#1NXP Investor Presentation First Quarter 2023 May 2023 NXP | SECURE CONNECTIONS FOR A SMARTER WORLD PUBLIC NXP, THE NXP LOGO AND NXP SECURE CONNECTIONS FOR A SMARTER WORLD ARE TRADEMARKS OF NXP B.V. ALL OTHER PRODUCT OR SERVICE NAMES ARE THE PROPERTY OF THEIR RESPECTIVE OWNERS. 2021 NXP B.V. G.D. 5G (8") அ H H H#2FORWARD LOOKING STATEMENTS This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations, the expected material weakness in our internal control over financial reporting, including the timeline to remediate the expected material weakness, 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: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP's products are incorporated; potential impacts of the COVID-19 pandemic; 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 impact of government actions and regulations, including restrictions on the export of US-regulated products and technology; 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; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers to meet demand; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or NXP's relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers' equipment and products; the ability to successfully hire and retain key management and senior product engineers; the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; and, the ability to maintain good relationships with NXP's suppliers. In case tax laws change, this could have an effect on our estimated effective tax rates. 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 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. NO OFFER OF SOLICITATION The Presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue, or the solicitation of an offer to purchase, subscribe to or acquire, securities of NXP, or an inducement to enter into investment activity in the United States or in any other jurisdiction in which such offer, solicitation, inducement or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction. No part of this Presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The Presentation is not for publication, release or distribution in any jurisdiction where such publication, release or distribution would constitute a violation of the relevant laws of such jurisdiction, nor should it be taken or transmitted into such jurisdiction. USE OF NON-GAAP FINANCIAL MEASURES In this presentation, we have included certain non-GAAP financial information, including (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Amortization of acquisition-related intangible assets, (vi) Other income, (vii) Operating income (loss), (viii) Operating margin, (ix) Financial Income (expense), (x) Income tax benefit (provision), (xi) Results relating to equity-accounted investees, (xii) Income (loss) from continuing operations, (xiii) Net income (loss) attributable to stockholders, (xiv) Diluted earnings per share, (xv) EBITDA (Non-GAAP), adjusted EBITDA (Non-GAAP) and trailing 12 month adjusted EBITDA (Non-GAAP) and (xvi) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. Our non-GAAP results exclude, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, non-cash interest expense on convertible notes, extinguishment of debt, and foreign exchange gains and losses, income tax effect on adjustments described above and results from equity-accounted investments. These non-GAAP measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the appendix to the presentation. For further discussion of our use of non-GAAP measures and information on the reconciliation to most comparable measures calculated in accordance with GAAP, please refer to the NXP Historic Financial Model file found on the Financial Results page of the Investor Relations section of our website at www.nxp.com.