Fingerprint Cards Investor Update Extending the leadership position in 2016 Disclaimer slide

FORWARD‐LOOKING STATEMENTS This presentation contains forward‐looking statements with words such as “believes”, “anticipates”, “outlook”, “confident”, “meeting” and “expects” about expected revenues and earnings, anticipated demand for fingerprint sensors and internal estimates. These forward‐looking statements involve a number of unknown risks, uncertainties and other factors that could cause actual results to differ materially. Unknown risks, uncertainties and other factors are discussed in the “risk report‟ section of Fingerprint Cards’ Annual Report 2014 and in the Interim Reports. Extending the leadership position in 2016

• A global technology and market leader − Jörgen Lantto, President and CEO

• The market leader in fingerprint sensors − Thomas Rex, EVP Sales and Marketing • Strong know‐how and leading technology − Pontus Jägemalm, SVP Research and Development

• Questions and Answers • Coffee break

• Executing on growth − Johan Wilsby, CFO −Jörgen Lantto, CEO

• Questions and Answers A global technology and market leader Jörgen Lantto, President and CEO A global technology and market leader

• The world’s no 1 fingerprint sensor supplier* • Extensive experience in fingerprint sensor technology • A highly scalable business model • Strongly exposed to the rapidly growing market for integrated fingerprint sensors in and other devices

* Cowen analysis Nov 16, 2015 2015 – a year of strong growth

• FPC revenue growth >1000% • A major market inflection point early 2015 • 24 OEMs launched 53 smartphones/tablets with FPC – compared to 2 phones in 2014

Source: 2012‐2014 Annual reports, FPC New segments to expand the market

• Strong market growth in fingerprint sensors • Other segments start to contribute in 2016 • Other segments to add substantial value in 2017 and 2018

Total addressable market excludes Apple, includes all other OEMs and segments including swipe technology FPC continues to take market share 2016 guidance (e)

• Estimated FPC revenues in 2016: 6,5 – 8,5 BSEK • Operating margin in 2016 estimated to exceed H2 2015 operating margin • Market growth estimated to increase in value terms by some 105% in 2016 − FPC to take market share

• Growth drivers: − Fingerprint sensor penetration in smartphones estimated to increase to >50%* − New use cases, secure mobile payment

* Includes Apple volumes The market leader in fingerprint sensors

Thomas Rex, MSc EVP, Sales and Marketing Market leader in China

Source: FPC A global market leader

* Source: Strategy Analytics, July 2015, FPC Market leader in North America

Smartphones/tablets with FPC touch fingerprint sensor launched

2 : Android 6.0 partner (, ) 1 (Surface 4 Pro) 1 BLU (Pure XL) 1 Nextbit (Robin) FPC’s value chain

Distributor Module house OEM/ODM ‐ Design support ‐SW delivery/customization ‐ HW customization ‐Integration support ‐Maintenance

Software customization and integration. 3‐9 months

HW design/customization support. Shipment of wafers or packaged sensors (LGA, Land Grid Array) O‐film

CrucialTec WPI

FPC Shipment of sensors

Warehousing Packaging and Industrial Design, and Logistics module integration, tuning and manufacturing end‐user experience Volume and revenue ramp up

Pre‐sales/ Launch support High volume Integration

Phone Launch

Quarterly Revenue First Shipments (schematic)

First order/ Samples Design Win Project start

3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016

Schematic illustration Quarterly revenue ramp up

# of Smartphones launched (accumulated)

80 70 60 50 40

Revenue generated by launches in 2016

Revenue generated by launches in 2015

3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016

Schematic illustration Strong revenue growth to continue (e)

• A clear market leader for touch fingerprint sensors − 53 smartphones/tablets launched with FPC in 2015 • A strong market position in China − Customers include 9 out of 10 top handset players • A highly scalable business model Strong know‐how and leading technology

Pontus Jägemalm, PhD SVP Research and Development Technology leadership

• Technology leadership and full system capability • Unique and extensive experience in touch fingerprint sensor technology • Broad IP portfolio • High competence and educational level, ~30% PhDs

ASICS Packaging Algorithms System and SW Superior 3D image quality and biometric performance

• 18 years of experience in touch fingerprint sensors results in leading image quality

• The combination of 3D image quality and world class algorithm enables state of the art performance State of the art biometric performance

