Highlights

COVID-19-related lockdowns in China had a significant negative effect on Fingerprints' sales in Mobile
Fingerprints has carried out an issue of perpetual hybrid equity instruments in an aggregate amount of SEK 75 M and intends to carry out a SEK 300 M fully guaranteed rights issue in order to strengthen its balance sheet and liquidity
New product segments, outside capacitive sensors for Mobile, continue to grow and are expected to account for about 30 percent of Fingerprints' revenues by year-end 2022 and 45 percent by year-end 2023.

Third quarter of 2022

Revenues amounted to SEK 143.2 M (354.3)
The gross margin was 12.2 percent (28.6)
EBITDA totaled negative SEK 38.1 M (pos: 32.3)
The operating result was a negative SEK 59.8 M (pos: 10.8)
Earnings per share before and after dilution amounted to a negative SEK 0.17 (pos: 0.04)
Cash flow from operating activities was a negative SEK 111.6 M (neg: 45.5)

January – September 2022

Revenues amounted to SEK 671.5 M (999.2)
The gross margin was 22.3 percent (28.4)
EBITDA totaled a negative SEK 41.7 M (pos: 58.9)
The operating result was a negative SEK 103.7 M (neg: 11.5)
Earnings per share before and after dilution amounted to a negative SEK 0.29 (neg: 0.02)
Cash flow from operating activities was a negative SEK 230.2 M (pos: 41.1)

SEK M	Jul-Sep 2022	Jul-Sep 2021	Change	Jan-Sep 2022	Jan-Sep	2021 Change	Jan-Dec 2021
Revenue	143.2	354.3	-60%	671.5	999.2	-33%	1,355.8
Gross profit	17.5	101.2	-83%	149.6	283.8	-47%	396.9
Gross margin %	12.2	28.6	-16%	22.3	28.4	-6%	29.3
Operating profit	-59.8	10.8		-103.7	-11.5		-7.6
Operating margin %	-41.8	3.0		-15.4	-1.2		-0.6
EBITDA *	-38.1	32.3	-218%	-41.7	58.9	-171%	85.6
Profit/loss before tax	-66.7	13.3		-110.5	-6.4		-1.0
Profit/loss for the period	-51.0	12.3		-86.6	-5.2		0.1
Earnings per share before and after dilution, SEK	-0.17	0.04		-0.29	-0.02		0.00
Cash and cash equivalents	71.4	120.7	-41%	71.4	120.7	-41%	374.3
Cash flow from operating activities	-111.6	-45.5		-230.2	41.1		24.3
Equity/assets ratio, % **	61.9	71.1		61.9	71.1		57.1
Average number of employees	233	252	-7%	246	245	0%	250

* EBITDA, Operating profit before interest, taxes, depreciation, amortisations and write downs.

** Equity/assets ratio, Equity at the end of period divided by total assets.

CEO's comments

The sharp decline in demand for smartphones in China, as a result of COVID-19-related restrictions in the country, continued to have a significant negative impact on Fingerprints' sales also in the third quarter. Sales fell 60 percent year on year (down 71 percent in constant currency terms), and 37 percent relative

to the second quarter of 2022 (down 48 percent in constant currency terms). The gross margin was negatively impacted by increased price competition and lower sales, which also led to an increase in the ratio of planned depreciation/amortization to revenue, which impacts on gross margin. Thisratio rose to 15 percent in the third quarter of 2022 from the more normal level of 6 percent in the third quarter of 2021. In addition to this, sales in the Access area in Asia decreased this quarter, partly as a result of lower activity in the construction sector in China, with an impact on sales of biometric door locks. This had a negative impact on profitability as the gross margin is higher in this product segment, as compared to Mobile. The quarterly sales development within our operating segment Payment & Access tends to be more uneven than within Mobile.However, Access sales outside of China continued to increase in the third quarter and the long-term trend within Payment & Access remains positive.

The decrease in revenue since the previous quarter was due to the destocking that is now taking place across the supply chain. We have rapidly gone from a situation where earlier this year we were limited by insufficient access to production capacity caused by the global component shortage, to a position where we, our suppliers and our customers instead must handle a very sharp decline in demand. This means the industry is in a position where it is holding far too much stock, which is tying up capital. We can see this at sensor supplierssuch as ourselves, but also further down the supply chain at distributors, module suppliers and mobile-phone manufacturers who, due to the earlier component shortage, were obliged to purchase products many months in advance in order to ensure their delivery capacity.

The supply chain in the mobile industry is relatively complex, with several stages and long lead times. Mobile phone producers (known as OEMs) had planned for significantly higher sales volumes in 2022, and their focus in the second and third quarters was therefore on reducing their surplus inventory of phones while sharply reducing purchasing from module suppliers, the subcontractors who deliver modules for assembly into finished mobile phones. Mobile phone producers are only now approaching more normal inventory levels, which means the module suppliers and distributors who supply them with components have probably only been able to begin to reduce their inventory in the third and fourth quarters. And for Fingerprints, which delivers sensors to distributors and module suppliers, this means that we can begin to reduce our inventory only now, at the beginning of the fourth quarter. In 2022, Fingerprints invested approximately SEK 190 M in building up inventories, and by the end of the third quarter inventories totaled SEK 412 M.

The stock accumulation and decline in demand has left us in a strained situation in terms of working capital. In view of the above, and as previously announced, we issued hybrid equity instruments in an aggregate amount of SEK 75 M and the Board has resolved on a fully guaranteed SEK 300 M rights issue. These measures will strengthen liquidity and will allow us to continue to finance important customer projects and investments in research and development. In parallel, we are implementing a cost reduction program to adapt the company to the more challenging situation. As previously communicated, this

"We have rapidly gone from a situation where we were limited by the global component shortage to a position where we instead must handle a very sharp decline in demand."

program is expected to reduce operating expenses by approximately 20 percent with full effect from the fourth quarter of 2022.

While the demand situation in the mobile industry remains challenging in the short term, our assessment is that the impact of the lockdowns in China are of a temporary nature. As the restrictions are gradually lifted, we expect to see a return to historical levels of demand for mobile phones, albeit perhapsinitially not fully. At the same time, we can see continued growth in application areas outside capacitive fingerprint sensors for mobile phones. These areas include optical under-display sensors for mobile phones and the Payments, PC and Access product segments. Our revenue in these parts of the business has been about 10 percent for the past two years. However, during the first half of 2022 we witnessed significant growth, and we expect these segments to account for about 30 percent of Fingerprints' revenues by year-end 2022 and 45 percent by year-end 2023. The PC and Access areas account for most ofthis growth.

