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FINGERPRINT CARDSCOMPANY PRESENTATION

FEBRUARY 2017

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Growing and highly profitableFounded 1997 in Gothenburg, SwedenPublic company listed on NASDAQ OMX+400 employees

HQ in Gothenburg, R&D in Sweden and DenmarkSubsidiaries in China, South Korea, Taiwan, US

Financial highlights 2016 – 129% revenue growthRevenues : 6,638 MSEK (2,900)Gross Margin : 48% (43)Operating margin : 39% (31)

Fingerprint Cards – the company in brief

Our core business – advanced biometric system solutions, both HW and SWMarket position – global market leader Key focus areas – smartphones, tablets, PCs, smartcards, IoT, automotive

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2013 2014 2015 2016

Revenues, SEK M Operating result, SEK M

2016 at a glance

Almost

140Devices launched

in 2016

>10Billion

touches per day

Nearly

200new talents

in Fingerprints

55-60%Market share

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BUSINESS UPDATE

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Solid Q4 2016 results

Revenues Margins & profitability Highlights

Revenues: MSEK 1 619 (1 352), an increase of 20% year over year

Gross profit: MSEK 715 (628)Gross margin: 44% (46%)Operating profit: MSEK 548 (518)Operating margin: 34% (38%)EPS: SEK 1,35 (1,28) before dilution

32 mobile devices with Fingerprints’ sensors launchedHuawei 9 with FPC1268 under glassLaunch of Samsung PC Notebook 9 with FPC1025

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Market launches Q4 2016

32 mobile devices by 14 OEMsHuawei, Xiaomi, Lenovo and Oppo launched 20 smartphones with our sensors during the quarter Korean SK Telecom new customerHuawei 9 with FPC1268 under glassGoogle Pixel launched in the quarter

New segmentsSamsung PC Notebook 9 launchedPC-offer presented at CES (in Q1)Smartcards prototypes at Money 2020Ultra thin 1300-series launchedPartnership with Oberthur Technologies

Almost 140 devices launched during the year

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Continued market leadership

* Source: Strategy Analytics, FPC estimates

Market share 2016 estimated to 55-60%

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Global Smartphone Vendor Market Share %, Q4 2016Launched phones with competitor or inhouse Has not launched phone with fingerprint sensor Launched phone with FPC sensor

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Unique System Knowledge

BIOMETRICALGORITHMS

SOFTWAREDEVELOPMENT

ASIC/SILICON CHIP DEVELOPMENT

PACKAGINGEXPERTISE

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The big picture of biometrics

Technologies

Facial Iris Voice

Palm vein Finger vein Fingerprint

Capacitive

Ultrasonic

Optical

1 st generationSpray coated

2nd generationUnder glass

3rd generationUnder glass – single chip

Touch sensorsBiometric modalities

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MOBILE SMARTCARDSPC &

IoT/EMBEDDED

PC solutions

UNDER GLASS

CERAMICS

SPRAY COATING

FPC1268

FPC1035 FPC1155

FPC1028

Smartcard solutions

IoT solutions (FPC-BM)

FPC1025 FPC1145

Expanding portfolio for all segmentsENTRY MID PREMIUM

FPC1235, FPC1245

Embedded solutions(FPC-BM)

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Features creates differentiation

FPC OneTouch®Wake up your device with a single touch. No buttons or pins. Simply place your finger over the sensor for the fastest unlock you ever made

FPC SafeTouch®State of the art anti-spoofing solution with liveness detection with FPC algorithm which includes advanced Pattern Feature Extraction (PFE)

FPC MoveTouch®Navigate a rotating camera, scroll through webpages/documents, click to answer a call, or adjust the volume with the fingerprint sensor

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Scalable and efficient business model for the mobile segment

Software customization and integration

HW design/customization support

Shipment of sensors

Industrial Design, integration, tuning and end-user experience

OEM/ODM

Packaging and module manufacturing

Module house

Warehouse and Logistics

Distributor

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Local engagement to leverage megatrends

AlipayUnionPayFido Alliance

Standards

OEM opportunities

OEM opportunities

Platforms, standards and security

Standards

GoogleMicrosoftEMVCO

Fido AllianceGlobalPlatform

Other

OEM opportunities

Aadhaar

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THE LONG TERM VIEW

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Megatrends that affect us

BiometricsSecurity and convenienceCloudificationOnline payment/bankingDigitalization (IoT)

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Only in the beginning of the biometric era

Source: Fingerprint Cards estimates on device shipments based on various industry sources. 

*Size indication of card donut only representing smartcards. 15 B units represent both smart and ”non‐smart” cards not including SIM, phone or Pay‐TV.

Home

Auto

Med

Industrial & Other

Smartcards -payment

Smartcards - other

Non-smart

Smart

Feature

1.9 Bunits

CE & Accessories

PC & Tablets

Wearables

2 Bunits

3 Bunits

15 Bunits*

Contactless ~50% of smart cards in 2015

Mobile phones IoTPC, CE andwearables

Smartcards

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0

500

1 000

1 500

2 000

2 500

3 000

2014 2015 2016 2017 2018 2019

Total Addressable Market (million units)

Mobile PC Smartcards IoT/Automotive

New segments expand fingerprint sensor market

Continued strong market growth in smartphonesThe market for biometric smart cards is expected to expand rapidly in 2018Attractive growth opportunity in PC – low penetration rate

Source: Strategy Analytics, IHS, Fingerprint Cards estimates.Total Addressable Market excludes Apple, includes all other OEMs and segments including swipe technology

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Fingerprint Cards growth strategy

