing 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. Over 50% of our employees work in energy-efficient buildings that have 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 l | Market ↗ |
Semiconductor manufacturing consumes a significant amount of energy. The markets indicate increased cost of energy alongside growing demand for products with a low carbon footprint. Nordic has taken action to lower its carbon footprint by using renewable energy verified by Guarantees of Origin (GOO), International Renewable Energy Certificates (I-RECs), Taiwan Renewable Energy Certificate (T-RECs) and Renewable Gas Guarantees of Origin certificates (RGGO). In 2023, Nordic set new, ambitious science-based GHG emission targets, which are currently in Science Based Targets initiative (SBTi) validation. As part 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. | The swift global transition to a low-carbon economy provides Nordic with an opportunity to grow its market segments by offering products and technologies that help mitigate climate change globally. The combination of low energy consumption in our products and the capabilities of IoT for resource efficiency (such as smart sensors, cellular IoT and energy harvesting) make Nordic's products and services attractive solutions for both the public and private sectors in developed and developing countries. |
Reputation l | |
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 in preferences 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) l | |
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 our 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 second-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) l | |
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 Semiconductor’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. | |
l Low risk | |
l Medium risk | → Medium opportunity |
l High risk |
Substances | Main hazard classes of substances of concern | Total weight included in products 2023 (g) |
Substances of Concern | 20 755.44 | |
PFAS* | 20 755.44 | |
Substances of Very High Concern | 266.50 | |
Boron oxide | Repr. 1B | 261.79 |
Lead oxide** | Repr. 1A Acute Tox. 4 STOT RE 2 Aquatic Acute 1 Aquatic Chronic 1 | 0.66 |
N-methyl-2- pyrrolidone (NMP) | Repr. 1B STOT SE 3 Skin Irrit. 2 Eye Irrit. 2 | 4.05 |
Total weigth | 21 021.94 |
Direct operations | Volume (m3) |
Total water consumption | 13802 |
Total water consumption in areas at water risk, including areas of high-water stress | 573 |
Total water recycled and reused | 0 |
Total water stored | 0 |
Changes in water storage | 0 |
Indirect operations | Volume (m3) |
Total water consumption | 207379 |
Total water consumption in areas at water risk, including areas of high-water stress | 54642 |
Total water recycled and reused | 0 |
Total water stored | 0 |
Changes in water storage | 0 |
Total waste generated in Nordic operations (tonnes) | 83.4 |
Hazardous waste (tonnes) | 1.42 |
Batteries (tonnes) | 0.04 |
Chemicals (tonnes) | 0.04 |
EE waste (tonnes) | 1.34 |
Non-hazardous waste (tonnes) | 81.9 |
Sorted (plastic, glass, metal, paper) (tonnes) | 42.04 |
Unsorted (tonnes) | 39.89 |
Workforce composition* | 2023 | 2022 | ||
Employees by department & gender distribution | Number of employees | % of total employees | Number of employees | % of total employees |
Executive Management Team | 10 | 0.7% | 10 | 0.7% |
Female | 2 | 0.1% | 2 | 0.1% |
Male | 8 | 0.5% | 8 | 0.6% |
Business support** | 121 | 8.1% | 148 | 10.3% |
Female | 50 | 3.3% | 69 | 4.8% |
Male | 71 | 4.8% | 79 | 5.5% |
Research and development | 1 139 | 76.3% | 1 083 | 75.5% |
Female | 137 | 9.2% | 117 | 8.2% |
Male | 1 002 | 67.1% | 966 | 67.3% |
Sales | 135 | 9.0% | 107 | 7.5% |
Female | 29 | 1.9% | 9 | 0.6% |
Male | 106 | 7.1% | 98 | 6.8% |
Supply chain | 88 | 5.9% | 87 | 6.1% |
Female | 40 | 2.7% | 37 | 2.6% |
Male | 48 | 3.2% | 50 | 3.5% |
Total | 1 493 | 1 435 | ||
Workforce composition* | 2023 | 2022 | ||
Employees by region & gender distribution | Number of employees | % of total employees | Number of employees | % of total employees |
Norway | 623 | 41.7% | 612 | 42.6% |
Female | 127 | 8.5% | 116 | 8.1% |
Male | 496 | 33.2% | 496 | 34.6% |
Finland | 318 | 21.3% | 322 | 22.4% |
Female | 21 | 1.4% | 24 | 1.7% |
Male | 297 | 19.9% | 298 | 20.8% |
Poland | 113 | 7.6% | 115 | 8.0% |
Female | 7 | 0.5% | 8 | 0.6% |
Male | 106 | 7.1% | 107 | 7.5% |
UK | 77 | 5.2% | 77 | 5.4% |
Female | 14 | 0.9% | 12 | 0.8% |
Male | 63 | 4.2% | 65 | 4.5% |
Taiwan | 56 | 3.8% | 58 | 4.0% |
Female | 14 | 0.9% | 13 | 0.9% |
Male | 42 | 2.8% | 45 | 3.1% |
USA | 72 | 4.8% | 57 | 3.8% |
Female | 9 | 0.6% | 9 | 0.6% |
Male | 63 | 4.2% | 48 | 3.2% |
Philippines | 55 | 3.7% | 41 | 2.7% |
Female | 36 | 2.4% | 25 | 1.7% |
Male | 19 | 1.3% | 16 | 1.1% |
Rest of world | 179 | 12.0% | 153 | 10.2% |
Female | 27 | 1.8% | 25 | 1.7% |
Male | 152 | 10.2% | 128 | 8.6% |
Total | 1 493 | 1 435 | ||
Managers* by department | Number of managers | % of total |
Research and development | 183 | 68.8% |
Male | 166 | 90.7% |
Female | 17 | 9.3% |
Rest of organization | 81 | 30.5% |
Male | 57 | 70.4% |
Female | 24 | 29.6% |
Workforce composition** | 2023 | 2022 | ||
Employees by type of employment, gender and location | Number of employees | % of total employees | Number of employees | % of total employees |
Permanent employees* | 1 493 | 96.5% | 1 435 | 95.0% |
Female | 256 | 17.1% | 232 | 16.2% |
Male | 1 237 | 82.9% | 1 203 | 83.8% |
Temporary employees excl. students | 10 | 0.6% | 11 | 0.7% |
Female | 5 | 50.0% | 5 | 45.5% |
Male | 5 | 50.0% | 6 | 54.5% |
Consultants | 44 | 2.8% | 65 | 4.3% |
Norway | 19 | 43.2% | 29 | 44.6% |
Female | 4 | 21.1% | 5 | 17.2% |
Male | 15 | 78.9% | 24 | 82.8% |
Finland | 20 | 45.5% | 12 | 18.5% |
Female | 2 | 10.0% | 2 | 16.7% |
Male | 18 | 90.0% | 10 | 83.3% |
UK | 1 | 2.3% | 3 | 4.6% |
Female | 0 | —% | 1 | 33.3% |
Male | 1 | 100.0% | 2 | 66.7% |
Sweden | 4 | 9.1% | 4 | 6.2% |
Female | 3 | 75.0% | 3 | 75.0% |
Male | 1 | 25.0% | 1 | 25.0% |
Rest of the world | 0 | —% | 17 | 26.2% |
Female | —% | 1 | 5.9% | |
Male | —% | 16 | 94.1% | |
Total | 1 547 | 1 511 | ||
Indicator | Target 2024 | 2023 | 2022 | 2021 |
Human capital, diversity, and employee engagement | ||||
Number of employees | 1493 | 1435 | 1197 | |
Percentage female employees | 17.1% | 16.3% | 14.0% | |
Employee turnover rate (%) | < 5.0% | 8.8% | 6.6% | 5.6% |
Number of students/interns from universities | 57 | 110 | 57 | |
Number of contractors | 44 | 70 | 54 | |
Percentage of temporary workers | 4.4% | 5.5% | 4.3% | |
Total compensation ratio* | 2.72 | 10.23 | 9.18 | |
Total compensation ratio change (year-over-year) | 11.0% | |||
Diversity, equity & inclusion average score | Above benchmark | 8.0 | 8.5 | |
Employee engagement average score | Above benchmark | 6.9 | 8.4 | |
Health and safety | ||||
Work related incidents | 0 | 0 | 2 | 0 |
Lost Time Incident Rate (LTIR) | 0.0 | 0.0 | 0.1 | 0.0 |
Fatality rate | 0 | 0 | 0 | 0 |
Contractor fatality rate | 0 | 0 | 0 | |
Total sick leave (Norway) | 2.59% | 2.79% | 2.28% | |
Short time sick leave (Norway) | < 2.5% | 1.45% | 1.59% | 1.22% |
Health and well-being average score | Above benchmark | 7.8 | 8.3 | |
Social well-being average score | 7.9 | 7.8 | ||
Mental well-being average score | 7.7 | 8.0 | ||
Management support average score | 8.7 | 8.7 | ||
Organizational support average score | 7.4 | 8.3 | ||
Workload average score | 7.6 | 7.9 | ||
Category | 2023 | 2022 | 2021 |
Number of total hires | 175 | 326 | 270 |
Number of female hires | 41 | 71 | 50 |
Female hires in percentage | 23.4% | 21.8% | 18.5% |
Total headcount increase percentage | 4.0% | 19.7% | 22.4% |
Number of female employees in the Group | 255 | 234 | 168 |
Percentage of female employees in the Group | 17.1% | 16.3% | 14.0% |
Increase in female employees in percentage | 9.0% | 39.3% | 22.6% |
Category | Male | Female | Gender Pay Ratio* |
Overall (excl EMT) | 1239 | 255 | 75% |
Executive Management Team (EMT) | 8 | 2 | 74% |
Business support** | 97 | 69 | 84% |
Research and development** | 1011 | 137 | 82% |
Sales** | 85 | 8 | 82% |
Supply Chain** | 46 | 41 | 51% |
Indicator | Target | 2023 | 2022 | 2021 | 2020 |
Confirmed incidents of corruption and actions taken | 0 | 0 | 0 | 0 | 0 |
Numbers of reports made through whistleblowing channels | 2 | 1 | 1 | 1 | |
Substantiated complaints concerning breaches of customer privacy and losses of customer data | 0 | 0 | 0 | 0 | 0 |
Number of substantiated complaints or incidents concerning data breaches | 0 | 0 | 1 | 0 | 0 |
Annual Information Security awareness training conducted | Yes | Yes | Yes | Yes | Yes |
Substantial Contribution Criteria | DNSH criteria ('Does Not Significantly Harm') | |||||||||||||||||||
Economic Activities (1) CCM7.7. | Code (2) | Absolute OpEx (3) | Proportion of OpEx (4) | Climate Change Mitigation (5)* | Climate Change Adaptation (6) | Water (7) | Pollution (8) | Circular Economy (9) | Biodiversity and ecosystems (10) | Climate Change Mitigation (11) | Climate Change Adaptation (12) | Water (13) | Pollution (14) | Circular Economy (15) | Biodiversity (16) | Minimum Safeguards (17) | Taxonomy aligned proportion of total OpEx, year N (18)** | Taxonomy aligned proportion of turnover, year N-1 (19) | Category (enabling activity) (20) | Category (transitional activity) (21) |
A. TAXONOMY-ELIGIBLE ACTIVITIES | ||||||||||||||||||||
A.1. Environmentally sustainable activities (Taxonomy-aligned) | ||||||||||||||||||||
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) | CC7.7 . | 0 | Y | Y | Y | Y | Y | Y | Y | |||||||||||
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | ||||||||||||||||||||
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | CC7.7 . | 0 | ||||||||||||||||||
Total (A.1+A.2) | 0 | |||||||||||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | ||||||||||||||||||||
OpEx of Taxonomy-non- eligible activities | 234 681 | 100% | ||||||||||||||||||
Total (A+B) | 234 681 | 100% | ||||||||||||||||||
Substantial Contribution Criteria | DNSH criteria ('Does Not Significantly Harm') | |||||||||||||||||||
Economic Activities (1) CCM7.7. | Code (2) | Absolute CapEx (3) | Proportion of CapEx (4) | Climate Change Mitigation (5)* | Climate Change Adaptation (6) | Water (7) | Pollution (8) | Circular Economy (9) | Biodiversity and ecosystems (10) | Climate Change Mitigation (11) | Climate Change Adaptation (12) | Water (13) | Pollution (14) | Circular Economy (15) | Biodiversity (16) | Minimum Safeguards (17) | Taxonomy aligned proportion of total CapEx, year N (18)** | Taxonomy aligned proportion of turnover, year N-1 (19) | Category (enabling activity) (20) | Category (transitional activity) (21) |
A. TAXONOMY-ELIGIBLE ACTIVITIES | ||||||||||||||||||||
A.1. CapEx of environmentally sustainable activities (Taxonomy-aligned) | ||||||||||||||||||||
Acquisition and ownership of buildings (CapEx A) | CC7. 7. | 7 965 | 8.9% | 19% | Y | Y | Y | Y | Y | Y | 9% | |||||||||
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) | CC7. 7. | 7 965 | 8.9% | 2% | Y | Y | Y | Y | Y | Y | Y | 9% | ||||||||
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned) | ||||||||||||||||||||
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | CC7. 7. | 33 329 | 37.3% | |||||||||||||||||
Total (A.1+A.2) | 41 294 | 46.2% | ||||||||||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | ||||||||||||||||||||
Capex of Taxonomy-non-eligible activities | 48 179 | 53.8% | ||||||||||||||||||
Total (A+B) | 89 473 | 100% | ||||||||||||||||||
Substantial Contribution Criteria | DNSH criteria ('Does Not Significantly Harm') | |||||||||||||||||||
Economic Activities (1) CCM7.7. | Code (2) | Absolute turnover (3) | Proportion of Turnover (4) | Climate Change Mitigation (5)* | Climate Change Adaptation (6) | Water (7) | Pollution (8) | Circular Economy (9) | Biodiversity and ecosystems (10) | Climate Change Mitigation (11) | Climate Change Adaptation (12) | Water (13) | Pollution (14) | Circular Economy (15) | Biodiversity (16) | Minimum Safeguards (17) | Taxonomy aligned proportion of total turnover, year N (18)** | Taxonomy aligned proportion of turnover, year N-1 (19) | Category (enabling activity) (20) | Category (transitiona l activity) (21) |
A. TAXONOMY-ELIGIBLE ACTIVITIES | ||||||||||||||||||||
A.1. Environmentally sustainable activities (Taxonomy-aligned) | ||||||||||||||||||||
Turnover of environmentally sustainable activities (Taxonomy- aligned) (A.1) | CC7. 7. | 0 | ||||||||||||||||||
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | ||||||||||||||||||||
Acquisition and ownership of buildings | CC7. 7. | 0 | ||||||||||||||||||
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | CC7. 7. | 0 | ||||||||||||||||||
Total (A.1+A.2) | 0 | |||||||||||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | ||||||||||||||||||||
Turnover of Taxonomy-non- eligible activities | 542 869 | 100% | ||||||||||||||||||
Total (A+B) | 542 869 | 100% | ||||||||||||||||||
Row | Nuclear energy related activities | |
1 | The undertaking carries out, funds or has exposures 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 exposures to 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 best available technologies. | No |
3 | The undertaking carries out, funds or has exposures to 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 exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | No |
5 | The undertaking carries out, funds or has exposures to 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 exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | No |
Oslo, March 19, 2024 | ||
Anita Huun | Birger Steen | Inger Berg Ørstavik |
Board member | Chair | Board member |
