#1NXP Investor Presentation Second Quarter 2021 August 2021 NXP SECURE CONNECTIONS FOR A SMARTER WORLD 8#21 Forward-Looking Statement This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations, and market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: the duration and spread of the COVID-19 outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume; market demand and semiconductor industry conditions; the ability to successfully introduce new technologies and products; the demand for the goods into which NXP's products are incorporated; trade disputes between the U.S. and China, potential increase of barriers to international trade and resulting disruptions to NXP's established supply chains; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP's debt service and research and development and capital investment requirements; the ability to accurately estimate demand and match manufacturing production capacity accordingly or obtain supplies from third-party producers; the potential impact of the outbreak of COVID-19 on NXP's business, operations, results of operations, financial condition, workforce or the operations or decisions of customers, suppliers or business customers; the access to production capacity from third-party outsourcing partners and any events that might affect their business or NXP's relationship with them; including the outbreak of COVID-19 or the requirements to suspend activities with customers or suppliers because of changing import and export regulations; the ability to secure adequate and timely supply of equipment and materials from suppliers; the ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; the ability to form strategic partnerships and joint ventures and to successfully cooperate with alliance partners; the ability to win competitive bid selection processes; the ability to develop products for use in customers' equipment and products; the ability to successfully hire and retain key management and senior product engineers; and, the ability to maintain good relationships with NXP's suppliers. In addition, this document contains information concerning the semiconductor industry and NXP's market and business segments generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry and NXP's market and business segments may develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. There can be no assurances that a pandemic, epidemic or outbreak of a contagious diseases, such as COVID-19, will not have a material and adverse impact on our business, operating results and financial condition in the future. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward- looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov. NXP#32 NXP Investment Thesis ୮ Market Leader in Focused on Strong Growing Markets Profitable Growth Shareholder Friendly All Excess Cash Returned to Shareholders NXP#4Secure Connections for the Smarter World... has Evolved Focus Verticals Automotive Industrial & IoT Mobile Comm. Infra. 3 ja Cloud Infrastructure Machine Learning Authentication 10% Preprocessing Enabling Technologies Home Gateway Auto Processing Gateway 111 (111) Connectivity Services Data Analytics IoT Edge La Industrial Controller Smart City Smart Home Smart Health Smart Retail Wearables علام La Security Smart Actuating Buildings Voice Assistant Robotics Media Streaming NXP#5NXP Addresses 4 Major End Markets D Automotive Safety, Electrification and Driver Interaction System solutions innovation with OEMs Increased content drives growth La 4 Mobile Virtualized Secure Transactions and Access Continued demand for features - innovation Growth driven by increased attach rate Industrial & lot Edge Processing, Connectivity and Security Processing needs are transforming markets Scalable solutions as a differentiator Communication Infrastructure & Other Capex-driven wireless infrastructure market Secular growth due to new cellular standard NXP#6Focused Leadership - End Markets NXP 2020 Revenue by End-market Exposure ( 44% Automotive NXP 14% Mobile 20% Comm. Infra. & Other 2 La • • · Broad end market exposure Long product life cycles High barriers to entry • Application expertise Recognized leadership in Automotive 。 