Fingerprint Card — Call Transcript 2026

Good day. Thank you for standing by. Welcome to the Fingerprint Cards Q1 Results 2026 webcast and conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Alternatively, you may submit your question via the webcast. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Stefan Pettersson, Head of Investor Relations. Please go ahead. Thank you, Madeleine, and good morning, everyone, and welcome to FPC's earnings call following the release of our Q1 report this morning. We'll start by a presentation of the report by our CEO, Adam Philpott, and then by our CFO, Fredrik Hedlund. If you're following the conference call on the web, you can post questions throughout the call. With that, let me now hand over to our CEO, Adam Philpott. Thank you very much, Stefan. Good morning, everyone. Thanks for joining Fredrik and I for the Q1 2026 earnings presentation. Just in terms of the agenda, I'll go through a quick summary of the financials for Q1. We'll spend a bit of time. As always, we'll talk about AllKey. We'll talk about how that really important high-value premium product is developing. Third, we'll talk about the merger itself that we announced recently and that was recently voted through at our EGM. We're gonna spend a bit of time on that before I hand to Fredrik Hedlund, who will talk in a bit more detail about some of the key figures from Q1 2026. Let me get into the summary of our performance. Overall, if we look at the top line, a continued growth on our top line, 4% year-on-year growth, in real terms, 21% up in constant currency. Another strong constant currency quarter in terms of revenue performance. Really pleased with the team and those results. From a margin perspective, also very happy with the margin performance. You can see here 62.3% gross margin. That was just on our core products. There were no licensing deals or other types of deals in there. Really strong core performance on the core portfolio. Really pleased to see that our premium is well-recognized by our clients, and we thank them for exactly that. Great performance on the gross margin. As I mentioned, two of the key elements that I want to touch on today, relate to AllKey and the merger. In terms of AllKey, we spent a number of calls now talking about how we're migrating from lower-end sensors to high value, moving up the value chain with systems, and our product family name for that is AllKey. As we continue to monitor our progress and the development of that business, of all the new pipeline, so new deals that we brought into the pipeline in Q1, 75% of new pipeline is for AllKey. Really seeing momentum in that product family. Not only that, but as we look at that AllKey pipeline that we added in Q1, 60% of that pipeline was for new clients as well. Continuing momentum to bring new clients into the company, with new pipeline based on being able to reach them in new ways with the AllKey product family. Much simpler for them to be able to go and integrate that into their products as a turnkey solution. We also continue to innovate in AllKey as well. We launched the AllKey software platform. I'll spend a bit more time on that just shortly. Big news, of course, that was announced after the end of the quarter was the merger with Precise Biometrics. The EGM was held and approved that on the April 30th, a few weeks ago. What that means is that we're building an incredibly powerful European biometrics platform, so a really important company in that space. There's great synergies. There's great synergies from a go-to-market perspective. There are great synergies from a portfolio perspective, there are also great cost synergies as well that allow us to get to an EBITDA positive position and a much stronger company fundamentals there as well. Overall, for the quarter, really strong margin profile, good top-line growth as well, and continuing that premium focus where we have great skills that are unique in the market. Let me spend a bit more time on AllKey. On the left, you can see the exact charts that we used last quarter. The reason I've used those again is they remain very consistent with what we're seeing in terms of both our product mix by revenue, but also our new customer mix. I mentioned some data points earlier that we're seeing 60% of new pipeline for new customers. That hasn't changed the overall pipeline. We expect to continue to see that moving forward. I talked about the product mix, of course, as well. For all new pipe that was added in Q1, all of that product, 75% rather of that new pipeline by revenue was for AllKey. Again, you can see how we're continuing to bring more AllKey into the mix in our pipeline, and of course, over time, that then converts through the sales cycle into revenue. We're seeing continued strength in the AllKey family product family business development too. It's not just bringing new pipe in. We're seeing the pipe shift through the sales stages, through evaluation, into design wins and into business wins. We're seeing real progress as that moves through the funnel as well, having launched that just over a year ago. We also have talked a lot about why this is important for us moving up the value chain, not just for margin, but also as we offer a greater system to our customer, it means they need to buy less pieces or fewer pieces from other players, which means that we can get greater wallet share, and this gives rise to the 3x average selling price economics. We continue to see that in our pipeline for the value of our AllKey deals per unit versus the value of our sensor deals per unit. We keep a very close eye exactly on that. We have maintained and expanded our sensor