Snorre Kjesbu | Vegard Wollan | Annastiina Hintsa |
Board member | Chief Executive Officer | Board member |
Jon Helge Nistad | Anja Dekens | Morten Dammen |
Board member, employee | Board member, employee | Board member, employee |
Dieter May | Dr. Helmut Gassel | |
Board member | Board member |
GROUP | PARENT | ||||
2023 | 2022 | Amount in USD 1000 | Note | 2023 | 2022 |
Total Revenue | 5 | 508 026 | 777 763 | ||
- | - | Cost of materials | 6 | -259 158 | -339 941 |
Gross profit | 248 868 | 437 822 | |||
- | - | Payroll expenses | 7/8/12/22 | -61 443 | -80 872 |
- | - | Other operating expenses | 9/13 | -174 914 | -166 328 |
- | - | Depreciation | 13/12/14 | -33 710 | -36 966 |
Operating profit | -21 199 | 153 656 | |||
Financial income | 10/25/26 | 9 361 | 6 171 | ||
- | - | Financial expenses | 10/14/25/26 | -3 364 | -1 094 |
Net foreign exchange gains (losses) | 10/25 | 1 362 | 673 | ||
Profit before tax | -13 841 | 159 405 | |||
- | - | Income tax expense | 11 | -2 116 | -42 463 |
Net profit after tax | -15 957 | 116 942 | |||
Attributable to: | |||||
Equity holders of the parent | -15 957 | 116 942 | |||
Ordinary earnings per share (USD) | 21 | ||||
Fully diluted earnings per share (USD) | 21 | ||||
2023 | 2022 | Statement of comprehensive income | 2023 | 2022 | |
Net profit after tax | -15 957 | 116 942 | |||
- | Actuarial gains (losses) on defined benefit plans (before tax) | -37 | 74 | ||
- | Income tax effect | 11 | 8 | -13 | |
- | Items that may not be reclassified to the income statement | -29 | 61 | ||
- | Currency translation differences | ||||
- | Items that may be reclassified to the income statement | ||||
- | Other comprehensive income | -29 | 61 | ||
Total Comprehensive Income | -15 986 | 117 003 | |||
Attributable to: | |||||
Equity holders of the parent | -15 986 | 117 003 | |||
GROUP | PARENT | |||||
2023 | 2022 | Amount in USD 1000 | Note | 2023 | 2022 | |
ASSETS | ||||||
Non-current assets | ||||||
Goodwill | 12 | 249 | 249 | |||
Capitalized development expenses | 12 | 38 938 | 26 608 | |||
Software and other intangible assets | 12 | 17 010 | 10 726 | |||
Deferred tax assets | 11 | 4 948 | 3 808 | |||
Right of use assets | 14 | 45 527 | 12 076 | |||
Fixed assets | 13/25/26 | 18 498 | 25 271 | |||
Investments in subsidiaries and joint ventures | 1/15 | 13 629 | 10 055 | |||
Other long term assets | 16 | 94 473 | ||||
Total non-current assets | 233 271 | 88 793 | ||||
Current assets | ||||||
Inventory | 6 | 163 090 | 102 091 | |||
Accounts receivable | 17/25/26 | 983 | 175 120 | |||
Current financial assets | 25/26 | 0 | 267 | |||
Other current receivables | 16/18/25/26 | 128 785 | 21 884 | |||
Cash and cash equivalents | 19/25/26 | 267 553 | 369 709 | |||
Total current assets | 560 411 | 669 070 | ||||
TOTAL ASSETS | 793 682 | 757 864 | ||||
EQUITY | |||||
Share Capital | 20 | 317 | 317 | ||
Share premium | 20 | 235 448 | 235 448 | ||
Other components of equity | 319 117 | 325 308 | |||
Total equity | 554 883 | 561 074 | |||
LIABILITIES | |||||
Non-current liabilities | |||||
Pension liabilities | 22 | 403 | 430 | ||
Borrowings | 25/26 | 97 491 | 0 | ||
Non-current lease liabilities | 14/25/26 | 42 127 | 8 711 | ||
Total non-current liabilities | 140 021 | 9 141 | |||
Current liabilities | |||||
Accounts payable | 24/25/26 | 15 403 | 32 335 | ||
Income taxes payable | 11/26 | 3 939 | 42 837 | ||
Public duties | 24/26 | 4 579 | 4 745 | ||
Current lease liabilities | 14/25/26 | 5 963 | 2 813 | ||
Other current liabilities | 18/24/25/26 | 68 894 | 104 918 | ||
Total current liabilities | 98 778 | 187 648 | |||
Total liabilities | 238 799 | 196 790 | |||
TOTAL EQUITY AND LIABILITIES | 793 682 | 757 864 |
Oslo, March 19, 2024 | ||
Anita Huun | Birger Steen | Inger Berg Ørstavik |
Board member | Chair | Board member |
Snorre Kjesbu | Vegard Wollan | Annastiina Hintsa |
Board member | Chief Executive Officer | Board member |
Jon Helge Nistad | Anja Dekens | Morten Dammen |
Board member, employee | Board member, employee | Board member, employee |
Dieter May | Dr. Helmut Gassel | |
Board member | Board member |
Amount in USD 1000 | Share capital | Treasury shares | Share premium | Other paid in capital | Currency translation reserve | Retained earnings | Total equity |
Equity as of 01.01.2022 | - | - | |||||
Net profit for the period | |||||||
Other comprehensive income | - | - | |||||
Share based compensation | |||||||
Option exercise | - | - | |||||
Equity as of 31.12.2022 | - | - | |||||
Net profit for the period | |||||||
Other comprehensive income | - | ||||||
Share based compensation | |||||||
Consideration shares in business combination (Note 27) | 0 | ||||||
Equity as of 31.12.2023 | - | - |
Amount in USD 1000 | Share capital | Treasury shares | Share premium | Other paid in capital | Retained earnings | Total equity |
Equity as of 01.01.2022 | 317 | -3 | 235 448 | 74 | 204 853 | 440 690 |
Net profit for the period | 116 942 | 116 942 | ||||
Other comprehensive income | 61 | 61 | ||||
Share based compensation | 7 621 | 7 621 | ||||
Option exercise | -4 240 | -4 239 | ||||
Equity as of 31.12.2022 | 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 | 6 652 | 6 652 | ||||
Consideration shares in business combination (Note 27) | 3 141 | 3 141 | ||||
Equity as of 31.12.2023 | 317 | -1 | 235 448 | 13 250 | 305 870 | 554 883 |
GROUP | PARENT | ||||
2023 | 2022 | Amount in USD 1000 | Note | 2023 | 2022 |
Cash flows from operating activities | |||||
Profit before tax | -13 841 | 159 405 | |||
- | - | Taxes paid for the period | 11 | -40 300 | -15 967 |
Depreciation and amortization | 13/12/14 | 33 710 | 36 966 | ||
- | - | Change in inventories, trade receivables and payables | 6/17/24/25 | 119 359 | -75 743 |
Share-based compensation | 6 582 | 4 554 | |||
- | Pension fund payments | -27 | -46 | ||
- | - | Interests paid | -1 379 | -616 | |
Interests received | 8 564 | 5 317 | |||
- | Prepayments | -100 000 | |||
- | Other operations related adjustments | -157 573 | 14 435 | ||
- | Net cash flows from operating activities | -144 906 | 128 305 | ||
Cash flows used in investing activities | |||||
- | - | Capital expenditures (including software) | 13/12 | -19 440 | -17 038 |
- | - | Capitalized development expenses | 12 | -21 973 | -6 489 |
Investment in subsidiaries | -4 362 | 0 | |||
- | Business Combination, net of cash acquired | 27 | 0 | 0 | |
- | - | Net cash flows used in investing activities | -45 775 | -23 527 | |
Cash flows from financing activities | |||||
Proceeds from bond issue | 92 935 | 0 | |||
- | Cash settlement of options contract | 0 | -4 727 | ||
- | - | Repayment of lease liabilities | -4 411 | -3 773 | |
- | Net cash flows from financing activities | 88 524 | -8 500 | ||
- | Effects of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
- | Net change in cash and cash equivalents | -102 157 | 96 279 | ||
Cash and cash equivalents as of 1.1. | 369 709 | 273 430 | |||
Cash and cash equivalents as of 31.12. | 19/25 | 267 552 | 369 709 | ||
GROUP | PARENT | |||
2023 | 2022 | Revenue | 2023 | 2022 |
302 486 | 483 799 | Consumer | 283 076 | 483 799 |
117 203 | 191 543 | Industrial | 109 682 | 191 543 |
103 325 | 67 623 | Healthcare | 96 695 | 67 623 |
15 153 | 29 163 | Others | 14 181 | 29 163 |
538 168 | 772 128 | Wireless components | 503 634 | 772 128 |
4 701 | 4 607 | ASIC components | 4 399 | 4 607 |
— | — | Management fee | -9 | 1 029 |
542 869 | 776 734 | Total revenue from contracts with customers | 508 026 | 777 763 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
59 933 | 97 868 | Europe | 56 086 | 98 679 |
120 571 | 107 966 | Americas | 112 833 | 108 123 |
362 365 | 570 899 | Asia/Pacific | 339 107 | 570 961 |
542 869 | 776 734 | Total revenue from contracts with customers | 508 026 | 777 763 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
542 869 | 776 734 | Goods transferred at a point in time | 508 035 | 776 734 |
0 | 0 | Services transferred over time | -9 | 1 029 |
542 869 | 776 734 | Total revenue from contracts with customers | 508 026 | 777 763 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
133 316 | 175 120 | Trade receivables | 983 | 175 120 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
30 010 | 30 694 | Refund liability – from ship & debit | — | 30 694 |
25 294 | 23 382 | Refund liability – from end-customer rebates | — | 23 382 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
316 788 | 378 534 | Purchased materials | 316 788 | 378 534 |
-60 999 | -40 136 | Changes in inventory | -60 999 | -40 136 |
3 368 | 1 544 | Scrapping inventory | 3 368 | 1 544 |
259 157 | 339 941 | Cost of materials | 259 157 | 339 941 |
95 043 | 34 356 | Raw materials | 95 043 | 34 356 |
9 907 | 25 380 | Work in Progress | 9 907 | 25 380 |
58 139 | 42 355 | Finished goods | 58 139 | 42 355 |
163 090 | 102 091 | Total inventory | 163 090 | 102 091 |
GROUP | PARENT | |||
2023 | 2022 | Combined expenses for salary and other compensation are distributed as follows: | 2023 | 2022 |
126 961 | 115 380 | Salary and vacation pay | 53 728 | 57 004 |
18 845 | 28 335 | Other compensation | 12 937 | 15 448 |
14 759 | 11 704 | Payroll tax | 9 217 | 8 692 |
-397 | -424 | Tax grant | -397 | -424 |
11 502 | 10 898 | Defined contribution pension | 4 639 | 4 606 |
-18 680 | -4 453 | Capitalized development expenses (hourly costs) | -18 680 | -4 453 |
152 990 | 161 440 | Total | 61 443 | 80 872 |
1 481 | 1 311 | Weighted average number of full time employees | 620 | 647 |
GROUP | PARENT | |||
2023 | 2022 | Employees as of December 31, are distributed as follows: | 2023 | 2022 |
631 | 612 | Norway | 631 | 612 |
318 | 322 | Finland | — | — |
113 | 115 | Poland | — | — |
47 | 49 | India | — | — |
72 | 57 | USA | — | — |
55 | 58 | Taiwan | — | — |
77 | 77 | UK | — | — |
55 | 41 | Philippines | 1 | 41 |
45 | 40 | Sweden | — | — |
28 | 28 | China | — | — |
12 | 15 | Hong Kong | 1 | — |
3 | 4 | South Korea | 3 | 4 |
5 | 4 | Germany | — | — |
5 | 4 | Japan | — | — |
2 | 3 | The Netherlands | 2 | 3 |
16 | 0 | Denmark | — | — |
2 | 2 | Australia | 2 | 2 |
7 | 4 | Singapore | — | — |
1 493 | 1 435 | Total | 640 | 662 |
Total compensation* expensed during the year for the CEO and other executives: | |||||||
2023 | Salary | Bonus | Options & PSU** | 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 |
2022 | Salary | Bonus | Options & PSU** | RSUs & PSUs | Other Comp. | Pension expenses | Total |
Svenn-Tore Larsen, CEO | 461 | 185 | 71 | 267 | 2 | 87 | 1 072 |
Pål Elstad, CFO/EVP Finance | 273 | 98 | 34 | 124 | 4 | 42 | 575 |
Svein Egil Nielsen, CTO/EVP R&D and Strategy | 308 | 112 | 41 | 140 | 4 | 52 | 657 |
Geir Langeland, EVP Sales & Marketing | 290 | 118 | 36 | 150 | 4 | 50 | 648 |
Ebbe Rømcke, SVP Quality & Sustainability**** | 189 | 65 | 23 | 83 | 2 | 26 | 387 |
Ole Fredrik Morken, EVP Supply Chain*** | 303 | 74 | 29 | 98 | 3 | 31 | 538 |
Marianne Frydenlund, SVP Legal**** | 121 | — | 19 | — | 1 | 9 | 150 |
Ståle Ytterdal, SVP IR & Strategic Sales | 203 | 65 | 25 | 84 | 4 | 25 | 406 |
Kjetil Holstad, EVP Product Management | 203 | 73 | 20 | 87 | 3 | 30 | 417 |
Katarina Finneng, EVP People & Communication | 227 | 83 | 1 | 103 | 3 | 35 | 453 |
Linda Pettersson, SVP Legal & Compliance**** | 136 | 40 | — | 4 | 2 | 17 | 198 |
Ola Boström, SVP Quality & Sustainability**** | 160 | 44 | — | 28 | 3 | 20 | 257 |
Total | 2 873 | 958 | 299 | 1 168 | 35 | 425 | 5 758 |
The Group has granted EMT members the following RSUs and performance shares (PSUs):* | ||||
EMT member | 2023 | 2022 | ||
Svenn-Tore Larsen, CEO | 9 184 RSUs | 9 184 PSUs | 6 532 RSUs | 6 532 PSUs |
Pål Elstad, CFO/EVP Finance | 4 520 RSUs | 4 520 PSUs | 3 193 RSUs | 3 193 PSUs |
Katarina Finneng, EVP People & Communication | 3 769 RSUs | 3 769 PSUs | 2 662 RSUs | 2 662 PSUs |
Svein Egil Nielsen, CTO/EVP R&D and Strategy | 5 110 RSUs | 5 110 PSUs | 3 609 RSUs | 3 609 PSUs |
Geir Langeland, EVP Sales & Marketing | 4 783 RSUs | 4 783 PSUs | 3 379 RSUs | 3 379 PSUs |
Ebbe Rømcke, SVP Quality & Sustainability | — | — | 2 111 RSUs | 2 111 PSUs |
Ole Fredrik Morken, EVP Supply Chain** | 3 439 RSUs | 3 439 PSUs | 2 429 RSUs | 2 429 PSUs |
Ståle Ytterdal, SVP IR & Strategic Sales | 2 955 RSUs | 2 955 PSUs | 2 087 RSUs | 2 087 PSUs |
Kjetil Holstad, EVP Product Management | 4 332 RSUs | 4 332 PSUs | 2 380 RSUs | 2 380 PSUs |
Ola Bostøm | 2 946 RSUs | 2 946 PSUs | ||
Linda Petterson | 2 823 RSUs | 2 823 PSUs | ||
Executives | Grant year | Number of options exercised | Share price at time of release in NOK | Cash payout in USD 1000 |
Svenn-Tore Larsen, CEO | 2020 RSU | 10 621 | 113.17 | 114 |
2020 PSU | 19 119 | 113.17 | 205 | |
Pål Elstad, CFO/EVP Finance | 2020 RSU | 6 345 | 113.17 | 68 |
2020 PSU | 11 422 | 113.17 | 122 | |
Svein Egil Nielsen, CTO/EVP R&D and Strategy | 2020 RSU | 7 172 | 113.17 | 77 |
2020 PSU | 12 911 | 113.17 | 138 | |
Geir Langeland, EVP Sales & Marketing | 2020 RSU | 6 621 | 113.17 | 71 |
2020 PSU | 11 918 | 113.17 | 128 | |
Katarina Finneng, EVP People & Communication | 2020 RSU | 5 241 | 113.17 | 56 |
2020 PSU | 9 434 | 113.17 | 101 | |
Ole Fredrik Morken, EVP Supply Chain** | 2020 RSU | 5 241 | 113.17 | 56 |
2020 PSU | 9 434 | 113.17 | 101 | |
Ola Bostrøm, SVP Quality & Sustainability | 2020 RSU | 1 704 | 113.17 | 18 |
2020 PSU | — | — | — | |
Ståle Ytterdal, SVP IR & Strategic Sales | 2020 RSU | 4 414 | 113.17 | 47 |
2020 PSU | 7 946 | 113.17 | 85 | |
Kjetil Holstad, EVP Product Management | 2020 RSU | 4 276 | 113.17 | 46 |
2020 PSU | 7 697 | 113.17 | 14 |
Total compensation expensed for Board Members* | 2023 | 2022 |
Birger Steen, Chair | 126 | 165 |
Inger Berg Ørstavik, Board Member | 57 | 68 |
Endre Holen, Board Member | 18 | 90 |
Snorre Kjesbu, Board member | 38 | — |
Jan Magnus Frykhammar, Board Member | 41 | 80 |
