Interim report January – September 2021

Highlights

After the end of the quarter, the Board decided to commission Carnegie Investment Bank to evaluate the conditions for supplementing Fingerprints' financing with debt capital in order to further accelerate the company's growth.
Sales increase in constant currency terms of 25 percent. Gross margin improved by 10 percentage points
Dell launched five models with our new biometric PC solution and Microsoft now allows all users to completely get rid of passwords in favor of biometrics.
For the fourth quarter of 2021, Fingerprints expects Group revenues to be in the range of SEK 350-390 million, based on the exchange rate SEK/USD 8.60.

Third quarter of 2021

Revenues amounted to SEK 354.3 M (294.0)
The gross margin was 28.6 percent (18.1)
EBITDA totaled SEK 32.3 M (8.7)
The operating result was SEK 10.8 M (neg: 4.7)
Earnings per share before and after dilution amounted to SEK 0.04 (neg: 0.01)
Cash flow from operating activities was a negative SEK 45.5 M (pos: 67.7)

January – September 2021

Revenues amounted to SEK 999.2 M (886.3)
The gross margin was 28.4 percent (21.2)
EBITDA totaled SEK 58.9 M (26.9)
The operating result was negative SEK 11.5 M (neg: 39.0)
Earnings per share before and after dilution were negative SEK 0.02 (neg: 0.09)
Cash flow from operating activities amounted to SEK 41.1 M (111.2)

SEK M	Jul-Sep 2021	Jul-Sep 2020	Change	Jan-Sep 2021	Jan-Sep 2020	Change	Jan-Dec 2020
Revenue	354.3	294.0	21%	999.2	886.3	13%	1,255.7
Gross profit	101.2	53.2	90%	283.8	187.8	51%	275.2
Gross margin %	28.6	18.1		28.4	21.2		21.9
Operating profit	10.8	-4.7		-11.5	-39.0		-365.8
Operating margin %	3.0	-1.6		-1.2	-4.4		-29.1
EBITDA	32.3	8.7	272%	58.9	26.9	119%	59.4
Profit/loss before tax	13.3	-10.9		-6.4	-42.7		-381.2
Profit/loss for the period	12.3	-1.7		-5.2	-27.5		-340.8
Earnings per share before and after dilution, SEK	0.04	-0.01		-0.02	-0.09		-1.10
Cash and cash equivalents	120.7	452.8	-73%	120.7	452.8	-73%	377.0
Cash flow from operating activities	-45.5	67.7	-167%	41.1	111.2	-63%	158.1
Equity/assets ratio, %	71.1	80.7		71.1	80.7		75.1
Average number of employees	252	234	8%	245	233	5%	232

CEO's comments

It is gratifying that we increased our sales by 25 percent in constant currency terms compared with the corresponding period of the preceding year. At the same time, we improved our gross margin, compared with both the third quarter of 2020 and the preceding quarter. This was partly due to a more favorable product mix in Mobile, and partly because we are also growing in other areas: Access, PC and Payments.

Although we are still affected by the prevailing semiconductor shortage in the world, our access to production capacity continued to improve during the quarter, both among the large semiconductor manufacturers and the module suppliers that are responsible for the integration and packaging of various components into modules that are ready for assembly. We continue to work with our existing semiconductor suppliers to ensure as large volumes as possible from them, while at the same time, we are making a continuous effort to establish collaboration with new producers to increase our access to additional capacity on reasonable terms and conditions. We try, as far as possible, to increase the degree of standardization in our product design to enable a more flexible and cost-efficient production process. We have, as previously communicated, a very positive view of the continued development of the market for biometric solutions. The development of long-term, strategic collaborations at the highest level with key suppliers – both within and beyond Mainland China – is therefore a very high priority.

At the same time as demand for our products remains healthy in the mobile industry, our revenue streams are now being diversified at a higher pace than previously, into areas with attractive margins. Our activities within the Access area are developing favorably, while PC is now emerging as an important new area for Fingerprints. We anticipate favorable growth in the short and long term, partly due to considerably more computers being sold now compared with pre-pandemic volumes, but primarily because the share of computers with fingerprint sensors is expected to grow considerably from today's relatively low levels. Our sales to the PC industry have all the prerequisites to outgrow the Access area in the next 12-18 months and thereby develop into the second largest application area for our products. In September, Microsoft announced that the company now permits users of the company's products to entirely do away with their passwords in favor of biometric authentication and authentication apps. Corporate customers have already been able to use the service for a few months and it is now to become available to everyone. I welcome this development, which corresponds well with Fingerprints' vision: A secure and seamless universe, where you are the key to everything. Fingerprints already has three of the world's five largest PC manufacturers as customers. During the quarter, Dell launched five models that are fitted with our sensors: Latitude 5320, 5420, 5421, 7320 and 7420. I expect that we will be able to announce many more PC models with Fingerprints' sensors in the quarters to come.