Continuous product development is crucial for maintaining and strengthening our competitiveness in all focus areas. In the Mobile area, we could announce during the quarterthat our third-generation slim, side-mounted capacitive touch sensor, FPC1553, has now been integrated into the first three mobile phone models. FPC1553 builds further upon our highly successful FPC1542 and FPC1552 sensors.

During the quarter, we also announced the first computer – the Dynabook Satellite C30-K – to feature Fingerprints' biometric Match-on-Chip solution, which was added to Microsoft's approved vendor list (AVL) for Windows Hello Enhanced Sign-in Security earlier this year. This means that we can now effectively address the entire PC market: both enterprise computers and PCs for private use. Match-on-Chip solutions for enterprise computers have a higher ASP and currently account for about half of our addressablemarket in the PC segment.

There is significant potential in biometric payment cards and we continue to strengthen our world-leading position in this emerging mass market for biometric solutions. Our operations in this area have continued to grow, albeit from a low level. The two latest commercial launches of biometric cards featuring Fingerprints' technology were in Morocco. There is substantial interest in the region, and during the quarter we announced that Fingerprints has also partnered with Technical Equipment & Supplies Company (Tesco), a financial and banking solution provider, to promote and support the adoption of contactless biometric payment cards in the Middle East. The card, which was initially launched by Thales, embeds Fingerprints' second-generation T-Shape module and software platform, and will be commercialized and customized by Tesco for customers in the region.

Christian Fredrikson, President and CEO

Revenues and operating profit, third quarter of 2022

Revenues

Consolidated revenues for the third quarter amounted to SEK 143.2 M (354.3), down 60 percent compared with the third quarter of 2021 (decrease of 71 percent in constant currency terms). The COVID-19-related restrictions introduced in China have led to a sharp drop in smartphone sales in the country, resulting in mobile phone producers scaling back their orders of fingerprint sensors to a minimum at the same time as they carried out destocking measures. This situation had a negative impact on Fingerprints' sales trend for the quarter, but is deemed to be of a temporary nature. As the restrictions are gradually lifted, we expect to see a return to historical levels of demand for mobile phones, albeit perhaps initially not fully. At the same time, we can see continued growth in application areas outside capacitive fingerprint sensors for mobile phones.

Revenues and gross margin, rolling 12 months

Trend in operating profit

Gross profit for the third quarter was SEK 17.5 M (101.2) and the gross margin was 12.2 percent (28.6). The margin was negatively impacted by increased price competition and lower sales, which also led to an increase in the ratio of planned depreciation/amortization to revenue. This ratio rose to 15 percent in the third quarter of 2022 from the more normal level of 6 percent in the third quarter of 2021. In addition to this, sales in the Access area in Asia decreased this quarter, partly as a result of lower activity in the construction sector in China, with an impact on sales of biometric door locks. This had a negative impact on profitability as the gross margin is higher in this product segment, as compared to Mobile.

The operating result for the third quarter was a negative SEK 59.8 M (pos: 10.8) The operating margin was a negative 41.8 percent (pos: 3.0). Operating expenses amounted to SEK 77.3 M (90.4). Development costs of SEK 27.8 M (25.7) were capitalized during the quarter, which corresponds to 52.0 percent of total development costs, compared with 52.6 percent for the

Revenues, operating profit/loss, gross margin and operating margin per quarter

corresponding quarter of 2021. Other operating income/expenses increased to SEK 15.8 M (expense: 1.0), of which SEK 15.8 M (expense: 1.0) is attributable to positive operational changes in exchange rates pertaining to working capital.

EBITDA for the quarter amounted to a negative SEK 38.1 M (pos: 32.3), and comprised an operating result of a negative SEK 59.8 M, plus depreciation/amortization of SEK 21.7 M in the quarter (see definition on page 22).

Operating segments

Fingerprints reports results for the operating segments Mobile & PC and Payment & Access (see table on page 18). An operating segment is a part of the Group that conducts activities from which it can generate income, incur costs and for which independent financial information is available. Each segment has a manager who is responsible for the day-to-day operations and who regularly reports the results for his segment to the CEO. Revenue within Access in China was included in the operating segment Payment & Access for 2021, but is included in the operating segment Mobile & PC starting in 2022. Revenues within Access in China amounted to SEK 12.5 million in the third quarter of 2022 and to SEK 62.7 million for the period January – September 2022.

Financial income and expenses

Financial income amounted to SEK 3.3 M (2.5) The item pertains to the effect of unrealized exchange rate gains on currency accounts.

Financial expenses amounted to SEK 10.2 M (-) Expenses for the quarter mainly related to interest on bond loans. The comparative figure in the corresponding quarter 2021 related to the combined impact of expenses and effects of unrealized exchange rate losses on currency accounts.

Earnings and earnings per share for the reporting period

The result for the third quarter of 2022 was a negative SEK 51.0 M (pos: 12.3). Earnings per share for the third quarter were a negative SEK 0.17 (pos: 0.04).

Cash flow and balance sheet, third quarter of 2022

Cash flow

Cash flow from operating activities was a negative SEK 111.6 M (neg: 45.5). In addition to a negative result, the negative cash flow was attributable to the build-up of inventory.

Cash flow from investing activities amounted to a negative SEK 28.1 M (neg: 26.0), of which capitalized development expenditure accounted for SEK 26.9 M (24.6).

Cash flow from financing activities amounted to a negative SEK 2.3 M (neg: 3.6) and pertained to lease payments.

Exchange-rate fluctuations had a positive impact of SEK 0.6 M (pos: 2.7) on cash and cash equivalents during the quarter. Most of the company's cash holdings consist of USD.

Liquidity and shareholders' equity

At September 30, 2022, the Group's disposable cash and cash equivalents totaled SEK 71.4 M (120.7), and the Group's net debt amounted to SEK 236.8 M (net cash pos: 103.8) on the same date. The SEK 75 million in proceeds from the issue of hybrid capital were only received after the balance sheet date, at the beginning of the fourth quarter of 2022. Interest-bearing liabilities comprise the bonds issued in December 2021 of SEK 293.2 M (-) and lease liabilities pertaining to office premises of SEK 15.0 M (16.9), recognized in accordance with IFRS 16. The company has senior secured bonds in an amount of SEK 300 M, with a three-year tenor and at a floating rate of interest of Stibor 3 months +9 percent per year.

At period-end, consolidated shareholders' equity amounted to SEK 1,106.2 M (999.3) and the equity/assets ratio for the Group to 61.9 percent (71.1). Other comprehensive income amounted to SEK 23.3 M (33.9), and pertained to the remeasurement of shareholders' equity in foreign currencies, the majority of which is attributable to USD.