Øyvind Birkenes, Board Member | 12 | 62 |
Annastiina Hintsa, Board Member | 56 | 63 |
Anita Huun, Board Member | 60 | 68 |
Jon Helge Nistad, Board Employee Representative (Board remuneration only) | 15 | 16 |
Susheel Nuguru, Board Employee Representative (Board remuneration only) | — | 5 |
Morten Dammen, Board Employee Representative (Board remuneration only) | 15 | 16 |
Joel Stapleton, Board Employee Representative (Board remuneration only) | — | 5 |
Gro Fykse, Board Employee Representative (Board remuneration only) | 15 | 10 |
Anja Dekens, Board Employee Representative (Board remuneration only) | 15 | 10 |
Total | 466 | 659 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
31 374 | 24 837 | Service and maintenance | 29 094 | 23 222 |
22 360 | 17 422 | Other consultancy fees | 15 470 | 12 318 |
3 140 | 2 301 | Office expenses | 1 349 | 1 088 |
1 748 | 1 956 | Office equipment | 1 201 | 1 246 |
11 746 | 11 401 | Material and components | 8 747 | 9 720 |
-70 | -57 | Tax grant | -70 | -57 |
-3 293 | -2 034 | Capitalized development expenses | -3 293 | -2 036 |
2 712 | 3 585 | Travel and meeting expenses | 1 262 | 1 799 |
11 974 | 10 274 | Other operating expenses | 10 751 | 8 448 |
— | — | Other operating expenses intercompany | 110 402 | 110 581 |
81 691 | 69 685 | Total other operating expenses | 174 914 | 166 328 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
159 | 109 | Audit services | 119 | 93 |
— | 14 | Other attestation Services | — | 14 |
35 | 4 | Tax advisory Services | 26 | — |
36 | — | Other Non Audit service | 36 | — |
230 | 128 | Total revenues | 181 | 107 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
9 670 | 5 230 | Interest income | 9 313 | 5 203 |
57 | 972 | Other financial income | 48 | 968 |
9 726 | 6 202 | Financial income | 9 361 | 6 171 |
1 550 | 621 | Interest expenses on lease liabilities | 1 229 | 478 |
756 | — | Bond interest expense | 756 | — |
1 384 | 646 | Other financial expense | 1 380 | 616 |
3 690 | 1 267 | Financial expense | 3 365 | 1 094 |
1 358 | 619 | Foreign exchange gain(loss) | 1 362 | 672 |
7 394 | 5 554 | Net financial | 7 358 | 5 749 |
GROUP | PARENT | |||
2023 | 2022 | Tax consists of | 2023 | 2022 |
6 339 | 43 723 | Current tax expense | 3 366 | 41 151 |
-1 892 | 1 094 | Change in deferred tax | -1 251 | 1 312 |
4 447 | 44 817 | Tax expense (income) | 2 116 | 42 463 |
GROUP | PARENT | |||
2023 | 2022 | Reconciliation of nominal and actual tax expense | 2023 | 2022 |
-12 096 | -167 155 | Profit before tax | 13 841 | -159 405 |
2 661 | 36 774 | Computed tax at parent's nominal tax rate of 22% | -3 045 | 35 069 |
-702 | -42 | Differences due to different tax rates | — | -42 |
1 256 | -518 | Non taxable income/non deductible expenses | 360 | -1 527 |
— | -726 | Credit for tax paid | — | -98 |
-2 646 | — | Tax incentives | — | — |
-1 082 | 265 | Adjustment previous years | -392 | — |
4 960 | 9 064 | Currency translation differences | 5 193 | 9 061 |
— | — | Other items | — | — |
4 447 | 44 817 | Total tax expense (income) | 2 114 | 42 463 |
GROUP | ||||||
Deferred taxes: | Balance sheet | Income statement | Other. Comp. income | |||
31.12.2023 | 31.12.2022 | 2023 | 2022 | 2023 | 2022 | |
Inventory | 751 | 757 | -17 | 600 | — | — |
Fixed Assets | 4 188 | 3 267 | -1 167 | -1 178 | — | — |
Right-of-use assets | -10 394 | -2 438 | 8 031 | -458 | — | — |
Lease liabilities | 10 606 | 2 616 | -8 071 | 313 | — | — |
Social security tax (RSUs) | 130 | 0 | 145 | 1 547 | — | — |
Pension obligation | 89 | 95 | 3 | -3 | -8 | 13 |
Financial instruments | — | — | -57 | — | — | — |
Accruals | 202 | 341 | 120 | 212 | — | — |
Deferred tax benefit - gross | 5 890 | 4 637 | -1 985 | 1 033 | -8 | 13 |
Gain and loss account | 18 | 24 | 5 | 6 | — | — |
Net other tax-obligations | — | — | — | 73 | — | — |
Financial instrument | 0 | 59 | — | -161 | — | — |
Deferred tax obligation - gross | 18 | 83 | 5 | -82 | 0 | 0 |
Currency effect of translation to USD | 98 | -21 | ||||
Net deferred tax benefit (obligation) | 5 872 | 4 554 | ||||
Deferred tax expense (income) | -1 892 | 1 094 | -8 | 13 | ||
PARENT | ||||||
Deferred taxes: | Balance sheet | Income statement | Other. Comp. income | |||
31.12.2023 | 31.12.2022 | 2023 | 2022 | 2023 | 2022 | |
Inventory | 751 | 757 | -17 | 600 | — | — |
Fixed Assets | 3 774 | 2 836 | -1 026 | -1 008 | — | — |
Leasing | 209 | 173 | -42 | -140 | — | — |
Social security tax (RSUs) | 130 | 0 | 145 | 1 547 | — | — |
Pension obligation | 89 | 95 | 3 | -3 | -8 | 13 |
Financial instrument | — | 0 | -57 | 0 | — | — |
Accruals | 13 | 30 | 16 | 240 | — | — |
Deferred tax benefit - gross | 4 967 | 3 891 | -978 | 1 236 | -8 | 13 |
Gain and loss account | 18 | 24 | 5 | 6 | — | — |
Net other tax-obligations | — | 0 | 276 | 70 | — | — |
Financial instrument | 0 | 59 | 0 | -161 | — | — |
Deferred tax obligation - gross | 18 | 83 | 281 | -85 | 0 | 0 |
Currency effect of translation to USD | 8 | -9 | ||||
Net deferred tax benefit (obligation) | 4 948 | 3 808 | ||||
Deferred tax expense (income) | -1 251 | 1 312 | -8 | 13 | ||
GROUP | PARENT | |||
2023 | 2022 | Reconciliation of net deferred tax obligation | 2023 | 2022 |
4 554 | 6 331 | Opening balance as of 1.1 | 3 808 | 5 748 |
1 892 | -1 083 | Tax expense recognized in the P&L | 1 251 | -1 312 |
8 | -13 | Tax expense recognized in OCI | 8 | -13 |
-582 | -681 | Currency effect from translation to USD | -119 | -615 |
5 872 | 4 554 | Net deferred tax benefit (obligation) as of 31.12 | 4 948 | 3 808 |
GROUP | PARENT | |||
2023 | 2022 | Net deferred tax recognized in OCI as of 31.12 | 2023 | 2022 |
-8 | 13 | Net gain on actuarial gains and losses | -8 | 13 |
-8 | 13 | Total tax expense (income) in OCI | -8 | 13 |
Valuation | Value |
Market value | 2 387 881 |
Book value | 602 077 |
GROUP | ||||
2023 | Software and other intangible assets | Capitalized development expenses | Goodwill | Total |
Acquisition cost | ||||
Opening balance | 31 121 | 57 015 | 2 284 | 90 421 |
Additions | 11 520 | 21 973 | 50 | 33 544 |
Additions from business combinations | 2 090 | — | 8 557 | 10 647 |
Disposals | — | — | — | — |
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 | — | 15 846 |
Disposals | — | — | — | — |
Accumulated amortization as of 31.12 | 25 668 | 40 051 | 0 | 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 | 86 103 |
Additions | 11 378 | 21 973 | — | 33 351 |
Disposals | — | — | ||
Acquisition cost as of 31.12 | 40 218 | 78 988 | 249 | 119 454 |
Accumulated depreciation | ||||
Opening balance | 18 114 | 30 408 | — | 48 522 |
Amortization expenses | 5 094 | 9 644 | — | 14 738 |
Disposals | — | — | — | — |
Accumulated amortization as of 31.12 | 23 208 | 40 051 | — | 63 259 |
Net carrying value as of 31.12 | 17 011 | 38 938 | 249 | 56 197 |
Estimated useful life | 3 - 10 years | 1 - 5 years | No depreciation | |
Depreciation 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 | ||||
2022 | Software and other intangible assets | Capitalized development expenses | Goodwill | Total |
Acquisition cost | ||||
Opening balance | 50 896 | 80 019 | 2 386 | 133 302 |
Additions | 2 909 | 6 489 | -102 | 9 296 |
Acquisition cost as of 31.12 | 31 121 | 57 015 | 2 284 | 90 424 |
Accumulated depreciation | ||||
Opening balance | 35 132 | 48 477 | — | 83 609 |
Amortization expenses | 7 068 | 11 423 | — | 18 492 |
Accumulated amortization as of 31.12 | 19 466 | 30 408 | — | 49 874 |
Net carrying value as of 31.12 | 11 655 | 26 608 | 2 284 | 40 547 |
PARENT | ||||
2022 | Software and other intangible assets | Capitalized development expenses | Goodwill | Total |
Acquisition cost | ||||
Opening balance | 49 387 | 80 017 | 249 | 129 654 |
Additions | 2 135 | 6 489 | — | 8 624 |
Acquisition cost as of 31.12 | 28 839 | 57 015 | 249 | 86 103 |
Accumulated depreciation | ||||
Opening balance | 34 155 | 48 476 | — | 82 631 |
Amortization expenses | 6 642 | 11 423 | — | 18 065 |
Accumulated amortization as of 31.12 | 18 114 | 30 408 | — | 48 522 |
Net carrying value as of 31.12 | 10 726 | 26 608 | 249 | 37 583 |
Estimated useful life | 3 - 10 years | 1 - 5 years | No depreciation | |
Amortization method | Straight-line | Straight-line | NA |
GROUP | R&D expenses: | PARENT |
98 672 | Personnel expenses | 40 232 |
38 488 | Other operating expenses | 29 209 |
137 160 | Total cost recognized in income statement | 69 441 |
143 649 | Total cost for R&D (incl. capitalized development cost) | 75 930 |
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 | — | 660 |
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 | — | 51 672 |
Net carrying value as of 31.12 | 5 453 | 11 208 | 1 504 | 333 | 18 498 |
GROUP | |||||
2022 | Office and lab equipment | Computer equipment and machinery | Fixture and fittings | Property | Total |
Opening balance | 37 980 | 66 006 | 6 716 | 333 | 111 035 |
Additions | 8 027 | 11 492 | 1 374 | — | 20 892 |
Disposals | -6 163 | -32 826 | -1 950 | — | -40 939 |
Acquisition cost as of 31.12 | 39 843 | 44 673 | 6 138 | 333 | 90 989 |
Opening balance | 25 192 | 47 999 | 3 958 | — | 77 149 |
Depreciation expenses | 7 485 | 10 781 | 990 | — | 19 256 |
Disposals | -6 163 | -32 825 | -2 032 | — | -41 020 |
Accumulated depreciation as of 31.12 | 26 514 | 25 955 | 2 916 | — | 55 384 |
Net carrying value as of 31.12 | 13 329 | 18 716 | 3 222 | 333 | 35 603 |
PARENT | |||||
2022 | Office and lab equipment | Computer equipment and machinery | Fixture and fittings | Property | Total |
Opening balance | 25 482 | 61 891 | 5 469 | 333 | 93 174 |
Additions | 2 818 | 11 315 | 771 | — | 14 903 |
Disposals | -10 038 | -32 650 | -3 262 | — | -45 950 |
Acquisition cost as of 31.12 | 18 262 | 40 555 | 2 977 | 333 | 62 126 |
Opening balance | 15 563 | 45 382 | 3 404 | — | 64 349 |
Depreciation expenses | 4 402 | 10 334 | 577 | — | 15 313 |
Disposals | -7 753 | -32 589 | -2 465 | — | -42 807 |
Accumulated depreciation as of 31.12 | 12 212 | 23 127 | 1 517 | 0 | 36 855 |
Net carrying value as of 31.12 | 6 050 | 17 429 | 1 460 | 333 | 25 271 |
GROUP AND PARENT | |||||
Estimated useful life | 3 - 5 years | 3 - 4 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 | — | 4 995 | 782 | 3 618 | 596 |
Office equipment | — | 431 | 86 | 344 | — |
Short-term leases | — | 2 | 2 | — | — |
Total | — | 5 428 | 870 | 3 962 | 596 |
PARENT | Carrying amount | Contractual cash flow | Less than one year | One to five years | More than five years |
Office space | — | — | — | — | — |
Office equipment | — | 431 | 86 | 344 | — |
Short-term leases | — | — | — | — | — |
Total | — | 431 | 86 | 344 | — |
GROUP | PARENT | |||
31.12.2023 | 31.12.2022 | Right of use assets | 31.12.2023 | 31.12.2022 |
54 670 | 21 416 | Office space | 45 527 | 12 076 |
54 670 | 21 416 | Total | 45 527 | 12 076 |
GROUP | PARENT | |||
31.12.2023 | 31.12.2022 | Lease liabilities | 31.12.2023 | 31.12.2022 |
9 897 | 6 280 | Current | 5 963 | 2 813 |
47 864 | 14 861 | Non-Current | 42 127 | 8 711 |
57 762 | 21 141 | Total | 48 090 | 11 524 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
28 826 | 8 843 | Additions to right-of-use assets | 25 761 | 1 011 |
12 468 | 109 | Adjustments to right-of-use assets | 11 827 | 266 |
— | — | Disposals to the right-of-use assets | — | -534 |
GROUP | PARENT | |||
2023 | 2022 | Depreciation of right-of-use assets | 2023 | 2022 |
8 094 | 5 974 | Office space | 4 138 | 3 427 |
— | 162 | Office equipment and machinery | — | 162 |
8 094 | 6 135 | Total depreciation | 4 138 | 3 588 |
1 597 | 621 | Interest expense | 1 229 | 478 |
405 | 513 | Expenses relating to short-term leases | 138 | 235 |
735 | 644 | Expenses relating to leases of low-value assets | 293 | 303 |
10 831 | 7 914 | Total amount recognized in profit and loss | 5 798 | 4 603 |
9 567 | 7 766 | The total cash outflow for leases | 4 842 | 4 311 |
GROUP | Cash flow information for lease liabilities | PARENT |
21 141 | Net liabilities as at 1 January 2023 | 11 524 |
-8 426 | Lease payments | -4 410 |
41 294 | Acquisitions and adjustments | 37 588 |
— | Disposals | — |
1 597 | Interest | 1 229 |
2 156 | Foreign exchange adjustments | 2 159 |
57 762 | Net liabilities as at 31 December 2023 | 48 090 |
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 2023 | Ownership | Share of votes | Net profit 2023 | Equity 31. Dec 2023 |
Nordic Semiconductor Inc, USA | 100% | 100% | 1 630 | 5 181 |
Nordic Semiconductor Poland S.P z o.o | 100% | 100% | 5 047 | 8 623 |
Nordic Semiconductor Finland OY | 100% | 100% | 4 439 | 22 584 |
Nordic Semiconductor KK | 100% | 100% | 30 | 134 |
Nordic Semiconductor Germany GmbH | 100% | 100% | 30 | 150 |
Nordic Semiconductor Norway AS | 100% | 100% | 207 | 7 666 |
Nordic Semiconductor UK Limited | 100% | 100% | 1 503 | 3 792 |
Nordic Semiconductor India Pvt. Ltd | 100% | 100% | 432 | 1 965 |
Nordic Semiconductor Sweden AB | 100% | 100% | 504 | 1 287 |
Nordic Semiconductor Hong Kong Limited | 100% | 100% | 86 | 250 |
Nordic Semiconductor (Shenzhen) Limited | 100% | 100% | 282 | 531 |
Nordic Semiconductor Singapore Pte Ltd | 100% | 100% | 11 611 | 11 847 |
Nordic Semiconductor Denmark ApS | 100% | 100% | 248 | 251 |
Nordic Semiconductor Philippines, Inc. | 100% | 100% | 62 | 81 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
133 316 | 175 120 | Gross receivables | 983 | 175 120 |
— | — | Provision for doubtful accounts | — | — |
133 316 | 175 120 | Accounts receivable, net | 983 | 175 120 |
PARENT | 2023 | 2022 |
Loans to group companies | 6 145 | — |
Receivables group companies | 105 406 | 10 486 |
Total receivable | 111 551 | 10 486 |
Accounts payable, group companies | 55 148 | 31 994 |
Total payables | 55 148 | 31 994 |
PARENT | 2023 | 2022 |
Sale of goods | 521 464 | — |
Service fee for management services | — | 1 029 |
Total revenue | 521 464 | 1 029 |
