FINGERPRINT CARDS

SEB INDUSTRIAL & TECHNOLOGY SEMINAR

24 AUG, 2017

CHRISTIAN FREDRIKSON, CEO

Fingerprints of Sweden

- In biometrics since 1997

Founded 1997 in Gothenburg, Sweden

Public company listed on NASDAQ OMX

+500 employees

HQ in Gothenburg, R&D in Sweden and Denmark

Subsidiaries in China, South Korea, Taiwan, US

Financial highlights 2016 – 129% revenue growth

Revenues : 6,638 MSEK (2,900)

Gross Margin : 48% (43)

Operating margin : 39% (31)

2

Our core business – advanced biometric system solutions, both HW and SW

Market position – global market leader

Key focus areas – smartphones, tablets, PCs, smartcards, IoT, automotive

Global brands use our products

3

Our OEM customer base (mobile)

Source: Strategy Analytics provisional data, Fingerprints estimates

4

Scalable and efficient business model for

the mobile segment

Software customization and integration

HW design/customization support

Shipment of sensors

Industrial Design,

integration, tuning

and end-user

experience

OEM/ODM

Packaging and

module

manufacturing

Module house

Warehouse and

Logistics

Distributor

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STRATEGIC DIRECTION

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Megatrends that affect us

Biometrics

Security and convenience

Cloudification

Online payment/banking

Digitalization (IoT)

CSR awareness

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#1 BIOMETRICS COMPANY

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Fingerprints growth strategy

Grow with the existing

customer base

Add new customers

Other segmentsPC

Internet of ThingsAutomotive

Industrial and medical

New offerings

Other sensors

M&A opportunities

Segments

Existing

New

OfferingExisting New

SmartcardsSensor adaptation

Utilize scale advantagesStrong growth potential

Extended biometric

scope

Trackpad

Higher security

More features

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The big picture of biometrics

Technologies

Facial Iris Voice

Palm vein Finger vein Fingerprint

Capacitive

Ultrasonic

Optical

1 st generation

Spray coated

2nd generation

Under glass

3rd generation

Under thicker glass

Touch sensorsBiometric modalities

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BUSINESS UPDATE

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Q2 2017 Summary

RevenuesMargins &

profitabilityHighlights

Revenues:

SEK 823 (1,661) M,

a decrease of 51%

year over year

Gross profit:

SEK 300 (814) M

Gross Margin*:

36% (49)

Operating profit** :

SEK 72 (675) M

Operating margin:

9% (41)

Cash Flow:

SEK 528 (530) M

19 mobile devices

with Fingerprints’

sensors launched

Huawei and Microsoft

PC-prod launched

Several new

partnerships

announced

Acquisition of Delta ID

finalized

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*Including provisions for an obsolescence reserve of SEK 47,5 M

**Including transaction costs relating to the acquisition of Delta ID of SEK 18 M

Normalized inventory levels in the value chain

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Market launches Q2 2017

19 mobile devices by 12 OEM customers

Launches by Huawei, Xiaomi and Oppo

New OEM-customers: UMIDIGI, AGM and one “not named”

Huawei Matebook E

Microsoft Keyboard

Smartcard MeReal V2

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Partnerships announced

Distributor: Arrow Electronics

Module houses:

Biel Crystal

Fingerchip

A-Kerr (SPEED)

Smartcards:

Kona-I

Zwipe

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Summary

A weak quarter as expected but good cashflow

Normalized inventory levels in the value chain

We remain competitive in a highly competitive market

and are gradually regaining market share with some

major customers

New partnerships enable us to reach new customers

and segments

Acquisition of Delta ID is finalized

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Q&A

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THANK YOU!Stay in touch & connect

E-mail: investrel@fingerprints.com

For more information, visit us at www.fingerprints.com