PRECISE BIOMETRICS CORPORATE PRESENTATION

Håkan Persson | CEO November 19, 2015

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COMPANY OVERVIEW

CONVENIENT AND SECURE IDENTITY AUTHENTICATION, FOR EVERYONE, EVERYWHERE. Founded in 1997 Nasdaq OMX Stockholm Head Office in Lund, Sweden USA, Asia, Europe 35 employees & consultants

BUSINESS AREAS AND PRODUCTS

FINGERPRINT TECHNOLOGY

MOBILE SMART CARD SOLUTIONS

PRECISE BIOMATCH MOBILE

PRECISE BIOMATCH

EMBEDDED

MATCH-ON-CARD

TACTIVO FOR

ANDROID

TACTIVO FOR iOS

BUSINESS AREAS AND PRODUCTS

FINGERPRINT TECHNOLOGY

THE CORE OF FINGERPRINT SOFTWARE

PRECISE BIOMETRICS ALGORITHM SOFTWARE IS CRUCIAL FOR THE USER EXPERIENCE OF FINGERPRINT TECHNOLOGY

PROVEN

STRONG PATENTS

USER EXPERIENCE SENSOR

INDEPENDENT

MARKET LEADING FINGERPRINT TECHNOLOGY

THE ALGORITHM SOFTWARE IS BASED ON 20 YEARS OF EXPERIENCE IN DEVELOPING FINGERPRINT TECHNOLOGY, PROTECTED BY STRONG PATENTS

WORLD LEADING R&D

OPPO N3 NEWMAN BUTTON

COOLPAD TIPTOP PRO

LeTV MAX

OPPO R7 PLUS

HTC ONE M9+

MEIZU MX5

HUAWEI HONOR 7 HUAWEI ASCEND MATE 7

GIONEE ELIFE 8

KONKA K5 (swipe) HTC ONE ME

HUAWEI MAIMANG 4 HUAWEI ASCEND G8 HUAWEI G7 PLUS

ZUK Z1 (LENOVO)

ONEPLUS 2

ZTE AXON

COOLPAD DAZEN NOTE 3

HUAWEI HONOR 7i

NEXTBIT ROBIN

HUAWEI MATE S

SONY XPERIA Z5, Z5 PREMIUM, Z5 COMPACT

IVVI K2

BLU PURE XL

MEIZU PRO 5

NEXUS 6P (HUAWEI) NEXUS 5X (LG)

ZTE AXON MINI

QiKU PROFESSIONAL QiKU FLAGSHIP QiKU YOUNG

GIGASET ME GIGASET ME PURE GIGASET ME PRO

COOLPAD SHINE

COOLPAD NOTE 3

COOLPAD “Quan Mo Wang”

MEIZU “Meilan Metal”

HTC ONE A9

HUAWEI HONOR 5X

BLU COOLPAD GIGASET GIONEE

GOOGLE HUAWEI

HTC IVVI KONKA LeTV

MEIZU

WINDOWS TABLET

NEWMAN NEXTBIT ONEPLUS OPPO QiKU

SONY ZTE ZUK

INTEGRATED IN >45 SMARTPHONES FROM >20 VENDORS

LENOVO

LENOVO X3 YOUNG LENOVO X3

EXPANDING MARKET

Goode Intelligence estimates that 1.4 billion mobile devices with fingerprint technology will be sold during 2018 By 2020 three billion devices will be equipped with biometric technology according to Acuity Research

0

500

1 000

1 500

2 000

2 500

3 000

3 500

2014 2015 2016 2017 2018 2019 2020

Annual smart biometric devices

Biometric devices Acuity research

MOBILE DEVICES WITH FINGERPRINT TECHNOLOGY AND NUMBER OF USERS ARE GROWING RAPIDLY

FINGERPRINT TECHNOLOGY PARTNERS

PLATFORM FOR GROWTH

THROUGH OUR STRONG PARTNERS WE ARE WELL POSITIONED FOR GROWTH OF FINGERPRINT TECHNOLOGY SOLUTIONS IN SMARTPHONES AND OTHER APPLICATION AREAS

BUSINESS AREAS AND PRODUCTS

MOBILE SMART CARD SOLUTIONS

ENABLES MOBILITY USING SMART CARDS

TACTIVO ENABLES MOBILITY IN ORGANIZATIONS USING SMART CARDS FOR LOGIN

CUSTOMERS

Mobile smart card reader for smartphones and tablets (iOS & Android) Increases quality and productivity and reduces costs Easy and secure access through two-factor authentication

Tactivo for iPhone 6

INCREASED DEMAND

10 000 000 US government smart card users

1 000 000 UK health care smart card users

500 000 Swedish health care smart card users

Increased safety awareness, Access to applications

Tactivo implemented at several hospitals,

increased patient safety

Increasing number of healthcare systems that is

integrated with Tactivo

LARGE POTENTIAL FOR MOBILE ACCESS WITH TACTIVO ON KEY MARKETS

RAPID GROWTH

82 % SALES INCREASE DURING THIRD QUARTER 2015

Positive operating profit at EBITDA level during third quarter

7,3

9,9

4,5

10,0

18,3

0

2

4

6

8

10

12

14

16

18

20 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Sales (Msek)

-10,3 -8,4 -7,7

-4,6

5,4

-20

-15

-10

-5

0

5

Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

EBITDA (Msek)

CHANGE IN SALES MIX

15% 20%

65%

Sales YTD Sept ‘14 Mobile Smart Card Solutions, 2,1 MSEK

Fingerprint Technology, 2,8 MSEK

Desktop & Physical Access Solutions, 9,3 MSEK

SALES MOVED TO PRIORITIZED BUSINESS AREAS WITH HIGHER MARGIN

61%

39%

74% 81% 84%

0%

20%

40%

60%

80%

100%

Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Gross margin

Gross margin

20%

72%

8%

Sales YTD Sept ‘15 Mobile Smart Card Solutions, 6,4 MSEK

Fingerprint Technology, 23,8 MSEK

Desktop & Physical Access Solutions, 2,7 MSEK

SUMMARY

PROFITABLE GROWTH

POSITIONED FOR GROWTH IN FINGERPRINT TECHNOLOGY

DEMAND INCREASE

THANK YOU!

precisebiometrics.com

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