Fingerprint Cards Q1 2016 Report April 28, 2016 WWW.FINGERPRINTS.COM 1
Strong Q1 2016 results Revenues Margins & profitability Highlights Revenues: MSEK 1,491 (MSEK 140), an increase of 966% y-o-y and 10% q-o-q Gross profit: MSEK 732 (MSEK 37) Gross margin: 49% (27%) EBIT: MSEK 589 (MSEK -19) Operating margin: 40% (-13%) EPS: SEK 7.12 (SEK -0.32), before dilution 26 mobile devices launched with FPC touch fingerprint sensors Strengthened competitive position in smartphones WWW.FINGERPRINTS.COM 2
Business update WWW.FINGERPRINTS.COM 3
Market development Q1 2016 26 smartphones/devices by 12 OEMs China continue to be very strong Huawei, Xiaomi, Lenovo, Oppo and Vivo launched 13 phones with our sensors during the quarter LG G5 New phones by HTC and Sony WWW.FINGERPRINTS.COM 4
Continued market leadership 25% Global Smartphone Vendor Market Share %, Q1 2016 20% 15% 10% 5% 0% Launched phones with competitior or inhouse Has not launched phone with fingerprint sensor Launched phone with FPC sensor in 2016 27 devices launched by customers named above in 2016 to date * Source: Strategy Analytics April 2016, FPC WWW.FINGERPRINTS.COM 5
M Units Smartphone seasonality 450,0 Smartphones Quarterly Volume shipments 400,0 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 Q4 '14 Q1 '15 (A) Q2 '15 Q3'15 Q4'15 Q1'16 Seasonal decline in Q1 * Source: Strategy Analytics, April 2016 WWW.FINGERPRINTS.COM 6
Revenue growth from more phones # of Devices launched (accumulated) 39 57 83 XXX XXX Revenue generated by launches in 2016 Revenue generated by launches in 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Schematic illustration WWW.FINGERPRINTS.COM 7
Volume and revenue ramp up Pre-sales/ Integration Launch support High volume Phone Launch First Shipments Quarterly Revenue (schematic) Design Win Project start First order/ Samples Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Schematic illustration WWW.FINGERPRINTS.COM 8
Extending our technology leadership Extending performance with launched sensors Anti-spoof and improved fully inhouse algorithm for industry s best security and biometric performance Vertical integration combining sensor technology, packaging, algorithm, software, leads to highest performance Fingerprint sensors under glass or ceramics FPC1245 with ceramics highly successful, used in Xiaomi Mi5 and Oppo R9/R9+ Launch of FPC1268 for mounting under cover glass - Phones being developed for launch H2 2016 FPC1245 New sensors under way for entry level segment WWW.FINGERPRINTS.COM 9
New segments to expand the market Strong market growth in fingerprint sensors Other segments start to contribute in 2016 Other segments to add substantial value in 2017 and 2018 M Units 2000 Total addressable market 1500 1000 500 0 2014 2015 2016 2017 2018 Smartphone Other Source: Strategy Analytics, IHS, FPC estimates Total addressable market excludes Apple, includes all other OEMs and segments including swipe technology WWW.FINGERPRINTS.COM 10
Strategy for growth Other segments Automotive Industrial and medical Internet of things New Segments Existing Smart Cards Sensor adaptation Utilize scale advantages Strong growth potential Grow with the existing customer base Add new customers Extended biometry scope Trackpad Higher security More features New offerings Other sensors M&A opportunities Existing Offering New WWW.FINGERPRINTS.COM 11
Strategy for growth in progress Progress Q1 2016 Automotive design win announced Wearables platform announced with Gemalto, ST, PB New Segments Existing Progress Q1 2016 Continued cooperation with Zwipe Progress with other partners Plan for commercial launch in 2016 Grow with the existing customer base Add new customers Extended biometry scope Trackpad Higher security - Anti-spoof and improved algorithm More features New offerings Other sensors M&A opportunities Existing Offering New WWW.FINGERPRINTS.COM 12
Continued leadership Continued market leadership Very high share of phones launched in Q1 Very strong outlook for new phones to be launched by existing and new customers Continued technology leadership New sensors & new features Increased investments for continued leadership in smartphones and new segments WWW.FINGERPRINTS.COM 13
Outlook WWW.FINGERPRINTS.COM 14
2016 Guidance Previous 2016 Guidance (1) Updated 2016 Guidance Revenue 2016 SEK 7,000-8,500 million SEK 7,000-8,500 million Operating margin 2016 Improved operating margin compared to H2 2015 Improved operating margin compared to H2 2015 Average SEK/USD rate 8.50 (applied to Q1-Q4) 8.30 (applied to Q2-Q4) 1. Guidance as of 5/2/2016. WWW.FINGERPRINTS.COM 15
2016 Q1 Financial results WWW.FINGERPRINTS.COM 16
Quarterly financial trends WWW.FINGERPRINTS.COM 17
Investing for future growth WWW.FINGERPRINTS.COM 18
Improved profitability Q1 Q1 Apr-Mar Apr-Mar 2016 2015 2015/16 2014/15 Operating profit, SEK M 589,1-18,8 1518,2-137,5 Operating margin, % 40-13 36-39 EPS, SEK 7,12-0,32 20,18-2,37 WWW.FINGERPRINTS.COM 19
Working capital development * *Average working capital over 5 quarters/rolling 12 months sales WWW.FINGERPRINTS.COM 20
Cash flow and Net cash trend WWW.FINGERPRINTS.COM 21
Q&A WWW.FINGERPRINTS.COM 22