21% Industrial & IoT · • Mobile transactions MCU and application processors RF power solutions Secure identification, mobility, RFID Note: 5 1. 2. Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures The sum of the percentages shown may not add to 100% due to rounding. NXP#7NXP End Market Relative Market Share ("RMS") 12 '20 AUTOMOTIVE '20 INDUSTRIAL & IOT 6 1. 2. True Leader > 1.5x Note: Focused Contender <0.5x '20 TOTAL NXP Leader 1.0 - 1.5x Competitive 0.5 - 1.0x True Leader >1.5x Focused Contender <0.5x Competitive 0.5-1.0x '20 MOBILE Leader 1.0 - 1.5x True Leader >1.5x Competitive 0.5-1.0x Focused Contender <0.5x '20 COMM INFRA & OTHERS True Leader >1.5x C Focused Contender <0.5x Leader 1.0 - 1.5x True Leader >1.5x Focused Contender <0.5x Source: NXP Semiconductors CMI Group, based on 2020 reported end market revenue and competitive positions Relative Market Share (RMS) is defined as NXP market share as a percentage of the second largest competitor market share in defined serviceable addressable markets ("SAM") Leader 1.0 - 1.5x Competitive 0.5-1.0x NXP#8Diverse Customer Base - Top 20 Customers > 40% of Revenue 7 1. Reflects 2020 sales through all channels 贸 合災合合 Automotive « >25,000 Total Customers !" !) Mobile "A" Comm. Infra. (18) 2 NXP 1#9Driving Profitable Growth in Excess of Addressable Market123 As Reported Revenue Down 2% 3-yr. CAGR ($B) Non-GAAP Gross Profit² Down 4% 3-yr. CAGR ($B) $9.3 $9.4 $8.9 $8.6 $4.9 $5.0 $4.7 $4.4 2017 2018 2019 2020 2017 2018 2019 2020 2 Non-GAAP EBIT Profit Down 6% 3-yr. CAGR ($B) 2,3 Non-GAAP Free Cash Flow Up 3% 3-yr. CAGR ($B) $2.7 $2.7 $2.6 $2.2 2017 2018 2019 2020 $1.9 $3.8 $1.9 $2.1 2017 2018 2019 2020 Note: 1. 8 2. 3. 2018 Non-GAAP Free Cash Flow reflects the receipt of $2 billion termination fee associated with terminated Qualcomm transaction Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures Gross Profit, EBIT Profit, Free Cash Flow(FCF), are all non-GAAP figures, 3-yr. CAGR reflect the period 2017 - 2020 NXP#10Recent Quarterly Business Trends12 As Reported Revenue ($M) Non-GAAP Gross Margin 1,817 2,267 2,507 2,567 2,596 49.1% 50.1% 52.9% 54.2% 56.1% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Non-GAAP Operating Margin 20.7% Q2 20 25.8% 30.5% 30.9% 32.0% Q3 20 Q4 20 Q1 21 Q2 21 Note: 9 1. 2. Non-GAAP Adj. EBITDA Margin 28.5% 32.1% 36.2% 36.4% 37.6% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures Gross Margin, Operating Margin, Adj. EBITDA are all non-GAAP figures. NXP#1110 Revenue by End Market Trend($M) Automotive 3% Q-Q 87% Y-Y Industrial & lOT - % Q-Q 31% Y-Y $674 $964 $1,193 $1,229 $1,262 $435 $514 $511 $571 $571 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Mobile - % Q-Q 36% Y-Y $255 $337 $409 $346 $347 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Note: 1. Communication Infrastructure & Other $453 $452 $394 $421 Q2 20 Q3 20 Q4 20 Q1 21 Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures (1%) Q-Q (8%) Y-Y $416 Q2 21 NXP#12Debt Summary End of 2Q21 1,2 Debt Instrument Issue Date Aug-16 Sr. Sr. Sr. Unsecured Unsecured Unsecured Notes Notes Notes May-16 Sr. Unsecured Notes