Investments, fixed assets and depreciation/amortization

Investments in intangible fixed assets during the quarter amounted to an expense of SEK 27.8 M (expense: 24.6). Investments in tangible fixed assets for the quarter amounted to an expense of SEK 0.3 M (expense: 1.4). Depreciation/amortization according to plan for the quarter totaled SEK 21.7 M (21.5).

Cash and cash equivalents and cash flow from operating activities, SEK M

Comments on the period January–September 2022

The Group's revenue for the period January-September 2022 amounted to SEK 671.5 million (999.2), a decrease of 33 percent compared to the corresponding period in 2021. The introduction of extensive COVID-19-related restrictions in China in 2022 resulted in a sharp decline in demand for smartphones in China. This had a significant negative effect on Fingerprints' sales in the Mobile product segment in China. China is Fingerprints' largest market and accounted for approximately 98 percent of sales in 2021. We have rapidly gone from a situation where earlier this year we were limited by insufficient access to production capacity caused by the global component shortage, to a position where we, our suppliers and our customers instead must handle a very sharp decline in demand.

The gross profit for the period January-September 2022 was SEK 149.6 million (283.8) and the gross margin amounted to 22.3 percent (28.4). The decline in sales volume, increased price competition in the Mobile product segment and the build-up of inventory in the Mobile, Payments, PC and Access product segments had a negative impact on the company's profitability and working capital in 2022, which also had an adverse impact on cash flow from operating activities. Cash flow from operating activities for the period amounted to a negative SEK 230.2 million (pos: 41.1). The negative cash flow is, in addition to a negative result, also due to a build-up of inventory.

The Group's disposable cash and cash equivalents as of September 30, 2022 totaled SEK 71.4 million, compared to SEK 374.3 million at the end of 2021. The group's net debt as of September 30, 2022 amounted to SEK 236.8 million, compared to a SEK 58.7 million net cash position at the end of 2021. The SEK 75 million in proceeds from the issue of hybrid capital were only received after the balance sheet date, at the beginning of the fourth quarter of 2022.

Other events during the third quarter of 2022

Business Development

On September 22, we announced that Dynabook Inc. had launched the Dynabook Satellite C30-K laptop that integrated Fingerprints' biometric Match-on-Chip solution, which was added to Microsoft's approved vendor list (AVL) for Windows Hello Enhanced Sign-in Security earlier this year.

During the quarter, we also announced that our third-generation slim, side-mounted capacitive touch sensor, FPC1553, had now been integrated into the first three mobile phone models: Honor X40i, Moto g32 and Vivo Y77. FPC1553 builds further upon our highly successful FPC1542 and FPC1552 sensors.

The Lockbook is a recently launched personal notebook / organizer / planner / diary, which is secured by a touch fingerprint sensor from Fingerprints. This product is yet another example of the expansion of biometric solutions in the Access area – biometric access control.

Fingerprints has partnered with Technical Equipment & Supplies Company (Tesco), a financial and banking solution provider, to promote and support the adoption of contactless biometric payment cards in the Middle East. The innovative biometric payment card, which was initially launched by Thales, embeds Fingerprints' secondgeneration T-Shape module and software platform, and will be commercialized and customized by Tesco for the regional customers.

During the quarter, we presented the Lockbook, a recently launched personal notebook / organizer / planner / diary, which is secured by a touch fingerprint sensor from Fingerprints.

Significant events during the third quarter of 2022

At September 30, Fingerprints announced the issue of hybrid equity amounting to SEK 75 M, and the intention to carry out a fully secured rights issue amounting to SEK 300 M in order to strengthen the company's balance sheet and to cure the forecasted maintenance test covenant breach under its outstanding Senior Secured Callable Floating Rate Bonds 2021/2024. Fingerprints also published certain financial information at June 30, 2022. The financial information was consolidated as part of the preparations ahead of the rights issue. The SEK 75 million in proceeds from the issue of hybrid capital were only received after the balance sheet date, at the beginning of the fourth quarter of 2022, and will be classified as equity in the balance sheet.

An Extraordinary General Meeting on September 20 resolved that the Board of Directors comprise five (5) ordinary members and no deputy members. The Meeting elected Christian Lagerling as new Board member and Chairman of the Board. The Board of Directors consists of Ted Elvhage, Alexander Kotsinas, Dimitrij Titov, Juan Vallejo and Christian Lagerling. Sofia Bertling and Tomas Mikaelsson left the Board of Directors, and the Meeting resolved that the fee to resigning Members shall be paid for each commenced calendar month of the term between the AGM and the EGM with 1/12 of the at the AGM 2022 decided (i) board remuneration and (ii) remuneration for committee work. Furthermore, the Meeting resolved

that the remuneration to the new Chairman shall be SEK 450,000 (corresponding to 8/12 of the at the AGM 2022 decided remuneration to the Chairman).

Significant events after the end of the period

On October 10, the Board announced that it had resolved on a fully guaranteed SEK 300 M rights issue with the purpose of improving Fingerprints' working capital position and to cure the forecasted breach against the maintenance test covenant pursuant to the terms and conditions of its outstanding senior secured bonds. Furthermore, in order to enable the repayment of the SEK 75 million in hybrid equity instruments, the Board resolved on a new issue of B-shares directed to the Hybrid Investors, against payment by way of set-off of the Hybrid Investors' receivables under the Hybrids.

Notice was also published on October 10 of an Extraordinary General Meeting to be held on November 2, 2022 to resolve on:

Subsequent approval of the board of directors' decision on a rights issue of units consisting of shares of series A and warrants and shares of series B and warrants.
Subsequent approval of the board of directors' decision on an issue of shares of series B by way of set-off.

Organization and Personnel

The number of employees at September 30, 2022 was 228 (265). In addition to full-time employees, 38 (49) consultants were also engaged during the third quarter, primarily in technology development and sales. Accordingly, including employees and consultants, the company employed a total of 266 (314) people on September 30, 2022. The reduction in personnel is due to the cost reduction program that is underway to adapt the company to the more challenging situation.

Share capital trend

In accordance with a resolution passed at the 2021 Annual General Meeting, the cancellation of boughtback shares and a bonus issue, without the issue of new shares, were registered by the Swedish Companies Registration Office in June 2021. Fingerprint Cards AB's registered share capital has not changed but the number of shares and votes has decreased.

