NEXT Biometrics Group ASA

Investor Presentation • Feb 19, 2025

Q4 Presentation

F e b r u a r y 1 9 , 2 0 2 5

N E X T B I O M E T R I C S G R O U P A S A

Disclaimer

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.

Today's speakers

Ulf Ritsvall

CEO, NEXT Biometrics

Eirik Underthun

CFO, NEXT Biometrics

Agenda

• 1) 2024 Summary & Q4 Highlights
• 2) Q4 Financials
• 3) Business and market updates
• 4) Outlook
• 5) Q&A

2024 summary

A year of transformation and growth

109% revenue growth (from NOK 34.4 million to NOK 73.0 million)

Q3 record break-even quarter

Record high adjusted gross margin (55%) for the year

18 new design wins in 2024

Highlights Q4 2024

Strong Order Pipeline

Contracted orders for Q4 exceeding Q3 revenue

Q4 Revenues at NOK 13.3 million (down 7% compared to Q4 2023)

Gross Margin of 61%

(improved from 45% in Q4 2023)

6 new design wins

FAP30 Engineering Samples & FAP MoU (18 MNOK per year)

MoU for Government ID product with higher ASP

Expanding PC product offering

Q4 Financials

Q4 2024 financial summary

• 1) COGS and gross margin adjusted for inventory write-downs
• 2) OPEX and EBITDA excluding share based renumeration, options social security cost, inventory write-downs and sales & marketing incentive fee

NOK million	Q4 2024	Q4 2023
Revenue	13.3	14.3
COGS1)	(5.1)	(7.8)
Gross margin1)	8.1	6.5
Gross margin %1)	61%	45%
Adjusted OPEX2)	(19.9)	(14.8)
EBITDA	(15.3)	(11.0)
Adjusted EBITDA2)	(11.8)	(8.3)

Profit and loss Revenues

– NOK 13.3 m vs. NOK 14.3 m in Q4 2023

Gross margin

– Adjusted Gross margin1) of 61% vs. 45% in Q4 2023

Operating expenses

– Adjusted OPEX of NOK 19.9 m vs. NOK 14.8 m in Q4 2023

EBITDA

– Adjusted EBITDA2) of negative NOK 11.8 m relative to negative NOK 8.3 m in

Q4 2023

Cash and cash flow

– Cash of NOK 62.9 m end of Q4 2024 versus NOK 45.5 m at end of Q3 2024 – Negative operational cash flow due to late payments on receivables and

• high sales in final month of the quarter
• Q4 cash flow from financing of positive NOK 37.7 m

India pause reducing quarterly revenue Strong gross margin

Completed private placement in November 2024

Continued strong gross margin

1) Gross margin adjusted for inventory writedowns

Business and market updates

Short-Term Impact - Long-Term Gain

• Temporary pause in Adhaar business
• Main partner up for final approval, expecting to pass latest early March

Increased Market Opportunity

• Stricter security requirements
• Boosting NEXT's market share

Positive Outlook

• Adhaar program is crucial for India
• Business is expected to resume soon

Revenue Recovery Expected

• Unfulfilled orders to be delivered in Q1, with additional orders to follow

Update L1 Aadhaar

FAP20 – Primary focus

Product Overview & Market Fit

• Competitive edge with low power, slim form factor and competitive price
• Unique value proposition vs. competitors
• Stay ahead with the development of Government ID products higher ASP

Go-to-Market & Sales Strategy

• Strategic Expansion in Government-ID Markets

Pipeline Strength:

• Strengthening presence in India, China and beyond
• Design wins and first shipments to Malaysia and Pakistan
• Q4 Partner MoU agreement NOK 30 m

FAP20 Market size - 5 – 10 M units annually

• Short-term goal: Achieve break-even quarters driven by strong FAP20 sales
• Long-term vision: Establish market leadership with a 20% share, setting the industry benchmark

Leveraging unique technology

NEXT FAP30 product

• Leveraging NEXT Biometrics´ patented Active Thermal® technology
• First engineering samples shipped to customers (Mass Production during 2025)

Further strength

• Strong interest from partners as NEXT can offer sensors at very competitive prices
• FAP30 products are more high-end than FAP20 Not a replacement for FAP20
• Fewer competitors

Opens new market segments

• Addressing market segments with higher security requirements
• Attractive USPs for high-end markets like the Government ID and Healthcare
• Additional geographical spread in African, US and South American market

FAP30 Market size - 1 - 3 M annually

• Short-term goal: Shipment of at least 100k units within 12 18 months
• Long-term vision: Establish market leadership with a 20% share, setting the industry benchmark
• Expecting initial purchase order Q2/Q3 2025, market deployment second half 2025
• Q4 FAP30 MoU agreement Revenue estimated at 18 MNOK per year

Innovation

Large global display company interested in NEXT unique technology

Leveraging NEXT Patented Active Thermal technology innovation, creating a solid long-term roadmap

Validating a licensed model financed solely by global display partners – early R&D initiative NOT requiring additional cash

Targeting demonstrating prototype at Mobile World Congress, 2027

Summary and Outlook 2025

Significant Revenue Growth

• Target 180 200 million NOK revenue for 2025
• Revenue growth triggering change for NEXT press releases

Continue to focus on strong FAP20 sales

• Unique product offering drives competitive advantage
• Achieve break-even quarters driven by strong FAP20 sales

Successful launch of FAP30

• Efficient scaling can lead to strong revenue growth

Focus on cash collection

• Prioritizing accounts receivable to ensure steady cash flow

New Innovation – Strong Industry Interest, and this is just the Beginning…

nextbiometrics.com