Strong growth 2019 Year-End Report 2019 Published February 14, 2020 - PowerPoint PPT Presentation

Strong growth 2019 Year-End Report 2019 Published February 14, 2020

Highlights Q4 Strong growth in Q4 and full-year 2019 Further implementations of Precise fingerprint software in collaboration with Egis T echnology Collaboration agreement with Infinity Optics to develop secure identification software for fingerprint recognition based on biometric hash technology Liveness detection added to Precises’ identification software for access control systems Partnership entered with Innovatrics who will be the provider of face recognition technology

Product areas Digit gital l Ident dentity Mobile ile Sma Smart Card rds NiQ  – Digit atch  Mobile atch  Card Prec ecise e YOUNiQ ital l identi tity ty Prec ecise e BioMat ile – Verif ifie ies Prec ecise e BioMat rd – Verif ifie ies in a conven in enien ent and nd secure re wa way fing ngerp rprint nts in mobile ile phone nes and nd fing ngerp rprint nts in smart t card rds tab ablets ts 3

No matter who you are where you are and what you do

DIGITAL IDENTITY Commercialization on route The market is demanding solutions with the ability to verify a person’s identity in a convenient and secure way Facility access – identification for seamless and secure access without the need for keys, cards, tags etc. Strandudden - Installation done in January More Swedish customers – installations during H1 2020. Pricing: 50-100 TSEK depending on size Commercialization and sales activities will be our main focus for 2020 5 5

MOBILE Optic sensors are gaining ground New strategy has resulted in a streamlined Mobile business with a higher efficiency Integrations of our fingerprint software in a series of mobile devices, in collaboration with Egis T echnology Corona virus could impact sales during first half 2020 Continued strong collaborations with several sensor partners 6

SMART CARD Opportunity in access Biometrics in order to secure identity - a key tool in many payment channels for achieving increased convenience, security and to reduce the risk of fraud Payments the main driver for the development of consumer biometrics Precise ready for launch of contactless biometric payment cards New opportunity go to market via a solution for access 7 7

Financial development 8

Net sales & gross margin Net sales Q4 MSEK 38,3 (13,9) Growth by 178 % Gross margin Q4 92 % (80) Amortization of capitalized development expenses of MSEK 2,8 (2,1) Gross margin Net sales Net sales 9

Operating profit/loss Operating profit/loss Q4 MSEK 12,5 (- 14,3) EBITDA Q4 MSEK 16,0 (- 11,8) Operating expenses Q4 MSEK 23,1 (25,5) Decreased costs mainly related to provisions for reorganization of 5,4 MSEK in Q4 2018 Increased costs in R&D due to increased investments in Digital Identity and Mobile EBITDA Operating profit/loss Operating profit/loss 10

Cash flow Cash flow Q4 MSEK 14,3 (- 9,1) Cash and cash equivalents per 31/12 MSEK 73,7 (79,5) Cash and cash equivalents Cash flow from operating activities Cash flow from operating activities 11

Summary Our strategy to work on a more focused basis is having increasing effects, which is reflected in both revenue and results Working to scale up YOUNiQ for facility access and prepare the company for higher inflows of orders from new customers in 2020 Strong performance in Mobile – Egis T echnology key driver for the high growth 2020 Shipping of the first contactless biometric payment cards expected during 2020 No matter who you are, where you are and what you do No matter who you are, where you are and what you do 12 12

Thank you!