partnerships as well. We continue to see new opportunities for our sensor business, particularly in the card form factor like ID. Lots of interesting things going on. We're not walking away from that business. We're protecting and maintaining that business, continuing to expand and grow it into new segments as well, whilst also building out this premium side of our portfolio. As I talked earlier about building that premium side out, we launched the AllKey software platform in Q1. What that means is that not only do we offer the full technology stack, including MCU sensor, et cetera, but also allow customers to write custom apps to that platform as well. Even more flexibility, particularly on the software side, again, opening up new use cases for our clients. We will continue to innovate. We launched the AllKey software platform in Q1, but we also continue to see more opportunity, particularly on the card form factor for AllKey Ultra. Today, we offer sensors in our partnerships there. Tomorrow we believe we can offer more value, including software, taking the AllKey Ultra platform with a secure element into the smart card form factor as well. Lots going on in AllKey, lots of demand, but continued innovation to serve that demand as well as we push it through our pipeline. That's a little bit on AllKey. Let's talk a little bit about the merger as well, because we believe the merger forms a very strong combined company. In terms of what it offers is great, meaningful cost synergies. Really powerful cost synergies, a much stronger financial profile. We achieve this by streamlining some of the overlapping functions and optimize the combined organizations. We've identified annual operating cost synergies of at least SEK 45 million. That really comes from consolidating administrative functions, optimizing systems and tools, streamlining commercial operations. Really just a leaner cost base to support the greater organization, leading to a potential double-digit EBITDA margin. Not only that, I mean, that's the economic side of it. There's also very complementary offerings too. We've got a much stronger, more competitive biometrics identity company as a result of the merger, integrated hardware and software solutions. We span physical and digital security in different ways together. We address the full spectrum of authentication, identification, and access controls. That means that customers can come to us for different things. It means they can buy more from us. We can increase our wallet share. We can also increase our win rate with those clients also. It gives us expanded commercial reach too. We have a very complementary go-to-market coverage footprint as well with different customers in different segments to allow us to capture a larger wallet share. Finally, what this also does as a leading biometrics platform is create a platform for industry consolidation. It's a highly fragmented market. Many companies with strong technology, but very limited scale, sub-scale, if you like. We believe there's a huge opportunity to play an active role in industry consolidation. There's not lots of small companies that the customer has to own the complexity to go and engage with, but actually we can aggregate that together to give the customer a more simple value and choice for what they're seeking to improve their identity and security posture. That's a kind of overview, if you like, on the combined company. I will go a little deeper into some of those elements as well. Let's talk about the cost synergies, creating a platform for strong growth and profitability. On a pro forma basis, Precise and FPC together generated approximately SEK 160 million in revenue in 2025 but with a negative EBITDA of -SEK 19 million. One of the benefits of the merger is the opportunity to create a much more efficient operating cost base. We've identified annual synergies, as I said, of at least SEK 45 million, which come from those overlapping functions and optimization that I talked about. As these synergies get realized, the combined company is expected to deliver double-digit growth, double-digit EBITDA margins, where the adjusted pro forma shows about 17% EBITDA margins. A really powerful way of combining resources, optimizing them to deliver a much better outcome. That's a little bit on the cost base and the financial synergies. Let's talk a bit about the capabilities and how we combine those and what those mean as well. Together, we offer a very, very broad suite of capabilities, and both companies offer high efficacy identity. That's very complementary from a cultural, from a technology perspective as well, because as we think about what's happening out there in the world, and I've talked a lot about this, we're now finally starting to see the shift away from passwords. Those alternatives to passwords typically require biometrics, whether it's FIDO tokens, whether it's access, et cetera, it typically requires biometrics. It's super important to have a company that's got the right scale to be able to respond to this. The initial hypothesis is we can serve these markets very, very well together. The future potential is to unify them. As you think about physical security today, both companies serve physical security. As you think about digital security, both companies serve that as well. There's an opportunity over time to bring those two things together in a continuum, in a continuous loop, whereby we improve overall security by combining physical access, we know I'm in the building, with digital security, I'm trying to get access to an application from within that building. Very, very powerful play for both companies. If you look at how we're