FINGERPRINT CARDS Q3 2021
Transcript of FINGERPRINT CARDS Q3 2021
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
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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)
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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
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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*
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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!