Cost of goods sold | 268 237 | — |
Total cost of goods sold | 268 237 | — |
Service fee for R&D and product promotion | 110 402 | 110 581 |
Total other operating expenses | 110 402 | 110 581 |
Interest income from loans to group companies | 371 | — |
Total financial income | 371 | — |
GROUP | PARENT | |||
2023 | 2022 | Cash and cash equivalents as of the balance sheet date were as follows: | 2023 | 2022 |
189 853 | 277 700 | Cash at bank | 166 449 | 277 690 |
2 372 | 2 479 | Restricted cash (withholding tax account) | 2 372 | 2 479 |
— | 50 467 | Short-term bank deposits | — | 50 467 |
98 731 | 48 458 | Money market funds | 98 731 | 48 458 |
290 957 | 379 104 | Cash and cash equivalents in statement of financial position | 267 553 | 379 096 |
GROUP | Number of shares | Share capital (USD 1000) | Treasury shares (USD 1000) | Share premium (USD 1000) | ||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
Holdings as of 1.1 | 192 781 600 | 192 781 600 | 317 | 317 | -2 | -3 | 235 448 | 235 448 |
Change during the year | — | — | — | — | 1 | 1 | — | — |
Holdings as of 31.12 | 192 781 600 | 192 781 600 | 317 | 317 | -1 | -2 | 235 448 | 235 448 |
Shareholder | Shares | Percentage |
DNB Asset Management AS | 19 780 570 | 10.3% |
Accelerator Limited | 17 472 950 | 9.1% |
Capital Research and Management Company | 16 965 562 | 8.8% |
Folketrygdfondet | 15 286 953 | 7.9% |
Hardman Johnston Global Advisors LLC | 7 275 215 | 3.8% |
The Vanguard Group, Inc. | 6 926 324 | 3.6% |
Danske Bank Investment Management | 5 144 263 | 2.7% |
Invesco Advisers, Inc. | 5 090 355 | 2.6% |
BlackRock Fund Advisors | 4 621 010 | 2.4% |
RBC Global Asset Management (UK) Limited | 3 982 945 | 2.1% |
Eika Kapitalforvaltning AS | 3 626 198 | 1.9% |
Alfred Berg Kapitalforvaltning AS | 3 442 656 | 1.8% |
Skandia Fonder AB | 3 134 377 | 1.6% |
Swedbank Robur Fonder AB | 2 980 000 | 1.5% |
Robeco Institutional Asset Management B.V. | 2 903 864 | 1.5% |
KLP Kapitalforvaltning AS | 2 369 838 | 1.2% |
E. Öhman J :or Fonder AB | 2 001 406 | 1.0% |
Svenn Tore Larsen | 1 947 142 | 1.0% |
Alden AS | 1 850 000 | 1.0% |
TTC Invest AS | 1 772 000 | 0.9% |
Total for the 20 largest shareholders | 128 573 628 | 66.7% |
Other shareholders | 64 207 972 | 33.3% |
Total shares outstanding | 192 781 600 | 100.0% |
Board of Directors | Shares | Executive Management | Shares |
Birger Steen | 208 745 | Svenn-Tore Larsen | 1 947 142 |
Anita Huun | 13 919 | Geir Langeland | 219 653 |
Inger Berg Ørstavik | 5 919 | Ole Fredrik Morken | 205 345 |
Annastiina Hintsa | 4 919 | Ståle Ytterdal | 141 632 |
Snorre Kjesbu | 661 | Ola Bostrøm | 3 511 |
Jon Helge Nistad | 749 | Pål Elstad | 49 417 |
Anja Dekens | 433 | Svein-Egil Nielsen | 42 285 |
Morten Dammen | 1 953 | Kjetil Holstad | 16 401 |
Linda Pettersson | 0 | ||
Katarina Finneng | 4 337 | ||
Total | 237 298 | Total | 2 629 723 |
Basis for calculation of basic earnings per share | 2023 | 2022 |
Earnings for the year (USD ‘000) | 7 650 | 122 339 |
Weighted average number of outstanding shares (‘000) | 192 085 | 191 365 |
Earnings per share (USD) | 0.04 | 0.64 |
Basis for calculation of fully diluted earnings per share | ||
Earnings for the year (USD ‘000) | 7 650 | 122 339 |
Weighted average number of outstanding shares (‘000) | 193 350 | 192 739 |
Earnings per share (USD) | 0.04 | 0.63 |
Date | Shares issued | Shares outstanding | |
01.01.2023 | Opening balance | 192 781 600 | 191 575 087 |
31.12.2023 | Closing balance | 192 781 600 | 192 399 498 |
A summary of share options transactions during 2023 and 2022 below: | 2023 | 2022 |
Outstanding options 1.1 | — | 545 203 |
Granted | — | — |
Forfeited | — | 705 |
Exercised | — | 544 498 |
Expired | — | — |
Outstanding options 31.12 | — | — |
Of which exercisable | — | — |
A summary of RSUs transactions during 2023 and 2022 below: | 2023 | 2022 |
Outstanding RSUs 1.1 | 1 002 504 | 1 058 947 |
Granted | 958 462 | 486 677 |
Forfeited | 146 600 | 50 340 |
Released | 409 801 | 492 780 |
Outstanding RSUs 31.12 | 1 404 565 | 1 002 504 |
A summary of performance shares during 2023 and 2022 below: | 2023 | 2022 |
Outstanding performance shares 1.1 | 109 632 | 142 990 |
Granted | 43 861 | 30 376 |
Forfeited | 21 929 | 7 921 |
Performance adjusted | 43 371 | 55 813 |
Released | 97 578 | 111 626 |
Outstanding performance shares 31.12 | 77 357 | 109 632 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
12 201 | 34 229 | Accounts payable | 15 403 | 32 335 |
— | — | Accounts payable from subsidiaries | 55 148 | 31 994 |
5 640 | 43 758 | Taxes payable | 3 939 | 42 837 |
1 390 | 14 542 | Employee benefit obligations | 319 | 7 333 |
6 334 | 6 455 | Social security tax and payroll tax | 4 579 | 4 745 |
11 113 | 10 129 | Holiday pay | 6 405 | 5 991 |
30 010 | 30 694 | Ship and debit | — | 30 694 |
25 294 | 23 382 | End-customer rebate | — | 23 382 |
4 398 | — | Restructuring costs | 2 811 | — |
9 897 | 6 280 | Current lease liabilities | 5 963 | 2 813 |
741 | — | Accrued interest bond | 741 | — |
5 514 | 7 547 | Accrued expenses | 3 325 | 5 450 |
1 620 | 145 | Other current liabilities | 147 | 74 |
114 151 | 177 160 | Total current liabilities | 98 778 | 187 648 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
602 077 | 583 544 | Total equity | 554 883 | 561 074 |
862 245 | 776 241 | Total assets | 793 682 | 757 864 |
70% | 75% | Equity share | 70% | 74% |
GROUP | PARENT | |||
2023 | 2022 | Amortized cost | 2023 | 2022 |
133 316 | 175 120 | Accounts receivable | 984 | 175 120 |
4 389 | 5 562 | Other current receivables | 113 795 | 12 989 |
192 225 | 280 178 | Cash at bank | 168 822 | 270 783 |
— | 50 467 | Short-term bank deposits | — | 50 467 |
329 930 | 511 328 | Total financial assets at amortized cost | 283 601 | 509 359 |
GROUP | PARENT | |||
2023 | 2022 | Fair value through profit or loss | 2023 | 2022 |
98 731 | 48 458 | Money market fund | 98 731 | 48 458 |
— | 267 | Currency swap | — | 267 |
98 731 | 48 725 | Total financial assets at fair value through profit or loss | 98 731 | 48 725 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
48 725 | 53 259 | As at 1 January | 48 725 | 53 259 |
-44 205 | — | Disposal of financial instruments | -44 205 | — |
93 064 | — | Acquisition of financial instruments | 93 064 | — |
426 | 1 073 | Changes in fair value | 426 | 1 073 |
721 | -5 607 | Currency translation differences | 721 | -5 607 |
98 731 | 48 725 | As at 31 December | 98 731 | 48 725 |
GROUP | PARENT | |||
2023 | 2022 | Amortized cost | 2023 | 2022 |
97 491 | — | Bond | 97 491 | — |
12 201 | 34 229 | Accounts payable | 15 403 | 32 335 |
741 | — | Current financial liabilities | 741 | — |
79 345 | 86 439 | Other current liabilities | 68 153 | 104 918 |
47 864 | 14 861 | Non-current lease liabilities | 42 127 | 8 711 |
9 897 | 6 280 | Current lease liabilities | 5 963 | 2 813 |
247 539 | 141 809 | Total financial liabilities at amortized cost | 229 878 | 148 777 |
GROUP | PARENT | |||
2023 | 2022 | Gross total | 2023 | 2022 |
93 606 | 143 750 | Not due | 630 | 143 750 |
37 107 | 30 241 | Past due 0-30 days | 10 | 30 241 |
2 332 | 846 | Past due 31-120 days | 73 | 846 |
271 | 283 | Over 120 days | 271 | 283 |
133 316 | 175 120 | Total | 983 | 175 120 |
GROUP | PARENT | |||
2023 | 2022 | 2023 | 2022 | |
133 316 | 175 120 | Accounts receivable | 983 | 175 120 |
21 874 | 17 539 | Other current receivables | 128 785 | 21 884 |
290 957 | 379 104 | Cash and cash equivalents | 267 553 | 369 709 |
— | 50 467 | Short-term bank deposits | — | 50 467 |
446 147 | 622 230 | Total | 397 321 | 617 180 |
GROUP | Carrying amount | Contractual cash flow | Less than one year | One to five years | More than five years |
Bond | 97 491 | 98 305 | — | 98 305 | — |
Current financial liabilities* | 741 | 34 435 | 7 480 | 26 955 | — |
Accounts payable | 12 201 | 12 201 | 12 201 | — | — |
Other current liabilities | 92 053 | 92 053 | 92 053 | — | — |
Lease liabilities** | 57 762 | 77 422 | 10 318 | 30 059 | 37 045 |
Total | 260 247 | 314 416 | 122 052 | 155 319 | 37 045 |
PARENT | Carrying amount | Contractual cash flow | Less than one year | One to five years | More than five years |
Bond | 97 491 | 98 305 | — | 98 305 | — |
Current financial liabilities* | 741 | 34 435 | 7 480 | 26 955 | — |
Accounts payable | 15 403 | 15 403 | 15 403 | — | — |
Accounts payable subsidiaries | 55 148 | 55 148 | 55 148 | — | — |
Other current liabilities | 22 258 | 22 258 | 22 258 | — | — |
Lease liabilities** | 48 090 | 66 530 | 6 029 | 23 764 | 36 736 |
Total | 239 130 | 292 078 | 106 317 | 149 025 | 36 736 |
2023 | 2022 | |
Interest rate (3 months NIBOR) | Effect on profit before tax | Effect on profit before tax |
+50 basis points | -48 | — |
-50 basis points | 48 | — |
Profit before tax | |
NOK exchange rate +/- 10% | +/- 4 537 |
GROUP | 2023 | 2022 | ||||
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 | 542 830 | 542 830 | 100.0% | 776 712 | 776 712 | 100.0% |
EUR | 11 | 11 | —% | 6 | 6 | —% |
Other | 282 | 28 | —% | 130 | 16 | —% |
Total | 542 869 | 100.0% | 776 734 | 100.0% | ||
PARENT | 2023 | 2022 | ||||
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 | 507 986 | 507 986 | 100.0% | 777 106 | 777 106 | 99.9% |
EUR | 11 | 11 | —% | 356 | 369 | —% |
Other | 282 | 28 | —% | 4 532 | 287 | —% |
Total | 508 026 | 100.0% | 777 764 | 100.0% | ||
GROUP | 2023 | 2022 | ||
Accounts receivable | Accounts payables | Accounts receivable | Accounts payables | |
USD | 133 313 | 12 102 | 175 120 | 30 640 |
EUR | — | 599 | — | 1 955 |
NOK | 3 | 2 842 | — | 1 106 |
Other | — | -14 802 | — | 528 |
Total | 133 316 | 741 | 175 120 | 34 229 |
PARENT | 2023 | 2022 | ||
Accounts receivable | Accounts payables | Accounts receivable | Accounts payables | |
USD | 981 | 12 092 | 175 120 | 30 640 |
EUR | — | 297 | — | 499 |
NOK | 3 | 2 842 | — | 1 106 |
Other | — | -14 490 | — | 90 |
Total | 983 | 741 | 175 120 | 32 335 |
GROUP | 2023 | 2022 | ||
Book value | Fair market value | Book value | Fair market value | |
Financial liabilities | ||||
Bond | 97 491 | 99 178 | — | — |
PARENT | 2023 | 2022 | ||
Book value | Fair market value | Book value | Fair market value | |
Financial liabilities | ||||
Bond | 97 491 | 99 178 | — | — |
Amount in USD thousand | 2023 |
Details of the business combination | |
Amount settled in cash | 6 000 |
Fair value of immediate equity shares consideration | 3 141 |
Fair value of contingent share consideration | 1 360 |
Total | 10 500 |
Amount in USD thousand | 2023 |
Recognized amounts of identifiable net assets | |
Property plant and equipment | 51 |
Intellectual property rights | 2 090 |
Other current receivables | 448 |
Cash and cash equivalents | 310 |
Deferred tax liabilities | -564 |
Other current liabilities | -390 |
Net identifiable assets | 1 943 |
Goodwill | 8 557 |
Total | 10 500 |
Amount in USD thousand | 2023 | 2022 |
Balance, beginning of the year | 2 284 | 2 386 |
Acquired through business combination | 8 557 | — |
Net exchange difference | 50 | -102 |
Balance, end of period | 10 891 | 2 284 |
GROUP | 2023 | 2022 |
Gross profit | 283.7 | 436.8 |
Total revenue | 542.9 | 776.7 |
Gross margin | 52.3% | 56.2% |
GROUP | 2023 | 2022 |
Operating profit | 4.7 | 161.6 |
Depreciation | 44.3 | 44.1 |
EBITDA | 49.0 | 205.7 |
GROUP | 2023 | 2022 |
EBITDA | 49.0 | 205.7 |
Total revenue | 542.9 | 776.7 |
EBITDA Margin | 9.0% | 26.5% |
GROUP | 2023 | 2022 |
Payroll expenses | 153.0 | 161.4 |
Other operating expenses | 81.7 | 69.7 |
Depreciation | 44.3 | 44.1 |
Total operating expenses | 279.0 | 275.2 |
Depreciation | -44.3 | -44.1 |
Option expense | -6.5 | -7.8 |
Capitalized expenses | 22.0 | 6.5 |
Cash operating expenses | 250.1 | 229.8 |
GROUP | 2023 | 2022 |
Reported EBITDA | 49.0 | 205.7 |
Long range (cellular IoT) EBITDA loss | 45.5 | 41.4 |
Wi-Fi expense | 16.5 | 15.1 |
Restructuring expenses excl. Wi-Fi and LR | 4.3 | 0.0 |
Adjusted EBITDA | 115.4 | 262.2 |
Total revenue (excluding cellular IoT revenue) | 525.3 | 751.4 |
Adjusted EBITDA margin | 22.0% | 34.9% |
Total restructuring expenses | 4.9 |
GROUP | 2023 | 2022 |
Total operating expenses | 279.0 | 275.2 |
Depreciation | -44.3 | -44.1 |
Operating expenses excluding depreciation and amortization | 234.7 | 231.1 |
Total revenue | 542.9 | 776.7 |
LTM opex / LTM revenue | 43.2% | 29.8% |
GROUP | 2023 | 2022 |
Current assets | 609.2 | 674.1 |
Cash and cash equivalents | -291.0 | -379.1 |
Current financial assets | 0.0 | -0.3 |
Current liabilities | -114.2 | -177.2 |
Current financial liabilities | 0.7 | 0.0 |
Current lease liabilities | 9.9 | 6.3 |
Income taxes payable | 5.6 | 43.8 |
Net working capital | 220.4 | 167.6 |
Total revenue | 542.9 | 776.7 |
NWC / LTM revenue | 40.6% | 21.6% |
Oslo, March 19, 2024 | ||
Anita Huun | Birger Steen | Inger Berg Ørstavik |
Board member | Chair | Board member |
Snorre Kjesbu | Vegard Wollan | Annastiina Hintsa |
Board member | Chief Executive Officer | Board member |
Jon Helge Nistad | Anja Dekens | Morten Dammen |
Board member, employee | Board member, employee | Board member, employee |
Dieter May | Dr. Helmut Gassel | |
Board member | Board member |
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 which are referred to in the notice of the General Meeting. | The General Meeting was held April 20, 2023. | |