FRR False Acceptance Rate (FAR) – Security level 100% False Rejection Rate (FRR) –Convenience level State‐of‐the‐art performance: – FAR 1/50 000 Algorithm B – FRR < 2% 10% – Algorithm learns with usage

2% Algorithm A

1/100k 1/50k 1/1000 FAR FPC capacitive measurement

• An active method which provides the best image quality • Direct measurement against the finger delivers superior signal • Patented design based on vast know‐how, delivers best in class signal‐to‐noise ratio

Protective Sensing coating pixel Silicon sensor design

• The pixel array size is designed in analog CMOS circuitry, and its size is driven from finger area needed • The area of the pixel array is the main part of the silicon Microelectronic packaging

Microelectronic packaging – critical for performance

Industrial Design Product Integration Component Reliability

Shape and thickness Enable sensor functionality ESD protection Customized colors, gloss Electrical interface Mechanical robustness Surface material, glass Mechanical interface Thermal resistance Bezel around sensor Waterproofness Chemical protection Platforms and

• The FPC algorithm and SW runs in the application processor of the phone • Trusted Execution Environment (TEE) is used to safeguard the user’s private information • FPC supports all relevant platforms • Very competitive latency and memory consumption R&D conclusions and recap

• Unique and extensive experience in touch fingerprint technology • Strong team with full system capability • Leading image quality combined with best‐in‐class algorithms delivers the best performing fingerprint systems Executing on growth Johan Wilsby, CFO Jörgen Lantto, CEO Strong growth in 2015

Source: FPC Securing operating leverage

• Gross margin trend − Product mix dependency − Long term GM around 40‐45% • Expansion of FPC organization − Research & Development − Customer presence − New business opportunities − Support functions • P&L items to note in 2016 − R&D capitalization − Tax position

• Guidance: improved operating margin in 2016 compared to H2 2015 FX and Cash allocation

• FX dependencies − USD based business − No hedging policy − SEK/USD 8,50 assumption for 2016

• Working capital trend in 2016

• Cash allocation − Organic investments in technology and in new growth markets − M&A opportunities − Cash distribution Executing on growth in 2016

• Execute on growth plans • Secure operating leverage • Invest in future growth − Extend FPC technology leadership − Execute on business development opportunities − Continue to build the company’s support functions • Long term financial targets to be established in 2016 Strategy for growth

Other segments ‐ Automotive ‐ Industrial and medical ‐ Internet of things New Add new segments Evaluate and Explore Smart Cards ‐ Sensor adaptation ‐ Utilize scale advantages ‐ Strong growth Potential Segments

Extended biometry scope −Trackpad Grow with the existing − Higher security − More features Existing Maximizecustomer base Invest and innovate

Add new customers New offerings − Other sensors − M&A opportunities

Existing New Offering Strategy for growth

Other segments ‐ Automotive ‐ Industrial and medical ‐ Internet of things New Smart Cards ‐ Sensor adaptation ‐ Utilize scale advantages ‐ Strong growth Potential Segments

Extended biometry scope −Trackpad Grow with the existing − Higher security − More features Existing customer base

Add new customers New offerings − Other sensors − M&A opportunities

Existing New Offering Smart card opportunity

Smart card chip

Biometric sensor Strong growth to continue in 2016

• FPC – a global leader in fingerprint sensors − A leading product and patent portfolio − Market leading customers − A leading partner for ecosystem development − A leading team • Profitable growth funds R&D investments in new technologies and new segments • A highly scalable business model enables strong revenue growth and cash generation Q&A Fingerprint Cards Investor Update

Thank You 55 FPC touch fingerprint phones launched Today’s speakers

Jörgen Lantto Johan Wilsby President and CEO since 2015, Executive VP CTO, since 2013. CFO since 2015. Born: 1966. Born: 1963, Education: Technical college engineer. Education: Graduate in Business Administration, Stockholm school of economics

Thomas Rex Pontus Jägemalm Executive VP Sales and Marketing, since 2011. Senior VP Research & Development since 2009. Born: 1963, Education: MSc Electronics Engineering, Born: 1971, Education: Master’s degree in and PhD in Engineering Physics, Lund Institute of Engineering. Chalmers University of Technology, Gothenburg.