Making Convenience Safe and Secure

Zwipe Full Year Report 2020 25 February 2021 | André Løvestam, CEO and Lars Kristian Solheim, CFO Zwipe is a biometric fintech company pioneering the next generation contactless payment experience

ISO contact plate module Fingerprint sensor with biometric SE Passive inlay*

Zwipe has the most widely piloted solutions in the biometric payment marketplace

* A passive inlay has no components mounted on it, it only contains an antenna to do the energy harvesting and 2 communication lines to handle the encrypted communication between the sensor and the secure element. Strong operational momentum in 2020 and YTD 2021:

Customers • 9 new customers: card manufacturers with a total 200 million payment cards shipped annually

• Go-to-Market partnerships with TietoEvry, areeba, Inkript and Veritech Partnerships • Engaged with Idex to collaborate on Zwipe Pay ONE, as well as 4 other eco-system partners

Technology • The Zwipe Pay ONE project has passed its most critical milestones and major risk points

• The first two Zwipe Pay ONE pilots announced in the Nordics, with OP Bank in Finland and Vopy in Commercial Sweden piloting Zwipe Pay ONE from Q3 2021

• Zwipe and partners conducted several insights studies from the Nordics, UK and the United States showing Consumer insights strong consumer interest for safer and more secure payments with high willingness to pay

Organization • Significantly strengthened the organization to meet the demand for our solutions

Investor relations • Listed on Nasdaq First North Growth Market in Stockholm • Strong value creation

3 Strong financial development 2020

Revenues • MNOK 1.8 (MNOK 1.5)

OpEx • MNOK 63.7 (MNOK 96.8), reduced 38% with constant currency

EBITDA and earnings • EBITDA was MNOK -59.9 (MNOK -92.0), and earning per share NOK -1.89 (-5.98) per share

Cash flow • Operating cash flow improved by 39%

Bank deposits, cash • MNOK 125.3 (MNOK 23.2) at the end of 2020, up MNOK 102

Cash run way • Average operating cash flow below MNOK 5 per month, down 39%

• MNOK 122.6 (MNOK 80.4), equity ratio of 89% (73%), and total outstanding shares Equity and shares more than doubled to 32.9 million shares

4 This is the Zwipe investment case:

1. Addressing a 4-billion-unit market characterized by growth from innovation

2. Mass-market price inflection point in sight, with Zwipe positioned for technology and cost leadership thanks to exclusive global rights to disruptive technology and strong IP portfolio

3. Unique one-stop-shop offering, with end-to-end systems integrator approach and trusted advisor role

4. Soaring demand due to COVID-19, strong consumer willingness to pay

5. Fast-growing customer base with global coverage

6. Strong management and board

7. Lean and scalable business model ready for growth 5 1. Addressing a 4-billion-unit market characterized by growth from innovation

2020: . Biometric payment 1995: EMV smartcard (chip & pin) 2007: Contactless payment card 2013: Biometrics introduced cards introduced. introduced in Europe. Contact only. first launched by Barclays UK, new in iPhone 5S, now ubiquitous! NO need for new New POS infrastructure needed POS infrastructure needed again 2014: Apple Pay introduced POS infrastructure Prices ~5x higher than predecessor 2019: Apple Card introduced 4Bn at launch

3Bn

2Bn

1Bn

Time for new innovation to reach 1bn volume 18 years 8 years x years?

’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ‘22

Total Smartcards Chip & PIN (contact) Contactless Biometric payment cards Source: Eurosmart 2000-2018, ABI 2019-2022 6 2: Mass-market price inflection point in sight Zwipe poised for cost and technology leadership with single silicon solution

2021 onwards

Zwipe’s strategic partnership with 2020 - ? IDEMIA is on track to deliver this radical unit cost reduction. 2017 - 2021 Most major risk points are already passed, and we are targeting first commercial deployments for 2021.

