Continued growth and positive market development. Interim report Jan-Sep 2016 Published November 15th, 2016

Transcription

1 Continued growth and positive market development Interim report Jan-Sep 216 Published November 15th, 216

2 INTEGRATED IN 24 MOBILE DEVICES 24 mobile devices was launched with Precise BioMatch Mobile in the third quarter Precise BioMatch Mobile was integrated in Xiaomi Mi 5S, the first commercial smartphone with a fingerprint sensor under 4 µm (microns) of glass. The device uses Qualcomm ultrasound sensor Snapdragon Sense ID

3 NEW LICENSE AGREEMENTS AND ROYALTY CUSTOMERS License agreements with Qualcomm and Betterlife License agreements with partners targeting the Embedded-market Royalty revenue from eight customers

4 TACTIVO SALES LOWER THAN ORIGINALLY ANTICIPATED Sales continues to develop slower than originally anticipated Impact on sales to US government due to discussion of digital alternatives Order for a comprehensive pilot project with Gothenburg city

5 MAIN EVENTS AFTER THE THIRD QUARTER 15 mobile devices with Precise BioMatch Mobile has been launched so far License agreements with Image Match Design, InvenSense and Samsung System LSI Business, a division within Samsung Electronics Co., Ltd. Kona-i demonstrated credit card with Precise BioMatch Embedded Göran Thuresson recruited as CFO

6 INCREASED NET SALES & STEADY GROSS MARGIN (MSEK) % 9% 8% 7% 6% 5% 4% 3% 2% 1% Net sales increased to 25.5 (18.3) MSEK in Q3 up 39 % from last year Sales increase in Fingerprint Technology Business Area up 72 % compared to Q3 15 Gross margin increased to 77% (71%) in Q3 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 % Gross margin Net sales Net sales

7 NET SALES - 12 MONTHS ROLLING (MSEK) 1 8 Net sales 12 months rolling increased to 95. (42.7) MSEK up 122 % compared to Q4 14 Q Q4'14-Q3'15 Q1'15-Q4'15 Q2'15-Q1'16 Q3'15-Q2'16 Q4'15-Q3'16

8 INCREASE IN OPERATING PROFIT & EBITDA (MSEK) (MSEK) Operating profit for Q3 216 increased to 4.6 MSEK from 2.8 MSEK in Q EBITDA for Q3 216 increased to 6.7 MSEK from 5.4 MSEK in Q Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Operating profit EBITDA EBITDA

9 EBITDA - 12 MONTHS ROLLING (MSEK) 3 2 EBITDA 12 months rolling increased to 27.7 (-12.5) MSEK 1 Q4 14-Q3 15 Q1 15-Q4 15 Q2 15-Q1 16 Q3 15-Q2 16 Q4 15-Q

10 INCREASING CASH FLOW & CASH AT BANK (MSEK) Cash flow from operations increased to 8.4 (-1.9) MSEK in Q3 Available cash amounted to 75. MSEK (45.2) Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Cash at Bank Cash flow Cash flow -2

11 CASH FLOW - 12 MONTHS ROLLING (MSEK) Cash flow from operations 12 months rolling increased to 34.7 (-21.1) MSEK compared to Q4 14 Q Q4 14-Q3 15 Q1 15-Q4 15 Q2 15-Q1 16 Q3 15-Q2 16 Q4 15-Q

12 GROWTH OPPORTUNITIES IN MOBILE MARKET Compound Annual Growth Rate of 35 % to 22 Addressable market of 8 million smartphones, tablets & laptops with fingerprint technology in 217 Growth opportunities as more sensor manufactures gain market share (Million Units) CAGR 35 % CAGR Total Mobile handsets, tablets,laptops (excl Apple) Source: Redeye

13 EMBEDDED MARKET TO GROW IN 217 Fingerprint technology is entering new product areas, smart cards and payment cards in particular, but also wearables, cars and IoT Annual addressable market of one billion credit cards Demand for efficient and light algorithm solutions with high performance We are collaborating with customers on several end-customer projects related to smart cards, wearables and cars First commercial products next year, long term the embedded market can become as large as the market for mobile devices

14 BROAD CUSTOMER BASE CREATE GROWTH OPPORTUNITIES Continued positive development with new customer agreements 23 license agreements with sensor manufacturers, security companies and resellers Well positioned to benefit from market growth and to capture a considerable market share Continuous evaluation of new potential partners

15 TECHNOLOGY LEADERSHIP Continued investment in research and development, small sensors, new sensor technologies, liveness and under glass New features in Precise BioMatch Mobile may improve performance up to 4 % on certain sensors Significant performance improvements on very small sensors up to 7% faster match Reference implementations and integration support to make integration of fingerprint software more efficient Investigating new specifications and requirements for future mobile payment solutions

16 SUMMARY & OUTLOOK Development in third quarter confirms strategy and position as the leader in fingerprint software Revenue increase of 21 % for Fingerprint Technology business area Positive long-term revenue trend, but royalty revenues will fluctuate quarter to quarter Fast market growth, industry leading algorithm solutions and scalable partner business model with good cost control Well positioned for profitable growth

17 THANK YOU! precisebiometrics.com VERIFIED BY YOU