The launches of biometric payment cards by BNP Paribas, Europe's largest bank, and Crédit Agricole, number three in Europe, entail that another global mass market for our products is now significantly on the way to being opened up. The response from the bank customers who gained access to a biometric card in conjunction with the initial commercial launches is overwhelmingly positive, and both BNP Paribas and Crédit Agricole are now planning

"Our revenue streams are now being diversified at a higher pace than previously, into areas with attractive margins."

nationwide rollouts in France. France has spearheaded the introduction of this new technology within the payment area and it is interesting to follow the development of French consumers' attitudes to biometric payment cards. Accordingly, during the third quarter, we conducted a questionnaire survey together with Kantar of 1,000 participants from various parts of France. The results confirm the growing interest in and demand for biometric payment cards among consumers from all demographic groups in France. 59 percent of the participants in the study said they wanted a biometric card, which is 8 percentage points higher than the preceding year's result. Among those who knew that biometric cards already exist in the market, a full 70 percent wanted to have such a card. 52 percent of the respondents said that they were prepared to switch banks to gain access to a biometric payment card. In some parts of France, this number was as high as 64 percent. In addition, 55 percent were willing to pay an average of EUR 3.20 per month extra in card fees for a biometric card, an increase of 5 percentage points since last year.

The interest in biometric payment cards is also increasing in other parts of the world. As previously communicated, in June 2021, BBVA Mexico became the first bank in Latin America to announce the launch of biometric payment cards. And now during the third quarter, Jordan Kuwait Bank announced that it will use Thales' cards, with Fingerprints' technology, in the launch of biometric cards to the bank's customers in Jordan. The level of activity is also growing in Asia. During the quarter, we were able to announce two collaborations on that continent. Fingerprints and MoriX Co., Ltd, a leading Tokyo-based electronics company, are collaborating to develop and launch biometric payment cards in Japan. In addition to this, Fingerprints and Seshaasai, a leading card manufacturer in India, signed an agreement to develop, launch, market and sell contactless biometric payment cards in India and the APAC region.

We expect to see more banks launch biometric cards in the near future. Our technology is used in all commercial launches to date in the world and we conduct continuous development work to further enhance our offering in the payment area, not least within the framework of our strategic collaborations with central players in payment card manufacturing. On September 29, we announced that we, together with Infineon, had taken a very significant step forward by enabling biometric authentication to be executed entirely within the secure element on a payment card, with retained performance and higher security. With this solution, there is no longer any need for a separate micro-controller unit (MCU). This milestone, which many in the industry have regarded as impossible to achieve, makes it less expensive and easier for card manufacturers to develop and roll out biometric payment cards on a large scale. To continue driving development forward, we are focusing on scaling up our operations with the right business partners. We have well-established partnerships with several of the world's leading players within payment cards. Together, we have the coverage, size and deep technological expertise to ensure that contactless biometric cards will become the next global mass market for biometrics.

Christian Fredrikson, President and CEO

Revenues and operating profit

Revenues

Consolidated revenues for the third quarter totaled SEK 354.3 M (294.0), up 21 percent compared with the third quarter of 2020 (increase of 25 percent in constant currency terms) and an increase of 22 percent compared with the preceding quarter. The demand for Fingerprints' products remained healthy in the mobile segment, at the same time as our revenue streams are now beginning to diversify into new areas at a higher pace than previously.

Revenues and gross margin, rolling 12 months

Trend in operating profit

Gross profit for the third quarter was SEK 101.2 M (53.2) and the gross margin was 28.6 percent (18.1). A sustained favorable product mix, with a high share of new products, contributed to improving the gross margin during the quarter, while sales to new segments outside the mobile industry grew.

Operating profit for the third quarter was SEK 10.8 M (neg: 4.7) Operating margin was 3.0 percent (neg: 1.6). Operating expenses amounted to SEK 90.4 M (57.8). Development costs of SEK 25.7 M (31.5) were capitalized during the quarter, which corresponds to 52.6 percent of total development costs, compared with 72.2 percent for the corresponding quarter of 2020.

EBITDA for the quarter totaled SEK 32.3 M (8.7).

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

Financial income and expenses

Net financial items amounted to SEK 2.5 M (expense: 6.3). The item pertains primarily to the effect of unrealized changes in exchange rates on currency accounts.

Earnings and earnings per share for the reporting period

Profit for the third quarter of 2021 amounted to SEK 12.3 M (loss: 1.7). Earnings per share for the third quarter were SEK 0.04 (neg: 0.01).

Cash flow and balance sheet

Cash flow

Cash flow from operating activities was a negative SEK 45.5 M (pos: 67.7) The decrease is a result of the higher demand for our products, which led to an increase in accounts receivable and inventories.

Cash flow from investing activities for the third quarter amounted to a negative SEK 26.0 M (neg: 32.6), of which capitalized development expenditure accounted for a negative SEK 24.6 M (neg: 31.5).

Cash flow from financing activities amounted to a negative SEK 3.6 M (neg: 4.4), and pertained to the amortization of lease liabilities in accordance with IFRS 16 recognition of leased premises.

Exchange-rate fluctuations had a positive impact of SEK 2.7 M (neg: 6.9) on cash and cash equivalents during the quarter. Most of the company's cash holdings consist of USD and the exchange-rate fluctuations are largely a result of a strengthening of USD in relation to SEK during the quarter.

