#1NXP Investor Presentation Third Quarter 2020 October 2020 NXP SECURE CONNECTIONS FOR A SMARTER WORLD#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 S 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 Preprocessing Enabling Technologies Home Gateway Auto Processing Gateway IoT Edge La Industrial Controller Smart City Connectivity Services Data Analytics Smart Home Smart Health Smart Retail Wearables चल La Security Smart Actuating Buildings Voice Assistant Robotics Media Streaming NXP#5NXP Addresses 4 Major End Markets Automotive ADAS + Electrification System solutions innovation with OEMs Increased content drives growth La 4 Industrial & lot Fragmented customer base Processing needs are transforming markets Scalable solutions as a differentiator Mobile Large mobile and adjacent device market Continued demand for features - innovation Growth driven by increased attach rate Communication Infrastructure & Other Capex-driven wireless infrastructure market Secular growth due to new cellular standard NXP#6Focused Leadership - End Markets ☐ NXP 2019 Revenue by End-market Exposure CZ 47% Automotive NXP 21% 13% Mobile Comm. Infra. & Other 2 Broad end market exposure • • · 18% Industrial & IoT · • Long product life cycles High barriers to entry • Application expertise Recognized leadership in Automotive MCU and application processors Mobile transactions 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 6 1. 2. Note: Focused Contender Competitive 0.5-1.0x <0.5x Leader 1.0 - 1.5x '19 TOTAL NXP True Leader >1.5x Competitive 0.5-1.0x Leader 1.0 - 1.5x '19 AUTOMOTIVE Focused Contender <0.5x '19 INDUSTRIAL & IOT Focused Contender <0.5x Competitive 0.5-1.0x Source: NXP Semiconductors CMT Group, based on 2019 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") True Leader >1.5x True Leader >1.5x Leader 1.0 - 1.5x '19 MOBILE Leader 1.0 - 1.5x True Leader >1.5x '19 COMM INFRA/OTHERS Focused Contender Competitive 0.5-1.0x <0.5x O True Leader >1.5x NXP#87 Growth Opportunity Driven by Focus End Markets Growth by End Market Note: 1. $8.9B La !)) 2019A 5-7% Normalized Period 3-Yr CAGR Percent Normalized End Market 2019 Revenue 3-yr. CAGR Automotive 47% Up 7 to 10% Industrial & IoT 18% Up 8 to 11% La Mobile 13% Up 4 to 6% Comm. Infra. & Other 21% 0 to up 2% !») Total Up 5 - 7% Year 3 Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures NXP#9Diverse Customer Base - Top 20 Customers > 40% of Revenue « 8 1. >25,000 Total Customers £20 PREREZ ô âââ ༢༢༢ Reflects 2019 sales through all channels Automotive Mobile (Comm. Infra. 1 NXP#10Driving Profitable Growth in Excess of Addressable Market123 As Reported Revenue Down 2% 3-yr. CAGR ($B) 2 Non-GAAP Gross Profit flat 3-yr. CAGR ($B) $9.5 $9.3 $9.4 $8.9 2016 2017 2018 2019 $4.8 $4.9 $5.0 $4.7 2016 2017 2018 2019 2 Non-GAAP EBIT Profit up 1% 3-yr. CAGR ($B) 2,3 Non-GAAP Free Cash Flow Down 1% 3-yr. CAGR ($B) $2.5 $2.7 $2.7 $2.6 2016 2017 2018 2019 $1.9 $1.9 $3.8 $1.9 2016 2017 2018 2019 Note: 1. 9 2. 3. 2018 Non-GAAP Free Cash Flow reflects the receipt of $2 billion termination fee associated with terminated Qualcomm transaction Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures Gross Profit, EBIT Profit, Free Cash Flow(FCF), are all non-GAAP figures, 3-yr. CAGR reflect the period 2016 - 2019 NXP#11Recent Quarterly Business Trends₁₂ As Reported Revenue ($M) Non-GAAP Gross Margin 2,094 2,217 2,265 2,301 2,021 1,817 2,267 52.7% 53.3% 53.7% 54.2% 51.8% 49.1% 50.1% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Non-GAAP Operating Margin 26.7% 28.9% 30.3% 29.9% 24.8% 20.7% 25.8% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Note: 10 1. 