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FFingerprint CardsCompany presentation

September, 2015

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CCompany Overview, Fingerprint Cards (FPC)

• Swedish biometry company established 1997• Offices in Sweden, Copenhagen, Tokyo, Seoul,

Shanghai, Taipei, Silicon Valley • Provides fingerprint sensors based on 18 years of

technology development FPC’s technology provides:- superior biometric performance- robust sensor design- low power consumption

• Large patent portfolio with 100+ patents• Fabless operation• Significant management ownership with vast sector

experience• Financial summary:

– Q215 revenues SEK 445m, 2015 guidance SEK 2,5b. – Q215 operating margin 15%

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Market update

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GGlobal Smartphone FP penetration

• Strong preference for touch fingerprint sensors in smartphones – a key phone component going forward

• Apple and Android ecosystems support fingerprint, penetration is rapidly increasing in Android.

Source: FPC Estimates

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GGlobal Smartphone Vendor Market shares 2015

Source: Strategy Analytics, July 2015

Share M UnitsGlobal Smartphone Vendor Marketshare 2015 2015Samsung 23% 336,6Apple 16% 236,0Huawei 6% 91,8Lenovo+Motorola 6% 89,9Xiaomi 5% 74,8LG 5% 69,4ZTE 4% 56,5TCL-Alcatel 4% 56,1Nokia (Microsoft) 3% 43,1Oppo 3% 39,5Coolpad 3% 38,4Vivo 3% 37,5Sony 2% 30,7Micromax 2% 23,0ASUS 1% 19,3HTC 1% 18,6BlackBerry 0,5% 6,9Others 14% 203,3Total 100% 1471,4

XXX

Launched phone with FPC sensor

Has not launched phone with FP sensor

12 OEMs

X Launched phones with competition or inhouse

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GGoogle’s Android M major catalyst

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• Strong surge in interest• 19 OEMs have launched

phones with FPC touch in 2015 to date. Appr 25 estimatedbefore year-end

• Mobile OEMs refer to FPC brand to promote fingerprint sensor in the device

Recent market development

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332 FPC OneTouch® ssmartphones to date

Huawei Ascend Mate7

OppoN3 LeTV

One Max

OppoR7

CoolpadTiptop

Pro

HuaweiHonor 7

GinoneeElife E8

MeizuMX5

Newman Button

ZUKZ1

HuaweiMaiMang 4

DazenNote 3

ZTEAxon

Huawei Honor 7i

OnePlusOnePlus 2

QiKuProfessional

QiKuYoung QiKu

Flagship

GigasetME Pure

GigasetME Pro

HuaweiMate SHuawei

G8

NextbitRobin

GigasetME

BLU, Pure XL IVVI, K2Huawei G7+

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FFPC in the value chain

WPI

O-film

CrucialTec

Module house- Design support- HW customization

Distributor OEM/ODM-SW delivery/customization-Integration support-Maintenance

Warehousing and Logistics

Packaging and modulemanufacturing

Industrial Design, integration, tuning and end-user experience

Software customization and integration. 3-9 months

HW design/customization support. Shipment ofwafers or packaged sensors (LGA, Land Grid Array)

Shipment of sensors

Huawei

FPC

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Innovation update

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IIndustry’s broadest portfolio

Touch fingerprint sensorBackside button

Touch fingerprint sensorHome Button

Touch fingerprint sensorSide Button

Integrated power or volume button

Sensor Mass Production

FPC1020 Q2 2014

FPC1021 Q3 2014

FPC1025 Q1 2015

FPC1022 Q2 2015

FPC1035 Q2 2015

Sensor Mass Production

FPC1150 Q3 2014

FPC1155 Q1 2015

FPC1140 Q2 2015

FPC1145 Q2 2015

Sensor Mass Production

FPC1145 Q2 2015

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IIntroduction of FPC1200 series

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• Superb 3D image quality enable industry’sbest biometric performance

• State of the art proprietary algorithm enables smaller sensors

• Lowest Power Consumption

WWorld leading biometric technology

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EEmerging opportunity - Biometric Smart cards

• System-on-card = integrate all biometric functionality into a smart card

– Fingerprint sensor– Biometric matching algorithm– Embedded processor

• FPC sensor technology with slim package = perfect fit for smart cards:– Low power consumption– Thin compact form factor (ISO compliant)– 3D image quality = superior biometric performance

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• Integration competence – HW/SW with OEMs• State of the art SW and Algorithm• Superb image quality enable industry’s

best biometric performance• FPC is the preferred ecosystem partner – Operating system, application processor, peripherals,

modules• Operational excellence, proven track record• Profitable growth funds material R&D investments in

new technologies and new business opportunities

CCreating foundation for future growth

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Financial performance

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Quarterly financial trends up to Q2 2015

Revenue (SEK M) Adj. gross margin (%)

EPS after dilution(SEK)Order backlog (SEK M)

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Q3 2015 Guidance

Q3 2015 Outlook

Revenue Q3 2015 Revenues to amount to appr. SEK 860 million

Operating result Q3 2015 Improved operating resultcompared to Q2 2015

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2015 guidance

Previous 2015 Guidance Updated 2015 Guidance

Revenue Appr. SEK 2,200( 1) million Appr SEK 2,500 million

Operating result Positive result expected Positive result expected

1. Guidance as of 16/6/2015

• 2015 revenue guidance updated from approximately SEK 2,200 million to approximately SEK 2,500 million

• No need for further capital injection foreseen to fund the operation

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Q2 2015 Income statement

Apr-Jun % of Apr-Jun % of Jan-Mar % of (SEKm) 2015 revenue 2014 revenue 2015 revenueRevenue 445.2 18.4 139.9Cost of goods sold -286.2 -14.8 -102.5Gross profit 159.0 36% 3.5 19% 37.4 27%Selling expenses -25.5 6% -11.5 63% -19.2 14%Administrative expenses -15.9 4% -5.8 32% -8.2 6%Development expenses -43.3 10% -12.5 68% -41.8 30%Other operating income/expenses -8.8 2% -0.2 1% 13.4 -10%Operating profit/loss 65.4 15% -26.6 - -18.8 -Net financial items 0.0 0.6 0.0Tax - - -Profit/loss for the period 65.4 -26.0 -18.9 Earnings/loss per share for the periodBefore dilution, SEK 1.12 -0.79 -0.32After dilution, SEK 1.04 -0.73 -0.32

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Q2 2015 Cash flow statement

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Q&A