2014 Welcome! AGENDA The Share Business concept, vision & - - PowerPoint PPT Presentation

AGM

2014

Welcome!

AGENDA

• The Share
• Business concept, vision & strategies
• Operations
• The year in brief
• Summary

THE SHARE

• Nasdaq OMX Stockholm Mid Cap
• Market cap 140602: 2 776 MSEK
• 14 107 (8 286) shareholders at year end 2013

THE SHARE

Ten largest shareholders March 31, 2014 Class of share Holdings Votes % Sunfloro AB A 1 200 000 17,79% Försäkringsaktiebolaget, Avanza Pension B 5 226 560 7,75% Goldman Sachs & Co, W9 B 2 734 402 4,05% Oppenheimer Glob Opportunity Fund B 2 000 000 2,97% Nordnet Pensionsförsäkring AB B 1 232 661 1,83% State street Bank & Trust com., Boston B 1 202 500 1,78% AAGCS NV RE AACB RE TM OMX B 996 899 1,48% Msil Ipb Client Account B 936 562 1,39% State Street Bank And Trust Omnibus B 876 569 1,30% Svenska Handelsbanken Copenhagen B 850 871 1,26% Total ten largest shareholders 17 257 024 41,60% Others B 39 359 111 58,40% Total 56 616 135 100%

THE SHARE

Share capital trend

BUSINESS CONCEPT

Business concept – FPC develops and sells leading biometric products and solutions to companies that develop systems for security and convenience.

Affärsidé & vision

My Phone knows me

Clear addressable market

• Major breakthrough for fingerprint

biometrics

• The fingerprint sensor is established in the

mobile market, a market with significant growth and potential

• The fingerprint technology ecosystem is
• founded. Several players are working

together to develop an industry standard for identification using fingerprint biometrics

• Payment services are already here – but

authentication techniques are required Pole position

• FPC is one of few players with a cutting‐

edge technologyplatform and a strong, growing product portfolio

• The majority of DWs awarded and

products in launched mobile phones

• Strong patent portfolio that creates

significant barriers to entry

41

Design Wins

23

Launched products

Management and capital

• Strong financial position with adequate

working capital for

• continued expansion and capacity building
• Strong management team with significant
• perating
• experience in mass applications for the

mobile market

41

Design Wins

23

Launched products

MASS MARKET FOR FINGERPRINT IDENTIFICATION HAS STARTED

INDEPENDENT TREND REPORTS

Several independent trend reports support the view of a mass market

• Ericsson: Biometric smartphones will dominate
• Goode Intelligence: over 600 million mobile phone‐based

biometrics users expected end of 2015 with an increase to 990 million by 2017 as sensors are expected to be embedded in also less expensive models.

• Gartner: close to one‐third of all organizations/companies will

use mobile biometrics by 2016.

• TechNavio’s: a 157% annual growth rate for mobile

biometrics until 2018.

Market Outlook and Trends

• Apple has 6 million App developers (June,

2013), Fingerprint Authentication transits from “Added Feature” to “Necessity Feature”

• Both Samsung and Apple have launched

Fingerprint sensors in their flagship models.

• FPC expects further proliferation of

Fingerprint sensors into lower tiers, opening up a larger mass volume market.

• FPC estimates that the market potential for

integrated sensors in consumer electronics will be in excess of 3 billion units in 2016.

Major market potential

Market share target

Market share for touch sensors embedded in smartphones and tablets (excluding Apple). 60% 2014 50% 2015

OPERATIONS

SPECIALISTS IN FINGERPRINT BIOMETRICS

ECO SYSTEM

CPU OEM Service Provider SW and Apps Packaging and Modules Semiconductors OS

Paypal secure wallet

OPERATIONS

OPERATIONS

FPC 1020 – launched Q4 2013 FPC 1021 – launched April 2014 FPC 1150 – launched May 2014 The world’s first home button‐touch fingerprint sensor for Android smartphones

2013

• Sales SEK 95.4 M (10.3)
• Earnings per share SEK ‐0.60 (‐0.84)
• Gross profit SEK 39.1 M (loss: 5.7)
• Closing cash and cash equivalents SEK 211.7 M (60.6)
• Adjusted gross margin 56% (66)
• Order backlog at period‐end SEK 22.8 M (19.7)

The Year in brief

Q1

• Offices opened in Japan and South Korea
• Operating lines of credit granted by Nordea and EKN.
• Extraordinary General Meeting held and resolution concerning

incentive program passed.

• FPC redeemed 430,892 warrants in exchange for new Class B

shares and raised SEK 6.8 M.

• Investment agreement concluded with Carnegie regarding the

new issue of Class B shares.

• Private placement of Class B shares raises SEK 95 M.

The Year in brief

Q2

• FPC joined Global Platform.
• FPC appointed a System and Software Development Manager.
• Piper Jaffray appointed financial advisor.
• FPC appointed a Customer Support Director in the US.

The Year in brief

Q3

• Mats Svensson moves on to new assignments.
• Office opened in Malmö.
• FPC recruited a Customer Support Director for Asia, a

Country Manager for Japan and Jan Johannesson as Vice President of Strategic Planning and Portfolio Management.

• Precise Biometrics’ fingerprint algorithm selected as one of

several algorithms in the company’s portfolio.

• Acquisition of some 100 patents from a world‐leading

patent owner.

The Year in brief

Q4

• Jonas Spannel Vice President of Sourcing and Supply.
• Office opened and operations started in Copenhagen,

Denmark.

• Cision distributed false press release regarding FPC.
• FPC implemented private placement of SEK 120 M.
• FPC’s share moved to the Mid Cap list on NASDAQ OMX.
• Touch sensor 1020 launched.

Q1 2014

Q1 2014

• Sales SEK 18,4 M (9,1)
• Adjusted gross profit, SEK 9,1 M (3,6)
• Gross profit, SEK 3,5 M (0,1)
• Adjusted gross margin 50 % (39 %)
• Gross margin 19 % (1 %)
• Earnings per share, SEK ‐0,46 (‐0,23)
• Cash and cash equivalents, SEK 306 M (148)
• Order backlog, SEK 41 M (42)

January – May 2014

• Niklas Strid Vice President Customer Projects
• Private placement of 2,5 M Class B shares totaling SEK 138 M.
• Chinese bank order of SEK 30 M for area sensor.
• Order of SEK 4 M for flagship smartphone with touch sensor.
• FPC1021 and FPC 1150 launched – The world’s first home

button‐touch fingerprint sensor for Android smartphones

• FPC receives ramp order of SEK 18 M for FPC 1020 touch sensor

for Tier 1 flagship smartphone DW

• A new DW for 1020 touch sensor for flagship smartphone from

Chinese Top 3 smartphone OEM

• Fingerprint Cards acquires Anacatum Design

Summary

• Take off – the mass market has started
• A qualified Organization

with a commercial presence in place

• Secured working capital for ramp up
• Close talks with all Tier1 (minus Apple)
• FPC the first supplier of touch sensors for Android and

Windows

Thank you!