Following the cancellation of 15,967,675 Class B shares held by the company which were bought back, the number of shares amounts to 298,000,000, of which 6,000,000 comprise Class A shares and 292,000,000 Class B shares. The total number of votes is 352,000,000. The share capital amounts to SEK 12,975,667.

No buybacks of own shares occurred during the third quarter of 2022. The shares bought back, which constitute treasury holdings, have been assigned no value in assets or shareholders' equity and amounted to 3,800,000 Class B shares at the end of the period.

Buyback of own shares

	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
SEK M	2022	2021	2022	2021	2021
Number of treasury shares (000s)
Number of buyback shares beginning	3,800	3,800	3,800	12,424	12,424
Number of buyback shares during period		-	0	7,344	7,344
Number of cancellation of shares during period		-	-	-15,968	-15,968
Number of buyback shares at end of period	3,800	3,800	3,800	3,800	3,800
Price for buyback shares
Price for buyback shares during period	-	-	-	225.4	225.4
Average price buyback shares (SEK)	-	-	-	30.70	30.70

Number of shares

	Jul-Sep 2022	Jul-Sep 2021	Jan-Sep 2022	Jan-Sep 2021	Jan-Dec 2021
Number of shares, (000s)
Number of shares at period end	298,000	298,000	298,000	298,000	298,000
Of which class A-shares	6,000	6,000	6,000	6,000	6,000
Of which class B-shares	292,000	292,000	292,000	292,000	292,000
Number of buyback shares at end of period	-3,800	-3,800	-3,800	-3,800	-3,800
Number of shares outstanding at period end, before and after dilution	294,200	294,200	294,200	294,200	294,200
Average number of shares outstanding (000s)
Average number of buyback shares	-3,800	-3,800	-3,800	-11,850	-9,923
Number of shares outstanding at period end, before and after dilution	294,200	294,200	294,200	296,678	295,351

Accounting policies

These condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The interim report for the Parent Company was prepared in accordance with the Annual Accounts Act, Chapter 9, Interim reports. The application of these accounting policies complies with what is presented in the Annual Report for the fiscal year ending December 31, 2021 and must be read together with the Annual Report. In addition to the financial statements and the associated notes, disclosures according to IAS 34.16A are also presented in other parts of the interim report. No new or revised IFRSs that have become effective in 2022 have had any significant impact on the Group. The Group's reporting currency is SEK and the report is prepared in SEK M.

Related-party transactions

There were no material transactions between the company and related parties in the Group or the Parent Company during the reporting period.

Parent Company

The Parent Company's revenues for the third quarter of 2022 amounted to SEK 46.5 M (330.1), of which the quarter's sales pertain to intra-Group sales to subsidiaries of SEK 18.6 M (236.4) as part of a change to the legal structure of the Group. After financial items, a loss of SEK 22.1 M (loss: 6.3) was reported for the period. The net result for the period was a loss of SEK 15.2 M (loss: 5.1). The Parent Company's disposable cash and cash equivalents at period-end totaled SEK 9.1 M (47.7).

Significant risks and uncertainties – Group and Parent Company

To anticipate risks and minimize their impact, Fingerprints has processes for continuously identifying and managing risks that could impact the operations. This includes probability and consequence assessments of operational risks, market risks, financial risks and legal and other risks.

The described risks and uncertainties are not ranked in any order of significance; nor are they claimed to be the only risks or uncertainties to which the company is exposed. Additional risks and uncertainties that the company is currently unaware of or that are currently not adjudged to be material could develop into factors that might in the future have a material impact on the company's operations, earnings, financial position or future outlook. The following description does not claim to be complete or exact, since risks and their degree of impact vary over time:

Market risks:	Geopolitical instability, Supplier costs, Risk of obsolescence, Economic fluctuations, Currency risk, Loss of customers and price pressure due to increased competition.
Operational risks:	Delivery capacity of suppliers, Competency provision, Loss of key competencies, Reduced technological lead and Information leaks
Financial risks:	Financing risk and Credit risk.
Legal risks:	Product defects and product liability, Patent risk and Corruption.
Other risks:	Epidemics/pandemics, Conflict minerals, Restrictions on planned
	business development, Biometrics and integrity, Scalability internally,
	Discrimination and lack of diversity.

Fingerprints' current assessment is that the company is not materially impacted, directly or indirectly, by the war between Russia and Ukraine.

For further information concerning the risks facing the Group, see the 2021 Annual Report, which is available on our website, www.fingerprints.com.

2023 Annual General Meeting

The Annual General Meeting will be held in Stockholm on May 24, 2023. Shareholders who wish to have an item of business addressed at the Annual General Meeting must submit a written proposal to [email protected] or to the Company Secretary, Fingerprint Cards

AB, Kungsgatan 20, SE-411 19 Gothenburg, not later than seven weeks prior to the Annual General Meeting to guarantee that the business can be included in the notification of the Annual General Meeting. Further details on how and when to register will be published in advance of the meeting.

Further information

This is the type of information that Fingerprint Cards AB is obligated to disclose pursuant to the EU's Market Abuse Regulation. The information was submitted for publication, through the agency of the contact specified below, at 7:00 a.m. CEST on October 19, 2022.

Welcome to Fingerprints' presentation of the interim report for the third quarter of 2022 on October 19, at 9:00 a.m. CEST. The presentation will be webcast, and participants can register via the link below:https://edge.media-server.com/mmc/p/m7iiggw4

For media and analysts: Registration for the teleconference is carried out via this link: https://register.vevent.com/register/BI3c2dbde1b13048568d98bff93fe6089d

For further information, please contact: Stefan Pettersson, Head of Investor Relations Tel: +46 (0) 101 720 010 [email protected]

www.fingerprints.com/

Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the constituent information in accordance with the rules and regulations prevailing in the particular jurisdiction. This press release does not constitute an offer, or invitation to acquire or subscribe for new securities in Fingerprint Cards AB in any jurisdiction.

Certification

The Board of Directors and the CEO certify that this report provides a fair and accurate review of the operations, financial position and earnings of the Parent Company and the Group and that it describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.