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 2023. Members: a. Viggo Leisner (Chair) b. Eivind Lotsberg c. Fredrik Thorsen | Articles of Association, §8 can be found at 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 12 meetings in 2023. 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 Director's agenda in 2023 was prioritization of the Groups strategic initiatives, the restructuring initiative, CEO succession, as well as the acquisition of the IP portfolio of Atlazo, Inc. Snorre Kjesbu and Niels Anderskouv were appointed as shareholder-elected board members at the General Meeting on April 20, 2023, replacing Endre Holen and Øyvind Birkenes. Niels Anderskouv resigned on May 11, 2023 due to his appointment as Chief Business Officer at Global Foundries. Snorre Kjesbu attended his first board meeting on June 6, 2023. Jan Frykhamar resigned from the Board of Directors on July 4, 2023 for personal reasons. Employee-elected board member Gro Fykse resigned from the Board of Directors on December 12, 2023 due to personal connection with recently appointed CEO Vegard Wollan. All shareholder-elected members were deemed in 2023 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 at the company’s website: Biographical information on the board members can be found in the Board of Directors section of this report and at 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 2023. In 2023, 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. 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 5 meetings in 2023. Important focus areas for the People & Compensation Committee during 2023 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. 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 two shareholder-elected directors with extensive experience from the global technology space. | The People & Compensation Committee charter can be found at the company’s website: |
Description | Developments and events during the reporting year | References |
Sustainability Committee | ||
The Sustainability Committee consists of four 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 2023. In 2023 the 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 are defined in greater detail in the Rules of Procedure for the Board of Directors of the company. | The Executive Management Team held 29 meetings in 2023. In December 2023, Nordic Semiconductor completed its CEO succession project, with Vegard Wollan appointed to replace Svenn-Tore Larsen as CEO with effect from January 1, 2024. | Biographical information on the CEO and Executive Management Team can be found in the Executive Management section of this report and at the Company’s website at: |
TCFD Index | |||
Governance | a) Describe the board's oversight of climate-related risks and opportunities | ||
b) Describe management's role in assessing and managing climate-related risks and opportunities | At the management level, the ESG Committee, consisting of the Executive Management Team (EMT) members from relevant functional areas, supports the CEO in developing and maintaining the Group's sustainability framework within defined ESG criteria and ensuring a holistic and aligned approach to sustainability across the Group. | ||
Strategy | a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term | Short-term: 0 – 3 years Medium-term: 3 – 6 years Long-term: 6 – 10 years Timespan categorization is made according to our business sensitivity to climate change, the need for a shift in strategy, and the pace of arising climate change scenarios. | |
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning | Climate-related risks and opportunities have influenced Nordic Semiconductor’s strategy in four areas: • Influence on products & services: Contributing to IoT solutions for energy efficiency and energy management. This responds to market demand for sustainable solutions and lower energy consumption in end-user devices. Furthermore, our climate strategy includes commitment to science-based GHG emission targets in collaboration with and supported by the Science Based Target Initiative (SBTi). • Influence on Supply chain and/or value chain: Climate change factors present an important risk identified by the sustainability/environment discipline. Climate-related risks with considerable probability-impact weight have been included in the enterprise risk assessment. Such risks (such as acute/chronic physical events, market behavior, and transitional risks) have driven our strategy and approaches to these risks/opportunities. As a fabless company with subcontractors in Asia, our key measure is to second-source vital components to mitigate acute physical risks and protect against supply disruptions. • Influence on R&D investments: As an IoT technology enabler and supporter, Nordic is committed to promoting better environmental and climate-friendly performance in our markets. We have developed innovative products that support this mission, such as cloud services that enable remote industrial control, reducing the need for travel to conduct on-site tests. Additionally, we offer evaluation kits that support IoT products with a positive climate impact. • Influence on Operations: Nordic has conducted a risk assessment of different business aspects, identifying potential actions related to climate change in our operations. Our operations are limited to R&D, sales, and administration within our offices. In recent years, Nordic has invested in renewable energy for its offices, which will continue in coming years as we move on towards our SBTi targets. | ||
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. | Nordic Semiconductor established a GHG emission program in 2020 for scopes 1, 2, and 3. In 2023, Nordic set new, ambitious near- and long-term GHG emission targets aligned with the Science Based Target initiative (SBTi). With these targets, Nordic is committed to ensure a resilient transition plan that supports the goals of the Paris Agreement to limit global warming to 1.5°C. | Climate Change section |
Risk Management | a) Describe the organization’s processes for identifying and assessing climate-related risks | Risks related to climate change are managed through an enterprise risk management framework, which aims to proactively identify and manage risks that may impact our ability to deliver on our strategic objectives. As part of this process, risks related to current and emerging regulation, technology, legal, market, reputation, and acute and chronic physical events are considered. For identifying, assessing, and prioritizing climate-related risks, we use a 5x5 risk matrix considering likelihood on a rating scale of 1 ('Improbable') to 5 ('Almost certain'), and impact on a scale of 1 (’Insignificant’) to 5 ('Catastrophic'). The impact scale defines criteria and definitions for assessing each risk within different impact categories: Financial, Reputational, Climate and Environment, and People or Property. | |
b) Describe the organization’s processes for managing climate-related risks | Climate-change-related risks comprise an integral part of our overall enterprise risk management framework. Based on the combination of likelihood of occurrence and impact (5x5 risk matrix, as described in the disclosure for Risk Management a), risks are prioritized and mitigation measures with reach responsible, deliverables/verification, time horizon and status are defined for each risk. Climate-related risks have been identified in the TCFD disclosure. | ||
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management | The identification, assessment and management of climate-related risks are integrated into the company’s enterprise risk management framework, with the aim to proactively identify and manage risks that may impact our ability to deliver on our strategic objectives. The outcome of our climate-related risk assessment, including likelihood and impact, forms an integral part of the Group’s corporate risk report. The Board of Directors oversees risk management through biannual reviews and on an ongoing basis in relation to specific projects or other matters of ongoing business. The Executive Management Team (EMT) and the defined risk functions are accountable for implementing the necessary risk-mitigating measures in the relevant parts of the organization. | ||
Metrics and Targets | a) Disclose the metrics used by the organization to assess climate related risks and opportunities in line with its strategy and risk management process | Nordic reports climate-related metrics in our annual reporting. See the Climate Change section for GHG emission scope 1, 2, and 3 data. | Climate Change section |
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks | Climate Change section | ||
c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets | ESG-related KPIs, with the potential for incentives, are set for Executive Management Team (EMT) members and specific positions reporting to EMT members of Nordic Semiconductor ASA. Specific near- and long-term GHG emission targets, and the related KPIs are as follows: • Reduce absolute Scope 1+2 GHG emissions 60% by 2030 from a 2019 base year • Reduce Scope 3 GHG emissions 60% per USD valued added by 2030 from a 2019 base year (value added = sales revenue - the cost of goods and services purchased from external suppliers) • Reduce Scope 1, 2 and 3 emissions 90% by 2050 from a 2019 base year • Reach net-zero GHG emissions across the value chain by 2050 from a 2019 base year | Climate Change section |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
GRI 2: General Disclosures 2021 | 2-1 Organizational details | See requirements of Directive 2013/34/EU | 2-1 A-C: See Disclosures: Note 1 General information for legal name, nature of ownership and legal form, and headquarter address. 2-1 B: See Report from the Board of Directors Group overview for a list of countries of operation. |
2-2 Entities included in the organization’s sustainability reporting | ESRS 1 5.1; ESRS 2 BP-1 §5 (a) and (b) i | 2-2 A: See Disclosures: Note 15 Subsidiaries. 2-2 B: All subsidiaries shall be included in the sustainability reporting where the same data collection and assimilation methodologies are applied unless specified otherwise. 2-2 C: All subsidiaries are included in the sustainability reporting, as stated above, except for offices with fewer than 10 employees, which are excluded from Scope 2 GHG emission reporting by default. | |
2-3 Reporting period, frequency and contact point (2-3-a and 2-3-b) | ESRS 1 §73 | 2-3 A-B: See reporting period end date in Income Statement 2-3 C: To be published on the 20th of March, 2024. 2-3 D: IR contact details found on company website | |
2-4 Restatements of information | ESRS 2 BP-2 §13, §14 (a) to (b) | 2-4 A: No restatements have been made in the reporting period. | |
2-5 External assurance | See external assurance requirements of Directive (EU) 2022/2464 | 2-5 A: Nordic Semiconductors external auditors are verifying the report from the board of directors and the financial statement. However, The CSRD transition report including ESRS 2, ESRS E chapters, ESRS S chapters and ESRS G chapter is not specifically assured for in this confirmation. 2-5 B: At the time of reporting, Nordic Semiconductor's CSRD sustainability reporting has not been externally assured as this is not required. | |
2-6 Activities, value chain and other business relationships | ESRS 2 SBM-1 §40 (a) i to (a) ii, (b) to (c), §42 (c) | 2-6 A: See Strategy and ambitions and Strategy 2-6 B-C: See Workers in the value chain 2-6 D: No significant changes compared to previous reporting period | |
2-7 Employees | ESRS 2 SBM-1 §40 (a) iii; ESRS S1 S1-6 §50 (a) to (b) and (d) to (e), §51 to §52 | 2-7 A: See 2-7 A: Own workforce, Disclosures: Note 7: Payroll expenses 2-7 B-E: See Own Workforce: Nordic does not currently have complete data available for for all required indicators. | |
2-8 Workers who are not employees | ESRS S1 S1-7 §55 to §56 | 2-8 A: i. Workers who are not classified as employees are mainly contractors and consultants. Contractors and consultants: By year-end 2023, Nordic had 44 contractors and consultants, around half of which joined during 2023. The gender split was 80% male and 20% female, which is consistent with the overall gender split within the Group. ii. Workers who are not classified as employees are typically engaged by Nordic to provide required expertise and capacity in certain technologies and/or defined projects. 2-8 B-C: See Own Workforce for details | |
2-9 Governance structure and composition (2-9-a , 2-9- b, 2-9-c-i, c- ii, c-v to c-viii) | ESRS 2 GOV-1 §21, §22 (a), §23; ESRS G1 §5 (b) See also corporate governance statement requirements of Directive 2013/34/EU for public- interest entities | 2-9 A: See the Sustainability statement Governance chapter. 2-9 B: See the Sustainability statement Governance chapter 2-9 C: See the Our Group Board of Directors chapter, 2-9 C: viii. Stakeholder representation: the Board of Directors consist of 3 employee elected representatives while shareholders elect 7 representatives. | |
2-10 Nomination and selection of the highest governance body | This topic is not covered by the list of sustainability matters in ESRS 1 AR §16. | 2-10 A-B: See the appendix Board of Directors' report in relation to the Norwegian Code of Practice for Corporate governance | |
2-11 Chair of the highest governance body | This topic is not covered by the list of sustainability matters in ESRS 1 AR §16. | 2-11 A-B: The Chairman of Nordic is found in Board of Directors. See the appendix Board of Directors' report in relation to the Norwegian Code of Practice for Corporate governance |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
2-12 Role of the highest governance body in overseeing the management of impacts | ESRS 2 GOV-1 §22 (c); GOV-2 §26 (a) to (b); SBM-2 §45 (d); ESRS G1 §5 (a) | 2-12 A-B: See the Sustainability statement Governance chapter. See Note 8.1: Management remuneration for incentive schemes linked to sustainability matters | |
2-13 Delegation of responsibility for managing impacts | ESRS 2 GOV-1 §22 (c) i; GOV-2 §26 (a); ESRS G1 G1-3 §18 (c) | 2-13 A-B: See the Sustainability statement Governance chapter. | |
