2014 Welcome! AGENDA The Share Business concept, vision & - PowerPoint PPT Presentation

AGM 2014 Welcome!

AGENDA • The Share • Business concept, vision & strategies • Operations • The year in brief • Summary

THE SHARE Nasdaq OMX Stockholm Mid Cap • Market cap 140602: 2 776 MSEK • 14 107 (8 286) shareholders at year end 2013 •

THE SHARE Class of Ten largest shareholders March 31, 2014 Holdings Votes % share Sunfloro AB 1 200 000 17,79% A Försäkringsaktiebolaget, Avanza Pension 5 226 560 7,75% B Goldman Sachs & Co, W9 B 2 734 402 4,05% Oppenheimer Glob Opportunity Fund B 2 000 000 2,97% Nordnet Pensionsförsäkring AB 1 232 661 1,83% B State street Bank & Trust com., Boston B 1 202 500 1,78% AAGCS NV RE AACB RE TM OMX B 996 899 1,48% Msil Ipb Client Account 936 562 1,39% B State Street Bank And Trust Omnibus B 876 569 1,30% Svenska Handelsbanken Copenhagen B 850 871 1,26% Total ten largest shareholders 17 257 024 41,60% Others B 39 359 111 58,40% Total 56 616 135 100%

THE SHARE Share capital trend

BUSINESS CONCEPT Business concept – FPC develops and sells leading biometric products and solutions to companies that develop systems for security and convenience.

Affärsidé & vision My Phone knows me

Clear addressable market Major breakthrough for fingerprint • biometrics The fingerprint sensor is established in the • mobile market, a market with significant growth and potential 41 23 The fingerprint technology ecosystem is • founded. Several players are working together to develop an industry standard for identification using fingerprint biometrics Design Wins Launched Payment services are already here – but products • authentication techniques are required Pole position FPC is one of few players with a cutting ‐ • edge technologyplatform and a strong, growing product portfolio The majority of DWs awarded and • products in launched mobile phones Strong patent portfolio that creates • significant barriers to entry

Management and capital 41 23 Strong financial position with adequate • working capital for continued expansion and capacity building • Strong management team with significant • Design Wins Launched operating products experience in mass applications for the • mobile market

MASS MARKET FOR FINGERPRINT IDENTIFICATION HAS STARTED

INDEPENDENT TREND REPORTS Several independent trend reports support the view of a mass market • Ericsson: Biometric smartphones will dominate • Goode Intelligence: over 600 million mobile phone ‐ based biometrics users expected end of 2015 with an increase to 990 million by 2017 as sensors are expected to be embedded in also less expensive models. • Gartner: close to one ‐ third of all organizations/companies will use mobile biometrics by 2016. • TechNavio’s: a 157% annual growth rate for mobile biometrics until 2018.

Market Outlook and Trends • Apple has 6 million App developers (June, 2013), Fingerprint Authentication transits from “Added Feature” to “Necessity Feature” • Both Samsung and Apple have launched Fingerprint sensors in their flagship models. • FPC expects further proliferation of Fingerprint sensors into lower tiers, opening up a larger mass volume market. • FPC estimates that the market potential for integrated sensors in consumer electronics will be in excess of 3 billion units in 2016.

Major market potential

Market share target Market share for touch sensors embedded in smartphones and tablets (excluding Apple). 60% 2014 50% 2015

OPERATIONS SPECIALISTS IN FINGERPRINT BIOMETRICS

ECO SYSTEM OS CPU OEM Semiconductors Packaging and Service Modules Provider SW and Apps

Paypal secure wallet

OPERATIONS

OPERATIONS FPC 1020 – launched Q4 2013 FPC 1021 – launched April 2014 FPC 1150 – launched May 2014 The world’s first home button ‐ touch fingerprint sensor for Android smartphones

2013 • Sales SEK 95.4 M (10.3) • Earnings per share SEK ‐ 0.60 ( ‐ 0.84) • Gross profit SEK 39.1 M (loss: 5.7) • Closing cash and cash equivalents SEK 211.7 M (60.6) • Adjusted gross margin 56% (66) • Order backlog at period ‐ end SEK 22.8 M (19.7)

The Year in brief Q1 • Offices opened in Japan and South Korea • Operating lines of credit granted by Nordea and EKN. • Extraordinary General Meeting held and resolution concerning incentive program passed. • FPC redeemed 430,892 warrants in exchange for new Class B shares and raised SEK 6.8 M. • Investment agreement concluded with Carnegie regarding the new issue of Class B shares. • Private placement of Class B shares raises SEK 95 M.

The Year in brief Q2 • FPC joined Global Platform. • FPC appointed a System and Software Development Manager. • Piper Jaffray appointed financial advisor. • FPC appointed a Customer Support Director in the US.

The Year in brief Q3 • Mats Svensson moves on to new assignments. • Office opened in Malmö. • FPC recruited a Customer Support Director for Asia, a Country Manager for Japan and Jan Johannesson as Vice President of Strategic Planning and Portfolio Management. • Precise Biometrics’ fingerprint algorithm selected as one of several algorithms in the company’s portfolio. • Acquisition of some 100 patents from a world ‐ leading patent owner.

The Year in brief Q4 • Jonas Spannel Vice President of Sourcing and Supply. • Office opened and operations started in Copenhagen, Denmark. • Cision distributed false press release regarding FPC. • FPC implemented private placement of SEK 120 M. • FPC’s share moved to the Mid Cap list on NASDAQ OMX. • Touch sensor 1020 launched.

Q1 2014 Q1 2014 • Sales SEK 18,4 M (9,1) • Adjusted gross profit, SEK 9,1 M (3,6) • Gross profit, SEK 3,5 M (0,1) • Adjusted gross margin 50 % (39 %) • Gross margin 19 % (1 %) • Earnings per share, SEK ‐ 0,46 ( ‐ 0,23) • Cash and cash equivalents, SEK 306 M (148) • Order backlog, SEK 41 M (42)

January – May 2014 • Niklas Strid Vice President Customer Projects • Private placement of 2,5 M Class B shares totaling SEK 138 M. • Chinese bank order of SEK 30 M for area sensor. • Order of SEK 4 M for flagship smartphone with touch sensor. • FPC1021 and FPC 1150 launched – The world’s first home button ‐ touch fingerprint sensor for Android smartphones • FPC receives ramp order of SEK 18 M for FPC 1020 touch sensor for Tier 1 flagship smartphone DW • A new DW for 1020 touch sensor for flagship smartphone from Chinese Top 3 smartphone OEM • Fingerprint Cards acquires Anacatum Design

Summary • Take off – the mass market has started • A qualified Organization with a commercial presence in place • Secured working capital for ramp up • Close talks with all Tier1 (minus Apple) • FPC the first supplier of touch sensors for Android and Windows

Thank you!