NEXT Biometrics Group ASA — Investor Presentation 2021

May 12, 2021

Q1 2021 Presentation

12 May 2021

This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for NEXT Biometrics Group ASA (NEXT Biometrics) and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the NEXT Biometrics businesses, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time.

Although NEXT Biometrics believes that its expectations and the information in this presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this presentation. NEXT Biometrics Group ASA nor any other company within the NEXT Biometrics Group ASA is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the presentation, and neither NEXT Biometrics Group ASA, any other company within the NEXT Biometrics Group ASA nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in this presentation. NEXT Biometrics Group ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in this presentation.

• Q1 Report and summary
• Outlook
• Q&A session

• Revenues in line with budget expectations
• Gross Margin towards target with FAP 20 driving GM upwards
• Quarterly OPEX in line with communicated target
• Strong Balance Sheet through successful Private Placement
• Business fundamentals established, top priority our updated Growth strategy
  • Defined key-products FAP20
  • Defined main customer segments Payment&Fintech, Public Security, Access Control and Office&Notebook
  • How Design-wins with Tech Giant and additional FAP20 customers
• With a strong balance sheet and a slim operation, NEXT focused on defined growth strategy. Main current headwinds are Covid-19 and global supply chain challenges.

Profit and loss Revenue of NOK 14.1 m

Gross margin of 27% vs. 17% in Q1-2020

• Improved product mix

OPEX ex options1) of NOK 14.8 m vs. NOK 37.0 m in Q1-2020

• Cost reduction program completed

EBITDA ex options1) improved by NOK 23 m compared to Q1-2020

Cash position of NOK 130.2 m vs. NOK 54.1 m in Q1 2020

1) OPEX and EBITDA excluding share based renumeration Option and options social security costs of NOK 4.7 m in Q1 2021 largely due to increasing share price

NOK million	Q1 2020	Q1 2021
Revenue	20.5	14.1
COGS	(17.0)	(10.2)
Gross margin	3.4	3.8
Gross margin %	17%	27%
Opex ex options1)	(37.0)	(14.8)
EBITDA ex options1)	(33.6)	(11.0)
Cash position	54.1	130.2

Revenues, OPEX ex options1) and gross margin improving and in line with expectations

• With strong balance sheet, low-cost operations, focus on driving updated growth strategy:
  • What Key product defined
  • Who Key customer Segments defined
  • How Structured focus on Design-wins
    -
• Total number of design-wins now at 16
• Establishing foundation for long-term recurring revenue growth • NEXT's sensors are designed into products with lifecycles of 4- 8 years, implying stickiness and long-lasting customer
• Time from design-win to first sizeable purchase order typically

• Main focus - NEXT updated Growth strategy

• Structured increase of design-wins
• 16 new design-wins since Q4 2019, will contribute to future revenue growth
• Additional design wins expected to be announced during the remaining part of 2021
• FAP20 most important product due to its considerable market potential and higher gross margin
• NEXT Active Thermal sensor technology potential to disrupt large and growing FAP 20 large area sensor market
• Laptop sensors:
  • NEXT is in process for potential design-win with additional laptop manufacturer
  • Increased purchase orders in Q2 from existing PC customers, has grown significantly relative to Q1 2021
    • Limiting factor recognizing all revenue in Q2 is global semiconductor component shortage
    • Working with suppliers to secure additional components
• India fingerprint sensor market Q2 and beyond
  • Recent COVID-19 challenges has delayed tenders and contract awards
  • Aiming for additional design wins in payment and fintech & serving our existing customers
• Quarterly OPEX of NOK 15 m during 2021

NEXT Biometrics Group ASA www.nextbiometrics.com