Single Silicon

replaces the Secure Element, Microcontroller and >30 components with a Multi-die single chip System in Package (SiP) offers best in class biometric performance and energy efficiency Discrete Components enables radical cost reduction, highly competitive prices and mass volume market take-off high bill of material Zwipe retains worldwide exclusive distribution rights for the lifetime of the high production costs product to all manufacturers of payment cards, wearables and other payment (due to cold lamination process) Expensive yield loss solutions (except IDEMIA), and also to their suppliers

Industry Progression: Component Integration with radical complexity-down, size-down, cost down 7 3: The cornerstones of Zwipe’s competitive position Our platform towards mass market deployments of biometric payment cards and wearables

The first-of-its-kind solution Zwipe Pay ONE will offer card manufacturing customers a solution with superior energy Zwipe’s competitive position is efficiency and excellent biometric performance built on the combination of our: at highly competitive prices A basic package consists of: • A packaged ISO contact plate module (with ✓ technology cost and the single silicon secure element) performance leadership • a biometric Java Card OS • inlay and card reference designs • integration support ✓ one-stop-shop offering with With Options value-adding trusted advisor • Passive inlay/prelaminated sheets • biometric-aware payment applets for e.g. and end-to-end systems VISA and Mastercard integrator role • enrolment solutions. • If customers want a fully-blown turn-key solution, we can even offer the IDEX sensor directly Completely end-to-end We also offer professional services to banks and issuers on biometric payments, consumer insights, marketing, presentation and pilot execution services 8 4. Soaring demand due to COVID-19, leading to consumer willingness to pay We have now surveyed

3 of 4 want their 800+ cardholders in Norway, next payment card Sweden, UK and the US about to be biometric their payment habits and concerns in the pandemic… 4 out of 5 are concerned about touching the pin pads

1 in 2 would pay an annual fee of $10 or more for a biometric payment card (without additional benefits)

Main take-away: 1 in 2 say they would even switch Biometric payment cards are a banks if another mass-market proposition bank offered a biometric payment card

A strong business case for issuers - an opportunity to accelerate customer acquisition, uplift loyalty and create new revenue streams ,

A conservative estimation from higher card fees for an issuer with 1 million cards converted to biometrics* # Card holders with biometric solution 1,000,000 Monthly fee card holders are willing to pay $ 2/month (vs. $ 1-5/month in Nordic study) > Revenues per year from higher card fees = 1,000,000 x $ 2 x 12 months = $ 24 million

Additional positive revenue effects ($m)** Additional revenues (not included here) will come from Fraud prevention 1.5 - Accelerated customer acquisition (almost Top of wallet effect 1.5 50% end users expected to connect with a new Increased card transactions 0.4 bank for biometric payment cards) = Total $ 3.4m per year in additional revenues for the issuers - Higher transaction volumes (due to improved user experience)

Total additional revenues per year: $ 27.4 million

* Based on Zwipe insights ** RedEye analysis and calculations in report as of 24 November 2020 11 TietoEVRY and Zwipe webinar poll on 17 Nov 2020 (~70 participants from Nordic & Baltic banks): Q: Which biometric payment card value proposition is most compelling to you?

Main take-away: Key drivers for banks are customer needs and concerns (which is how you build a business case anyway…)

12 TietoEVRY and Zwipe webinar poll on 17 Nov 2020 (~70 participants from Nordic & Baltic banks): Q: Would you be interested piloting/launching biometric payment cards in 2021?

Main take-away: 72 % of respondents interested in pursuing biometric payment cards in 2021 5. Global go-to-market partner and customer network Agreement with 21 card manufacturers, as well as several personalization bureaus and processors

Partnership with TietoEVRY to Partnership with Idex to collaborate on strengthen position in the Nordic and Zwipe Pay ONE Baltic markets and UK

Selected by Giesecke + Devrient to develop biometric wearable Partnership with Idemia to offer disruptive biometric payments card platform Long standing relation with Thales Partnership with Publicenter to offer biometric payment solutions Partnership with TAG Systems, to unlock the fast-mover approach of Partnership with VeriTech to strengthen position in Kuwait and European-based Challenger Banks region Partnerships with Goldpac, XH Smart Partnership with areeba, to strengthen Technology, Silone Cardtech, position in the Middle EastAfrica Toppan Forms Card Technologies, Asia Credit Card and Watchdata Long standing collaboration with Partnership with Inkript, to strengthen solidifying ability to service issuers in CPI Card Group, largest position in the Middle East, Africa and Partnership with Masria APAC region domestic card manufacturer in Central Asia Digital Payments, to the United States strengthen position in the Partnership with AllCard Inc. to Middle East, Africa address opportunities in the Philippines

Partnership with dz card, strengthening capacity to support issuers in Southeast Asia

