FINGERPRINT CARDS AB NEEDHAM VIRTUAL TECHNOLOGY & MEDIA CONFERENCE MAY 18, 2021
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30+ MOBILE DEVICE BRANDS INCLUDING PCs & CHROMEBOOKS FROM TAKEN A CLEAR LEAD in the Samsung, LG, Google, Motorola, Sharp, Acer, Asus, Google, HP, Huawei, emerging biometric card Fujitsu, Kyocera, Oppo, Xiaomi, Vivo, Microsoft, Samsung, Xiaomi and market with Lenovo top-tier Windows manufacturer 23 CONTACTLESS PILOTS and HAVE LAUNCHED WITH OUR 3 OUT OF 3 COMMERCIAL SENSORS BANK LAUNCHES
Continued progress against strategic priorities Defending and leveraging our market leading position MOBILE DEVICES ✓ Market leader in capacitive sensors for smartphones ✓ Profitable business ✓ Capacitive portfolio expanded with uniquely curved sensor (FPC1542) Positioned for growth ✓ Increased remote working accelerates demand for secure authentication for PC PC ✓ New biometric PC solution launched in August 2020 ✓ Purchase order from a top-tier global Windows PC manufacturer in January 2021 Potential in physical and logical access solutions ✓ Biometrics by Fingerprints in smart door by Inotherm, Europe’s largest ACCESS manufacturer of aluminum doors ✓ Expanded product portfolio Entering commercial roll-out phase PAYMENTS ✓ BNP Paribas commercial roll-out of Thales/Fingerprints card during 2021 ✓ Fingerprints in Sweden's first biometric payment card pilot by Rocker ✓ Volume order for T-Shape® sensor modules from a global top 3 card manufacturer
The share price has increased five-fold in the last three years Share price (SEK), May 2018-May 2021 45 40 35 30 25 20 15 10 5 0 May 11, 2018 May 11, 2021 6
Innovation driving growth in mature mobile market Most mature and established market for consumer biometrics 80% of smartphones shipped incorporates some form of sensor Fingerprints is a market leader, integrated in 9 out of the top 10 Android brands Design is key – foldable, full screen and 5G handsets – new sensor shapes support OEM:s in their differentiation FPC1542 launched in November, a new curved side-mounted capacitive sensor New sensor models contribute to favorable product mix and improved margins 7
New solution for PCs Launched new solution for the consumer and enterprise PC market The software solution combines with a range of Fingerprints' touch sensors for a safe and convenient unlock and login Supports different design and placements Major purchase orders received from top-tier PC manufacturers RedmiBook Pro 15 from Xiaomi is the first PC launched with Fingerprints’ new PC solution
Increasing interest in biometrics for access control applications Door locks Physical and logical access control USB dongles Key fobs Wearables
Fingerprints Touchless 2.0 The world's first solution that combines iris and face recognition technology designed for mass- market consumer devices Use cases include mobile devices, payments, automotive and access control
Biometrics…in a card? CONTACTLESS FUNCTIONALITY Card is powered with energy from the POS terminal. No battery needed! And it works with existing POS infrastructure. SECURE ELEMENT Fingerprint data are securely stored in the card’s secure element. SELF LEARNING TECHNOLOGY PRIVACY With every touch, our Consumers control their smart algorithm keeps own data. No fingerprint learning more about your data will ever leave the fingerprint, so it works card. every time you need it. SENSOR PAYMENT NETWORKS Small and power efficient Certifies the card and ensure that the technology is fingerprint sensor that can be secure and interoperable with EMV® and ISO standards. touched from any angle
Close collaboration with the leading card eco-system suppliers is a key success factor All top 3 global secure element providers (85% combined market share) have chosen Fingerprints’ solution for their reference designs Enables optimization of key components in relation to each other “We selected Fingerprints as they are the “Fingerprint Cards brings valuable and “We chose Fingerprints' sensor technology leading biometric silicon and technology market-proven expertise in solutions for as they are a leader in fingerprint sensors provider with market proven performance battery-less and space-constrained with market-proven leading-edge […] we will develop a system solution that is devices. Their products […] are ideal performance in power consumption that easy to integrate and gives our customers a companions to our STPay solutions for enables our solution to be battery- and head start in an emerging growth market.” payment cards.” contactless“ Bjoern Scharfen, Head of the Payment and Transport Laurent Degauque, Marketing Director, Secure Philippe Dubois, General Manager of Payment at Ticketing product line at Infineon Microcontrollers,STMicroelectronics NXP Semiconductors
Biometric payment cards entering commercial phase Certification of Thales’ card by Visa and Mastercard is a major milestone Demand for hygienic and secure ways to pay has increased during the pandemic Biometric cards provide a more reliable solution for secure contactless payments Source: Presentation by Frédéric Martinez, Thales BNP Paribas roll-out of Thales/Fingerprints card during 2021 Crédit Agricole has also begun commercial launch Cooperation with M-Tech Innovations Ltd to launch contactless biometric payment cards in the Indian market Rocker, a Swedish bank, announced the first biometric payment card trial in the Nordics 14
T-Shape Gen 2 achieved Mastercard’s reference specifications T-Shape® T-Shape® Generation 01 Generation 02 possible configuration 1. FINGERPRINT SENSOR 2. MICROCONTROLLER 1. FINGERPRINT SENSOR 2. SECURE ELEMENT Image capture Feature extract Image capture MCU Optional FPC1300-series T-shape® FPC-BEP software and algorithm FPC1300-series T-shape® Gen 2 Feature extract Gen 1 Matching 3. ENCRYPTION ON/OFF FPC-BEP software and algorithm 3. SECURE ELEMENT Possible to encrypt data Matching FPC-BEP software and algorithm
Survey shows that consumers would prefer biometric cards “There will be a new generation of contactless payment cards, where you will be able to I would prefer having a no authenticate yourself with payment card with a fingerprints sensor to identify 50 your fingerprint on a yes sensor on the card.” myself rather than using a PIN % code. (note the fingerprint data 24 Income maybe % Gender stays securely on the card itself and never leaves the card.) 58% 54 46 >$60,000 Canada 52% % % $40,00 53% 0- France 50% Dec’1 51% $60,00 9 $20,000 0- 48% Age $40,000 Germany 51% 55 $9,999 - 50% UK 45% 48% Dec’1 9 % 49% 46% $20,000 Australia 46%
A way for banks to differentiate BNP Paribas recently took out ads in several major French newspapers Studies show that many consumers are willing to switch banks to get access to a biometric card CONFIDENTIAL
Biometrics addressable market potential ~4.7 billion units/year by 2026 and beyond
Adaptation of legal structure to drive growth Two regional offices have been created: Shanghai (Mobile) and Zug (Payments & Access) The world’s top three payment card producers are all based in continental Europe, while most of the largest smartphone OEMs are headquartered in Asia. Enhanced flexibility, speed and cost effectiveness, as well as a sharper focus on our two individual business lines. Sales and distribution hub in Singapore in order to streamline inventory management and realize further economies of scale in our global distribution operations.
#1 BIOMETRICS
Links to further information Financial reports and presentations: https://www.fingerprints.com/investors/reports- presentations/ Press releases: https://www.fingerprints.com/newsroom/press-releases/ News items: https://www.fingerprints.com/newsroom/news-stories/ Blog: https://www.fingerprints.com/blog/ Download center (eBooks, whitepapers, product information, etc.): https://www.fingerprints.com/downloads-resources/
Get in touch! Learn more http://www.fingerprints.com Questions investrel@fingerprints.com
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