CONTINUED EFFORTS ON

NEW SENSOR TECHNOLOGIES

Interim report January-March 2018Published May 15, 2018

1

AREA DRIVING FACTOR

MO

BIL

E

HIGH-END New smartphone designs with edge-to-edge screens with

optical or ultrasound sensors

LOW-ENDIncreased price pressure on capacitive sensors opens up

low-end segment

SMART CARDSDemand for biometric payment cards to increase

convenience of contactless payments and reduce fraud

NEW APPLICATIONS Demand for convenience, security and personalization

DRIVING FACTORS IN KEY FOCUS

AREAS

2

FIRST WIN IN EVOLVING

SENSOR MARKET

New smartphone designs are driving demand for

ultrasound and optical sensors

Sensor market is evolving - ultrasound and optical

sensors vendors are challenging current market

leaders

We have ten customers working with these solutions

Precise BioMatch™ Mobile has been deployed in

Huawei Honor 10, integrated with an under-glass

sensor from Qualcomm

HIGH-END MOBILE

3

4

Continued price pressure on capacitive sensors

opens up low-end market

Low-end mobile devices to drive sensor shipment

growth in 2018

Precise Biometrics has strengthened cooperation with

several customers targeting low-end market

Integrated in Sony Experia L2 through collaboration

with Elan Microelectronics

STRENGTHENED COOPERATIONS

FOR LOW-END MARKET

LOW-END MOBILE

TECHNOLOGY DEVELOPMENT ON

SENSOR MARKET*

5

High/Mid-End Capacitive

Low-End Capacitive

Under-display

In-display

Total

*Based on Precise Biometrics’ and analysts’ assessment of the market development

More vendors are actively working with biometric

smart cards – prerequisite for broad implementation

Several new pilots of biometric payment cards

First pilot by Visa of dual-interface biometric payment

cards in the USA – using Precise BioMatch

Embedded

Deepened cooperation with Kona-i

Precise Biometrics is working with several customers

on biometric card projects

CONTINUED MOMENTUM IN

BIOMETRIC SMART CARDS

SMART CARDS

6

Biometrics will to a greater extent replace passwords

and other means of authentication in new areas of use

Interest to use fingerprint technology in:

Cars

Wearables, such as watches and rings

Gaming controls

Precise Biometrics is involved in several projects

within this area

BIOMETRICS IN NEW

APPLICATION AREAS

NEW APPLICATIONS

7

0

5

10

15

20

25

Q2 '16 Q3 '16 Q4 '16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'180%

20%

40%

60%

80%

100%

Gross margin

Net sales

Net sales

(MSEK)

Sales increased with

9.2% in Q1 to 18.2 MSEK

(16.6)

Gross margin in Q1

92.1% (94.3)

NET SALES & GROSS MARGIN

8

-8

-6

-4

-2

0

2

4

6

8

10

EBITDA

Operating profit

Operating profit

Q2’16 Q3’16 Q4’16 Q2’17

(MSEK) (MSEK)

Q1’17 Q3’17 Q4’17 Q1’18

-8

-6

-4

-2

0

2

4

6

8

10 Operational costs 18.8

MSEK (18.3)

Operating result in Q1

amounted to -2.0 MSEK

(-2.7)

Workforce of 47 (42),

employees&consultants

OPERATING PROFIT

9

-10

-5

0

5

10

15

20

0

40

80

120

160

Cash in Bank

Operational cash flow

Operational cash flow

(MSEK)

Q2’16 Q3’16 Q4’16 Q1’17 Q3’17 Q4’17

Q2’17 Q1’18

(MSEK)

Operational cash flow in

Q1 was -8.2 MSEK (17.1)

Last year impacted by a

prepayment of 17.5

MSEK

Available cash 105.3

MSEK (117.0)

OPERATIONAL CASH FLOW

10

11

Continue to execute our strategy for the four

identified focus areas

Good progress in mobile sensor market with wins in

the emerging under display market as well as

capacitive for low-end devices

Strengthened our position in the biometric payment

cards market

Participating and driving projects in new areas of

use

Strong finances that enable continued investments

in key growth areas

Positive view on company outlook

SUMMARY & OUTLOOK

precisebiometrics.com

THANK YOU!

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