Liquidity and shareholders' equity

At September 30, 2021, the Group's disposable cash and cash equivalents totaled SEK 120.7 M (452.8), and the Group's net cash holdings amounted to SEK 103.7 M (436.6) on the same date. Interest-bearing liabilities consist of lease liabilities for office premises amounting to SEK 16.9 M (16.2), reported according to IFRS 16.

At period-end, consolidated shareholders' equity amounted to SEK 999.3 M (1,624.4) and the equity/assets ratio for the Group to 71.1 percent (80.7).

Investments, fixed assets and depreciation/amortization

Investments in intangible fixed assets during the quarter amounted to an expense of SEK 24.6 M (expense: 31.8). Investments in tangible fixed assets for the quarter amounted to an expense of SEK 1.4 M (expense: 0.9). Depreciation/amortization according to plan for the quarter totaled SEK 21.5 M (13.2).

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

Comments on the period January–September 2021

The demand for Fingerprints' products remained healthy during the period, but revenues in the second quarter were negatively impacted by the temporary closure by the Vietnamese authorities of an industrial complex, in which one of Fingerprints' suppliers has production facilities, due to an outbreak of COVID-19. The company assesses that the sales lost in the second quarter will be recouped in the coming quarters. The production capacity among our Vietnamese suppliers was fully restored during the third quarter, while we have secured additional capacity with other suppliers. The lockdown in Vietnam during the second quarter was the only significant direct impact of the COVID-19 pandemic on Fingerprints' operations. The global shortage of semiconductors, which affected Fingerprints' access to production capacity, could be said to be an indirect effect of the COVID-19 pandemic, since the increased digitalization in the world has led to higher demand for chips.

A more favorable product mix, with a higher share of new products, contributed to improving the gross margin during the period. Profitability also benefited from continued effective cost control.

Cash flow from operating activities was positive during the period, but the higher demand for our products led to an increase in accounts receivable and inventories.

At September 30, 2021, the Group's disposable cash and cash equivalents totaled SEK 120.7 M (377.0 at December 31, 2020), and the Group's net cash holdings amounted to SEK 103.7 M (354.4 at December 31, 2020) on the same date. Interest-bearing liabilities consist of lease liabilities for office premises amounting to SEK 16.9 M (22.6 at December 31, 2020), reported according to IFRS 16. In total, the company bought back own shares during the year for SEK 225.4 M at an average price of SEK 30.70 per share. At period-end, consolidated shareholders'

equity amounted to SEK 999.3 M (1,182.9 at December 31, 2020) and the equity/assets ratio for the Group to 71.1 percent (75 percent at December 31, 2020).

Other events during the third quarter of 2021

Business Development

Fingerprints announced that the company's new biometric solution for the PC market is integrated in the power button of the Latitude 5000 and 7000 series of laptop computers from Dell. Five models with Fingerprints' sensors were launched during the quarter: Latitude 5320, 5420, 5421, 7320 and 7420

During the quarter, it was announced that Fingerprints and MoriX Co., Ltd, a leading Tokyo-based electronics company, are collaborating to develop and launch biometric payment cards in Japan. In addition to this, it was announced that Fingerprints and Seshaasai, a leading card manufacturer in India, had signed an agreement to develop, launch, market and sell contactless biometric payment cards in India and the APAC region.

During the quarter, further PC models from Dell with Fingerprints' sensors were launched: Latitude 5320, 5420, 5421, 7320 and 7420

At the beginning of the third quarter, Fingerprints announced a further volume order for approximately 250,000 T-Shape® sensor modules from one of the world's three largest card manufacturers, which indicates that the introduction of biometric payment cards globally is continuing and accelerating.

Fingerprints announced a collaboration with the global distributor, Mouser Electronics. This collaboration will strengthen Fingerprints' position and help the company to expand to new markets and application areas within the Access and IoT areas globally.

ekey, a leading Austrian company within biometric doors, launched a new intelligent door system during the quarter with the name ekey dLine, which integrates a fingerprint sensor from Fingerprints.

Fingerprints announced at the end of the quarter that we, together with Infineon, had taken a very significant step forward by enabling biometric authentication to be executed entirely within the secure element of a payment card, with retained performance and higher security. With this solution, there is no longer any need for a separate micro-controller unit (MCU). This milestone, which many in the industry have regarded as impossible to achieve, makes it less expensive and easier for card manufacturers to develop and roll out biometric payment cards on a large scale.

Significant events in the third quarter of 2021

No significant events were reported during the quarter.

Significant events after the end of the period

After the end of the quarter, the Board decided to commission Carnegie Investment Bank to evaluate the conditions for supplementing our financing with debt capital in order to further accelerate the company's growth.

Revenue forecast for the fourth quarter of 2021

For the fourth quarter of 2021, Fingerprints expects Group revenues to be in the range of SEK 350-390 million, based on the exchange rate SEK/USD 8.60. The Group's sales and direct purchases are primarily made in USD.