2. Non-GAAP Adj. EBITDA Margin 32.8% 34.7% 36.3% 35.8% 31.7% 28.5% 32.1% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 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#1211 Revenue by End Market Trend($M) Automotive 43% Q-Q (8%) Y-Y Industrial & lOT 18% Q-Q 21% Y-Y $1,036 $1,031 Q1 19 Q2 19 $1,048 $1,097 Q3 19 $994 $674 $964 $368 $390 $426 $415 $376 $435 $514 Q4 19 Q1 20 Q2 20 Q3 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Mobile 32% Q-Q 5% Y-Y $241 $297 $321 $332 $247 $255 $337 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Note: 1. Communication Infrastructure & Other - % Q-Q (4%) Y-Y $449 $499 $470 $457 $404 $453 $452 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 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#13Debt Summary End of 3Q20 Debt Instrument Sr. Unsecured Sr. Unsecured Notes 1 Notes Sr. Unsecured Notes Sr. Unsecured Notes Sr. Unsecured Notes Maturity Date Jun-21 Jun-22 Sep-22 Jun-23 Mar-24 Sr. Unsecured Notes May-25 Sr. Unsecured Notes Sr. Unsecured Notes Sr. Unsecured Notes Sr. Unsecured Notes Sr. Unsecured Notes Sr. Unsecured Notes Revolving Credit Facility Mar-26 Jun-26 May-27 Dec-28 Jun-29 May-30 Jun-24 Amount (M) $ 1,350 $ 400 $ 1,000 $ 900 $ 1,000 $ 500 $ 500 SA $ 750 $ 500 $ 500 $ 1,000 $ 1,000 $ Coupon 4.125% 4.625% 3.875% 4.625% 4.875% 2.700% 5.350% 3.875% 3.150% 5.550% 4.300% 3.40% Libor +125 bps Rating Moody's Standard & Poor's Fitch Total Leverage Total Debt ($M) Total Cash ($M) Net Debt ($M) TTM Adj. EBITDA Cost of Debt Reported Leverage TTM Adj. EBITDA/TTM net Interest Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 NR BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB BBB- NR NR 69 69 69 LA $ 9,356 $ 3,566 $ 5,790 $ 2,708 4.18% 2.1X $1,000 $1,350 7.8x $750 $1,000 $1,000 $1,000 $900 $500 $500 $500 $500 $400 2021 2022 2023 ■'21 Sr Unsecured Note (4.125%) 1 ■'26 Sr. Unsecured Note (5.35%) ■'22 Sr Unsecured Note (4.625%) 1 '26 Sr. Unsecured Note (3.875%) 2024 '22 Sr. Unsecured Note (3.875%) '27 Sr. Unsecured Note (3.15%) 2025 2026 2027 2028 2029 2030 '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%) ■'30 Sr. Unsecured Note (3.4%) Note: 1. 12 2. On September 28, 2020, subsequent to the close of NXP's third quarter, the company fully redeemed the $1.35 billion of outstanding principal of the 4.125% Senior Notes due 2021 and the $400 million of outstanding principal of the 4.625% Senior Notes due 2022. The total amount of these redemptions, $1.83 billion, were paid from available cash on balance sheet. 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#14Working Capital Ratios 12 DSO DPO 35 32 32 26 28 24 30 74 67 74 81 83 71 55 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 DIO(2) 113 100 98 102 113 120 84 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Note: 13 1. 2. Cash Conversion Cycle 74 65 56 47 58 73 59 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 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#15Guidance for the Fourth Quarter of 2020 1 GAAP Reconciliation Non-GAAP Low Mid High Low Mid High Total Revenue 2,375 2,450 2,525 2,375 2,450 2,525 Q-Q 5% 8% 11% 5% 8% 11% Y-Y 3% 6% 10% 3% 6% 10% Gross Profit 1,209 1,255 1,303 (36) 1,245 1,291 1,339 Gross Margin 50.9% Operating Income (loss) 425 Operating Margin 17.9% 51.2% 461 18.8% 51.6% 52.4% 52.7% 53.0% 499 (267) 692 728 766 19.8% 29.1% 29.7% 30.3% Financial income (expense) (146) (146) (146) (62) (84) (84) (84) 1. GAAP Gross Profit is expected to include Purchase Price Accounting ("PPA") effects, $(20) million; Stock Based Compensation, $(12) million; Other Incidentals, $(4) million; GAAP Operating Income (loss) is expected to include PPA effects, $(170) million; Stock Based Compensation, $(87) million; Restructuring and Other Incidentals, $(10) million; 2. 