Precise Biometrics (PREC) Investor update summary

Merger rationale and strategic direction

• Merger combines complementary strengths in software (Precise Biometrics) and hardware (FPC), creating a broader product portfolio and value chain presence.

• Synergies from the merger are expected to yield over SEK 45 million in annual cost savings by the end of 2026, with full integration targeted by 2027.

• The combined company aims to expand geographically, enhance cross-sell and up-sell opportunities, and pursue further consolidation in the biometrics and security sector.

• A new management team and board, blending leaders from both companies, is in place to drive integration and growth.

Market opportunities and growth areas

• Core segments such as physical access, visitor management, and cybersecurity are projected to grow 15%-25% annually over the next five years.

• The company is active in digital and physical security, government ID programs, mobile phone biometrics (notably ultrasonic sensors), and payment solutions.

• Over 800 enterprise customers are served, with strong presence in the Nordics and expansion underway in the US and Europe.

• Payment cards and biometric cards are seen as emerging growth areas, with dual use for payments and secure access.

Financial outlook and integration progress

• Pro forma 2025 revenue is SEK 156 million, with targeted EBITDA margin of 17% post-synergies.

• SEK 110 million rights issue is underway, with SEK 100 million guaranteed, to fund integration, commercial initiatives, and bridge financing.

• Integration project is fully initiated, with 14 work streams covering systems, patents, contracts, and cost-saving activities already ahead of schedule.

• Cost synergies stem from reductions in management, administration, IT, finance, and office consolidation, with most savings realized by year-end.