Sr. Unsecured Notes Sr. Unsecured Notes Sr. Unsecured Notes Sr. Unsecured Notes Dec-18 Apr-20 Dec-18 Jun-19 Apr-20 Dec-18 Sr. Unsecured Notes Jun-19 Sr. Sr. Unsecured Unsecured Notes Notes Apr-20 Sr. Unsecured Notes Revolving Credit Facility May-21 Maturity Date Sep-22 Jun-23 Mar-24 May-25 Mar-26 Jun-26 May-27 Dec-28 Jun-29 May-30 May-31 May-21 May-41 Jun-19 Jun-24 Issued Amount (M) $ 1,000 $ 900 $ 1,000 $ 500 $ 500 $ 750 Book Value (M) $ 998 $ 898 $ 996 $ 497 $ 498 $ 747 $$ 500 $ 500 $ 497 $ 496 $ 5959 1,000 992 $ 19 19 $ 1,000 993 69 69 $ 1,000 $ 991 $$ $ 1,000 $ 1,500 987 $ Coupon 3.875% 4.625% 4.875% 2.700% 5.350% 3.875% 3.150% 5.550% 4.300% 3.40% 2.50% 3.25% Libor +125 bps Rating Moody's Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa 3 Baa3 Baa3 NR Standard & Poor's Fitch BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB NR BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- NR Total Leverage Total Debt ($M) Total Cash ($M) 9,591 2,910 Net Debt ($M) 6,681 TTM Adj. EBITDA 3,546 Cost of Debt 3.90% Reported Leverage 1.9X TTM Adj. EBITDA/TTM net Interest 10.0x $750 $1,000 $1,000 $900 $1,000 $1,000 $1,000 $1,000 $500 $500 $500 $500 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 '22 Sr. Unsecured Note (3.875%) '27 Sr. Unsecured Note (3.15%) '23 Sr. Unsecured Note (4.625%) '28 Sr. Unsecured Note (5.55%) ■'24 Sr. Unsecured Note (4.875%) '29 Sr. Unsecured Note (4.30%) ■'25 Sr. Unsecured Note (2.70%) '26 Sr. Unsecured Note (5.35%) ■ '30 Sr. Unsecured Note (3.4%) '31 Sr. Unsecured Note (2.5%) 2031 2041 '26 Sr. Unsecured Note (3.875%) ■'41 Sr. Unsecured Note (3.25%) Note: 1. 2. 11 Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures For the period ended July 4, 2021, Interest expense, net of $89 million is comprised of interest expense of $90 million, less interest income of $1 million. Interest expense, net is a component of Financial income (expense) of $90 million as reported in our condensed consolidated statement of operations. See footnote 4 in NXP's Form 10-Q for the period ended July 4, 2021, for additional details. Historical information along with the calculation of TTM Adj. EBITDA/TTM net interest, can be found in the file referenced in footnote 1 on the P&L tab. NXP#13Working Capital Ratios 12 DSO Note: 12 1. 2. DPO 24 30 28 30 35 71 55 75 79 92 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 DIO(2) 120 84 78 81 88 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Cash Conversion Cycle 73 59 31 32 31 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 DSO = (91.25 x AR) / Revenue DPO = (91.25 x AP) / COGS Working capital ratios exclude the effect of (1) the effect of purchase price accounting amortization effects on GAAP COGS; Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures DIO = (91.25 x Inventory) / COGS Cash Conversion Cycle = DIO +DSO - DPO NXP#14Guidance for the Third Quarter of 20211-6 GAAP Reconciliation Non-GAAP Low Mid High Low Mid High Total Revenue 2,775 2,850 2,925 2,775 2,850 2,925 Q-Q 7% 10% 13% 7% 10% 13% Y-Y 22% 26% 29% 22% 26% 29% Gross Profit 1,518 1,568 1,620 (37) 1,555 1,605 1.657 Gross Margin 54.7% 55.0% 55.4% 56.0% 56.3% 56.6% Operating Income (loss) 650 690 Operating Margin 23.4% 24.2% 732 25.0% (250) 900 940 982 32.4% 33.0% 33.6% Financial income (expense) (99) (99) (99) (3) (96) (96) (96) 2. 3. 1. GAAP Gross Profit is expected to include Purchase Price Accounting ("PPA") effects, $(19) million; Stock Based Compensation, $(11) million; Other Incidentals, $(7) million; GAAP Operating Income (loss) is expected to include PPA effects, $(157) million; Stock Based Compensation, $(83) million; Restructuring and Other Incidentals, $(10) million; GAAP Financial Income (expense) is expected to include Other financial expense $(3) million; 4. 