#3NXP Investment Thesis $ $ Market leader with strong revenue growth Proven financial model with resilient profitability Reliable capital return policy of robust free cash flow#4Semiconductor TAM ($B) 2000 Macrotrends Driving Waves of Semi Growth (1) Laptop, Desktop, Mobiles 1. Omdia Application Market Forecast Tool March 2023 D Game Consoles Home Audio HiFi... (AAA) liiii CARD- Rise of Secure Edge Smart connected devices Smartphones Data-center servers Smart factories and homes Smart connected cars TITT 5G Ai IITT 2005 2010 2015 2020 2025E 2030E#5Semiconductor Industry – a $1 Trillion Opportunity in 2030 Global Semiconductor market value by vertical, indicative, $billion Growth contribution per vertical, 2021-30, % Source: McKinsey May 2022 CAGR, 2021-30, % 7 1,065 60 Wired communication 5 95 Consumer electronics 10 590 35 13 612 3 50 60 50 170 130 Industrial electronics 15 150 Automotive electronics 20 280 Wireless communication 00 6 25 5 LO 225 2021 350 2030E Computing and data storage 25 25 100%#6NXP's Unrivaled Technology Portfolio for the Secure Edge SENSE THINK Everything Aware Everything Smart CONNECT ACT الجا Everything Connected Everything Efficient Everything safe and secure Easy to implement scalable system solutions#7NXP Addresses 4 Major End Markets Automotive H Industrial & IoT 29 Mobile Communications Infrastructure Q (Å" Safety, Electrification & Driver Interaction System solutions innovation drives revenue growth Edge Processing, Connectivity & Security Scalable processing and solutions as a differentiator Virtualized Secure Transactions & Access Growth driven by increased attach rate Capex-driven Wireless Infrastructure Market Growth as result of new cellular standards#8Accelerating Profitable Growth of 8-12% CAGR COM (1.2,3,4) Automotive H Industrial & IoT 29 Mobile Communications Infrastructure (Å) 50% of Total +9 to 14% 3-yr. CAGR Leader in sensing, processing and control applications 22% of Total +9 to 14% 3-yr. CAGR Leader in connected edge processing 13% of Total +8 to 10% 3-yr. CAGR Leader in secure mobile wallet, access, and identification 16% of Total +2 to 6% 3-yr. CAGR Leader in high-power RF power 1. NXP Strategy Office 2. Communication Infrastructure includes "Other" consolidated revenue associated with NXP joint ventures 3. 2021E based on 1Q21 - 3Q21 actual results and the mid-point of 4Q21 estimated guidance as of Nov. 2, 2021 4. Reconciliations of non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the appendix to the presentation#9Our Secular Growth Drivers Expected to Scale Rapidly (1,2,3,4) 1234 2022 Revenue by end-market exposure 52% Automotive NX- Q 12% Mobile ((8)) 15% Comm. Infra. & Other Revenue by business type ~$15B $6B ~$11B $9.4B ~$3B $1.6B Accelerated 20-25% 2021-24 CAGR Growth Drivers ~$8B ~$9B High RMS Core Businesses $7.8B ~5% 2021-24 CAGR 2018 2021 2024E 21% Industrial & loT Auto radar systems Auto domain and zonal processors Auto electrification systems Accelerated growth drivers Secure connected edge solutions UWB secure access solutions RF Power for 5G Infrastructure 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 All growth rates are 3-year CAGR based on 2021 actuals through 2024 estimates The sum of the percentages shown may not add to 100% due to rounding NXP Strategy Office#10Accelerating Secular Profitable Revenue Growth.... 1234 $5.5B 2021 $1.4B 2021 Automotive 9-14% CAGR Mobile 8-10% CAGR ~$7.7B ~20% CAGR $2.4B ~6% CAGR 2024E 2021 ~$1.8B $1.8B ~70% CAGR ~4% CAGR 2024E 2021 Industrial & lot 9-14% CAGR Comm. Infrastructure 2-6% CAGR High RMS Core Revenue Accelerated Growth Revenue Drivers 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 All growth rates are 3-year CAGR based on 2021 actuals through 2024 estimates The sum of the percentages shown may not add to 100% due to rounding NXP Strategy Office ~$3.3B ~25% CAGR ~5% CAGR 2024E -$2.0B ~15% CAGR 2024E#11NXP End Market Relative Market Share ("RMS”) '22 Total NXP Product Revenue '22 Automotive (1,2) '22 Industrial & lot True Leader RMS >1.5x Focused Contender RMS <0.5x '22 Sales $13.2B Competitive RMS 0.5 1.0x Leader RMS 1.0-1.5x '22 Sales $6.9B '22 Sales $2.7B 1. Source: NXP Semiconductors CMI Group, based on 2022 reported end market revenue and competitive positions; 2. 