As announced earlier, demand for our products is healthy, but we foresee continued challenges related to the prevailing semiconductor shortage in the world. The work to continue broadening our supplier base is extremely important, partly to reduce the risks in our supply chain, as well as to position the company for growth. Accordingly, we have intensified our efforts to secure more suppliers of key components, within as well as outside of mainland China. We are making progress and this work remains a high priority in 2021.

Organization and Personnel

The number of employees at September 30, 2021 was 265 (239). In addition to full-time employees, 49 (36) consultants were also used during the third quarter, primarily in technology development and sales. Accordingly, including employees and consultants, the company employed a total of 314 (275) people on September 30, 2021.

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 CardsAB'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 and which were bought back pursuant to a resolution by the 2020 Annual General Meeting, 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 after the bonus issue remains unchanged and amounts to SEK 12,975,667.

No buyback of own shares occurred during the third quarter of 2021. The shares bought back constitute treasury holdings and have been assigned no value in assets or shareholders' equity.

Buyback of own shares

	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
SEK M	2021	2020	2021	2020	2020
Number of treasury shares (000s)
Number of buyback shares beginning	3,800	7,968	12,424	-	-
Number of buyback shares during period			7,344	7,968	12,424
Number of cancellation of shares during period			-15,968	-	-
Number of buyback shares at end of period	3,800	7,968	3,800	7,968	12,424
Price for buyback shares
Price for buyback shares during period	-	-	225.4	118.7	190.4
Average price buyback shares (SEK)	-	-	30.70	14.90	15.33

Number of shares

	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Jan-Dec 2020
Number of shares, (000s)
Number of shares before and after dilution at period end	298,000	313,968	298,000	313,968	313,968
Of which class A-shares	6,000	6,000	6,000	6,000	6,000
Of which class B-shares	292,000	307,968	292,000	307,968	307,968
Number of buyback shares at end of period	-3,800	-7,968	-3,800	-7,968	-12,424
Number of shares outstanding at period end, before and after dilution	294,200	306,000	294,200	306,000	301,544
Average number of shares outstanding (000s)
Average number of buyback shares	-3,800	-7,968	-11,850	-4,523	-5,139
Average number of shares outstanding, before and after dilution	294,200	306,000	296,678	309,445	308,829

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, 2020 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 2021 have had any significant impact on the Group. The Group's reporting currency is SEK and the report is prepared in SEK M.

The Parent Company's operating expenses are reclassified per function in this interim report compared with the interim report for January-September 2020. Therefore, this report is not directly comparable in this respect to the interim report for January-June 2020.

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 2021 amounted to SEK 330.1 M (293.4), of which the quarter's sales pertain to intra-Group sales to subsidiaries of SEK 236.4 M (0) as part of a change to the legal structure of the Group. After financial items, a loss of SEK 6.3 M (loss: 29.2) was reported for the period. The net result for the period was a loss of SEK 5.1 M (loss: 23.1). The Parent Company's disposable cash and cash equivalents at period-end totaled SEK 47.7 M (413.8).

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.

For further information concerning the risks facing the Group, see the 2020 Annual Report, which is available on our website, www.fingerprints.com.

2022 Annual General Meeting

The Annual General Meeting will be held in Stockholm on May 24, 2022 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, Box 2412, SE-403 16 Gothenburg, not later than seven weeks prior to the Annual General Meeting to guarantee that the business can be included in the convening notice to 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 person set out below, at 07:00 a.m. CEST on October 21, 2021.

Welcome to Fingerprints' presentation of the interim report on the third quarter of 2021 on October 21, at 09:00 a.m. CEST. The presentation will be webcast, and participants can register via the link below.

https://edge.media-server.com/mmc/p/xbb5vbpp

For media and analysts: The teleconference can be accessed on +44 (0) 2071 928000 (international participants) or 08-506 921 80 (Swedish participants). Please enter the conference ID 8383093.

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.

Gothenburg, October 21, 2021

Johan Carlström Chairman Sofia Bertling Member Ted Elvhage Member Tomas Mikaelsson 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, 2021 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 21, 2021

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 15
Condensed consolidated statement of financial position 15
Condensed consolidated cash-flow statement 16
The Group's operating segments 16
Consolidated statement of income and other comprehensive income for the past nine quarters17
Consolidated statement of financial position for the past nine quarters17
Consolidated cash-flow statement for the past nine quarters18
Fair value and carrying amount of financial liabilities and assetsr 18
Condensed income statement, Parent Company19
Condensed balance sheet, Parent Company19
Key consolidated data 20
Key consolidated figures for the past nine quarters20
Rolling 12-month key figures for the Group for the past nine quarters21