5. Net cash paid for income taxes related to on-going operations is expected to be approximately $(90) million; Non-controlling interest is expected to be approximately $(9) million; 6. Weighted average diluted share count is expected to be approximately 271 million. 13 NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Non- GAAP Financial Measures" below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances. NXP#15Financial Model Normalized Focused Market Growth (1) NXP Growth (1) Non-GAAP Gross Margin Non-GAAP R&D Non-GAAP SG&A Non-GAAP Operating Margin Non-GAAP Operating Income Growth 3-yr. CAGR 3 - 5% 5-7% 53 - 57% 14 - 16% 6-8% 31 - 34% ~8 - 14% 14 1. Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures NXP#16Quarterly Financial Reconciliation (GAAP to non-GAAP) ($ in millions, unless otherwise stated) 1 Other Information for Q2 2021: Q2 Q1 2021 2021 Q2 2020 • PPA effects: ($159M) Total Revenue GAAP Gross Profit Gross profit adjustments Non-GAAP Gross Profit GAAP Gross Margin Non-GAAP Gross Margin 2,596 2,567 1,817 Restructuring: ($1M) 1,422 1,355 860 . (34) (37) (32) Stock-based compensation: ($93M) 1,456 1,392 892 . Other incidentals: ($4M) 54.8% 52.8% 47.3% • Foreign exchange loss: ($1M) 56.1% 54.2% 49.1% . Other financial expense: ($8M) GAAP Operating income (loss) 573 492 (145) Operating income adjustments (257) (300) (521) Non-GAAP Operating income (loss) 830 792 376 GAAP Operating Margin 22.1% 19.2% (8%) Non-GAAP Operating Margin 32.0% 30.9% 20.7% GAAP Financial income (expense) Financial income adjustments Non-GAAP Financial income (expense) (100) (87) (96) (9) (4) (91) (87) (92) 15 Note: NXP 1. Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures#17Quarterly Cash Flow Overview ($M) ($ in millions, unless otherwise stated) Q2 Q1 Q2 2021 2021 2020 Net cash provided by (used for) operating activities Net cash provided by (used for) investing activities Net cash provided by (used for) financing activities Effects of changes in exchange rates on cash position Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of period 636 732 414 (189) (181) (113) 619 (979) 1,885 2 (5) 1 1,068 (433) 2,187 1,842 2,275 1,079 2,910 1,842 3,266 Net cash provided by (used for) operating activities Net capital expenditures on property, plant and equipment Non-GAAP free cash flow Trailing 12-month Non-GAAP free cash flow Trailing 12-month Non-GAAP free cash flow as a percentage of Revenue 636 732 414 (150) (150) (74) 486 582 340 2,453 2,307 2,016 25% 25% 24% NXP Note: 16 1. Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures#18Quarterly Adjusted EBITDA ($M) ($ in millions, unless otherwise stated) Net income (loss) Reconciling items to adjusted net income Financial (income) expense (Benefit) provision for income taxes Depreciation Amortization Q2 Q1 Q2 2021 2021 2020 406 364 (209) 100 87 96 65 40 (33) 135 132 136 170 209 407 876 832 397 Adjusted net income Reconciling items to adjusted EBITDA Results of equity-accounted investees 2 1 1 Restructuring 1 I 8 Stock-based compensation Merger-related costs Other incidental items Adjusted EBITDA Trailing 12-month Adjusted EBITDA 93 33 91 105 3 4 11 3 976 935 517 3,546 3,087 2,802 Note: 1. 17 Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures NXP#1918 NXP M Value Proposition Driving RMS Leadership Focused on RMS >1.5X Multiple High Growth Markets Profitable growth Solutions Core Competency Resolving customer pain-points World-class Expertise & Team Customer focused passion to win Maximize Shareholder Value Strong cash flow generation NXP