Execution of the strategy yields growth and results

Interim report for the period July – September 2019

Published November 15, 2019

Highlights Q3

Execution of strategy according to plan

Strong performance in Mobile

Further implementations of Precise fingerprint software

in collaboration with Egis Technology

Precise integrated in the first biometric smart card module

receiving Mastercard CAST certificate

Expanded offering in Digital Identity by launching YOUNiQ

access - a product developed for physical access to facilities

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Product areas

Digital Identity Smart Card Mobile

First commercial orders for facility access

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The market is demanding solutions with the ability to verify

a person’s identity in a convenient and secure way

Facility access – identification for seamless and secure

access without the need for keys, cards, tags etc.

Initial focus on the Nordic market – first orders from

Swedish customers.

Collaboration with Covr according to plan

Commercialization will be our main focus for 2020

DIGITAL IDENTITY

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Biometrics in order to secure identity - a key tool in

many payment channels for achieving increased

convenience, security and to reduce the risk of fraud

Payments, a main driver for the development of

consumer biometrics, with biometric cards being an area

analysts expect to grow rapidly in the coming years

Card manufacturing is increasingly focusing on

certification of contactless biometric payment cards

Precise integrated in the first biometric smart card

module to receive Mastercard CAST Certificate

Mastercard CAST certificate received

SMART CARD

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New strategy has resulted in a streamlined Mobile business with

a higher efficiency

Integrations of our fingerprint software in a series of mobile

devices, in collaboration with Egis Technology – approx. 17 MSEK

in revenue during Q3 2019

Further integrations in collaboration with Egis expected during

Q4 2019, receiving royalties, license fee and fees for support and

maintenance

Continued strong collaborations with actors such as Qualcomm

and several sensor partners in Asia

Collaboration with Egis –

Key driver for strong quarter

MOBILE

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Collaboration to develop secure identification software for

fingerprint recognition based on biometric hash technology.

No template is ever stored

Revoke data if compromised

Pilot projects will be conducted in coming months

Key event after Q3

Precise to collaborate with Infinity Optics

Financial development

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Net sales & gross margin

Net sales Q3 MSEK 27,5 (16,8)

Growth by 63,6%

Gross margin Q3 89,2 % (84,3)

Amortization of capitalized development

expenses of MSEK 2,6 (2,1)

Gross margin

Net sales

Net sales

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Operating profit/loss Q3 MSEK 3,3 (- 0,4)

EBITDA Q3 MSEK 6,6 (2,1)

Operating expenses Q3 MSEK 21,3 (14,5)

Increased costs in R&D due to increased

investments in Digital Identity and Mobile

EBITDA

Operating profit/loss

Operating profit/loss

Operating profit/loss

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Cash flow Q3 MSEK - 3,4 (- 0,2)

Cash and cash equivalents per 30/9 MSEK

60,9 (91,3)

Cash and cash equivalents

Cash flow from operating activities

Cash flow from operating activities

Cash flow

Completely new strategy implemented in 2019

Investments in Digital Identity for the development of products

for various applications

Physical access to facilities – first orders for delivery to client

2020

Partnership with Covr Security strengthens our digital identity

offering. We are expecting a commercialization of Precise

YOUNiQ in 2020

Strong performance in Mobile

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Summary

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Precise invites analysts, institutional investors and media to a

Capital Markets lunch in Stockholm.

When: 27 November

Where: Helio T-House, Engelbrektsplan 1, Stockholm

Time: 12.00 – 13.30

Guest speaker: Mats Holmfeldt, Covr Security

To register, please visit: https://financialhearings.com/event/12451

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Capital Markets Lunch

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Thank you!

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