Condensed consolidated statement of comprehensive income

SEK M	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Jan-Dec 2020
Revenue	354.3	294.0	999.2	886.3	1,255.7
Cost of goods sold	-253.1	-240.8	-715.4	-698.5	-980.5
Gross profit	101.2	53.2	283.8	187.8	275.2
Gross Margin, %	28.6	18.1	28.4	21.2	21.9
Selling expenses	-41.8	-28.9	-118.3	-94.5	-130.4
Administrative expenses	-24.4	-18.0	-74.1	-57.4	-84.4
Development expenditure	-23.2	-12.1	-100.2	-78.1	-94.5
Other operating income/expenses	-1.0	1.2	-2.7	3.2	-331.7
Operating profit/loss	10.8	-4.7	-11.5	-39.0	-365.8
Operating Margin, %	3.0	-1.6	-1.2	-4.4	-29.1
Finance income/expenses	2.5	-6.3	5.1	-3.7	-15.4
Profit/loss before tax	13.3	-10.9	-6.4	-42.7	-381.2
Income tax	-1.0	9.2	1.2	15.2	40.4
Profit/loss for the period	12.3	-1.7	-5.2	-27.5	-340.8
Other comprehensive income	21.6	-32.3	47.0	-28.3	-84.8
Total comprehensive income for the period	33.9	-34.0	41.8	-55.8	-425.6
Earnings per share for the period before and after dilutions, SEK	0.04	-0.01	-0.02	-0.09	-1.10

Condensed consolidated statement of financial position

SEK M	30-Sep 2021	30-Sep 2020	31-Dec 2020
Assets
Intangible fixed assets	812.8	1,138.6	759.3
Tangible fixed assets	6.1	9.2	7.0
Right-of-use assets	18.7	19.2	24.8
Financial assets	50.9	24.3	46.8
Total fixed assets	888.5	1,191.3	837.9
Inventories	161.1	174.2	136.3
Accounts receivable	203.9	166.4	196.2
Other receivables	18.4	17.4	15.5
Prepaid expenses and accrued income	13.9	9.6	12.2
Cash and cash equivalents	120.7	452.8	377.0
Total current assets	518.0	820.4	737.2
Total assets	1,406.5	2,011.7	1,575.1
Shareholders' equity and liabilities
Shareholders' equity	999.3	1,624.4	1,182.9
Deferred tax liability	19.5	26.0	20.6
Long-term lease liabilities	7.0	4.8	9.8
Short-term debt of long term lease liabilities	9.9	11.5	12.8
Accounts payable	195.0	192.0	200.7
Current tax liabilities	7.1	1.6	2.0
Other current liabilities	13.9	15.8	15.0
Accrued expenses and prepaid income	154.8	135.6	131.3
Total current liabilities	380.7	356.5	361.8
Total shareholders' equity and liabilities	1,406.5	2,011.7	1,575.1

Condensed consolidated cash-flow statement

SEK M	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Jan-Dec 2020
Profit/loss before tax	13.3	-10.9	-6.4	-42.7	-381.2
Adjustment for non-cash items	29.8	33.4	78.6	83.2	451.8
Income tax paid	0.8	0.0	0.1	-2.3	0.2
Change in inventory	-10.9	7.5	-30.9	64.0	97.1
Change in current receivables	-59.7	-5.8	-5.3	34.6	1.1
Change in current liabilities	-18.8	43.5	5.0	-25.6	-10.9
Cash flow from operating activities	-45.5	67.7	41.1	111.2	158.1
Cash flow from investing activities	-26.0	-32.6	-67.3	-86.0	-119.1
Cash flow from financing activities	-3.6	-4.4	-236.4	-132.9	-209.2
Change in cash and cash equivalents	-75.1	30.7	-262.6	-107.7	-170.2
Cash and cash equivalents on the opening date	193.1	429.0	377.0	563.9	563.9
Effect of exchange rate changes on cash	2.7	-6.9	6.3	-3.4	-16.7
Closing cash and cash equivalents	120.7	452.8	120.7	452.8	377.0

The Group's operating segments

	Jul-Sep	Jul-Sep		Jan-Sep	Jan-Sep		Jan-Dec
SEK M	2021	2020	Change, %	2021	2020	Change, %	2020
Revenue
Sensors	354.3	294.0	21	999.2	886.3	13	1,255.7
Other	-	-	-	-	-	-	-
Group	354.3	294.0	2 1	999.2	886.3	1 3	1,255.7

	Jul-Sep	Jul-Sep		Jan-Sep	Jan-Sep		Jan-Dec
SEK M	2021	2020	Change, %	2021	2020	Change, %	2020
Operating profit/loss
Sensors	10.8	-4.7	332	-11.5	-39.0	-	-365.8
Other	-	-	-	-	-	-	-
Group	10.8	-4.7	332	-11.5	-39.0	-	-365.8

	Jul-Sep	Jul-Sep		Jan-Sep	Jan-Sep		Jan-Dec
SEK M	2021	2020	Change, %	2021	2020	Change, %	2020
Profit/loss before tax
Sensors	13.3	-10.9	-222	-6.4	-42.7	-	-381.2
Other	-	-	-	-	-	-	-
Group	13.3	-10.9	-222	-6.4	-42.7	-	-381.2

