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

2. 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

3. 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

4. FINGERPRINT
TECHNOLOGY

5. 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

6. 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

7. 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.

8. 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

9. 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
Total Mobile handsets, tablets,laptops (excl Apple)
CAGR 35 %
Source: Redeye

10. 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

11. 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

12. 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

13. 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

14. MOBILE SMART
CARD SOLUTIONS

15. 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

16. FINANCIAL DEVELOPMENT

17. 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

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

19. 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 Q increased to 4.4 MSEK from -7.9 MSEK in Q2 2015
EBITDA for Q increased to 6.2 MSEK from -5.2 MSEK in Q2 2015
EBITDA 12 months rolling increased to 26.5 (-27.3) MSEK

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

21. OUTLOOK

22. 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

23. THANK YOU!
precisebiometrics.com
VERIFIED BY YOU