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") '22 Mobile '22 Com. Infra. & Others '22 Sales $1.6B '22 Sales $2.0B True Leader Leader Competitive Focused Contender#12(1) Diverse End-Customer Base with High Barriers to Entry - Top 20 End-customers are less than 45% of 2022 Revenue >25,000 Total Customers No 10% Customers 1. Reflects 2022 sales through all channels 2222 222 Automotive Mobile D 22222 (*) Comm. Infra. & Other#13Driving Profitable Growth in Excess of Addressable Market) As Reported Revenue Up 14% 3-yr. CAGR ($B) Non-GAAP Gross Profit / Non-GAAP Gross Margin Up 17% 3-yr. CAGR ($B) 53.5% 51.1% 56.1% 57.9% $8.9 $8.6 2019 2020 $11.1 2021 $13.2 $4.7 $4.4 $6.2 $7.6 2022 2019 2020 2021 2022 Non-GAAP Operating Profit / Non-GAAP Operating Margin Up 23% 3-yr. CAGR ($B) Non-GAAP Free Cash Flow /Non-GAAP Free Cash Flow Margin Up 15% 3-yr. CAGR ($B) 29.0% 25.9% 32.9% 36.3% 21.1% 24.3% 20.9% 21.5% $2.6 $2.2 $3.6 $4.8 $1.9 $2.1 $2.3 $2.8 2019 2020 2021 2022 2019 2020 2021 2022 1 2. Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures Gross Profit, Gross Margin, Operating Profit, Operating Margin, Free Cash Flow(FCF), are all non-GAAP figures, 3-yr. CAGR reflect the period 2019-2022#14Annual Revenue by End Market ($B) Automotive Up 18% 3-yr. CAGR ($B) (1) 1. Industrial & IoT Up 19% 3-yr. CAGR ($B) $4.2 $3.8 $5.5 $6.9 $1.6 $1.8 $2.4 $2.7 2019 2020 2021 2022 2019 2020 2021 2022 Mobile Up 11% 3-yr. CAGR ($B) Communication Infrastructure & Other Up 2% 3-yr. CAGR ($B) $1.2 $1.2 $1.4 $1.6 $1.9 $1.7 $1.7 $2.0 2019 2020 2021 2022 2019 2020 2021 2022 Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures#151. 2. Recent Quarterly Business Trends As Reported Revenue ($M) (1,2) Non-GAAP Gross Profit / Non-GAAP Gross Margin 57.6% 57.8% 58.0% 58.0% 58.2% 3,136 3,312 3,445 3,312 3,121 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 1,807 Q1 22 1,915 1,999 1,922 1,816 Q2 22 Q3 22 Q4 22 Q1 23 Non-GAAP Operating Profit / Non-GAAP Operating Margin Non-GAAP Free Cash Flow / Non-GAAP Free Cash Flow Margin 35.7% 36.0% 36.9% 36.5% 34.8% 18.4% 16.6% 25.1% 25.5% 12.2% 1,119 Q1 22 1,193 1,271 1,208 1,085 577 551 863 843 381 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 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, Gross Margin, Operating Profit, Operating Margin, Free Cash Flow are all non-GAAP figures.#161. Quarterly Revenue by End Market ($M) Automotive 1% Q-Q 17% Y-Y (1) Industrial & IoT (17%) Q-Q (26%) Y-Y $1,557 $1,713 $1,804 $1,805 $1,828 $682 $713 $713 $605 $504 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Mobile Communication Infrastructure & Other (36%) Q-Q (35%) Y-Y $401 $388 $410 $408 $260 $496 $498 $518 $494 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 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 7% Q-Q 7% Y-Y $529 Q1 23#17Debt Summary at the End of 1Q23 (1,2) Sr. Sr. Sr. Sr. Sr. Sr. Debt Instrument Notes Notes Notes Notes Notes Sr. Sr. Unsecured Unsecured Unsecured Unsecured ||Unsecured | Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured ||Unsecured Unsecured Notes Notes Notes Sr. Sr. Sr. Sr. Sr. Sr. Sr. Revolving Notes Notes Notes Notes Notes Notes Notes Credit Facility Issue Date Maturity Date Dec-18 Mar-24 Apr-20 Dec-18 May-25 Mar-26 Jun-19 Jun-26 Apr-20 May-27 May-22 Jun-27 Dec-18 Dec-28 Jun-19 Jun-29 Apr-20 May-30 May-21 May-31 Nov-21 Feb-32 May-22 Jan-33 May-21 May-41 Nov-21 Feb-42 Nov-21 Nov-51 Issued Amount (M) $ 1,000 $ 500 Book Value (M) $ 999 $ 499 $ $ 500 498 $ 750 $ $ 748 $ 500 $ 500 $ 498 $ 497 $ 500 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 497 $ 994 $ 994 $ 992 $ 993 $ 989 $ 988 $ 492 Aug-22 Aug-27 500 $ 500 $ 2,500 $ 491 $ Coupon 4.875% 2.700% 5.350% 3.875% 3.150% 4.400% 5.550% 4.300% 3.40% 2.50% 2.65% 5.00% 3.25% 3.125% 3.250% Adj. Fwd. SOFR +112.5 bps Rating Moody's Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 NR Standard & Poor's Fitch BBB BBB BBB 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 BBB BBB BBB NR Total Leverage Total Debt ($M) $ 11,167 Total Cash ($M) $ 3,930 Net Debt ($M) $ 7,237 TTM Adj. EBITDA $ 5,457 Cost of Debt 3.79% Reported Gross Leverage 2.0X Reported Net Leverage 1.3X TTM Adj. EBITDA/TTM net Interest 16.4x 1. 