ANNUAL GENERAL MEETING 2017 Hkan Persson | CEO May 16th, 2017 - - PowerPoint PPT Presentation
ANNUAL GENERAL MEETING 2017 Hkan Persson | CEO May 16th, 2017 COMPANY OVERVIEW Convenient and secure identity authentication, for everyone, everywhere Founded in 1997 Head Office in Lund, Sweden USA, Asia, Europe 40 employees &
Håkan Persson | CEO
May 16th, 2017
Convenient and secure identity authentication, for everyone, everywhere
Founded in 1997 Head Office in Lund, Sweden USA, Asia, Europe 40 employees & consultants Nasdaq OMX Stockholm Small Cap Market Cap: SEK 1 billion
MOBILE SMART CARD SOLUTIONS
(14 % of sales) Tactivo - Smart card readers for smartphones and tablets that enables convenient and secure login to IT systems with smart cards from mobile devices PRODUCTS: Tactivo™ for iOS (iPad and iPhone) Tactivo™ for Android
FINGERPRINT TECHNOLOGY
(86 % of sales) Software for convenient and secure fingerprint recognition in mobile devices, smart cards, products with small fingerprint sensors and ID cards PRODUCTS: Precise Biomatch™ Mobile Precise Biomatch™ Embedded Match-on-Card™
PROVEN STRONG PATENTS USER EXPERIENCE TECHNOLOGY INDEPENDENT WORLD-LEADING R&D
Precise Biometrics is the leading independent supplier of fingerprint software – Our software has become a de facto standard among sensor vendors
Precise BioMatch Mobile is used by leading mobile device manufacturers such as Coolpad, Google, Huawei, HTC, Lenovo, LG, Oppo, Sony, ZTE and Xiaomi.
PORTUGAL THAILAND QATAR BAHRAIN VENEZUELA BRAZIL
Over 160.000.000 licenses of Precise Biometrics’ fingerprint algorithm solution Precise Match-On-Card issued to citizens worldwide
Primary customers – sensor vendors Market solutions directly to OEM:s, other suppliers in the mobile eco-system and security companies Revenues:
►
Royalty
►
Annual license fee
►
Support and maintenance
Increased net sales by 73% and an operating profit of SEK 24.8 million - the company’s best year so far 110 mobile devices with Precise BioMatch Mobile were launched in 2016 – double the amount in the previous year 14 licensing agreements for the distribution of our fingerprint software – Qualcomm and Samsung LSI Acquisition of NexID Biometrics for spoof detection and liveness Reinforced our position and developed our product range in the field of fingerprint software Sales of Tactivo fell short of our expectations – sales primarily to US government agencies
Acquisition of NexID Biometrics, a specialist in solutions for spoof detection and liveness Expands our offering with a software-based solution for spoof and liveness detection that enhances security and meets customer demand to prevent fraud Access to academic research and senior experts The acquisition was financed by a private placement of shares, which raised SEK 47.2 million for the company
(SEK million)
Net sales increased by 73% to SEK 97.2 million Sales in the Fingerprint Technology business area increased by 95.7% to SEK 83.3 million Gross margin increased by 9.1 per cent to 78.8 per cent
Gross margin Net sales Net sales
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0,0 20,0 40,0 60,0 80,0 100,0 120,0 2014 2015 2016
(SEK million)
The operating profit improved to SEK 18.0 million, an improvement of SEK 27.4 million
Operating loss Operating profit
0,0 10,0 20,0 30,0 2014 2015 2016
(SEK million)
(SEK million)
Cash flow from operating activities improved to SEK 37.7 million Cash and cash equivalents available of SEK 135.8 million at the year-end – includes SEK 50 million from new share issue Acquisition cost of SEK 31.4 million was paid in February
Cash and cash equivalents Cash flow Cash flow
0,0 10,0 20,0 30,0 40,0 50,0 2014 2015 2016 0,0 40,0 80,0 120,0 160,0
FINANCIAL
Net sales for the period totaled SEK 19.2 (24.2) million The operating loss for the period totaled SEK -2.7 (6.3) million The gross margin during the quarter increased to 85.1% (81.8%) Cash flow improved to SEK 17.1 (7.5) million Cash and cash equivalents were SEK 119.2 (58.6) million at the end of the period
SIGNIFICANT EVENTS
During the quarter six mobile phones were launched with Precise BioMatchTM Mobile Integration into mobile phone from a world-leading Chinese mobile phone manufacturer through a partnership with Silead Extended licensing agreement with existing sensor customer with guaranteed licensing revenue of at least SEK 17.5 million New licensing agreements with Zeitec and NXP Completed acquisition of NexID Biometrics
Four mobile devices have so far been launched with Precise BioMatch Mobile Licensing agreement with Melfas, a South Korean sensor manufacturer Elan Microelectronics launched a payment card with fingerprint technology with our software – to be supplied to premium customers of a South Korean bank
Addressable market of 1 billion units in 2017 Estimated 40 % average annual growth between 2016-2020 with a total addressable market of 2.5 billion units in 2020 The market for smart cards and other products expected to grow from end of 2017
0,3 0,6 0,8 1,1 1,2 1,3 0,1 0,3 0,5 0,6 0,2 1,0 0,2 0,4 0,6 1 2 3 2014 2015 2016e 2017e 2018e 2019e 2020e
The number of sensors in smartphones, smart cards and other products (Bn)
Smartphone ex. Apple Smart cards Other
Source: Pareto Securities Equity Research
1,6 2,1 2,5
Larger customer base - 22 new customers the last 18 months Global reach for distribution of fingerprint software, covering both the mobile and embedded market Several customers in final stages of the evaluation process Continue to grow the customer base
5 10 15 20 25 30 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17
Number of customers
Total FPC Other customers
Decreasing sales to Fingerprint Cards Increasing sales to
Royalty revenue from nine customers
0,00 5,00 10,00 15,00 20,00
Q1’16 Q1’17
Increased consumer demand for biometrics for convenient identity authentication and payments Payment providers see opportunity to increase security and mitigate fraud through biometrics – lowering the cost of fraud Market growth, increased competition and lower costs enable more price sensitive segments These factors pave the way for continued market growth and new product segments:
Low-end smartphones Smart cards, wearables and IoT Cars and access control
Sensors are becoming increasingly smaller to reduce cost – increased requirements on biometric performance Increased usage and adoption has led to advanced requirements to manage “difficult” fingers Growing competition is driving differentiation of fingerprint solutions – size, technology, industrial design and use cases Growth in mobile payments increase focus on security - Spoof detection and liveness will become increasingly important Adoption of other biometric modalities will increase and become complementary to fingerprint technology
Continued software development to power very small sensors Support for new sensor technologies Spoof detection and liveness for mobile devices to significantly increase security and mitigate fraud through fake finger detection More resource effective algorithms for smart cards, wearables and other products Certified algorithms for Secure Elements to provide bank-grade security
Year of customer and revenue transition – creating conditions for growth
Increase investments in product development to ensure technology leadership Grow the organization to ensure customer success Continue to grow our customer base
Unchanged view on revenue development
Weaker revenue development during the first half 2017 Gradually increasing revenues during the second half
Revenues for the full year are expected to be in line with 2016 revenues Positive operating result for 2017
precisebiometrics.com
VERIFIED BY YOU