Stockholm, October 18, 2022

Christian Lagerling Chairman

Ted Elvhage Member

Alexander Kotsinas Member

Dimitrij Titov Member

Juan Vallejo Member

Christian Fredrikson President and CEO

AUDITOR'S REPORT ON REVIEW OF INTERIM REPORT

To the Board of Directors of Fingerprint Cards AB (publ), reg.nr. 556154-2381

Introduction

We have reviewed the condensed interim financial information (interim report) for Fingerprint Cards AB (publ) as of September 30, 2022 and the nine-month period which ended on this date. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim report consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, October 18, 2022

BDO Mälardalen AB

Johan Pharmanson Carl-Johan Kjellman

Authorized Public Accountant Authorized Public Accountant

Financial statements and key figures

Condensed consolidated statement of comprehensive income 16
Condensed consolidated statement of financial position 17
Condensed consolidated statement of changes in shareholders equity17
Condensed consolidated cash-flow statement 18
The Group's operating segments 18
Sales per geographic region 19
Consolidated statement of income and other comprehensive income for the past nine quarters19
Consolidated statement of financial position for the past nine quarters20
Consolidated cash-flow statement for the past nine quarters20

Condensed income statement, Parent Company21
Condensed balance sheet, Parent Company21
Key consolidated data 22
Key consolidated figures for the past nine quarters22

Condensed consolidated statement of comprehensive income

SEK M	Jul-Sep 2022	Jul-Sep 2021	Jan-Sep 2022	Jan-Sep 2021	Jan-Dec 2021
Revenue	143.2	354.3	671.5	999.2	1,355.8
Cost of goods sold	-125.7	-253.1	-521.9	-715.4	-958.9
Gross profit	17.5	101.2	149.6	283.8	396.9
Gross Margin, %	12.2	28.6	22.3	28.4	29.3
Selling expenses	-35.4	-41.8	-108.6	-118.3	-159.8
Administrative expenses	-32.0	-24.4	-98.9	-74.1	-102.1
Development expenditure	-25.7	-23.2	-86.2	-100.2	-138.2
Other operating income/expenses	15.8	-1.0	40.4	-2.7	-4.4
Operating profit/loss	-59.8	10.8	-103.7	-11.5	-7.6
Operating Margin, %	-41.8	3.0	-15.4	-1.2	-0.6
Finance income	3.3	2.5	18.1	5.1	7.0
Finance expenses	-10.2	0.0	-24.9	0.0	-0.4
Profit/loss before tax	-66.7	13.3	-110.5	-6.4	-1.0
Income tax	15.7	-1.0	23.9	1.2	1.1
Profit/loss for the period	-51.0	12.3	-86.6	-5.2	0.1
Other comprehensive income	74.3	21.6	165.6	47.0	69.6
Total comprehensive income for the period	23.3	33.9	79.0	41.8	69.7
Profit/loss for the period attributable to:
Parent Company shareholders	23.3	33.9	79.0	41.8	69.7
Profit/loss for the period	23.3	33.9	79.0	41.8	69.7
Earnings per share for the period before and after dilutions, SEK	-0.17	0.04	-0.29	-0.02	0.00

Condensed consolidated statement of financial position

	30-Sep	30-Sep	31-Dec
SEK M Assets	2022	2021	2021
Intangible fixed assets	1,021.6	812.8	838.5
Tangible fixed assets	5.0	6.1	6.5
Right-of-use assets	15.2	18.7	24.2
Financial assets	81.0	50.9	53.6
Total fixed assets	1,122.8	888.5	922.8
Inventories	412.4	161.1	159.3
Accounts receivable	133.2	203.9	280.0
Other receivables	37.2	18.4	51.3
Prepaid expenses and accrued income	11.3	13.9	11.3
Cash and cash equivalents	71.4	120.7	374.3
Total current assets	665.5	518.0	876.2
Total assets	1,788.3	1,406.5	1,799.0
Shareholders' equity and liabilities
Shareholders' equity	1,106.2	999.3	1,027.2
Deferred tax liability	15.6	19.5	16.6
Bond loans	293.2	-	292.6
Long-term lease liabilities	5.4	7.0	11.6
Long-term lease liabilities	298.6	7.0	304.2
Short-term debt lease liabilities	9.6	9.9	11.3
Accounts payable	190.4	195.0	221.8
Current tax liabilities	8.0	7.1	14.0
Other current liabilities	18.5	13.9	35.5
Accrued expenses and prepaid income	141.4	154.8	168.4
Total current liabilities	367.9	380.7	451.0
Total shareholders' equity and liabilities	1,788.3	1,406.5	1,799.0

Condensed consolidated statement of changes in shareholders equity

SEK M	Jul-Sep 2022	Jul-Sep 2021	Jan-Sep 2022	Jan-Sep 2021	Jan-Dec 2021
Opening shareholders' equity	1,082.9	965.4	1,027.2	1,182.9	1,182.9
Comprehensive income for the period	23.3	33.9	79.0	41.8	69.7
Buyback of own shares	0.0	0.0	0.0	-225.4	-225.4
Closing shareholders' equity	1,106.2	999.3	1,106.2	999.3	1,027.2

Condensed consolidated cash-flow statement

SEK M	Jul-Sep 2022	Jul-Sep 2021	Jan-Sep 2022	Jan-Sep 2021	Jan-Dec 2021
Profit/loss before tax	-66.7	13.3	-110.5	-6.4	-1.0
Adjustment for non-cash items	2.6	29.8	20.5	78.6	122.3
Income tax paid	9.4	0.8	-18.7	0.1	-2.3
Change in inventory	-94.1	-10.9	-188.2	-30.9	-38.9
Change in current receivables	23.8	-59.7	208.3	-5.3	-107.2
Change in current liabilities	13.4	-18.8	-141.6	5.0	51.4
Cash flow from operating activities	-111.6	-45.5	-230.2	41.1	24.3
Cash flow from investing activities	-28.1	-26.0	-76.3	-67.3	-91.0
Cash flow from financing activities	-2.3	-3.6	-9.4	-236.4	58.4
Change in cash and cash equivalents	-142.0	-75.1	-315.9	-262.6	-8.3
Cash and cash equivalents on the opening date	212.8	193.1	374.3	377.0	377.0
Effect of exchange rate changes on cash	0.6	2.7	13.0	6.3	5.6
Closing cash and cash equivalents	71.4	120.7	71.4	120.7	374.3

The Group's operating segments

	Jul-Sep	Jul-Sep		Jan-Sep	Jan-Sep		Jan-Dec
SEK M	2022	2021	Change, %	2022	2021	Change, %	2021
Revenue
Mobile & PC	124.9	304.5	-59	616.6	890.6	-31	1,174.1
Payment & Access *	18.3	49.8	-63	54.9	108.6	-49	181.7
Group	143.2	354.3	-60	671.5	999.2	-33	1,355.8

	Jul-Sep	Jul-Sep		Jan-Sep	Jan-Sep		Jan-Dec
SEK M	2022	2021	Change, %	2022	2021	Change, %	2021
Operating profit/loss
Mobile & PC	-31.5	28.4	-211.2	-12.3	66.7	-118.5	78.1
Payment & Access *	-25.4	-17.2	47.4	-81.4	-77.4	5.1	-84.3
Other	-2.9	-0.4	-	-10.0	-0.8	-	-1.4
Group	-59.8	10.8		-103.7	-11.5		-7.6

	Jul-Sep	Jul-Sep		Jan-Sep	Jan-Sep		Jan-Dec
SEK M	2022	2021	Change, %	2022	2021	Change, %	2021
Profit/loss before tax
Mobile & PC	-31.5	28.4	-211.1	-12.3	66.7	-118.5	78.1
Payment & Access *	-25.4	-17.3	47	-81.4	-77.4	5	-84.5
Other	-9.8	2.2	-	-16.8	4.3	-	5.4
Group	-66.7	13.3		-110.5	-6.4		-1.0

* Revenue within Access in China was included in the operating segment Payment & Access for 2021 but is included in the operating segment Mobile & PC starting in 2022 (see page 5).