SEK M	Jul-Sep 2021	Apr-Jun 2020	Jan-Mar 2020	Oct-Dec 2019	Jul-Sep 2019	Apr-Jun 2019	Jan-Mar 2019	Oct-Dec 2018	Jul-Sep 2018
Revenue	354.3	290.2	354.7	369.4	294.0	282.3	310.0	381.4	352.5
Cost of goods sold	-253.1	-209.8	-252.5	-282.0	-240.8	-221.6	-236.1	-293.3	-272.4
Gross profit	101.2	80.4	102.2	87.4	53.2	60.7	73.9	88.1	80.1
Gross margin, %	28.6	27.7	28.8	23.7	18.1	21.5	23.8	23.1	22.7
Selling costs	-41.8	-40.8	-35.7	-35.9	-28.9	-30.6	-35.0	-40.3	-34.5
Administrative costs	-24.4	-28.8	-20.9	-27.1	-18.0	-21.0	-18.4	-27.3	-20.1
Development costs	-23.2	-37.3	-39.7	-16.3	-12.1	-28.6	-37.4	-37.8	-23.4
Other operating income/expenses	-1.0	2.5	-4.2	-334.9	1.2	2.8	-0.8	2.0	-5.5
Operating profit/loss	10.8	-24.0	1.7	-326.8	-4.6	-16.7	-17.7	-15.3	-3.4
Operating margin, %	3.0	-8.3	0.5	-88.5	-1.6	-5.9	-5.7	-4.0	-1.0
Finance income/expenses	2.5	-7.9	10.5	-11.7	-6.3	-21.6	24.2	-17.2	17.0
Profit/loss before tax	13.3	-31.9	12.2	-338.5	-10.9	-38.3	6.5	-32.5	13.6
Income tax	-1.0	6.9	-4.7	25.2	9.2	16.0	-10.0	13.9	-7.8
Profit/loss for the period	12.3	-25.0	7.5	-313.3	-1.7	-22.3	-3.5	-18.6	5.8
Other comprehensive income	21.6	-17.4	42.8	-56.5	-32.3	-75.3	79.3	-51.0	55.5
Total comprehensive income for the period
	33.9	-42.4	50.3	-369.8	-34.0	-97.6	75.8	-69.6	61.3

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

Consolidated statement of financial position for the past nine quarters

		30 Jun	31 Mar	31 Dec		30 Jun	31 Mar	31 Dec
	30-Sep 2021	2020	2020	2019	30 Sep 2019	2019	2019	2018	30 Sep 2018
SEK/USD exchange rate, balance date	8.78	8.51	8.73	8.18	9.03	9.35	10.08	9.32	9.80
Assets
Intangible fixed assets	812.8	784.0	812.0	759.3	1,138.6	1,147.7	1,213.9	1,127.8	1,182.7
Tangible fixed assets	6.1	6.7	7.2	7.0	9.2	10.5	13.2	15.8	19.8
Right-of-use assets	18.7	22.5	23.8	24.8	19.2	23.1	28.4	32.9	35.0
Financial fixed assets	50.9	47.8	41.6	46.8	24.3	18.1	4.0	18.3	7.7
Total fixed assets	888.5	861.0	884.6	837.9	1,191.3	1,199.4	1,259.5	1,194.8	1,245.2
Inventories	161.1	154.7	116.0	136.3	174.2	196.9	230.1	253.4	300.3
Accounts receivable	203.9	141.5	245.7	196.2	166.4	159.2	225.9	197.3	187.5
Other receivables	18.4	15.9	15.3	15.4	17.4	15.8	17.9	15.4	23.5
Prepaid expenses and accrued income	13.9	11.4	13.6	12.2	9.6	9.9	11.0	12.3	7.9
Cash and cash equivalents	120.7	193.1	313.6	377.0	452.8	429.0	485.3	563.9	536.7
Total current assets	518.0	516.6	704.2	737.2	820.4	810.8	970.2	1,042.3	1,055.9
Total assets	1,406.5	1,377.6	1,588.8	1,575.1	2,011.7	2,010.2	2,229.7	2,237.1	2,301.1
Shareholders' equity and liabilities
Shareholders' equity	999.3	965.4	1,147.8	1,182.9	1,624.4	1,658.4	1,839.6	1,798.9	1,868.5
Deferred tax liability	19.5	18.4	20.9	20.6	26.0	31.1	36.8	38.6	44.5
Long-term liabilities	7.0	8.2	8.9	9.8	4.8	6.7	9.3	11.8	14.1
Short-term debt of long-term liabilities	9.9	12.1	12.6	12.8	11.5	13.4	16.0	17.9	17.8
Accounts payable	195.0	204.9	215.0	200.7	192.0	148.6	188.9	235.2	231.1
Current tax liabilities	7.1	1.9	2.0	2.0	1.6	0.6	0.7	0.8	1.1
Other current liabilities	13.9	22.7	14.2	14.9	15.8	15.2	12.9	9.8	15.2
Accrued expenses and prepaid income	154.8	144.0	167.4	131.3	135.6	136.2	125.5	124.1	108.8
Total current liabilities	380.7	385.6	411.2	361.8	356.5	314.0	344.0	387.8	374.0
Total shareholders' equity and liabilities	1,406.5	1,377.6	1,588.8	1,575.1	2,011.7	2,010.2	2,229.7	2,237.1	2,301.1