2. $1,000 $750 $500 $500 $500 $500 $500 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $500 $500 2023 2024 2025 '24 Sr. Unsecured Note (4.875%) ■'27 Sr. Unsecured Note (4.40%) ■'32 Sr. Unsecured Note (2.65%) 2026 2027 2028 2029 2030 2031 2032 ■'25 Sr. Unsecured Note (2.70%) ■'28 Sr. Unsecured Note (5.55%) ■'33 Sr. Unsecured Note (5.00%) '26 Sr. Unsecured Note (5.35%) ■'29 Sr. Unsecured Note (4.30%) ■'41 Sr. Unsecured Note (3.25%) 2033 ■'26 Sr. Unsecured Note (3.875%) ■'30 Sr. Unsecured Note (3.4%) ■'42 Sr. Unsecured Note (3.125%) 2041 2042 ■'27 Sr. Unsecured Note (3.15%) ■'31 Sr. Unsecured Note (2.50%) ■'51 Sr. Unsecured Note (3.25%) 2051 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 fourth quarter ended December 31, 2022, Interest expense, net of ($76) million is comprised of interest expense of ($108) million, less interest income of ($32) million. Interest expense, net is a component of Financial income (expense) of ($103) million as reported in the NXP Historic Financial Model file found on the Financial Information page. 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.#18(1,2,3) Working Capital Ratios DSO 123 3. DPO 27 27 27 26 31 77 77 69 77 68 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 DIO Cash Conversion Cycle 89 94 99 116 135 39 44 57 65 98 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 DSO = (91.25 x AR) / Revenue DPO = (91.25 x AP) / COGS DIO = (91.25 x Inventory) / COGS Cash Conversion Cycle = DIO +DSO - DPO We have reclassified certain amounts related to customer programs previously presented in "Accounts payable" to "Other current liabilities" to conform to current period presentation. Working capital ratios exclude the effect of 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 and the reclassified Account payable amounts#19Proven, Resilient and Profitable Financial Model 24.4) (1.2,3,4) Financial Metrics Total NXP revenue growth Non-GAAP gross margin Non-GAAP R & D % Analyst Day 2018 Forecast Actual Performance 2018-2021A +5 to 7% 5.6% 53-57% 56.1% 14-16% 16.0% Non-GAAP SG & A % 6-8% 7.2% Non-GAAP operating profit growth 8-14% 10.5% Non-GAAP operating margin 31-34% 32.9% Non-GAAP cumulative free cash flow $7 - $8B $10B 1. Reconciliations of non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the appendix to the presentation 2. 2018-2021 Actual Revenue growth reflects rounding 3. Non-GAAP Free Cash Flow defined as cash flow from operations less net capital expenditures on property, plant and equipment 4. Cumulative non-GAAP free cash flow includes the $2B one-time break up fee associated with failed QCOM acquisition of NXPI received in 2018#20Updated Financial Model- NXP growth Non-GAAP gross margin Non-GAAP R&D Non-GAAP SG&A Non-GAAP operating margin Non-GAAP cash taxes Non-controlling interest Net capex Stock based compensation Non-GAAP free-cash flow DSO DPO DIO Analyst Day 2021 2021 – 2024 CAGR +8 to 12% 55 to 58% -16% -7% 32 to 36% ‘22:~15%; ’23; ~18%; '24; ~18% $35M to $45M 6 to 8% '22: $380M; '23: $410M; '24: $440M Target 25% of revenue ~30 Days ~75 Days -95 Days 123 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 Growth rates are compound annual growth rates from 2021 through 2024E; individual annual growth rates will vary across the horizon All percentages are as a percent of revenue, and assume an annual value, quarter to quarter values