2-14 Role of the highest governance body in sustainability reporting | ESRS 2 GOV-5 §36; IRO-1 §53 (d) | 2-14 A-B: The annual report 2023, including the sustainability reporting, has been reviewed and approved by the Board of Directors. | |
2-15 Conflicts of interest | This topic is not covered by the list of sustainability matters in ESRS 1 AR §16. | 2-15 A: See Board of Directors' report in relation to the Norwegian Code of Practice for Corporate governance. The Rules of Procedure of the Board of Directors stipulates requirements related to disclosing and managing potential conflict of interests, as well as for primary insiders. | |
2-16 Communication of critical concerns | ESRS 2 GOV-2 §26 (a); ESRS G1 G1-1 AR 1 (a); G1-3 §18 (c) | 2-16 A: The CEO reports about critical concerns to the Board of Directors on a running basis when relevant. The Head of Compliance reports on status on compliance matters, including reported matters and critical concerns on a regular basis to the Audit Committee. 2-16 B: See the Business Conduct chapter for information about the process for handling reported concerns. See the Governance performance overview for numbers of reports made through the whistleblower channel. | |
2-17 Collective knowledge of the highest governance body | ESRS 2 GOV-1 §23 | 2-17 A: See the Sustainability statement Governance chapter. The various committees of Nordic have regular knowledge exchanges on various sustainability topics and are thus kept abreast of the latest matters regarding Nordic's sustainability initiatives and relevant projects. Further, the committees are regularly updated on the latest changes concerning sustainability reporting, regulations, and requirements. | |
2-18 Evaluation of the performance of the highest governance body | This topic is not covered by the list of sustainability matters in ESRS 1 AR §16. | 2-18: See the Report from the Board of Directors and section on the Board of Directors for their competencies in the annual report. The Rules of Procedure of the Board of Directors stipulates that the Board, and each of its committees conduct an annual self-performance evaluation to determine whether the Board and each of its committees are functioning effectively in overseeing the management of the organization's impact. | |
2-19 Remuneration policies (2-19-a and 2- 19-b) | ESRS 2 GOV-3 §29 (a) to (c); ESRS E1 §13 See also remuneration report requirements of Directive (EU) 2017/828 for listed undertakings | 2-19: See Board of Directors' report in relation to the Norwegian Code of Practice for Corporate governance, Disclosure: Note 8.1: Management remuneration and annual Remuneration report for remuneration guidelines and policy. | |
2-20 Process to determine remuneration | ESRS 2 GOV-3 §29 (e) See also remuneration report requirements of Directive (EU) 2017/828 for listed undertakings | See annual Remuneration Report. Key renumeration decisions are made by the Board of Directors. The Board People & Compensation Committee (PCC) operates as a preparatory committee for the Board in matters concerning remuneration. The PCC reviews, analyzes, discusses, evaluates and recommends remuneration principles and decisions to the Board. The Board of Directors provides a Renumeration Report as well as a Renumeration Policy and Guideline for the Board of Directors and Senior Executive Management to the Annual General Meeting for advisory votes. The votes of the annual general meeting are made available as part of the minutes from the annual general meeting on the Company's website. | |
2-21 Annual total compensation ratio (2-21-a and 2-21-c) | ESRS S1 S1-16 §97 (b) to (c) | 2-21 A-B: See Social performance overview in the Own Workforce chapter and annual Remuneration report. 2-21 C: The data has been compiled using total compensation figures for all employees based in Norway, and total compensation for the highest-paid individual (the CEO) which represents a total annual compensation ratio of 2.72. | |
2-22 Statement on sustainable development strategy | ESRS 2 SBM-1 §40 (g) | See the Message from the CEO and Sustainability statement. |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
2-23 Policy commitments (2-23-a-i and a-iv; 2-23- b, 2-23-d, 2-23-e, 2-23-f) | ESRS 2 GOV-4; MDR-P §65 (b) to (c) and (f); ESRS S1 S1-1 §19 to §21, and §AR 14; ESRS S2 S2-1 §16 to §17, §19, and §AR 16; ESRS S3 S3-1 §14, §16 to §17 and §AR 11; ESRS S4 S4-1 §15 to §17, and §AR 13; ESRS G1 G1-1 §7 and §AR 1 (b) | 2-23 A: Nordic Semiconductor has committed to conducting business in a way that respects and supports internationally proclaimed human and labor rights, as defined by the International Bill of Rights and the International Labor Organization (ILO) Fundamental Principles and Rights at Work, by preventing and mitigating negative impacts and by driving continuous improvement. Nordic has established a human rights due diligence framework based on OECD's Guidelines for Multinational Enterprises to operationalize our commitment to safeguarding human and labor rights. Further, Nordic is committed to the ten principles of the UN Global Compact. For further information, see Workers in the Value Chain chapter. 2-23 B: See Workers in the Value Chain chapter 2-23 C-F: See Policies and Statements on Nordic's website and the description in each respective policy. | |
2-24 Embedding policy commitments | ESRS 2 GOV-2 §26 (b); MDR-P §65 (c); ESRS S1 S1-4 §AR 35; ESRS S2 S2-4 §AR 30; ESRS S3 S3-4 §AR 27; ESRS S4 S4-4 §AR 27; ESRS G1 G1-1 §9 and §10 (g) | See Nordic's public policies and statements on the Nordic website and the Business Conduct chapter for general information. | |
2-25 Processes to remediate negative impacts | ESRS S1 S1-1 §20 (c); S1-3 §32 (a), (b) and (e), §AR 31; ESRS S2 S2-1 §17 (c); S2-3 §27 (a), (b) and (e), §AR 26; S2-4 §33 (c); ESRS S3 S3-1 §16 (c); S3-3 §27 (a), (b) and (e), §AR 23; S3-4 §33 (c); ESRS S4 S4-1 §16 (c); S4-3 §25 (a), (b) and (e), §AR 23; S4-4 §32 (c) | 2-25 A-E: Nordic engages in stakeholder dialogue to identify negative impacts from its activities and business relationships and to identify necessary remediating actions. Nordic has established a human rights due diligence framework with the purpose of identifying and remediating risks of and actual negative impacts reconcerning human and labor rights. See response to 2-23 A for further information. In addition, Nordic has established a whistleblowing channel where any suspected incidents of misconduct can be reported. For details, see the Workers in our Value Chain and the Business Conduct chapter. | |
2-26 Mechanisms for seeking advice and raising concerns | ESRS S1 S1-3 §AR 32 (d); ESRS S2 S2-3 §AR 27 (d); ESRS S3 S3- 3 §AR 24 (d); ESRS S4 S4-3 §AR 24 (d); ESRS G1 G1-1 §10 (a); G1-3 §18 (a) | 2-26 A: Nordic has established a whistleblowing channel where any suspected incidents of misconduct can be reported. For details, see the Workers in our Value Chain and the Business Conduct chapter. | |
2-27 Compliance with laws and regulations | ESRS 2 SMB-3 §48 (d); ESRS E2 E2-4 §AR 25 (b); ESRS S1 S1-17 §103 (c) to (d) and §104 (b); ESRS G1 G1-4 §24 (a) | 2-27 A: The company is not aware of any significant instances of non-compliance with laws and regulations during the reporting period. Hence, no fines nor non-monetary sanctions incurred during the reporting period. 2-27 B: Not applicable. | |
2-28 Membership associations | Political engagement' is a sustainability matter for G1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. | Member of Bluetooth SIG, Connectivity Standard Alliance, and Global Semiconductor Alliance (GSA) |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
2-29 Approach to stakeholder engagement | ESRS 2 SMB-2 §45 (a) i to (a) iv; ESRS S1 S1-1 §20 (b); S1-2 §25, §27 (e) and §28; ESRS S2 S2-1 §17 (b); S2-2 §20, §22 (e) and §23; ESRS S3 S3-1 §16 (b); S3-2 §19, §21 (d) and §22; ESRS S4 S4-1 §16 (b); S4-2 §18, §20 (d) and §21 | See overview table in the stakeholder dialogue in Strategy. In addition, see the Environment, Social, and Governance chapters. | |
2-30 Collective bargaining agreements | ESRS S1 S1-8 §60 (a) and §61 | 2-30 a and b is found in Own workforce in heading Collective bargaining and rights of workers. | |
GRI 3: Material Topics 2021 | 3-1 Process to determine material topics | ESRS 2 BP-1 §AR 1 (a); IRO-1 §53 (b) ii to (b) iv | 3-1 A: See the Sustainability statement sub-chapter About our double materiality assessment. 3-1 B: Identifying and selecting material topics is a cross-organizational effort in which various subject matter experts (SME) participate. This includes SMEs from the quality, human resources, legal and compliance, and various other units and functions that have been part of the process. In addition, external stakeholders influence the process, and a list of such stakeholders can be referenced above in 2-29 Approach to stakeholder engagement. |
3-2 List of material topics | ESRS 2 SBM-3 §48 (a) and (g) | 3-2 A: See the list of material topics in the Sustainability statement sub-chapter About our double materiality assessment. 3-2 B: For the 2023 review of material topics, they were selcted based on double materiality assessment of the 2023 ESRS topics. | |
3-3 Management of material topics | ESRS 2 SBM-1§ 40 (e); SBM-3 §48 (c) i and (c) iv; MDR-P, MDR- A, MDR-M, and MDR-T; ESRS S1 S1-2 §27; S1-4 §39 and AR 40 (a); S1-5 §47 (b) to (c); ESRS S2 S2-2 §22; S2-4 §33, §AR 33 and §AR 36 (a); S2-5 §42 (b) to (c); ESRS S3 S3-2 §21; S3-4 §33, §AR 31, §AR 34 (a); S3-5 §42 (b) to (c); ESRS S4 S4-2 §20, S4-4 §31, §AR 30, and §AR 33 (a); S4-5 §41 (b) to (c). See below for additional linkages to specific topics. | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-5 §47, S2-5, §42, S4-2 §20 | |
201-2 Financial implications and other risks and opportunities due to climate change | ESRS 2 SBM-3 §48 (a), and (d) to (e); ESRS E1 §18; E1-3 §26; E1-9 §64 | See Note 4: Climate related risk for information | |
GRI 204: Procurement Practices 2016 | 3-3 Management of material topics | ESRS G1 G1-2 §12 | Management and relationships with suppliers are presented in Sustainability statement under the heading General information. |
GRI 205: Anti- corruption 2016 | 3-3 Management of material topics | ESRS G1 G1-1 §7; G1-3 §16 and §18 (a) and §24 (b) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. See in particular the Business Conduct for details |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
205-1 Operations assessed for risks related to corruption | ESRS G1 G1-3 §AR 5 | The assessment of the potential of risks and relevant mitigation activities related to corruption or bribery is part of the Company's Corporate Risk Management framework, and is as such performed on a semi-annual basis. | |
205-2 Communication and training about anti- corruption policies and procedures | ESRS G1 G1-3 §20, §21 (b) and (c) and §AR 7 and 8 | For general information regarding anti-corruption and integrity, see the Business Conduct chapter and the publicly available information regarding Nordic's Anti-Corruption Program. Our anti-corruption policy is communicated to new employees as part of onboarding, and relevant guidance is part of our Employee Handbook. We aim to provide relevant and targeted training to enable our employees to make sound ethical decisions. An introduction course to Compliance & Integrity is provided to all new employees. Nordic require all Tier 1 suppliers to commit to the Code of Conduct of the Responsible Business Alliance. | |
205-3 Confirmed incidents of corruption and actions taken | ESRS G1 G1-4 §25 | The company is not aware of any confirmed incidents of corruption involving the company, including its employees during the reporting period. No public legal causes regarding corruption has been brought against the organization during the reporting period. | |
GRI 207: Tax 2019 | 207-1 Approach to tax | This topic is not covered by the list of sustainability matters in ESRS 1 AR §16. | Nordic approach to tax is reflected in Business Conduct and in the tax policy on the website. |
207-2 Tax governance, control, and risk management | This topic is not covered by the list of sustainability matters in ESRS 1 AR §16. | Nordic approach to tax controls and risk is reflected in Business Conduct and in the tax policy on the website. | |
207-3 Stakeholder engagement and management of concerns related to tax | This topic is not covered by the list of sustainability matters in ESRS 1 AR §16. | Stakholder engagement is reflected in General information and in the tax policy on the website. | |
GRI 301: Materials 2016 | 3-3 Management of material topics | ESRS E5 E5-1 §12; E5-2 §17; E5- 3 §21 | Each respective sub-section of the Environment, Social, and Governance sections corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. |
301-1 Materials used by weight or volume | ESRS E5 E5-4 §31 (a) | Omission: As a fabless semiconductor company that works with various manufacturing partners and suppliers, Nordic does not have available all the required data for all materials used by weight or volume. Nordic aims to advance its data collection to enable reporting on such indicators going forward. | |
301-2 Recycled input materials used | ESRS E5 E5-4 §31 (c) | See the section on Circular Economy. | |
301-3 Reclaimed products and their packaging materials | Resource outflows related to products and services' and 'Waste' are sustainability matters for E5 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR- P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. | Omission: Nordic does not have system for collecting, reusing or recycling products and their packaging materials at the end-of- life. Nordic's products are utilized and incorporated as components in various end-products and applications.The responsibility for collection and treatment of the finished products lies with the producer of the finished product. | |
