Precise Biometrics AB (publ)

It is today the 13th of May, 2026 and Precise Biometrics has just released its quarterly report for Q1 and with me is CEO Joakim Nydemark. How is it going? It's great to be here, thank you. How are you? It's great to be here as well, great to hear. The first quarter for you is of course characterized by the news about the combination of Precise Biometrics and Fingerprint Cards. And for those who haven't really been involved in the twists and turns, I thought we'd start there. What is the status of this business right now?

This is an incredibly exciting opportunity for Precise Biometrics to take a step up in the value chain and offer both soft goods and hard goods. What is fun is that the owners voted for this in both votes. They did so on April 30th at the Valborg Men's Fair this evening. With that, we continue to execute towards the final fusion and the plan is to have it ready here during July this year.

What will happen in the next 6-12 months? What is the plan for the future?

A lot of things will happen. The main thing is the planning of the integration project. We have already started that and then we can't really press the button fully, at least not in all scenes for the Funktionen artifact here today in July. But the planning is underway and then we will execute it here during the fall. And there are a number of synergies that we will execute on and show. And there is absolutely everything that is connected to the context itself. But it is planned that we will be done with that during the fall so that we can go into 2027 with or in this new company.

You have described the logic behind the combination in the form of four basic stones. It is a comprehensive offer, better commercial reach, cost synergies as well as future growth opportunities. But there is one thing that I am particularly curious about. Fingerprint Cards has recently opened its mobile business and Precise is focusing a lot on the mobile business and to sell to the vertical still. How is this connected?

This is actually where we complement each other in a good way. As you say, FEC took the step of dismantling its mobile operations, and they did so because the type of capacitive sensors that Findopint delivers There are heavy margins for it within the mobile segment, especially in the Chinese market. So it's tough to get profitability there. So it's a bit like they have changed their business, that they have switched to high-margin products instead. They have built a slightly larger biometric system around their sensors and work much more towards in the European and American markets. But we have an offer for ultraviolet sensors. There is a good margin for them to turn to another category of mobile phones. And that is definitely something we will continue to focus on, that is to say continue to see good growth opportunities here in the future.

Completing businesses, and you usually talk about timing being an important factor in the whole thing. Why is this business happening now?

There are several factors that play into it, such as timing. We see that the environment is driven by the needs of the type of solutions that we can deliver together. We get a larger and stronger offer, which is an important parameter here. But that is also the journey that both companies have taken. We at Process by Metrix have worked a lot with taking a position within ultrasonic sensors. We work with national IT, we have released new products here around Handflat and Parallel Access Pro, as we call that product. So there is a lot that we have set up here now for future revenues and potential. And EPC on its side has moved from the sensor supplier stage to offering more complete biometric systems with its hardware. And the mix of our two companies becomes very pleasant, where we complement each other in a very nice way. So all in all, it was the situation now, and that is why we take this step.

Right. So the timing was right. But you will also get the financing in place. Because you have also said that in connection with the business, you will take in some money for this. A planned new emission for Q3 this year. Would you like to tell us a little more about these plans? How much do you plan to take in? To what conditions? And what will the money be used for for this joint company?

Yes, that is part of the plan, as we say. We will take in 110 million and that will happen under Q3, after the fusion has been carried out. Of the 110, 80 are already guaranteed. What we are going to use this for is to capitalize on the company for a continued journey, where we need to finance the fund itself. There are incredibly nice opportunities here that we create together that we want to be able to execute on and create opportunities for both organic and inorganic growth in the future. So that's primarily what these measures will be used for.

So growth still in focus then. But one of the foundations in this logic, if I have understood it correctly, is also that it is about cost savings. And you have come to the conclusion that you will be able to realize 45 million SEK in cost savings when you put the companies together. Would you like to tell a little more about how you are going to achieve this?

We have made very thorough calculations on it. There is a detailed list of different costs that we will act on. Of course, when you put together two companies and two stock companies that are basically the same size, this naturally creates a lot of overlap. And that is what we handle within the framework of these synergies and this project that we will run during the autumn. And it includes everything from licenses, IT costs, economic systems, insurances, just to be listed on the stock exchange, it is linked to expenses. management and all of that together leads to a cost savings of 45 million or even more. We will act on that as soon as we can.

It sounds like you have calculated this. When will you start reporting figures for the combined company?

If all goes well, the function will be a fact in July, which means that the Q3 report will be the first joint report later this fall.

Yes, very exciting and I understand that this business, which is the largest in the company's history, has been in focus during the quarter for you Joakim. But if we go into the Q1 report and look at Precise Biometrics' other business as a separate company, how would you like to summarize the development during the quarter?

