FINGERPRINT CARDS

Q3 2021OCTOBER 21, 2021

Q3 2021 Summary

Revenues Margins & profitability Highlights

Revenues:

SEK 354 M (294),

a 21% increase year-over-

year (25% increase in

constant currency terms)

Gross profit:

SEK 101 M (53)

Gross Margin:

29 % (18)

EBITDA: SEK 32 M (9)

EBITDA margin: 9 %

(3)

Operating profit:

SEK 11 M (-5);

Operating margin:

3 % (-2)

Operating Cash Flow:

SEK -45 M (68)

Net Profit: SEK 12 M

(-2)

Net cash: SEK 104* M (437)

Sales increase in constant

currency terms of 25

percent year-on-year,

A more favorable product

mix and sales to new

segments contributed to

an improved gross margin

Dell launched five PC

models with Fingerprints’

technology

Jordan Kuwait Bank

announced that they will

launch the first biometric

payment card in the

region, with Fingerprints’

technology

2 * Interest-bearing liabilities consist of leasing liabilities for office premises

amounting to SEK 17 million, reported according to IFRS 16.

BUSINESS UPDATE

YOU ARE THE KEY TO EVERYTHING

MOBILE

Making smartphones smarter

PC

Keeping PCs personal

PAYMENTS

Worryless Payments

ACCESS

Worryless Access

Our four pillars of growth

MOBILE DEVICES

Continued strong demand for our products

in the Mobile area

Continued strong sales in Q3 2021 of our latest

sensor generation, with a positive impact on

margins

Strong demand in the face of continued supply

chain constraints

Our latest curved side-mounted sensors have

set a new highest standard in the market,

driving growth

Design is key – foldable, full screen and 5G

handsets – new sensor shapes support OEMs

in their differentiation

6

PC

Poised for continued growth in the PC

segment

30 PCs launched to date with our technology

With our new biometric solution for PCs, we have

assumed a leading position in this market

Our new PC solution is used by three out of the world’s

top five PC manufacturers

Dell launched five models during Q3, which integrate

Fingerprints’ technology

The HONOR MagicBook V14, with our sensor,

launched in October

We expect strong growth in the PC area, both in the

long- and the short term

Significantly more PCs are sold now compared to pre-

pandemic levels, and the share of PCs with biometrics

is expected to continue to increase

8

CONFIDENTIAL

ACCESS

CONFIDENTIAL

Smart Locks (door locks and padlocks)

Smart Home (e.g. fobs, appliances, alarm

systems, suitcases)

Physical Access (mainly access cards)

Personal Storage and Safes (safes, medical

cabinets)

Logical Access (e.g USB for Fido, Windows

Hello, etc.)

Automotive (touchless and fingerprint

sensors)

Other (e.g. PoS, Aadhaar, healthcare)

10

Smart locks is the largest Access/IoT market

for biometrics, but new areas are growing

PAYMENTS

In Q3, we achieved ‘the impossible’ in

cooperation with Infineon

We have enabled biometric

authentication to be executed entirely

within Infineon’s Secure Element

No need for a separate MCU

Makes it cheaper and easier for card

manufacturers to develop and roll out

biometric payment cards at scale

Almost one in two payment cards with a

chip worldwide has an Infineon security

controller at its core

12

All top three global secure element providers

have chosen Fingerprints’ solution for their

reference designs

Enables optimization of key components in relation to each other

“We selected Fingerprints as they are the

leading biometric silicon and technology

provider with market proven performance

[…] we will develop a system solution that is

easy to integrate and gives our customers a

head start in an emerging growth market.”

Bjoern Scharfen, Head of the Payment and Transport

Ticketing product line at Infineon

“Fingerprint Cards brings valuable and

market-proven expertise in solutions for

battery-less and space-constrained

devices. Their products […] are ideal

companions to our STPay solutions for

payment cards.”

Laurent Degauque, Marketing Director, Secure

Microcontrollers,STMicroelectronics

“We chose Fingerprints' sensor technology

as they are a leader in fingerprint sensors

with market-proven leading-edge

performance in power consumption that

enables our solution to be battery- and

contactless“

Philippe Dubois, General Manager of Payment at

NXP Semiconductors

54% 56% 61%

76% 78%

Prefer having a payment card with a biometric sensor and using my fingerprint to

identify myself, rather than using a PIN, to make it more convenient and secure)

59%

20%

21%

yes

maybe

no

65

%

52

%

Gender

59%

18-34

60%

35-44

58%

45-74

Age

63%

65%

57%

57%

52%South

Centre

North West

North East

Ile De France

Region

70%

Among those that are aware of

biometric payment cards…

…want one!

Yearly Income

Le

ss th

an

€10,0

00

€1

0,0

00-

20

,00

0

€2

0,0

00-

40

,00

0

€4

0,0

00-

60

,00

0

Mo

re th

an

€6

0,0

00

‘I want a biometric payment card’

Source: August 2021 survey in France by Kantar and Fingerprints

52%

17%

31%

yes

maybe

no

57

%

45

%

Gender

67%

18-34

64%

35-44

35%

45-74

Age

64%

51%

51%

46%

47%South

Centre

North West

North East

Ile De France

Region

* Among the ones interested in biometric cards (Q1 = Yes)

47%55%

49%

72%61%

Yearly Income

Le

ss th

an

€1

0,0

00

€1

0,0

00-

20

,00

0

€2

0,0

00-

40

,00

0

€4

0,0

00-

60

,00

0

Mo

re th

an

€6

0,0

00

‘I would switch banks to get a biometric card’*

Source: August 2021 survey in France by Kantar and Fingerprints

A way for banks to differentiate

16

Click to view the BNP Paribas TV ad

Summary

25-percent constant currency revenue increase year-on-year

Gross margin improved by 10 percentage points year-on-year

Solid demand in Mobile, while our revenue streams are also starting to

diversify at a faster rate, to areas with attractive margins

We expect to see strong growth in the PC area, both in the short and the long

term. Dell launched five models during Q3 with Fingerprints’ new PC solution.

Continuing to innovate in Payments, and achieved the ‘impossible’ in Q3 by

enabling biometric authentication to be executed entirely within Infineon’s

Secure Element

17

Q3 2021 FINANCIAL RESULTS

Q3 2021 financial performance*

19

Revenues, Operating profit/loss*, Gross margin and Operating margin, quarters.

* Underlying operating profit, excluding SEK 340.6 M in non-cash

write-downs in Q4 2020

Revenue and gross margin, rolling 12 months

20

Operating expense development

21

Operating expenses, MSEK

22

Core working capital development

* Accounts receivable + Inventory – Accounts payable

** Rolling 12-month revenue

Cash flow and net cash trend

23

Cash and cash equivalents and cash flow, MSEK

• During the first half of 2020, shares were bought back for SEK 118,7 M

• During second half of 2020, shares were bought back for SEK 71,7 M

• During first quarter of 2021, shares were bought back for SEK 85,4 M

• During second quarter of 2021, shares were bought back for SEK 140,0 M

• During third quarter of 2021, no shares were bought back

Q&A

24

Financial reports and presentations: https://www.fingerprints.com/investors/reports-

presentations/

Press releases: https://www.fingerprints.com/newsroom/press-releases/

News items: https://www.fingerprints.com/newsroom/news-stories/

Blog: https://www.fingerprints.com/blog/

Download center (eBooks, whitepapers, product information, etc.):

https://www.fingerprints.com/downloads-resources/

Links to additional information

THANK YOU!