NXP Investor Presentation Fourth Quarter 2025 February 2026 | Public | NXP and the NXP logo are trademarks of NXP B.V. All other product or service names are the property of their respective owners. © 2024 NXP B.V. Forward Looking Statements + + This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking st ...

Financial Performance & Growth Strategy - NXP aims for high single-digit organic revenue growth and gross margin expansion above 60%[10, 124] - The company plans to return 100% of excess free cash flow (FCF) to its owners[10, 124] - NXP targets doubling non-GAAP EPS by 2030+[11, 125] - NXP's revenue is projected to grow from $12.6 billion in 2024 to approximately $16.0 billion in 2027, with a CAGR of 6-10%[36] Market Positioning & Opportunities - Automotive and Industrial & IoT sectors are expected to drive growth at the intelligent edge, within a $1.3 trillion semiconductor market opportunity[16, 17] - Automotive revenue is expected to grow at a CAGR of 8-12% from 2024 to 2027, reaching ~$9.5 billion[42, 51] - Industrial & IoT revenue is projected to increase at a CAGR of 8-12% from 2024 to 2027, reaching ~$3.1 billion[48, 51] Financial Results (Q3 2025) - Q3 2025 revenue was $3.173 billion, an increase of 8% quarter-over-quarter but a decrease of 2% year-over-year[75] - Non-GAAP gross profit for Q3 2025 was $1.810 billion, resulting in a gross margin of 57.0%[78, 117] - Non-GAAP operating profit for Q3 2025 was $1.071 billion, yielding an operating margin of 33.8%[78, 117] Capital Return & Debt - NXP's cumulative capital return from 2018 to 2024 was $19.2 billion, representing 109% of non-GAAP FCF[91] - The company's net debt stood at $8.281 billion as of Q3 2025, with a net leverage of 1.8x[94]

Financial Performance & Growth - NXP targets high single-digit organic revenue growth and gross margin expansion above 60%[10, 123] - NXP aims to double non-GAAP EPS by 2030+[11, 124] - NXP's revenue grew at a 7% compound annual growth rate (CAGR) over the past five years, reaching $12.6 billion in 2024[60] - Non-GAAP operating profit increased at an 11% CAGR over five years, reaching $4.4 billion in 2024[61] - NXP's non-GAAP free cash flow was $2.1 billion in 2024[66] Market & Strategy - NXP is focused on RMS (Relative Market Share) leadership and system leadership to drive profitable growth[24, 25] - Automotive and Industrial & IoT are key growth drivers at the intelligent edge, within a $1.3 trillion semiconductor market opportunity[16, 17] - NXP projects revenue in Automotive to grow from $7.2 billion in 2024 to approximately $9.5 billion by 2027[42] - NXP anticipates revenue in Industrial & IoT to increase from $2.3 billion in 2024 to around $3.1 billion by 2027[49] Capital Allocation & Debt - NXP is committed to returning 100% of excess free cash flow to owners[10, 123] - NXP's cumulative capital return from 2018 to 2024 was $19.2 billion, representing 109% of non-GAAP free cash flow[90] - NXP's net debt stood at $8.308 billion with a net leverage of 1.8x as of Q2 2025[93]

Financial Performance & Strategy - NXP aims for high single-digit organic revenue growth, gross margin expansion above 60%, and returning 100% of excess free cash flow to owners[10] - NXP targets to double non-GAAP EPS by 2030+ through strategies like S32 SDV, intelligent edge systems, and hybrid manufacturing[11] - NXP's capital return policy focuses on returning all excess non-GAAP free cash flow to shareholders[89] - From 2018 to 2024, NXP's cumulative capital return was $19.5 billion, representing 109% of non-GAAP free cash flow, with a 25% compound annual growth rate (CAGR)[91] Market & Growth Drivers - The total semiconductor market is projected to reach $1.3 trillion, driven by macro trends like cloud AI and intelligent systems at the edge[16] - Automotive and Industrial sectors are expected to lead growth at the intelligent edge[17] - NXP anticipates revenue growth in the next 3 years (2024A-2027E) with core businesses growing at ~3% CAGR and accelerated growth areas at 15-25% CAGR, targeting ~$16.0 billion in revenue by 2027E[37] - Automotive revenue is projected to grow at 8-12% CAGR from 2024E to 2027E, reaching ~$9.5 billion, driven by megatrends like SDVs, xEVs, and ADAS[40, 43] - Industrial & IoT revenue is expected to grow at 8-12% CAGR from 2024 to 2027, reaching ~$3.1 billion, fueled by AI, low-power energy management, and automation[46, 49] Q1 2025 Results & Q2 2025 Guidance - NXP's Q1 2025 revenue was $2.835 billion, a 9% decrease quarter-over-quarter and year-over-year[76] - NXP projects Q2 2025 revenue between $2.8 billion and $3.0 billion, representing a -10% to -4% year-over-year change[102]