GRI 302: Energy 2016 | 3-3 Management of material topics | ESRS E1 E1-2 §25 (c) to (d); E1-3 §26; E1-4 §33 | Each respective sub-section of the Environment, Social, and Governance sections corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
302-1 Energy consumption within the organization (302-1-a, b, c, e and g) | ESRS E1 E1-5 §37; §38; §AR 32 (a), (c), (e) and (f) | See the section on Climate Change. | |
302-3 Energy intensity | ESRS E1 E1-5 §40 to §42 | See the section on Climate Change. | |
302-4 Reduction of energy consumption | Energy' is a sustainability matter for E1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR- P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed | See the section on Climate Change. | |
GRI 303: Water and Effluents 2018 | 3-3 Management of material topics | ESRS E2 §AR 9 (b); E2-1 §12; E2-2 §16 and §19; E2-3 §20; ESRS E3 E3-1 §9; E3-2 §15, §17 to §18; E3-3 §20 | Each respective sub-section of the Environment, Social, and Governance sections corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. |
303-1 Interactions with water as a shared resource | ESRS 2 SBM-3 §48 (a); MDR-T §80 (f); ESRS E3 §8 (a); §AR 15 (a); E3-2 §15, §AR 20 | See the section on Water and Marine Resources. | |
303-3 Water withdrawal | Water withdrawals' is a sustainability matter for E3 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. | See the section on Water and Marine Resources. All withdrawn water used in Nordic operations is provided by municipal water suppliers. | |
303-4 Water discharge | Water discharges' is a sustainability matter for E3 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. | See the section on Water and Marine Resources. Omission: Nordic does not have system to measure water discharge. All discharged water is directed to municipal waste water treatment plants. | |
303-5 Water consumption | ESRS E3 E3-4 §28 (a), (b), (d) and (e) | See the section on Water and Marine Resources. | |
GRI 304: Biodiversity 2016 | 3-3 Management of material topics | ESRS E4 E4-1 §AR 1 (b) and (d); E4-2 §20 and §22; E4-3 §25 and §28 (a); E4-4 §29 | Each respective sub-section of the Environment, Social, and Governance sections corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
304-2 Significant impacts of activities, products and services on biodiversity (304-2-a-i, ii, iii, iv, v and vi; 304-2-b) | ESRS E4 E4-5 §35, §38, §39, §40 (a) and (c) | See the section on Biodiversity and ecosystems for information. Omission: Incomplete. Nordic does not currently report fully on these indicators. | |
GRI 305: Emissions 2016 | 3-3 Management of material topics and GRI 305 1.2 | ESRS E1 E1-2 §22; E1-3 §26; E1- 4 §33 and §34 (b); E1-7 §56 (b) and §61 (c); ESRS E2 §AR 9 (b); E2-1 §12; E2-2 §16 and §19; E2-3 §20 | Each respective sub-section of the Environment, Social, and Governance sections corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. |
305-1 Direct (Scope 1) GHG emissions | ESRS E1 E1-4 §34 (c); E1-6 §44 (a); §46; §50; §AR 25 (b) and (c); §AR 39 (a) to (d); §AR 40; AR §43 (c) to (d) | See the Climate Change section. | |
305-2 Energy indirect (Scope 2) GHG emissions | ESRS E1 E1-4 §34 (c); E1-6 §44 (b); §46; §49; §50; §AR 25 (b) and (c); §AR 39 (a) to (d); §AR 40; §AR 45 (a), (c), (d), and (f) | See the Climate Change section. | |
305-3 Other indirect (Scope 3) GHG emissions | ESRS E1 E1-4 §34 (c); E1-6 §44 (c); §51; §AR 25 (b) and (c); §AR 39 (a) to (d); §AR 46 (a) (i) to (k) | See the Climate Change section. | |
305-4 GHG emissions intensity | ESRS E1 E1-6 §53; §54; §AR 39 (c); §AR 53 (a) | See the Climate Change section. | |
305-5 Reduction of GHG emissions (305-5-a, c and 2.9.5) | ESRS E1 E1-3 §29 (b); E1-4 §34 (c); §AR 25 (b) and (c); E1-7 §56 | See the Climate Change section. | |
305-6 Emissions of ozone-depleting substances (ODS) | Pollution of air' is a sustainability matter for E2 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. | See the Climate Change section. Omission: During the reporting period, Nordic did not directly contribute to any emissions of ODS. Further Nordic does not currently have complete data available for ODS emissions stemming from its manufacturing suppliers, where CFC and HCFC emissions, etc, are relevant. Detailed requirements for ODS usage in manufacturing processes are defined in the Hazardous Substances Specification for Suppliers. | |
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions | ESRS E2 E2-4 §28 (a); §30 (b) and (c); §31; §AR 21; §AR 26 | See the section on Pollution for a general description of air pollution and its relevancy and impact on Nordic's own operations and supply chain. Omission: During the reporting period, Nordic did not directly contribute to any significant air emissions. Furthermore, Nordic does not currently have complete data available for air emissions stemming from its manufacturing suppliers, where NOx and SOx emissions, etc, are relevant. | |
GRI 306: Waste 2020 | 3-3 Management of material topics | ESRS E5 §AR 7 (a); E5-1 §12; E5-2 §17; E5-3 §21 | Each respective sub-section of the Environment, Social, and Governance sections corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
306-1 Waste generation and significant waste- related impacts | ESRS 2 SBM-3 §48 (a), (c) ii and iv; ESRS E5 E5-4 §30 | See the Circular Economy section. | |
306-2 Management of significant waste-related impacts (306-2-a and c) | ESRS E5 E5-2 §17 and §20 (e) and (f); E5-5 §40 and §AR 33 (c) | See the Circular Economy section. | |
306-3 Waste generated | ESRS E5 E5-5 §37 (a), §38 to §40 | See the Circular Economy section. | |
306-4 Waste diverted from disposal (306-4-a, b, c, e) | ESRS E5 E5-5 §37 (b), §38 and §40 | See the Circular Economy section. Omission: Incomplete. Nordic does not currently report fully on these indicators (E5-5 §37 (b) i- iii). All waste generated in Nordic operations is delivered to certified waste processing companies for sorting and recycling. | |
306-5 Waste directed to disposal (306-5-a, b, c, e) | ESRS E5 E5-5 §37 (c), §38 and §40 | See the Circular Economy section. Omission: Incomplete. Nordic does not currently report fully on these indicators (E5-5 §37 (c) i- iii). All waste generated in Nordic operations is delivered to certified waste processing companies for sorting and recycling. | |
GRI 306: Effluents and Waste 2016 | 306-3 Significant spills | Pollution of air', 'Pollution of water', and 'Pollution of soil' are sustainability matters for E2 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. | See the Circular Economy section. |
GRI 308: Supplier Environmental Assessment 2016 | 3-3 Management of material topics | ESRS G1 G1-2 §12 and §15 (a) | Each respective sub-section of the Environment, Social, and Governance sections corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. |
308-1 New suppliers that were screened using environmental criteria | ESRS G1 G1-2 §15 (b) | 308-1 A: 100% of new manufacturing suppliers were screened using environmental criteria for the reporting period. Omission: Nordic does not currently report fully on this indicator. | |
GRI 401: Employment 2016 | 3-3 Management of material topics | ESRS S1 S1-1 §17; §20 (c); S1-2 §27; S1-4 §38; §39; §AR 40 (a); S1-5 §44; §47 (b) and (c); ESRS S2 §11 (c); S2-1 §14; §17 (c); S2- 2 §22; S2-4 §32; §33 (a) and (b); §36; §AR 33; §AR 36 (a); S2-5 §39, §42 (b) and (c) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-5 §47, S2-5, §42, S4-2 §20 |
401-1 New employee hires and employee turnover (401-1-b) | ESRS S1 S1-6 §50 (c) | See the chapter Own Workforce |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees (401-2-a-ii, a-iii, a-iv, a-v and b) | ESRS S1 S1-11 §74; §75; §AR 75 | All employees employed by Nordic, regardless of employment affiliation, are treated equally. Some benefits, however, are related to type of employment. We follow legal requirements in addition to local market expectations to have a fair and transparent practice. In Own Workforce under workforce composition and employment terms are the most prominant terms elaborated namely parental leave and sick leave. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-11 | |
401-3 Parental leave (401-3-a and b) | ESRS S1 S1-15 §93 | See the Own workforce chapter heading Parental leave | |
GRI 402: Labor/Management Relations 2016 | 3-3 Management of material topics | ESRS S1 S1-1 §17; §20 (c); S1-2 §27; S1-4 §38; §39; §AR 40 (a); S1-5 §44; §47 (b) and (c); ESRS S2 §11 (c); S2-1 §14; §17 (c); S2- 2 §22; S2-4 §32; §33 (a) and (b); §36; §AR 33; §AR 36 (a); S2-5 §39, §42 (b) and (c) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-5 §47, S2-5, §42, S4-2 §20 |
402-1 Minimum notice periods regarding operational changes | Social dialogue' and 'Collective bargaining' are sustainability matters for S1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR- P, MDR-A, MDR-T, and/or as an | See the Own workforce chapter heading Collective bargaining and rights of workers | |
GRI 403: Occupational Health and Safety 2018 | 3-3 Management of material topics | ESRS S1 S1-1 §17; §20 (c); S1-2 §27; S1-4 §38; §39; §AR 40 (a); S1-5 §44; §47 (b) and (c); ESRS S2 §11 (c); S2-1 §14; §17 (c); S2- 2 §22; S2-4 §32; §33 (a) and (b); §36; §AR 33; §AR 36 (a); S2-5 §39, §42 (b) and (c) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-5 §47, S2-5, §42, S4-2 §20 |
403-1 Occupational health and safety management system (403-1-a) | ESRS S1 S1-1 §23 | 403-1 A: Nordic's occupational health & management system is based on the ISO Standard ISO 45001 Occupational Health and Safety Management Systems and the Norwegian Working Environment Act (the scope of the certification itself is limited to activities in Norway). The ISO 45001 certification scope covers also Finland activities. 403-1 B: Nordic has implemented a management system to improve employees' working conditions continuously. These activities include risk assessments, employee satisfaction surveys, improvement programs, training, and occupational health services. For our highest risk elements, adequate emergency plans are defined and rehearsed. For further general information, see the Health & Safety heading in Own Workforce. |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
403-2 Hazard identification, risk assessment, and incident investigation (403-2-b) | ESRS S1 S1-3 §32 (b) and §33 | 403-2 A: The working environment committee (AMU) is responsible for providing guidelines on OHS and has implemented an OHS policy and principles. Further, local OHS committees have been established for specific offices where legally required. The AMU consist of employees trained in health and safety. The AMU covers other offices that do not have such local OHS committees. One of the key responsibilities of the OHS committees is to Identify potential work-related risks concerning changes in the organization or the workplace and initiate measures to reduce risks when relevant. Further, it shall communicate and cooperate with local employees/employee representatives to ensure that workers' views and perspectives are given due consideration in managing changes, decisions, and risks related to the health and safety of the company’s employees. 403-2 B: Nordic employees are encouraged to report such incidents by utilizing the OHS non-conformity reporting channel. The non- conformity reporting system shall ensure that any issue, whether a non-conformity, incident, or near-incident, is analyzed and dealt with, including those related to OHS work. Proposals for changes and improvements pertaining to occupational health and safety for people working under company control are registered in the non-conformity system under the category OHS. Safety representatives are responsible for registering and following up on OHS-related nonconformities and proposed improvements. Where applicable, local OHS Committees assess and follow up the initiatives. The OHS non-conformity reporting system enables employees to i. Address reported incidents or near-incidents, and ii. Anticipate potential health and safety hazards through inspections and continuous improvement. A report can be registered using one of the following approaches: 1. Reporting directly to your nearest leader (who will address this with the OHS organization). 2. Reporting to your safety representatives (site specific). 3. Reporting to the HR department. 4. Reporting directly in the Non-conformity register. Incidents are recorded and handled according to Nordic's internal procedure "7.3 Continuous improvement and Non-conformity handling guideline". Incidents shall also be reported to local authorities according to applicable regulations. Other stakeholders, such as building owners and company management, shall be involved as relevant or explicitly described in OHS non-conformity reporting. Further, The AMU shall at annual basis perform hazard identification and risk assessment to determine the need for controls and improvement actions. Every third year, a more thorough hazard evaluation shall be performed. The risk assessment shall consider all parts of organization’s activities. Risk assessments are archived and available for all employees. 403-2 C: All employees are protected from any reprisal when reporting or raising issues related to OHS. Stop work authority can be used in case of danger to the employee or people in the immediate vicinity. 403-2 D: See 403-2 B. Further, issues raised or reported will be investigated by the appropriate OHS committee, or if applicable, the AMU. For further information on these matters See the Health & Safety heading in Own workforce chapter, Workers in the value chain, Circular economy, and Pollution. In addition, see the publicly available information on Nordic's environmental and related hazardous substance management practices on Nordic's website: Environmental Management | |