3. GAAP Financial Income (expense) is expected to include Other financial expense $(62) million; 4. 5. Net cash paid for income taxes related to on-going operations is expected to be approximately $(36) million; Non-controlling interest is expected to be approximately $(9) million; 6. Weighted average diluted share count is expected to be approximately 286 million. 14 NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Non- GAAP Financial Measures" below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances. NXP#16Financial Model Normalized Focused Market Growth (1) NXP Growth (1) Non-GAAP Gross Margin Non-GAAP R&D Non-GAAP SG&A Non-GAAP Operating Margin Non-GAAP Operating Income Growth 3-yr. CAGR 3 - 5% 5-7% 53 - 57% 14 - 16% 6-8% 31 - 34% ~8 - 14% 15 1. Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures NXP#17Quarterly Financial Reconciliation (GAAP to non-GAAP) ($ in millions, unless otherwise stated) 1 Other Information for Q3 2020: Q3 Q2 Q3 2020 2020 2019 . PPA effects: ($441M) Total Revenue GAAP Gross Profit Gross profit adjustments Non-GAAP Gross Profit GAAP Gross Margin Non-GAAP Gross Margin 2,267 1,817 2,265 1,090 860 1,186 • (45) (32) (30) Restructuring: ($21M) Stock-based compensation: ($83M) 1,135 892 1,216 Merger-related costs: ($1M) 48.1% 47.3% 52.4% Other incidentals: ($8M) 50.1% 49.1% 53.7% Foreign exchange loss: ($3M) GAAP Operating income (loss) 32 (145) 233 Other financial expense: ($3M) Operating income adjustments (554) (521) (454) Non-GAAP Operating income (loss) 586 376 687 GAAP Operating Margin Non-GAAP Operating Margin GAAP Financial income (expense) Financial income adjustments Non-GAAP Financial income (expense) 1.4% (8%) 10.3% 25.8% 20.7% 30.3% (106) (96) (85) (6) (4) (19) (100) (92) (66) 16 Note: NXP 1. Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at www.nxp.com/investor for additional information relative to our Non-GAAP Financial Measures#18Quarterly Cash Flow Overview ($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 1 Q3 Q2 Q3 2020 2020 2019 527 414 746 (105) (113) (138) (124) 1,885 (95) 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 2 1 (6) 300 2,187 507 3,266 1,079 3,030 3,566 3,266 3,537 Net cash provided by (used for) operating activities 527 414 746 Net capital expenditures on property, plant and equipment (68) (74) (115) Non-GAAP free cash flow 459 340 631 Trailing 12-month Non-GAAP free cash flow 1,844 2,016 1,755 Trailing 12-month Non-GAAP free cash flow as a percentage of Revenue 22% 24% 20% Note: 17 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#19Quarterly Adjusted EBITDA ($M) 1 ($ in millions, unless otherwise stated) Net income (loss) Q3 Q2 Q3 2020 2020 2019 (18) (209) 119 Reconciling items to adjusted net income Financial (income) expense 106 96 85 (Benefit) provision for income taxes (57) (33) 28 Depreciation 139 136 135 Amortization 450 407 382 Adjusted net income 620 397 749 Reconciling items to adjusted EBITDA Results of equity-accounted investees 1 1 1 Restructuring 21 8 (1) Stock-based compensation 83 105 84 Merger-related costs 1 3 6 Other incidental items Adjusted EBITDA 1 Trailing 12-month Adjusted EBITDA 1) Excluding amortization related to other incidental items 2 3 (17) 728 517 822 2,708 2,802 3,126 6 18 Note: 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#2019 NXP M Value Proposition Driving RMS Leadership Focused on RMS >1.5X Multiple High Growth Markets Solutions Core Competency Profitable growth Resolving customer pain-points Maximize Shareholder Value Strong cash flow generation World-class Expertise & Team Customer focused passion to win NXP