Fingerprint Cards Ab Class B · OMXSTO:FING_B
Fingerprint Cards Ab Class B — Q3 2024 Earnings Presentation
14 slides from Fingerprint Cards Ab Class B's earnings presentation, Oct 31, 2024
Slide 1: Q3 2024 Webcast
Q3 2024 Webcast, 31 October 2024 Adam Philpott, CEO Fredrik Hedlund, CFO
Slide 2: Agenda
AGENDA EXECUTIVE SUMMARY STRATEGIC INITIATIVES • Transformation to drive profitable growth • Cost optimization • Debt-free • Strategy Q3 2024 FINANCIALS • Revenue and clients • Key figures Q&A APPENDIX
Slide 3: Executive summary – Q3 2024
Executive summary – Q3 2024 Q3 2024 Financial and Transformation performance: Key figures Gross margin adjusted for R&D depreciation 38.7% vs. Q3 Q3 Q2 21.2% in Q3’23 SEKm 2024 2023 Change 2024 Targeting additional gross margin improvement by focusing on high-margin product groups Revenue 102.8 184.
Slide 4: Transformation to drive profitable growth
Transformation to drive profitable growth ✓ = Covered in today’s presentation Strategic transformation Three phase plan 1 2 ✓ ✓ ✓ STABILITY PHASE Portfolio Refresh Cost Optimization Focus on cost optimization, financial discipline, and ONE Core high margin products 3 4 ✓ ✓ Strengthen Balance ✓ ACCEL
Slide 5: Stability and gearing towards accelerated growth
Stability and gearing towards accelerated growth STABILITY Financial discipline CHALLENGE Limited diversification of Capex ACCELERATE GROWTH SOLUTION Mix hardware with software PHASE ONE PHASE TWO Strategically invest for profitable growth New CTO Partner and investment targets EXECUTION Review → In
Slide 6: 1. Portfolio Refresh
1. Portfolio Refresh NEW NEW BUSINESS See page “4. Strategy” BUSINESS Invest where ACCESS ROIC > WACC INVEST CORE BUSINESS PAYMENTS PARTNER REVIEW Cost of Capital Hurdle Rate (WACC) (ROIC) WIND-DOWN PC / PARTNER 6
Slide 7: 2. Cost Optimization
2. Cost Optimization Headcount1 (#) OPEX Annualized2 (SEKm) -42% -10% 185 364 172 312 119 216 107 Enabled by PC <150 wind-down -80 <70 Target Target Q4’23 Q1’24 Q2’24 Q3’24 Q1’24 Q2’24 Sep’24 Dec’24 Jun’25 Mobile headcount reduction on track Targeting annualized OPEX of less than SEK 70m by June 202
Slide 8: 3. Debt-free
3. Debt-free Rights issue and convertible bond • Cash injection: Completed SEK 275m rights issue • Simplified capital structure: The outstanding convertible bonds has now been repaid in full Key positive post redemption effects Creating a level playing field for all shareholders and removing overhan
Slide 9: 4. Strategy - You are the key to everything
4. Strategy - You are the key to everything Edge Cloud Current offering On- boarding Finger Off- Device Iris boarding binding Face Identity Lifecycle Platform Behaviour Account Identity Recovery Access Management Voice Continuous Edge space to enter Auth. 9
Slide 10: Q3 2024 Financials
Q3 2024 FINANCIALS @ FINGERPRINTS
Slide 11: Revenue and clients – Q3 results
Revenue and clients – Q3 results Revenue by product group Q3 Dynamics Q3 Q3 Q2 Access: SEKm Change 2024 2023 2024 Strong, fundamental business with robust QoQ growth driven by logical access demand, despite company transformation Access 18.2 25.2 -27% 16.1 Launched next-gen "AllKey," establishing a
Slide 12: Key figures – Q3 results
Key figures – Q3 results Key figures Q3 Dynamics Q3 Q3 Q2 Revenue: Mobile revenues declined as the segment winds down. PC SEKm 2024 2023 Change 2024 sales were impacted by lifecycle stages and customer shifts, reinforcing exit decision. Access product line saw solid sequential growth, driven by Reve
Slide 13: Q3 Summary
Q3 Summary Launched new products in core product groups: AllKey and 4th-gen iris recognition software Access; Portfolio Refresh SECORA Bio Pay in Payments Targeting annual OPEX under SEK 70 million by end of Q2’25, with a reduced geographical footprint Cost Optimization and lower costs, primarily in
Slide 14: Fingerprints
FINGERPRINTS