403-3 Occupational health services | Health and safety' and 'Training and skills development' are sustainability matters for S1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR- P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. | The Management Team is responsible for the organization’s working environment and shall ensure a systematic improvement to provide safe employment and meaningful work for the individual employee. The Management team is responsible for the organization’s OHS policy and operational targets. The policy shall enable: That employees have a protective working environment Safe employment and meaningful work for the individual employee Consultation and participation of workers and worker's representatives That our suppliers live up to Nordic Semiconductor’s OHS standards Compliance with legal requirements, as well as internal policies and guidelines Continuous improvements concerning occupational health and safety for all Nordic employees In the event that employees wish to remain anonymous, they can use H&S services through a third party whose contact details are posted on the Nordic's intranet. In the event of an internal investigation, employee details are confidential, and only the designated team has access to such information. Retaliation against any employee who has reported misconduct is prohibited, and there shall be no unfavorable treatment to any whistleblower. | |
403-4 Worker participation, consultation, and communication on occupational health and safety | 0 | 403-4 A: The OHS policy commits to consultations with Nordic employees and representatives with regard to ensuring an inclusive and effective OHS approach across the organization and its business areas. These consultations take place at employee level (Safety inspections and non-compliance reports), For instance, worker's representatives at inspections, risk assessments and changes in the organization, management at inspections and policies development, and OHS Committees on all topics discussed. All assessments, reports, and committee meeting minutes are archived and available to all employees. 403-4 B: See response to 403-2 A. |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
403-5 Worker training on occupational health and safety | 0 | 403-5 A: Each new employee undergoes initial training, during which the primary health and safety risks present in the various work areas are discussed. Furthermore, depending on the role, employees are given additional training on hazards in their area of work. In addition, employee representatives (PSR) and AMU members are sent to additional advanced health and safety courses in order to raise their awareness. Training is conducted in local languages and in English. | |
403-6 Promotion of worker health | Social protection' is a sustainability matter for S1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. | 403-6 A: The health insurance plan comprises several non-occupational medical and healthcare services. For instance, treatment guarantees to ensure quicker access to medical services in private hospitals or clinics with health specialists. The insurance also includes free access to online GPs (experienced practitioners) for all employees and their children. Additionally, employees have access to online mental healthcare consultations with psychologists, offering 5 video calls for 25 minutes free of charge per year and digital self-help programs such as articles, exercises, and techniques to help cope with challenges. 403-6 B: Nordic has implemented a new global sponsorship program that allows employees to dedicate 60 minutes weekly to physical activity during work hours. This initiative is regularly promoted by managers and EMT members, who provide guidance on how to actively spend time during work hours. Furthermore, many locations now offer free passes for sports activities, such as gym memberships, allowing employees to remain active outside work hours. As an example to further encourage and promote employee health and well-being, Nordic Semiconductor organized a challenge/competition using the Strava platform. For further information and examples, see heading Health & Safety in Own workforce. | |
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships | ESRS S2 S2-4 §32 (a) | The AMU shall perform hazard identification and risk assessment annually to determine the need for controls and improvement actions. Every third year, a more thorough hazard evaluation shall be performed. The risk assessment shall consider all parts of the organization’s activities. Such assessments are meant to mitigate and safeguard employees. Risk assessments are archived and available for all employees. | |
403-8 Workers covered by an occupational health and safety management system (403-8-a and b) | ESRS S1 S1-14 §88 (a); §90 | 403-8 A: See response to 403-1. In addition, all contractors, consultants, and other non-full-time employees that work for Nordic are covered by the OHS standards of the company. However, as a fabless semiconductor company that works with various manufacturing partners and suppliers, Nordic does not conduct direct audits for contractors, consultants, or other personnel that are not full time employees and work outside of Nordic's offices. Nordic is, however a member of RBA, which conducts on-site audits for Nordic's suppliers as described in the responsible supply chain chapter. i. the number of all employees and workers who are not employees but whose work and/or workplace is controlled by the organization who are covered by such a system is 44. Not counting non consultants that will for limited times pass by the workplace. ii-iii: Omission: As a fabless company, we are not conducting any external audits. Such audits are conducted by the RBA. In addition, we are performing safety inspections and audits that focus not on workers in particular, but rather on the various work processes, in order to enable an inclusive approach. 403-8 B-C: Not applicable, as stated above. | |
403-9 Work-related injuries (403-9-a-i, a-iii, b-i, b-iii, c-iii, d, e) | ESRS S1 S1-4, §38 (a); S1-14 §88 (b) and (c); §AR 82 | See Own workforce table under heading employee engagement. Omission: Incomplete. Nordic does not currently report fully on these indicators. S1-4 §38(a) | |
GRI 404: Training and Education 2016 | 3-3 Management of material topics | ESRS S1 S1-1 §17; §20 (c); S1-2 §27; S1-4 §38; §39; §AR 40 (a); S1-5 §44; §47 (b) and (c); ESRS S2 §11 (c); S2-1 §14; §17 (c); S2- 2 §22; S2-4 §32; §33 (a) and (b); §36; §AR 33; §AR 36 (a); S2-5 §39, §42 (b) and (c) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-5 §47, S2-5, §42, S4-2 §20 |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
404-1 Average hours of training per year per employee | ESRS S1 S1-13 §83 (b) and §84 | Training is primarily tracked on manager level. However, it is currently a plan to map the full organization before continued focus on implement both a leadership framework and career frameworks, to ensure we develop and encourage employees to take on new responsibilities, as well as educating new leaders. For further information see Own Workforce heading Training and skills development. Omission: Incomplete. Nordic does not currently report fully on these indicators. | |
404-3 Percentage of employees receiving regular performance and career development reviews | ESRS S1 S1-13 §83 (a) and §84 | See Own workforce table under heading Training and skills development. Omission: Incomplete. Nordic does not currently report fully on these indicators. | |
GRI 405: Diversity and Equal Opportunity 2016 | 3-3 Management of material topics | ESRS S1 S1-1 §17; §20 (c); S1-2 §27; S1-4 §38; §39; §AR 40 (a); S1-5 §44; §47 (b) and (c); ESRS S2 §11 (c); S2-1 §14; §17 (c); S2- 2 §22; S2-4 §32; §33 (a) and (b); §36; §AR 33; §AR 36 (a); S2-5 §39, §42 (b) and (c) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-5 §47, S2-5, §42, S4-2 §20 |
3-3 Management of material topics | ESRS S1 §24 (a) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-5 §47, S2-5, §42, S4-2 §20 | |
405-1 Diversity of governance bodies and employees (405-1-a-i and iii, 405-1-b) | ESRS 2 GOV-1 §21 (d); ESRS S1 S1-6 §50 (a); S1-9 §66 (a) to (b); S1-12 §79 | Board of directors composition is seen in Board of Directors. Management composition is seen in Executive Management. Other governing committees are variety of compositions of these people included but not limited to People and Compensation committee, Audit Committee, and Sustainability Committee. Omission: Incomplete. Nordic does not currently report fully on these indicators. S1-12 §79 | |
405-2 Ratio of basic salary and remuneration of women to men | ESRS S1 S1-16 §97 and §98 | See Own workforce table under heading Gender pay ratio. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-16 §97 (b) | |
GRI 406: Non- discrimination 2016 | 3-3 Management of material topics | ESRS S1 S1-1 §17; §20 (c); §24 (a) and (d); S1-2 §27; S1-4 §38; §39; §AR 40 (a); S1-5 §44; §47 (b) and (c); ESRS S2 §11 (c); S2- 1 §14; §17 (c); S2-2 §22; S2-4 §32; §33 (a) and (b); §36; §AR 33; §AR 36 (a); S2-5 §39, §42 (b) and (c); ESRS S4 §10 (b); S4-1 §13; §16 (c); S4-2 §20; S4-4 §31; §32 (a) and (b); §35; §AR 30; §AR 33 (a); S4-5 §38; §41 (b) and (c) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-5 §47, S2-5, §42, S4-2 §20 |
406-1 Incidents of discrimination and corrective actions taken | ESRS S1 S1-17 §97, §103 (a), §AR 103 | The company is not aware of any confirmed reported incidents submitted through the whistleblowing channel or received by the Whistleblower Group of discrimination involving the company, including its employees during the reporting period. No public legal causes regarding discrimination has been brought against the organization during the reporting period. |
GRI Standards | GRI Disclosure requirements | ESRS Disclosure requirements | Nordic response |
GRI 407: Freedom of Association and Collective Bargaining 2016 | 3-3 Management of material topics | ESRS S1 S1-1 §17; §20 (c); S1-2 §27; S1-4 §38; §39; §AR 40 (a); S1-5 §44; §47 (b) and (c); ESRS S2 §11 (c); S2-1 §14; §17 (c); S2- 2 §22; S2-4 §32; §33 (a) and (b); §36; §AR 33; §AR 36 (a); S2-5 §39, §42 (b) and (c) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. Omission: Incomplete. Nordic does not currently report fully on these indicators S1-5 §47, S2-5, §42, S4-2 §20 |
407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk | Freedom of association' and 'Collective bargaining' are sustainability matters for S1 and S2 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entity- specific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. | See the Own workforce chapter for more general information. For other relevant information pertaining to manufacturing suppliers please refer to the Workers in the Value Chain chapter. Omissions: Incomplete. Nordic does not currently report fully on these indicators. | |
GRI 414: Supplier Social Assessment 2016 | 3-3 Management of material topics | ESRS G1 G1-2 §12 and §15 (a) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. See in particular the Workers in our value chain chapter for details. |
414-1 New suppliers that were screened using social criteria | ESRS G1 G1-2 §15 (b) | 414-1 A: 100% of new manufacturing suppliers were screened using social criteria for the reporting period. Omission: Nordic does not currently report fully on this indicator. | |
414-2 Negative social impacts in the supply chain and actions taken (414-2-c) | ESRS 2 SBM-3 §48 (c) i and iv | 414-2 A-E: Nordic is employing a risk based approach to supplier assessments. See Workers in the value chain for more details on this. | |
GRI 415: Public Policy 2016 | 3-3 Management of material topics | ESRS G1 G1-5 §27 | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. |
415-1 Political contributions | ESRS G1 G1-5 §29 (b) | Nordic Semiconductor refrains from sponsoring political or religious groups to uphold a neutral and inclusive stance, acknowledging the diverse perspectives of our stakeholders, and avoids any situations of perceived conflict of interest or bribery. See Business conduct for more informatiopn. Omission: Incomplete. Nordic does not currently report fully on these indicators. | |
GRI 418: Customer Privacy 2016 | 3-3 Management of material topics | ESRS S4 §10 (b); S4-1 §13 and §16 (c); S4-2 §20; S4-4 §31, §32 (a) and (b), §35, §AR 30, §AR 33 (a); S4-5 §38, §41 (b) and (c) | Each respective sub-chapter of the Environment, Social, and Governance chapters corresponds to each identified material topic, which includes, where relevant, a description of the topic, its impacts, relevant policies, actions taken, and associated metrics and targets. |
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data | ESRS S4 S4-3 §AR 23; S4-4 §35 | For general information regarding data privacy and personal data protection, see the Consumer and end user and the publicly available information regarding Nordic's Product security vulnerabilities and management process for product vulnerabilities which may be relevant to data privacy matters. 418-1 A: See the Governance performance overview. 418-1 B-C: No such incidents occurred during the reporting period or prior reporting period.. |