We can only say that we are still affected by the insecurity that exists in the world, I would say. It creates a concern among our customers and our customers' customers, and we have a currency impact that we are still affected by. If you look at the result, we show that EBITDA has adjusted positively. When I say adjusted, it means that we have taken some costs during under the first quarter, almost 2 million, which is directly linked to the fusion with FPC. If you take away those 2 million, we show a positive EBITDA. If you compare the costs we had a year ago as a corresponding period last year, we have lowered our costs quite a lot. What I want to say is that Vi sköter fortfarande vår ekonomi. Vi är noga med att hålla oss på rätt sida om den här ebitda-marginalen som är viktig för oss. När vi då ser att intäkterna inte riktigt hänger med, då jobbar vi med kostnaderna. Det som är viktigt här är att det inte är på bekostnad av such as sales and marketing processing. This is about optimisation, adjustment and adjustment to keep the costs in control and reduce the costs where we see that we do not get the value we need. And if you look at the sales and marketing side, we have done a lot during the quarter, where we have been at various trade fairs and conferences. We have been at ISE West in the US as an example, to continue our marketing and sales. But as I said, the summary of the whole is that we are not where we want to be in terms of revenue, but with the costs, we still have our nose over the water surface.

Yes, it is honest to hear that you have the costs under control. If we look at the mobile business during the quarter and forward, how do you see it? You were recently talking about that, that you are completing each other there. But this is still a large part of Precise Biometrics' business today.

I am still very positive about what we do in the mobile segment. We have a very strong position. We have a great focus on optics, but above all ultraviolet sensors. We are one of the few suppliers in the world that can deliver. that type of software, and that means that we will continue to manage it in the future. We also see that the market is growing. If you look at where Progenoser and others are and what they show, it is the ultralight sensors that will take over a part of the sensor market in the future, and of course we want to be part of that journey together with our partners.

So continue your strong position on the mobile market. What do you say about other possibilities in the algorithm business?

Vi har jobbat mycket under senaste åren med att breda vårt erbjudande. Vi tar oss vidare med nationella IID. Vi jobbar med algoritmer för handflatan som ska in i fysisk access och betallösningar. Där har vi ett antal partners uppradade på vårdvarusidan som vi kommer att kunna deliver it together. So I see that the algorithm market in the future has great value. Then with EPC or in that context with EPC, more opportunities open up for us where we deliver algorithms together with hardware and that in turn opens up New types of customer segments, other types of customers. All in all, I am very positive and optimistic about this business.

If we are going to talk about all different business areas, a quick comment on what is happening in the visitor system and access before it is time to wrap up.

If you look at what is happening in that business, I think it is exciting to see that we continue to take large customers, large customer accounts. We work with corporations such as Alfa Laval, Maersk, Telia, to name a few, and we continue to win that type of customer. We have worked in recent years, especially with what we call framework agreements, in order to somehow win these larger customers on a global level. And it has now turned out to be a recipe for success. So we see that more and more calls are made on that side, and that means that we shorten the lead times and we reduce the sales power needed to get further in that round-up. We also work a lot with access partners. We have Vigilon in the US as a Motorola company, where we, among other things, worked with them on ISE West in the US earlier this year. It is a very good sign that we get exposure in such a large number of actors at one of the largest trade fairs in just Säkerhet and get the opportunity to meet their sales channels and partners. So a lot is happening in that regard as well. If you look at the growth in EARR, it is still not where we want it to be. But I see an ice release going forward, so I am very hopeful that we will be able to get through it. For those who have followed us, you know that we ran into a major competition during this period last year. If we miss it this year, we have good conditions to do a couple of years.

And finally, this has been a very eventful quarter and the beginning of 2026 for Precise Biometrics. How do you see the market and the outlook for the rest of the year?

I would say that 2026 will be an incredibly exciting year in Precise's history. Vi har radat upp nu ett antal erbjudanden på algoritmer inom fysisk access, logisk access och naturligtvis våra besökssystem. Vi fortsätter att utvecklas mot våra ultraljudsensorer och systemen där. Allt det är på något sätt på rull. But then, of course, the FPC and the business we hope to be able to do, or the function we hope to be able to do, will create completely new conditions for the company in the future. We will double our turnover if you look at the figures for Proforma 2025. EBITDA, two-digit margin on that, if you look at Proforma. So with the synergies and cost-effectiveness that we see here during the fall for a joint company and the opportunities it opens up offer-wise with our new products, strong offers, new customer markets the market segment, then 2026 has the conditions to be an incredibly exciting year for Plus Size. And of course, it will lead the way for 2027 and forward with a completely new offer. So I look very, very forward to the rest of the year and forward.

Very exciting. It's time to wrap up. Thank you Joakim Nydemark. And for those of you who have watched this, there will be a Q&A session today as well. If you have any further questions or would like to have any clarifications from the management, is that correct Joakim? That is absolutely excellent. So the time is 1 o'clock. You are all welcome. Good. Thank you very much for this time Joakim and thank you very much to all of you who have taken the time to watch.