Exclusive partnership with Thomas Greg & Sons do Brasil, to enable Latin American marketplace

14 6. Dedicated Management Team with a deep understanding of ecosystem, industry, technology, and company

André Løvestam Lars Kristian Solheim Dr. Robert Mueller John Goodale Eric Mercer Bishwajit Choudhary CEO CFO CTO CSO CEO Americas EVP Strategy & Channels

• 25 years of C-level • Extensive experience • Over 20 years’ • 19 years in senior sales • Over 20 years at large • Over 20 years experience, incl. CEO working at top experience in senior and business and small technology payments industry of Orkla snacks (KiMs), management positions technical development development roles at development companies experience, having Tomra Europe, at EY and more positions focusing on TSYS including 10 years with previously worked as Telecomputing, recently at the C-level, biometrics and smart Intel Corporation Group SVP Strategy at Umoe IKT, Eneas and incl. CFO of card technology at • 15 years in professional NETS as well most • Leadership experience in Kjedehuset NetCom/TeliaSonera leading companies services at i.a. KPMG recently CCO at Program Management, such as Siemens, and DMR Consulting Usertribe Operations, Supply • Proven track record of • Solid track record in the Giesecke+Devrient and • Recognized for thought Chain, and Finance commercial success areas of M&A, financial BMW. His most recent • Strong track record of from a variety of governance and leadership across many leading new business role was serving as payment concepts in industries and markets business planning Chief Technology initiatives, customer multiple European advisory, strategic Officer at Next markets and strong Biometrics. alliances and fintech understanding of the partnerships global financial market

15 7. Lean and scalable business model ready for growth Here are our key medium term financial aspirations:

Revenues • Annualised revenues of NOK 1 billion

• External predictions of global sales of Biometric Payment Cards vary. Volume Swedish analyst firm, RedEye, has recently suggested around 160 million cards in 2024, with high AGR. – UBS released a new sector report suggesting 15 % penetration by 2026

ASP • Targeting $3-4 ASP for Zwipe deliverables per biometric payment card or wearable.

• We target healthy gross margins Gross Margin Our main competition is in the semiconductor industry, traditionally enjoying margins in the 40 % range.

EBITDA margin • Zwipe has a very scalable business model, targeting an EBITDA margin of 20%, rising with volumes.

Break Even Volume • Cash flow break even expected at 6m units (annual volume).

Current Financial • Monthly spending and cash flow is according to plan and previous announcements. status

16 HIGHLIGHTS: 12 months’ rolling news flow – 1 of 4

the company Zwipe and IDEMIA Announcement of an Toppan Forms Card Asia Credit Card, a Zwipe steps up Announced partnership announced that Masria announced key agreement with IDEX to Technologies, one of specialist SCM based collaboration with with Watchdata Technologies, a Digital Payments, one technical milestones combine their finger- the best positioned in Hong Kong, Toppan Forms Card Chinese based smart print sensor products of the largest SCMs in for Zwipe Pay ONE, SCMs in Hong Kong partnered with Zwipe to Technologies (TFCT), card manufacturer the Middle East & emphasizing that the with the Zwipe Pay and Macau, chose offer biometric payment with TFCT placing an serving 80 million Africa, selected Zwipe project is comfortably ONE platform Zwipe for the product products and services order to begin small banking customers in for its drive to roll out on schedule to reach enabling a complete positioning, scale manufacturing over 70 countries. biometric payment time and cost targets, solution for biometric development and of biometric payment solutions with first availability payment cards commercialization of cards. expected for the end of biometric payment this year and volume cards. roll-out in 2021

March 25, 2020 April 8, 2020 April 20, 2020 April 23, 2020 April 28, 2020 June 8, 2020 June 18, 2020

17 HIGHLIGHTS: 12 months’ rolling news flow – 2 of 4

Announced the Announced partnership Announced partnership Announced the ramping Announced partnership Announced partnership Announced partnership extension and with largest local with Liveo Research a up of collaboration with with Wisecard with with TietoEVRY to deliver biometric renewal of an smart card major supplier of PVC Smart Technology Technology, a leading Cardmatix on mass- payments to banks in exclusive partnership manufacturer in Italy, materials to some of Services (STS) to supplier of EMV production of Zwipe Pay the Nordic and Baltic with Thomas Greg & Publicenter, the world’s largest industrialize Zwipe Pay personalization and ONE. Cardmatrix is a regions Sons do Brasil, one of addressing the stronger card manufacturers, to ONE. STS is one of the payment solutions to leading player the largest smart card desire in Italy and offer a highly optimized first smart card support the co- in industrial manufacturers in Latin Europe for safer and route to efficient and equipment development of card manufacturing and America more secure scalable manufacturing manufacturers to personalization testing equipment contactless payments of biometric payment develop a biometric offerings for Zwipe Pay specifically for mass cards payment card milling family of products and production of and embedding enabled solutions payment cards systems