Sales per geographic region

SEK M	Jul-Sep 2022	Jul-Sep 2021	Change, %	Jan-Sep 2022	Jan-Sep 2021	Change, %	Jan-Dec 2021
Revenue
Asia	135.9	260.3	-48	625.4	263.1	138	613.5
Europe	6.7	93.6	-93	44.8	735.0	-94	740.7
North America	0.5	0.4	25	1.4	1.2	18	1.6
Group	143.2	354.3	-60	671.5	999.2	-33	1,355.8

Consolidated statement of income and other comprehensive income for the past nine quarters

SEK M	Jul-Sep 2022	Apr-Jun 2022	Jan-Mar 2022	Oct-Dec 2021	Jul-Sep 2021	Apr-Jun 2021	Jan-Mar 2021	Oct-Dec 2020	Jul-Sep 2020
Revenue	143.2	228.1	300.2	356.6	354.3	290.2	354.7	369.4	294.0
Cost of goods sold	-125.7	-157.2	-239.0	-243.5	-253.1	-209.8	-252.5	-282.0	-240.8
Gross profit	17.5	70.9	61.2	113.1	101.2	80.4	102.2	87.4	53.2
Gross margin, %	12.2	31.1	20.4	31.7	28.6	27.7	28.8	23.7	18.1
Selling costs	-35.4	-35.5	-37.8	-41.5	-41.8	-40.8	-35.7	-35.9	-28.9
Administrative costs	-32.0	-36.0	-30.9	-28.0	-24.4	-28.8	-20.9	-27.1	-18.0
Development costs	-25.7	-33.3	-27.2	-38.0	-23.2	-37.3	-39.7	-16.3	-12.1
Other operating income/expenses	15.8	21.7	3.0	-1.7	-1.0	2.5	-4.2	-334.9	1.2
Operating profit/loss	-59.8	-12.2	-31.7	3.9	10.8	-24.0	1.7	-326.8	-4.6
Operating margin, %	-41.8	-5.4	-10.6	1.1	3.0	-8.3	0.5	-88.5	-1.6
Finance income/expenses	-6.9	2.4	-2.3	1.5	2.5	-7.9	10.5	-11.7	-6.3
Profit/loss before tax	-66.7	-9.8	-34.0	5.4	13.3	-31.9	12.2	-338.5	-10.9
Income tax	15.7	0.3	7.9	-0.1	-1.0	6.9	-4.7	25.2	9.2
Profit/loss for the period	-51.0	-9.5	-26.1	5.3	12.3	-25.0	7.5	-313.3	-1.7
Other comprehensive income	74.3	70.1	21.2	22.6	21.6	-17.4	42.8	-56.5	-32.3
Total comprehensive income for the
period	23.3	60.6	-4.9	27.9	33.9	-42.4	50.3	-369.8	-34.0

	30-Sep 2022	30-Jun 2022	31-Mar 2022	31-Dec 2021	30-Sep 2021	30-Jun 2021	31-Mar 2021	31-Dec 2020	30-Sep 2020
SEK/USD exchange rate, balance date	11.20	10.21	9.31	9.05	8.78	8.51	8.73	8.18	9.03
Assets
Intangible fixed assets	1,021.6	938.7	868.2	838.5	812.8	784.0	812.0	759.3	1,138.6
Tangible fixed assets	5.0	5.6	5.9	6.5	6.1	6.7	7.2	7.0	9.2
Right-of-use assets	15.2	18.6	21.4	24.2	18.7	22.5	23.8	24.8	19.2
Financial fixed assets	81.0	65.7	61.2	53.6	50.9	47.8	41.6	46.8	24.3
Total fixed assets	1,122.8	1,028.6	956.7	922.8	888.5	861.0	884.6	837.9	1,191.3
Inventories	412.4	281.3	175.6	159.3	161.1	154.7	116.0	136.3	174.2
Accounts receivable	133.2	128.4	261.5	280.0	203.9	141.5	245.7	196.2	166.4
Other receivables	37.2	64.6	72.5	51.3	18.4	15.9	15.3	15.4	17.4
Prepaid expenses and accrued income	11.3	12.3	14.2	11.3	13.9	11.4	13.6	12.2	9.6
Cash and cash equivalents	71.4	212.8	255.1	374.3	120.7	193.1	313.6	377.0	452.8
Total current assets	665.5	699.4	778.9	876.2	518.0	516.6	704.2	737.2	820.4
Total assets	1,788.3	1,728.0	1,735.6	1,799.0	1,406.5	1,377.6	1,588.8	1,575.1	2,011.7
Shareholders' equity and liabilities
Shareholders' equity	1,106.2	1,082.9	1,022.3	1,027.2	999.3	965.4	1,147.8	1,182.9	1,624.4
Deferred tax liability	15.6	15.8	16.4	16.6	19.5	18.4	20.9	20.6	26.0
Long-term liabilities	298.6	300.0	302.9	304.2	7.0	8.2	8.9	9.8	4.8
Short-term debt of long-term liabilities	9.6	9.3	10.3	11.3	9.9	12.1	12.6	12.8	11.5
Accounts payable	190.4	158.8	158.4	221.8	195.0	204.9	215.0	200.7	192.0
Current tax liabilities	8.0	12.7	6.2	14.0	7.1	1.9	2.0	2.0	1.6
Other current liabilities	18.5	12.7	45.5	35.5	13.9	22.7	14.2	14.9	15.8
Accrued expenses and prepaid income	141.4	135.8	173.6	168.4	154.8	144.0	167.4	131.3	135.6
Total current liabilities	367.9	329.3	394.0	451.0	380.7	385.6	411.2	361.8	356.5
Total shareholders' equity and liabilities	1,788.3	1,728.0	1,735.6	1,799.0	1,406.5	1,377.6	1,588.8	1,575.1	2,011.7