Grow with the existing customer base

Add new customers

Other segmentsPC

Internet of ThingsAutomotive

Industrial and medical

New offeringsOther sensors

M&A opportunities

Segments

Existing

New

OfferingExisting New

SmartcardsSensor adaptation

Utilize scale advantagesStrong growth potential

Extended biometric scope

TrackpadHigher securityMore features

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Strategy outline

Short term (2017)Defend and strengthen Fingerprint Cards position further in smartphones Enable the roll out and kick-starting the new segmentsContinue innovation and strong IP portfolio

Mid term (2017-2018)Fingerprint Cards as a biometric company with several modalitiesStrong SW and system capabilities Investment in new vertical – Smartcards, PC and embedded (IoT, Automotive)

Long term (2018+)Biometrics secure authentication and convenience everywhereCloud and device in symbiosisSecurity as core in biometric offering

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THE PERFECT MATCHFingerprint Cards acquires Delta ID

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An acquisition in accordance withour strategy

Fingerprint Cards (”Fingerprints”) will remain the world leading biometric companyFingerprints will expand into new technologies and new offerings

Multi modal biometric solutions with iris and fingerprint recognition will increase security and convenience

Cloud based solutions will become increasingly importantWe consider M&A to accelerate growth

The acquisition is subject to regulatory approvals and expected to close during spring 2017

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Delta ID is a perfect match for Fingerprints

Delta ID is a leading iris technology providerFocused on one thing only – iris recognitionLeading technology and strong IPProven technology – products are shipping

Customer and market synergiesFocus on similar market segments such as smartphones, PC and automotiveWe both have a presence in Silicon Valley, CaliforniaDelta ID has Samsung Mobile as customerMany of Fingerprints’ customers have not yet chosen an iris recognition solutionDelta ID’s products are Aadhaar certified

Technical synergiesIris recognition and fingerprint recognition are complementary modalitiesComplementary skillsets that can be leveraged – e.g. Fingerprints in software and Delta ID in opticalDelta ID has a proven cloud based solutionWe have similar methodology and expertise when it comes to algorithms

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OUTLOOK

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2017 Guidance

* Guidance as of 8 Dec, 2017.

2017 Guidance*

Revenues 2017 SEK 7,500-9,500 million

Operating margin 2017 Operating margin estimated to at least 35%

Average SEK/USD rate 8.85 (applied to Q1-Q4)

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Long term financial targets – updated*

Growth: Fingerprints Cards’ objective is that its revenues will show an average annual growth rate of approximately 20% from 2017-2019Profitability: Fingerprints Cards’ objective is to achieve an operating margin of between 30-35% in average during the period from 2017-2019 Capital structure: Fingerprints Cards’ objective is to have a strong balance sheet, normally with net cash assets. Surplus capital is to be returned to the shareholders through the buyback of own shares and/or dividends.

Moving three-year financial targets, now covering 2017-2019, with 2016 as the base. These targets are not to be considered as guidance, it’s our long-term expectations for the company.

*Updated 8 Dec 201625

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Maintaining leadership

Market leadershipAlmost 140 mobile devices launched in 2016 – nearly 200 in total55-60% market share in 2016

Technology leadershipIncreased investments in R&DContinued focus on innovation and long term technical developmentPartnerships with relevant industry leaders in prioritized segmentsComplementary biometrics company acquired

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We are in a growing marketWe are the market leaderWe are investing in innovationWe run a scalable and efficient operation

Summary

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Q&A

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THANK YOU!Stay in touch & connect

E-mail: investrel@fingerprints.comFor more information, visit us at www.fingerprints.com

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APPENDIX SLIDES

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2016 FINANCIAL RESULTS

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2016 financial performance

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Investing for future growth

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Strong profitability in 2016

Oct‐Dec Oct‐Dec Jan‐Dec Jan‐Dec2016 2015 2016 2015

Operating profit, SEK M 547,6 517,6 2613,1 910,3Operating margin, % 34 38 39 31

EPS, SEK 1,35 1,28 6,50 2,52

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Working capital development

*Average working capital excluding net cash over 5 quarters/rolling 12 months sales

**

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Cash flow and net cash trend

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Q4 Cash flow bridge

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OTHER

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Pre-sales/ Integration

Design WinProject start

First order/Samples

First Shipments

Phone Launch

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

Quarterly Revenue(schematic)

Volume and revenue ramp up

Launch support High volume

Schematic illustration

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Revenue growth from launched devices

Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

5783

125161

# of mobile devices launched (accumulated)

Schematic illustration

Revenue generated by launches in 2015

Revenue generated by launches in 2016

Q1 2017

190

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Superior 3D image quality and biometric performance

19 years of experience in touch fingerprint sensors results in leading image qualityThe combination of 3D image quality and world class algorithm enables state of the art performance

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False Acceptance Rate – security level

False Rejection Rate – convenience level

Market-leading biometric performance

Very high securityAgainst false accepts, spoofs

Very high convenienceFalse rejects, enroll user experience

Very low latencyVery small sensors

Cost advantage

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Industry’s fastest response time, from touch to identification (on average 0.2 sec)

Adaptive learning algorithm that improves response time on every touch

State-of-the-art security ratings (FRR ‹ 2% @ 1/100 000 FAR)

Fast and seamless enrollment (from 6 touches)

The FPC algorithm and SW runs in the application processor of the phone

Trusted Execution Environment (TEE) is used to safeguard the user’s private information

FPC supports all relevant platforms

A self-learning and irreversible algorithm– Delivering leading performance and convenience without compromising security

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CONFIDENTIALOUR HISTORY

Our touchdowns in history– 18 years of technological advancements