PRECISE BIOMETRICS CORPORATE PRESENTATION Håkan Persson | CEO October 13, 2016 VERIFIED BY YOU

COMPANY OVERVIEW Convenient and secure identity authentication, for everyone, everywhere Founded in 1997 Head Office in Lund, Sweden USA, Asia, Europe 35 employees & consultants Nasdaq OMX Stockholm

BUSINESS AREAS AND PRODUCTS FINGERPRINT TECHNOLOGY MOBILE SMART CARD SOLUTIONS PRECISE BIOMATCH™ MOBILE PRECISE BIOMATCH™ EMBEDDED MATCH-ON-CARD™ TACTIVO™ FOR iOS TACTIVO™ FOR ANDROID

FINGERPRINT TECHNOLOGY

POWERFUL ALGORITHMS THAT PROVIDE THE BEST USER EXPERIENCE Image enhancement and extraction of the fingeprints unique features, which are stored in a secure zone Matching of the fingerprints unique features with the stored template If it´s a match, the phone opens/the person is given access to the chosen application

TECHNOLOGY INDEPENDENT THE LEADER IN FINGERPRINT SOFTWARE Precise Biometrics is the leading independent supplier of fingerprint software – Our software has become somewhat of a de facto standard among sensor vendors USER EXPERIENCE WORLD-LEADING R&D PROVEN STRONG PATENTS TECHNOLOGY INDEPENDENT

INTEGRATED IN OVER 150 DIFFERENT MOBILE DEVICES FROM 40 VENDORS Precise BioMatch Mobile is used by leading mobile device manufacturers such as Coolpad, Google, Huawei, HTC, Lenovo, LG, Oppo, Sony, ZTE and Xiaomi.

BUSINESS MODEL & CUSTOMERS Primary customers – sensor vendors Market solutions directly to OEM:s and other suppliers in their eco-system Revenues: Annual license fee Royalty Support and maintenance

CONTINUED MARKET GROWTH Addressable market of 800 million smartphones, tablets and laptops with fingerprint technology in 2017 Compound Annual Growth Rate of 35 % to 2020 Growth opportunities for Precise Biometrics short and long term Million Units CAGR 2015-2020 Total Mobile handsets, tablets,laptops (excl Apple) CAGR 35 % Source: Redeye

GREAT POTENTIAL IN NEW PRODUCT AREAS Fingerprint technology is entering new product areas, smart cards and payment cards in particular, but also wearables, cars and IoT Annual addressable market of one billion credit cards Demand for efficient and light algorithm solutions with high performance We are collaborating with our customers on several projects related to smart cards, wearables and cars This market can become as large as the market for mobile devices

NEW CUSTOMERS CREATE GROWTH OPPORTUNITIES Continued positive development with new customer agreements 19 license agreements with sensor manufacturers and security companies Well positioned to benefit from market growth and to capture a considerable market share Continuous evaluation of new potential partners

TRENDS AND DEVELOPMENT Increased competition will drive differentiation of fingerprint solutions – technology, industrial design and use case Emerging technologies – ultra sound, optical solutions Fingerprint sensors are going under glass and could go under plastic and metal Anti fraud – Liveness solutions will become increasingly important Adoption of other biometric modalities will increase and become complementary to fingerprint technology

TECHNOLOGY LEADERSHIP Significant performance improvements of our core algorithm solution Customer specific optimizations – new sensor technologies Reference implementations and integration support to make integration of fingerprint software more efficient Established local integration and support organization for China & Taiwan Investigating new requirements and specifications for future mobile payment solutions

MOBILE SMART CARD SOLUTIONS

TACTIVO ENABLES MOBILITY IN ORGANIZATIONS USING SMART CARDS Smart card reader for smartphones and tablets (iOS & Android) Increased information security through secure & convenient login using two-factor authentication Improved organizational efficiency and work environment, while reducing cost TACTIVO CUSTOMERS Defense Logistics Agency (US DOD) US Navy National Health Service (UK) Municipalities and county councils in Sweden

FINANCIAL DEVELOPMENT

NET SALES (PER QUARTER / 12 MONTHS ROLLING) (MSEK) (MSEK) Q3’14- Q215 Q4’14- Q3’15 Q1’15- Q4’15 Q2’15- Q1’16 Q3’15- Q2’16 Net sales increased to 21.9 (10.0) MSEK in Q2 – up 119 % Strong sales increase in Fingerprint Technology Business Area – up 174 % compared to Q2 15 Net sales 12 months rolling increased to 87.9 (31.8) MSEK – up 176 % compared to Q314 – Q215

CONTINUED HIGH GROSS MARGIN Gross margin increased to 88% (81%) Increased sales of fingerprint software has led to an increase in gross margin

OPERATING PROFIT & EBITDA (EBITDA PER QUARTER / 12 MONTHS ROLLING) (MSEK) (MSEK) Q3’14- Q215 Q4’14- Q3’15 Q1’15- Q4’15 Q2’15- Q1’16 Q3’15- Q2’16 Operating profit for Q2 2016 increased to 4.4 MSEK from -7.9 MSEK in Q2 2015 EBITDA for Q2 2016 increased to 6.2 MSEK from -5.2 MSEK in Q2 2015 EBITDA 12 months rolling increased to 26.5 (-27.3) MSEK

PRECISE BIOMETRICS MANAGEMENT TOMMY NILSSON CFO PATRIK LINDEBERG COO RUTGER PETERSSON R&D DIRECTOR DANIEL EDLUND CORPORATE MARKETING MANAGER HÅKAN PERSSON CEO

OUTLOOK

OUTLOOK Continue to strengthen position as the leader in fingerprint software Increased revenue opportunities as more customers gain market share – reduced dependency on specific customers Great opportunities in new product areas that requires a small fingerprint sensor in constrained environments Growth over time in our business area Mobile Smart Card Solutions Well positioned for profitable growth and continued positive company development

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