Consolidated statement of financial position for the past nine quarters

Consolidated cash-flow statement for the past nine quarters

	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep
SEK M	2022	2022	2022	2021	2021	2021	2021	2020	2020
Profit/loss before tax	-66.7	-9.8	-34.0	5.4	13.3	-31.9	12.2	-338.5	-10.9
Adjustment for non-cash items	2.6	6.5	11.4	43.7	29.8	36.0	12.8	368.6	33.4
Income tax paid	9.4	-17.2	-10.9	-2.4	0.8	-1.8	1.1	2.5	0.0
Change in inventory	-94.1	-90.7	-3.4	-8.0	-10.9	-36.8	16.9	33.1	7.5
Change in current receivables	23.8	175.6	8.8	-101.9	-59.7	106.6	-52.2	-33.5	-5.8
Change in current liabilities	13.4	-92.7	-62.2	46.4	-18.8	-21.8	45.5	14.7	43.5
Cash flow fr. operating activities	-111.6	-28.3	-90.3	-16.8	-45.5	50.3	36.3	46.9	67.7
Cash flow from investing activities	-28.1	-20.1	-28.1	-23.7	-26.0	-18.6	-22.7	-33.1	-32.6
Cash flow from financing activities	-2.3	-3.7	-3.3	294.8	-3.6	-143.7	-89.1	-76.3	-4.4
Change in cash and cash equiv.	-142.0	-52.1	-121.7	254.3	-75.1	-112.0	-75.5	-62.5	30.7
Cash and cash equiv. on the opening date	212.8	255.1	374.3	120.7	193.1	313.6	377.0	452.8	429.0
Effect of exchange rate changes on cash	0.6	9.8	2.5	-0.7	2.7	-8.5	12.1	-13.3	-6.9
Closing cash and cash equivalents	71.4	212.8	255.1	374.3	120.7	193.1	313.6	377.0	452.8

Condensed income statement, Parent Company

SEK M	Jul-Sep 2022	Jul-Sep 2021	Jan-Sep 2022	Jan-Sep 2021	Jan-Dec 2021
Revenues	46.5	330.1	177.1	977.8	1,144.7
Cost of goods sold	-15.0	-276.7	-48.5	-723.8	-750.4
Gross profit	31.5	53.4	128.6	254.0	394.3
Selling expenses	-11.6	-8.8	-27.0	-89.8	-112.1
Administrative expenses	-18.9	-36.6	-72.3	-79.4	-105.1
Development expenditure	-34.2	-18.6	-111.4	-105.7	-215.0
Other operating revenues/expenses	7.0	-2.2	21.7	-4.1	-5.3
Operating profit/loss	-26.2	-12.9	-60.4	-25.0	-43.2
	12.8	6.6	25.0	12.7	19.3
Finance revenues/expenses	-8.7	0.0	-24.9	0.0	-0.8
Profit/loss after financial items	-22.1	-6.3	-60.4	-12.3	-24.7
Group contribution	0.0	0.0	0.0	0.0	6.5
Profit/loss before tax	-22.1	-6.3	-60.4	-12.3	-18.2
Tax	6.9	1.2	14.8	1.6	3.1
Profit/loss for the period ***	-15.2	-5.1	-45.6	-10.7	-15.1

*** Profit/loss for the period is the same as Total Profit/loss

Condensed balance sheet, Parent Company

	30-Sep	30-Sep	31-Dec
SEK M	2022	2021	2021
Assets
Intangible fixed assets	2.1	68.9	87.6
Tangible fixed assets	2.9	3.7	3.8
Financial fixed assets	131.8	132.0	135.5
Total fixed assets	136.8	204.6	226.9
Inventories	17.8	7.9	8.5
Accounts receivable	14.3	113.6	160.7
Current receivables	593.1	187.8	177.6
Cash and cash equivalents	9.1	47.7	279.9
Total current assets	634.3	357.0	626.7
Total assets	771.1	561.6	853.6
Shareholders' equity and liabilities
Shareholders' equity	294.6	345.2	340.9
Bond loan	293.2	-	292.6
Long-term liabilities	293.2	-	292.6
Accounts payable	23.9	53.0	74.7
Tax liabilities	0.0	0.0	3.7
Other current liabilities	159.4	163.4	141.7
Total current liabilities	183.3	216.4	220.1
Total shareholders' equity and liabilities	771.1	561.6	853.6

Key consolidated data

	Jul-Sep 2022	Jul-Sep 2021	Jan-Sep 2022	Jan-Sep 2021	Jan-Dec 2021
Revenue, SEK M	143.2	354.3	671.5	999.2	1,355.8
Revenue change, %	-59.6	20.5	-32.8	12.7	8.0
Gross margin, %	12.2	28.6	22.3	28.4	29.3
Operating margin, %	-41.8	3.0	-15.4	-1.2	-0.6
Profit margin, %	-35.6	3.5	-12.9	-0.5	0.0
EBITDA, SEK M	-38.1	32.3	-41.7	58.9	85.6
Return on equity, %	-4.7	1.3	-8.1	-0.5	0.0
Cash flow from operating activities, SEK M	-111.6	-45.5	-230.2	41.1	24.3
Equity/assets ratio, %	61.9	71.1	61.9	71.1	57.1
Investments, SEK M	-28.1	-26.0	-76.3	-67.3	-91.0
Depreciations, SEK M	21.7	21.6	62.0	70.4	93.3
Average number of employees	233	252	246	245	250
Shareholders' equity per share before and after dilution, SEK	3.76	3.40	3.76	3.40	3.49
Cash flow from operating activities/share before and after dilution, SEK	-0.38	-0.15	-0.78	0.14	0.08
Number of shares at period end, 000s	294,200	294,200	294,200	294,200	294,200
Average number of shares before and after dilution, 000s	294,200	294,200	294,200	296,678	295,351
Share price at period end	5.63	24.31	5.63	24.31	20.68

