Fingerprint Cards Q1 2015 Results

Fingerprint Cards Q1 2015 Results May 21, 2015

Q1 Summary

Key numbers from Q1 2015 results Revenues Margins & profitability Market development Revenue of SEK 140 million, an increase of 33% q o q and an increase of 660% y o y Adjusted Gross Profit: SEK 50 million (SEK 9 million) Gross profit: SEK 37 million (SEK 4 million) EBITDA: SEK 7 million (SEK 22 million) EPS: loss of SEK 0.32 (loss of SEK 0.46) Accelerated growth in adoption of touch fingerprint sensors amongst OEMs LeTV announced LeTV Max using FPC1025 Newman announced Newman Button using FPC1020 Yulong launched Coolpad Tiptop Pro using FPC1025 Oppo launched R7 Plus with FPC1025

Q1 2015 Results vs. guidance Revenue Q1 15 Guidance (1) Approximately same as Q4 2014 (105 million SEK) Q1 15 Results SEK 140 million 1. Guidance as of 26/2/2015 Orders received during the last part of Q1 2015 resulted in higher revenues than the guidance provided in the year end report for 2014 Cash flow from operating activities positive during first quarter, thanks to sharp increase in revenues, prepayments from customers regarding deliveries to be made during second quarter, and lower increase in operating expenditure

Financial outlook

Q2 2015 Guidance Q2 2015 Outlook Revenue Q2 2015 Operating result Q2 2015 Revenues to amount to at least SEK 340 million Positive result expected Large share of orders backlog of SEK 364 million expected to generate revenues during Q2

2015 guidance Previous 2015 Guidance Current 2015 Guidance Revenue Exceed 1000 (1) Exceed 1500 million (2) Operating result Positive result expected 1. Guidance as of 24/10/2014 2. Guidance as of 18/5/2015 Based on our leading technology and broad portfolio our assessment is that we will capture a major part of the fast market growth we are now witnessing, and we therefore raise our revenue guidance for 2015 from will exceed 1.000 MSEK to will exceed 1.500 MSEK Positive operating result expected during 2015 No need for further capital injection foreseen

Business update

Recent market development Surge in interest from major OEMs to integrate touch fingerprint sensors in devices during 2015 Demand driven by compelling use cases, especially mobile payments

Fast adoption of FPC touch fingerprint sensors OEMs with FPC touch fingerprint sensors to date HTC, Huawei, Oppo, Newman, LeTV, Yulong/Coolpad Orders received for volume deliveries of entire FPC touch fingerprint sensor portfolio FPC1020, FPC1025, FPC1145, FPC1155, FPC1035

Product announcements FPC1140, FPC1145, FPC1022 and FPC1035 introduced Smallest touch fingerprint sensors introduced to date Major breakthrough in biometric performance for small touch fingerprint sensors Mass production in Q2 2015

Financial results

Quarterly financial development 2015 Q1 Revenue (SEK M) Adj. gross margin (%) 105.0 139.9 49.0% 47.0% 46.0% 44.2% 36.1% 66.1 44.0 18.4 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Cash and cash equivalents (SEK M) Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 EPS after dilution(sek) Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 307 238 191-0.32 102 121-0.42-0.47 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15-0.73-0.71

Highlights Mar 31, 2014 Jun 3o, 2014 Sep 30, 2014 Dec 31, 2015 Mar 31, 2015 Change in cash and cash Equivalents (SEK Millions) 94.8 69.0 45.5 90.2 19.0 Average number of employees 55 70 91 99 104 Average number of employees + consultants 93 129 152 175 178 Orders booked (SEK M) 364 41 63 50 71 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15

Financial statements

Income statement Q1 2015 Income statement

Balance sheet Q1 2015 Balance sheet (SEKm) 31 Mar 31 Mar 31 Dec Assets 2015 2014 2014 Intangible fixed assets 60.3 62.4 69.8 Tangible fixed assets 18.4 7.2 18.8 Financial fixed assets - - - Total fixed assets 78.8 69.8 88.6 Inventories 95.2 16.1 98.8 Accounts receivables 169.2 20.3 115.8 Other receivables 11.6 8.4 15.9 Prepaid expenses and accrued income 49.9 1.2 3.7 Cash and cash equivalents 120.9 306.5 101.9 Total current assets 401.9 352.5 336.0 Total assets 480.7 422.4 424.6 Shareholders'equity and liabilities Shareholders' equity 282.2 395.6 301.1 Non-current liabilities 0.1 0.4 0.2 Accounts payable 53.9 6.9 66.1 Other liabiltiies 113.0 1.6 35.6 Accrued expenses and deferred income 31.5 17.8 21.5 Total shareholders' equity and liabilities 480.7 422.4 424.6 Pledged assets 15.0 15.0 15.0 Contingent liabilities None None None

Cash flow statement Q1 2015 Cash flow statement

Q&A