June 29, 2020 July 1, 2020 July 28, 2020 August 18, 2020 August 20, 2020 September 14, 2020 October 8, 2020

18 HIGHLIGHTS: 12 months’ rolling news flow – 3 of 4

Announced partnership Announced partnership Announced order of Launched Swedish Zwipe Pay ONE in first Announced partnership Zwipe and Idemia with areeba to bring with Inkript to launch 300,000 sensors from market study with biometric payment with Veritech to announced that the next generation biometric nxtgen biometric Zwipe Pay ONE in the IDEX Biometrics to TietoEVRY showing card pilot in the provide key card secure chip they contactless payments Middle East, with support the rollout of large interest in Nordics, with OP components for the are co-investing in, to banks in the Middle Inkript placing an order Zwipe Pay ONE to a biometric cards in Financial Group, Zwipe Pay ONE has obtained the ICCN East & Africa to Zwipe commencing growing list of smart respons to Covid-19 TietoEVRY and Tag biometric payments security certificate small scale card manufacturers in-store payment Systems platform and take lead from EMVCo, as planned. Zwipe has manufacturing of and issuers in Europe, concerns on providing advisory worldwide exclusive biometric payment the Middle East, the services directly to rights to this cards Americas and Asia banks and card issuers disruptive single-chip in close collaboration biometric technology with VeriTech.

October 14, 2020 October 15, 2020 October 19, 2020 November 17, 2020 November 23, 2020 December 3, 2020 December 23, 2020

19 HIGHLIGHTS: 12 months’ rolling news flow – 4 of 4

Announced partnership Announced four new with Vopy which aims partnerships with to launch a pilot in Q3 prominent card 2021. Vopy aims for manufacturers in Asia- an initial rollout from Pacific and Europe Q4 2021, starting with which have chosen the 100.000 biometric Zwipe Pay ONE payment cards by the platform for delivering end of this year and biometric payment 500.000 cards in 2022. cards to the issuers, targeting pilots before the end of 2021.

February 3, 2021 February 10, 2021

20 Looking ahead

• COVID-19 has created and continues to create challenges to project execution, however, we are carefully taking steps to minimize such risks for each of our next steps • Next phase in our advancement is to: • ensure full completion of our internal development to be finished this spring – demo, testing and validation • help our customers, the smart card manufacturers, to develop and manufacture cards while engaging with issuers, to prepare for multiple pilots, certification, and subsequent commercial rollouts • After piloting, fully certified biometric payment cards will become available from our customers to issuers for commercial launch

21 Final take-away: The big picture: It’s all coming together

• The market for biometric payment cards is happening now - with increasing traction from issuers • The long-term market potential of BPC is far greater than anticipated – from niche to mass market • Zwipe is working successfully to maximize long term value creation and mitigate risk ✓ Zwipe is seeing good technological progress and solving challenges one-by-one, targeting mass-market deployment from late 2021 ✓ Zwipe’s position, Go-to-Market approach and Zwipe Pay ONE technology platform are being constantly confirmed and acknowledged by important stakeholders in the ecosystem ✓ Zwipe is attracting new issuers, smart card manufacturers and GtM partners, with a continued strong pipeline

• In conclusion, the Zwipe opportunity is greater and the risk is lower than ever before

22 Appendix Zwipe Pay ONE Benefits

1 Enabling a passive inlay All components integrated within ISO contact plate module Enabling low power consumption & 2 excellent read range Single silicon die design, optimized for biometrics Enabling finger placement tolerance, 3 low biometric error rates Quality area fingerprint sensor Enabling better security against attack 4 scenarios Secure communication with fingerprint sensor Enabling standard production processes & significantly lowering yield losses Contact Plate Module & 5 fingerprint sensor are post-placement elements

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