Key consolidated figures for the past nine quarters

	Jul-Sep 2022	Apr-Jun 2022	Jan-Mar 2022	Oct-Dec 2021	Jul-Sep 2021	Apr-Jun 2021	Jan-Mar 2021	Oct-Dec 2020	Jul-Sep 2020
Revenue, SEK M	143.2	228.1	300.2	356.6	354.3	290.2	354.7	369.4	294.0
Revenue change, %	-59.6	-21.4	-15.4	-3.5	20.5	2.8	14.4	-3.2	-16.6
Gross margin, %	12.2	31.1	20.4	31.7	28.6	27.7	28.8	23.7	18.1
Operating margin, %	-41.8	-5.4	-10.6	1.1	3.0	-8.3	0.5	-88.5	-1.6
Profit margin, %	-35.6	-4.2	-8.7	1.5	3.5	-8.6	2.1	-84.8	-0.6
EBITDA, SEK M	-38.1	6.5	-10.1	26.7	32.3	9.4	17.2	32.4	8.7
Return on equity, %	-4.7	-0.9	-2.5	0.5	1.3	-4.0	4.3	-26.0	-2.1
Cash flow from operating activities, SEK M	-111.6	-28.3	-90.3	-16.8	-45.5	50.3	36.3	46.9	67.7
Equity/assets ratio, %	61.9	62.7	58.9	57.1	71.1	70.1	72.2	75.1	80.7
Investments, SEK M	-28.1	-20.1	-28.1	-23.7	-26.0	-18.6	-22.7	-33.1	-32.6
Depreciations, SEK M	21.7	18.7	21.6	22.8	21.6	33.5	15.5	359.2	13.3
Average number of employees	233	250	255	255	252	246	236	237	234
Shareholders' equity per share, SEK	3.76	3.68	3.47	3.49	3.40	3.28	3.85	3.92	5.31
Cash flow from operating activities, SEK	-0.38	-0.10	-0.31	-0.06	-0.15	0.17	0.12	0.15	0.22
Number of shares at period end, 000s	294,200	294,200	294,200	294,200	294,200	294,200	298,000	301,544	306,000
Average number of shares before and after dilution, 000s	294,200	294,200	294,200	294,200	294,200	295,754	299,935	305,737	306,000
Share price at period end, SEK	5.63	8.94	14.87	20.68	24.31	32.66	29.15	17.41	17.88

Rolling 12-month key figures for the Group for the past nine quarters

	Oct-Sep 2021-22	Jul-Jun 2021-22	Apr-Mar 2021-22	Jan-Dec 2021	Oct-Sep 2020/21	Jul-Jun 2020/21	Apr-Mar 2020/21	Jan-Dec 2020	Okt-Sep 2019/20
Revenues, SEK M	1,028.0	1,239.2	1,301.3	1,355.8	1,368.6	1,308.2	1,300.4	1,255.7	1,267.7
Gross profit, SEK M	262.7	346.5	355.9	396.9	371.1	323.1	303.4	275.2	275.9
Gross margin, %	25.6	28.0	27.4	29.3	27.1	24.7	23.3	21.9	21.8
Operating profit/loss, SEK M	-99.8	-29.2	-41.0	-7.6	-338.5	-353.9	-346.5	-365.8	-54.3
Operating margin, %	-9.7	-2.4	-3.2	-0.6	-24.7	-27.1	-26.6	-29.1	-4.3
EBITDA, SEK M	-14.9	55.3	58.4	85.6	91.4	67.8	65.0	59.4	40.3

About Fingerprint Cards

Fingerprint Cards AB, Fingerprints, with its Swedish roots, is the leading global biometric company, whose mission is to spearhead the development of biometric interaction that facilitates the convenience and integrity of the individual. Its value is proven daily in millions of devices, through billions of touches, which are their own key — quite simply, with a human touch. Since the start, Fingerprints has supplied more than a billion sensors.

Fingerprints develops biometric systems comprising sensors, algorithms, software and packaging technologies. Its success is based on product development at the cutting edge of technology, which results in world-leading products in terms of security, convenience and performance. The current product range consists largely of fingerprint sensors and customers are primarily manufacturers of smartphones and tablets, where the company is market leading. As the use of biometric solutions increases, Fingerprints is working to broaden its offering by using different biometric techniques, or modalities, and to identify other market segments where the solutions can be used, such as smartcards, PCs, automotive and online devices (IoT).

Vision

A secure and seamless universe, where you are the key to everything.

Mission

To provide secure and convenient identification and authentication with a human touch.

Business concept

Fingerprints develops and sells biometric solutions to companies globally that develop products and services interfacing with people.

Glossary

Refer to the company's website: www.fingerprints.com

Definitions

Most of these key figures are Alternative Performance Measures according to ESMA's definition. How these key figures are used is described below, as is how they are calculated. The alternative performance measures are used to provide a more comprehensive description of how the operational activities are developing, such as gross margin, gross profit, operating margin, EBITDA and revenue increase, while other alternative performance measures focus on the owner perspective, such as return on equity, and cases where certain balance-sheet items or cash flow items are placed in relation to the number of shares. In addition, the equity/assets ratio is provided to describe the financial position and long-term financial sustainability.

Number of shares outstanding at period end Number of shares less bought back shares held in treasury.

Return on equity	Profit for the period in relation to average equity during the period. Average equity is defined as shareholders' equity at the start of the period plus shareholders' equity at the end of the period divided by two.
Gross margin	Gross profit as a percentage of revenues.
Gross profit	Revenues less cost of goods sold.
EBITDA	Earnings before interest, taxes, depreciation and amortization. Operating profit before interest rates, taxes, depreciation/amortization and impairment losses.
Shareholders' equity per share	Shareholders' equity attributable to the Parent Company's shareholders divided by the number of shares outstanding before dilution at period-end.
Shareholders' equity per share after dilution	Shareholders' equity per share adjusted for the number of shares and the paid exercise price resulting from the ongoing remuneration and personnel programs.
Average number of shares after dilution	Average number of shares plus an increase by the average number of shares that could be issued as a result of current remuneration and personnel programs.
Average number of shares outstanding	The Parent Company's average weighted number of shares outstanding at the end of the period.
Revenue increase	This shows the increase in revenues compared with the corresponding year earlier period shown as a percentage.
Cash flow from operating activities/share	Cash flow from operating activities after changes in working capital/average
	number of shares before and after dilution.
Cost of goods sold	Cost of materials, production expenses and amortization according to plan of capitalized development expenditure.
Net cash	Cash and cash equivalents less interest-bearing debt, including lease liabilities.
Profit for the period	Profit after financial income/expenses and tax.
Earnings per share	Profit for the period/number of shares outstanding at period end.
Earnings per share after dilution	Earnings per share adjusted for the number of shares and the paid strike price pursuant to ongoing compensation and personnel programs. Earnings per share after dilution can never be better than earnings per share before dilution.

Operating profit Operating profit before financial income/expenses and tax. Equity/assets ratio Shareholders' equity divided by total assets. Profit margin Profit for the period as a percentage of revenues.