will vary#21Guidance for the Second Quarter of 2023 (1,2,3,4,5) GAAP Reconciliation Non-GAAP Low Mid High Low Mid High Total Revenue Q-Q Y-Y 3,100 3,200 3,300 3,100 3,200 3,300 -1% 3% 6% -1% 3% 6% -6% -3% 0% -6% -3% 0% Gross Profit 1,741 1,816 1,891 (47) 1,788 1,863 1,938 Gross Margin 56.2% 56.8% 57.3% 57.7% 58.2% 58.7% Operating Income (loss) 819 884 949 (219) 1,038 1,103 1,168 Operating Margin 26.4% 27.6% 28.8% 33.5% 34.5% 35.4% Financial income (expense) (73) (73) (73) (4) (69) (69) (69) Tax rate 16.5%-17.5% 16.0%-17.0% NCI & Other (10) (10) (10) (3) (7) (7) (7) Shares 261.2 261.2 261.2 261.2 261.2 261.2 Earnings per share - diluted 2.33 2.54 2.75 3.07 3.28 3.49 1. GAAP Gross Profit is expected to include Purchase Price Accounting ("PPA") effects, $(13) million; Share-based Compensation, $(13) million; Other Incidentals, $(21) million; 2. GAAP Operating Income (loss) is expected to include PPA effects, $(95) million; Share-based Compensation, $(100) million; Restructuring and Other Incidentals, $(24) million; 3. GAAP Financial Income (expense) is expected to include Other financial expense $(4) million; 4. GAAP Non-Controlling Interest (NCI) and Other includes non-controlling interest $(7) million and Other $(3) million; 5. GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for Non-controlling interest & Other and the adjustment on Tax due to the earlier mentioned adjustments. NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Non-GAAP Financial Measures" below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.#22Annual Financial Reconciliation (GAAP to non-GAAP) ($ in millions, unless otherwise stated) 2019 2020 2021 2022 Total Revenue GAAP Gross Profit Gross profit adjustments Non-GAAP Gross Profit GAAP Gross Margin Non-GAAP Gross Margin 8,877 8,612 11,063 13,205 4,618 4,235 6,067 7,517 (131) (165) (138) (126) 4,749 4,400 6,205 7,643 52.0% 49.2% 54.8% 56.9% 53.5% 51.1% 56.1% 57.9% GAAP Operating income (loss) 641 418 2,583 3,797 Operating income adjustments (1,932) (1,810) (1,058) (994) Non-GAAP Operating income (loss) 2,573 2,228 3,641 4,791 GAAP Operating Margin 7.2% 4.9% 23.3% 28.8% Non-GAAP Operating Margin 29.0% 25.9% 32.9% 36.3% GAAP Financial income (expense) Financial income adjustments Non-GAAP Financial income (expense) (350) (417) (403) (434) (85) (60) (38) (48) (265) (357) (365) (386) 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 (1)#23Annual Cash Flow Overview ($M) ($ in millions, unless otherwise stated) 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 2019 2020 2021 2022 2,373 2,482 3,077 3,895 (2,284) (418) (934) (1,249) (1,831) (835) (1,585) (1,619) (2) 1 (3) (12) (1,744) 1,230 555 1,015 2,789 1,045 2,275 2,830 1,045 2,275 2,830 3,845 Net cash provided by (used for) operating activities 2,373 2,482 3,077 3,895 Net capital expenditures on property, plant and equipment (503) (388) (766) (1,061) Non-GAAP free cash flow 1,870 2,094 2,311 2,834 Trailing 12-month Non-GAAP free cash flow as a percentage of Revenue 21% 24% 21% 21% 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#24Annual Adjusted EBITDA ($M) ($ in millions, unless otherwise stated) GAAP Net income (loss) 2019 2020 2021 2022 272 80 1,906 2,833 Reconciling items to EBITDA (Non-GAAP) Financial (income) expense 350 417 403 434 (Benefit) provision for income taxes 20 (83) 272 529 Depreciation 518 547 551 605 Amortization 1,529 1,441 711 645 2,689 2,402 3,843 5,046 EBITDA (Non-GAAP) Reconciling items to Adjusted EBITDA (Non-GAAP) Results of equity-accounted investees (1) 4 2 1 Purchase accounting effect on inventory Restructuring Stock-based compensation Merger-related costs 8 17 28 78 1 (7) 346 384 353 364 33 8 Other incidental items (3) (101) 33 65 Trailing 12-month Adjusted EBITDA (Non-GAAP) 3,100 1) Excluding amortization and depreciation related to other incidental items 2,792 8 4,232 5,469 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#25Quarterly