FINGERPRINT CARDS Q2 2017 INTERIM REPORT JULY 21, 2017 Q2 2017 - PowerPoint PPT Presentation

FINGERPRINT CARDS Q2 2017 INTERIM REPORT JULY 21, 2017

Q2 2017 Summary Margins & Revenues Highlights profitability Revenues: Gross profit: 19 mobile devices with Fingerprints’ SEK 823 (1,661) M, SEK 300 (814) M a decrease of 51% sensors launched Gross Margin*: year over year 36% (49) Huawei and Microsoft PC-prod launched Operating profit** : SEK 72 (675) M Several new partnerships Operating margin: announced 9% (41) Acquisition of Delta ID Cash Flow: finalized SEK 528 (530) M *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 2

BUSINESS UPDATE

Normalized inventory levels in the value chain 4

OEM customers overview Source: Strategy Analytics provisional data, Fingerprints estimates 5

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 6

Partnerships announced Distributor: Arrow Electronics Module houses: Biel Crystal Fingerchip A-Kerr (SPEED) Smartcards: Kona-I Zwipe 7

ACCELERATING GROWTH IN LOW/MID TIER SEGMENTS Fingerprints teams up with Qualcomm Technologies 8

New key recruitments Mattias Hakeröd SVP HR 9

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 10

Q2 2017 FINANCIAL RESULTS

Q2 2017 Financial performance 12

Operating expenses development 13

Weaker profitability in Q2 2017 Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec 2017 2016 (*) 2017 2016 (*) 2016 (*) Operating profit, SEK M 72.0 675.1 142.8 1,293.7 2,578.5 Operating margin (%) 9% 41% 9% 41% 39% EPS, SEK 0.10 1.72 0.28 3.16 6.40 • Exchange rate effects on bank balances are reported under “Financial income and expenses” as of 2017 and therefore the 2016 operating profit was reclassified accordingly. 14

Working capital development *Average working capital excluding net cash over 5 quarters/rolling 12 months sales 15

Q2 2017 Cash flow and Net cash trend 16

THE PERFECT MATCH Finalizing the acquisition of Delta ID 17

Q&A 18

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