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	2021	2020	2020	2019	2019	2019	2019	2018	2018
Profit/loss before tax	13.3	-31.9	12.2	-338.5	-10.9	-38.3	6.6	-32.5	13.6
Adjustment for non-cash items	29.8	36.0	12.8	368.6	33.4	45.3	4.5	66.8	9.7
Income tax paid	0.8	-1.8	1.1	2.5	0.0	-1.4	-0.9	8.2	-1.5
Change in inventory	-10.9	-36.8	16.9	33.1	7.5	33.2	23.3	41.2	4.4
Change in current receivables	-59.7	106.6	-52.2	-33.5	-5.8	69.5	-29.1	-15.3	41.8
Change in current liabilities	-18.8	-21.8	45.5	14.7	43.5	-27.0	-42.1	14.0	-8.5
Cash flow fr. operating activities	-45.5	50.3	36.3	46.9	67.7	81.3	-37.8	82.4	59.5
Cash flow from investing activities	-26.0	-18.6	-22.7	-33.1	-32.6	-27.4	-26.0	-19.1	-25.6
Cash flow from financing activities	-3.6	-143.7	-89.1	-76.3	-4.4	-88.8	-39.7	-19.7	-
Change in cash and cash equiv.	-75.1	-112.0	-75.5	-62.5	30.7	-34.9	-103.5	43.6	33.9
Cash and cash equiv. on the opening date	193.1	313.6	377.0	452.8	429.0	485.3	563.9	536.7	486.3
Effect of exchange rate changes on cash	2.7	-8.5	12.1	-13.3	-6.9	-21.4	24.9	-16.4	16.5
Closing cash and cash equivalents	120.7	193.1	313.6	377.0	452.8	429.0	485.3	563.9	536.7

Fair value and carrying amount of financial liabilities and assets

	9/30/2021		9/30/2020
SEK M	Carrying amount	Fair amount	Carrying amount	Fair amount
Financial assets
Current financial assets:
Financial assets at amortized cost:
Accounts receivable	203.9	203.9	166.4	166.4
Cash and cash equivalents	120.7	120.7	452.8	452.8
Total financial assets	324.5	324.5	619.2	619.2
Financial liabilities
Long-term financial liabilities:
Long-term lease liabilites	7.0	7.0	4.8	4.8
Current financial liabilities:
Short-term lease liabilities	9.9	9.9	11.5	11.5
Accounts payable	195.0	195.0	192.0	192.0
Total financial liabilities	211.9	211.9	208.2	208.2
By category:
Total financial assets	324.5	324.5	619.2	619.2
Financial liabilities at amortized cost	211.9	211.9	208.2	208.2
Net	112.6	112.6	411.0	411.0

Condensed income statement, Parent Company

	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Jan-Dec 2020
SEK M Revenues	330.1	293.4	977.8	882.9	1,251.7
Cost of goods sold	-276.7	-237.4	-723.8	-674.9	-952.3
Gross profit	53.4	56.0	254.0	208.0	299.4
Selling expenses	-8.8	-29.0	-89.8	-94.6	-129.8
Administrative expenses	-36.6	-23.7	-79.4	-62.7	-93.4
Development expenditure	-18.6	-13.8	-105.7	-78.5	-94.0
Other operating revenues/expenses	-2.2	1.3	-4.1	3.3	-65.3
Operating profit/loss	-12.9	-9.2	-25.0	-24.5	-83.1
Finance revenues/expenses	6.6	-20.0	12.7	-1.5	-971.1
Profit/loss after financial items	-6.3	-29.2	-12.3	-26.0	-1,054.2
Appropriations	0.0	0.0	0.0	0.0	0.0
Profit/loss before tax	-6.3	-29.2	-12.3	-26.0	-1,054.2
Tax	1.2	6.1	1.6	5.9	28.5
Profit/loss for the period	-5.1	-23.1	-10.7	-20.1	-1,025.7

Condensed balance sheet, Parent Company

SEK M	30-Sep 2021	30-Sep 2020	31-Dec 2017
Assets
Intangible fixed assets	68.9	186.6	139.5
Tangible fixed assets	3.7	6.1	4.4
Financial fixed assets	132.0	1,004.0	109.5
Total fixed assets	204.6	1,196.7	253.4
Inventories	7.9	174.2	136.3
Accounts receivable	113.6	165.0	195.2
Current receivables	187.8	74.3	23.9
Cash and cash equivalents	47.7	413.8	337.5
Total current assets	357.0	827.3	692.9
Total assets	561.6	2,024.0	946.3
Shareholders' equity and liabilities
Shareholders' equity	345.2	1,658.8	581.4
Untaxed reserves	-	-	-
Accounts payable	53.0	191.0	199.7
Other current liabilities	163.4	174.2	165.0
Total current liabilities	216.4	365.2	364.9
Total shareholders' equity and liabilities	561.6	2,024.0	946.3

