Precise Biometrics (PREC) investor relations material

Executive summary

• Q2 and H1 figures exclude Fingerprint Cards (FPC), as the merger closed after the reporting period; combined-company reporting begins in Q3.

• Q2 revenue declined amid weaker mobile-device production, while recurring Digital Identity revenue and strategic offerings continued to develop positively.

• The merger creates a broader biometrics portfolio; integration is underway, with cost synergies and a post-merger rights issue supporting the next phase.

Financial highlights

• Q2 revenue was SEK 14.7m (20.8m); EBITDA was SEK -6.5m (-0.5m), adjusted EBITDA SEK -4.7m (-0.5m), and net loss SEK 10.4m (5.8m).

• H1 revenue was SEK 31.8m (40.8m); EBITDA was SEK -7.9m (-2.2m), adjusted EBITDA SEK -4.1m (-2.2m), and net loss SEK 16.0m (13.0m).

• Q2 fusion-related one-time costs were SEK 1.8m; H1 costs were SEK 3.8m. Excluding these costs, Q2 EBIT was SEK -9.1m and H1 EBIT SEK -12.9m.

• Operating cash flow was positive at SEK 3.3m in Q2 (1.3m) and SEK 7.2m in H1 (3.4m), supported by working-capital changes of SEK 9.4m and SEK 14.5m, respectively.

• Q2 revenue fell 29.2% YoY and H1 revenue fell 22.0%; a weaker USD reduced revenue by SEK 0.5m in Q2 and SEK 1.4m in H1.

Outlook and guidance

• Priorities are to complete integration, realize identified synergies, and drive profitable growth in selected strategic areas.

• Annual cost synergies are targeted at a minimum of SEK 45m; slightly more than one-third had been executed, with the program targeted for completion by year-end.

• The combined business aims for a double-digit EBITDA margin and profitable growth; management described the market as challenging but expressed confidence in long-term demand drivers.

• Ultrasonic sensor technology is expanding toward mid-range phones, though volume growth is expected to materialize more slowly than previously anticipated.