Financial Reconciliation (GAAP to non-GAAP) Q1 Q2 Q3 Q4 Q1 ($ in millions, unless otherwise stated) 2022 2022 2022 2022 2023 Total Revenue GAAP Gross Profit Gross profit adjustments Non-GAAP Gross Profit GAAP Gross Margin Non-GAAP Gross Margin 3,136 3,312 3,445 3,312 3,121 1,777 1,882 1,967 1,891 1,770 (30) (33) (32) (31) (46) 1,807 1,915 1,999 1,922 1,816 Adjustments to Q1 2023 "GAAP Net income (loss) attributable 56.7% 56.8% 57.1% 57.1% 56.7% to stockholders" of $615M: 57.6% 57.8% 58.0% 58.0% 58.2% PPA effects: ($99M) GAAP Operating income (loss) 873 943 1,001 980 825 Operating income adjustments (246) (250) (270) (228) (260) Non-GAAP Operating income (loss) 1,119 1,193 1,271 1,208 1,085 Restructuring: ($18M) Stock-based compensation: ($99M) GAAP Operating Margin 27.8% 28.5% 29.1% 29.6% 26.4% Other incidentals: ($44M) Non-GAAP Operating Margin 35.7% 36.0% 36.9% 36.5% 34.8% GAAP Financial income (expense) (105) (128) (98) (103) (82) Other adjustments: $41M consisting of Financial income adjustments (2) (31) (7) (8) (6) Foreign exchange loss: ($3M) Non-GAAP Financial income (expense) (103) (97) (91) (95) (76) Other financial expense: ($3M) GAAP Provision for income taxes Income tax effect Non-GAAP Provision for income tax GAAP Results relating to equity-accounted investees Results relating to equity-accounted investees Non-GAAP Results relating to equity-accounted investees GAAP Net income (loss) Less: Net income(loss) attributable to non-controlling interests GAAP Net income (loss) attributable to stockholders Non-GAAP Net income (loss) attributable to stockholders (118) 49 Income tax effect: $49M (167) Results relating to equity accounted investees ($2M) (2) (2) 623 8 615 834 GAAP Diluted earnings per share 2.35 Non-GAAP Diluted earnings per share 3.19 1. Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures#26Quarterly Cash Flow Overview ($M) (1) Q1 Q2 Q3 Q4 Q1 ($ in millions, unless otherwise stated) Net cash provided by (used for) operating activities Net cash provided by (used for) investing activities Net cash provided by (used for) financing activities 2022 2022 2022 2022 2023 856 819 1,144 1,076 632 (329) (288) (360) (272) (351) (674) 342 (559) (728) (198) 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 (11) (11) 10 2 (147) 862 214 86 85 2,830 2,683 3,545 3,759 3,845 2,683 3,545 3,759 3,845 3,930 Net cash provided by (used for) operating activities 856 819 1,144 1,076 632 Net capital expenditures on property, plant and equipment (279) (268) (281) (233) (251) Non-GAAP free cash flow 577 551 863 Trailing 12-month Non-GAAP free cash flow 2,306 2,371 2,510 843 2,834 381 2,638 Trailing 12-month Non-GAAP free cash flow as a percentage of Revenue 20% 19% 19% 21% 20% 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#27Quarterly Adjusted EBITDA ($M) » (1,2) ($ in millions, unless otherwise stated) Net income (loss) Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 666 683 750 734 623 Reconciling items to adjusted net income Financial (income) expense 105 128 98 103 82 (Benefit) provision for income taxes 114 129 149 137 118 Depreciation 142 149 156 158 160 Amortization 168 168 165 144 123 Adjusted net income 1,195 1,257 1,318 1,276 1,106 Reconciling items to adjusted EBITDA Results of equity-accounted investees Restructuring Stock-based compensation (12) 3 4 6 2 (1) (4) I (2) 18 89 89 89 97 99 Other incidental items 8 16 33 8 42 Adjusted EBITDA 1,279 1,361 1,444 1,385 1,267 Trailing 12-month Adjusted EBITDA 4,576 4,961 5,299 5,469 5,457 1) Excluding amortization and depreciation related to other incidental items 2 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#28NXP Investment Thesis $ $ Market leader with strong revenue growth Proven financial model with resilient profitability Reliable capital return policy of robust free cash flow#29NX- SECURE CONNECTIONS FOR A SMARTER WORLD PUBLIC 28 NXP