Key consolidated data

	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Jan-Dec 2020
Revenue, SEK M	354.3	294.0	999.2	886.3	1,255.7
Revenue change, %	20.5	-17.0	12.7	-18.0	-14.0
Gross margin, %	28.6	18.1	28.4	21.2	21.9
Operating margin, %	3.0	-1.6	-1.2	-4.4	-29.1
Profit margin, %	3.5	-0.6	-0.5	-3.1	-27.1
EBITDA, SEK M	32.3	8.7	58.9	26.9	59.4
Return on equity, %	1.3	-0.1	-0.5	-1.6	-28.5
Cash flow from operating activities, SEK M	-45.5	67.7	41.1	111.2	158.1
Equity/assets ratio, %	71.1	80.7	71.1	80.7	75.1
Investments, SEK M	-26.0	-32.6	-67.3	-86.0	-119.1
Depreciations, SEK M	21.6	13.3	70.4	65.9	425.1
Average number of employees	252	234	245	233	232
Shareholders' equity per share before and after dilution, SEK	3.40	5.31	3.40	5.31	3.92
Cash flow from operating activities/share before and after dilution, SEK	-0.15	0.22	0.14	0.36	0.51
Number of shares at period end, 000s	294,200	306,000	294,200	306,000	301,544
Average number of shares before and after dilution, 000s	294,200	306,000	296,678	309,445	308,829
Share price at period end	24.31	17.88	24.31	17.88	17.41

Key consolidated figures for the past nine quarters

	Jul-Sep 2021	Apr-Jun 2020	Jan-Mar 2020	Oct-Dec 2019	Jul-Sep 2019	Apr-Jun 2019	Jan-Mar 2019	Oct-Dec 2018	Jul-Sep 2018
Revenue, SEK M	354.3	290.2	354.7	369.4	294.0	282.3	310.0	381.4	352.5
Revenue change, %	20.5	2.8	14.4	-3.2	-16.6	-26.1	-9.6	-10.0	-18.3
Gross margin, %	28.6	27.7	28.8	23.7	18.1	21.5	23.8	22.7	22.7
Operating margin, %	3.0	-8.3	0.5	-88.5	-1.6	-5.9	-5.7	-4.0	-1.0
Profit margin, %	3.5	-8.6	2.1	-84.8	-0.6	-7.9	-1.1	-5.0	1.6
EBITDA, SEK M	32.3	9.4	17.2	32.4	8.7	6.7	11.6	13.3	35.6
Return on equity, %	1.3	-4.0	4.3	-26.0	-2.1	-5.6	4.2	-4.0	3.3
Cash flow from operating activities, SEK M	-45.5	50.3	36.3	46.9	67.7	81.3	-37.8	82.4	59.5
Equity/assets ratio, %	71.1	70.1	72.2	75.1	80.7	82.5	82.5	80.0	81.2
Investments, SEK M	-26.0	-18.6	-22.7	-33.1	-32.6	-27.4	-26.0	-19.1	-25.6
Depreciations, SEK M	21.6	33.5	15.5	359.2	13.3	23.4	29.3	28.6	39.0
Average number of employees	252	246	236	237	234	235	231	220	214
Shareholders' equity per share, SEK	3.40	3.28	3.85	3.92	5.31	5.42	5.92	5.73	5.95
Cash flow from operating activities, SEK	-0.15	0.17	0.12	0.15	0.22	0.26	-0.12	0.26	0.19
Number of shares at period end, 000s	294,200	294,200	298,000	301,544	306,000	306,000	310,640	313,968	313,968
Average number of shares before and after dilution, 000s	294,200	295,754	299,935	305,737	306,000	310,345	313,467	313,968	313,968
Share price at period end, SEK	24.31	32.66	29.15	17.41	17.88	16.91	13.16	18.88	19.96

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

	Oct-Sep 2019/20	Jul-Jun 2019/20	Apr-Mar 2019/20	Jan-Dec 2019	Oct-Sep 2018/19	Jul-Jun 2018/19	Apr-Mar 2018/19	Jan-Dec 2018	Okt-Sep 2017/18
Revenues, SEK M	1,368.6	1,308.2	1,300.4	1,255.7	1,267.7	1,326.2	1,425.7	1,458.6	1,501.5
Gross profit, SEK M	371.1	323.1	303.4	275.1	275.9	302.8	326.3	331.1	331.2
Gross margin, %	27.1	24.7	23.3	21.9	21.8	22.8	22.9	22.7	22.1
Operating profit/loss, SEK M	-338.5	-353.9	-346.5	-365.9	-54.3	-53.1	-30.2	-14.4	-24.6
Operating margin, %	-24.7	-27.1	-26.6	-29.1	-4.3	-4.0	-2.1	-1.0	-2.0
EBITDA, SEK M	91.4	67.8	65.0	59.4	40.3	67.2	104.6	128.7	124.2

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 user-friendly 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 Cash flow from operating activities/share	This shows the increase in revenues compared with the corresponding year earlier period shown as a percentage. 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 finance leasing debts.
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 margin	Operating profit as a percentage of revenues.

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.