complementary today, we also offer a blend of enterprise and consumer markets, both companies active in different spaces, very complementary to bring that together. We offer a blend of different modalities, for example, as well, fingerprint, hardware, iris, palm, lots of different capabilities that we can offer there. That creates a huge opportunity for upsell, cross-sell, and particularly new logos as we leverage joint expertise and expand what we're offering, but also expand what we're selling to each of our individual clients. Lots of things that are super complementary that we can bring together to offer a greater outcome to our clients. The final piece I spoke about was around the sector consolidation. The biometric industry remains highly fragmented. Many specialized technology companies typically operating at very small scale. The merger between FPC and Precise presents a first step in building a scalable biometrics platform capable of participating and frankly enabling that consolidation. When we talk about consolidation, we see two primary types of acquisition opportunities. There's portfolio consolidation, and there's capability expansion. Let me talk about each of those, and forgive all the text on this slide. I wanted to keep some of the detail in there for you. When it comes to portfolio consolidation, what's that? Well, those are typically well-established niche companies who've got proven products. They've got active customers, market validation. They've got strong technology, and they have a customer base, but they're limited in their ability to scale on their own. Through those types of acquisitions, we can create value through integrating their products into the combined portfolio, leveraging our combined go-to-market reach and scale, but also realize those cost synergies and operational efficiencies. Really nice opportunity there. Those are some of the slightly larger ones, hence the dots on this chart are slightly larger. On the right side of this chart, we've got capability expansion. Those are typically smaller specialist teams with really good IP expertise and complementary solutions that add value to our existing portfolio and customers. The value creation from those type of acquisitions comes from strengthening and expanding the platform's technology capabilities, accelerating the development of new solutions, in-housing, where we may have previously partnered to achieve that, and adding expertise in new technology areas. In both cases, whether it's, you know, portfolio consolidation or whether it's capability expansion, the objective remains the same. It's to expand what we can do, it's to strengthen our product portfolio, and it's to scale leveraging our commercial capacity and commercial reach. We feel this is a really great capability and company that we're putting together with FPC and Precise. You can also see how this becomes then a platform for continuing to build on that with other acquisitions through those other types of consolidation opportunities. That's a little bit on the merger. Let me come back to you, Fredrik. Let's come back to Q1, and perhaps you can talk us through some of the key figures. Thank you, Adam. Back to the performance in the first quarter. Our revenue grew by 4%, and on a constant currency basis, it grew 21%. The gross margins for the quarter continued to be very strong at 62.3%, and it's higher than the gross margins that we had in the first quarter of 2025, and it's also higher than the average gross margin for the year 2025. EBITDA was -SEK 14.1 million, and this included SEK 3 million of what I would call non-recurring OpEx, which is mainly cost related to the merger. Our free cash flow was -SEK 13.2 million, and we had SEK 18.2 million of cash at the end of the quarter, and our head count was 50. Back to you, Adam. Very much, Fredrik. Let's summarize then what we've heard, and then we'll move to take some questions. From a performance perspective, first of all, really pleased to see up 4%. As you look at constant currency, up 21%. Really pleased with that top-line performance from the team. Our gross margin, 62.3%, continued sustained margin. As I said, that's really coming from our core products as we shift over and start to realize AllKey business also. Then, from an operating leverage perspective, we continue to do this having made significant changes in our OpEx line. For those of you who have been following us for the last two years or so, significant changes in our OpEx lines. We're able to achieve this without reinvesting in capacity, either in product or in sales, but actually leverage the organization that we've had underpinned by some of the things we've been doing to optimize our capacity, augmenting it with AI, for example. Really pleased about the top-line performance whilst managing the OpEx line, of course, as well. In terms of AllKey, where we think there's massive opportunity moving forward, we continue to see a shift to the high value AllKey product family in our pipeline, and we're monitoring that that pipeline is moving through to booking. Very pleased at the progress and how that business is developing too. We're seeing new customer logos come in also. That's something I focus the sales team on a regular basis is ensuring we're out there, we're capturing leads, we're meeting new people and bringing new logos into the pipeline also. From an AllKey perspective, it's also important to us because of its impact on the ASP, 3x ASP. We still see that in our pipelines. We're very pleased to see that. Finally, we're continuing to expand that. We launched AllKey over a year ago. We launched AllKey Ultra last year. We're continuing to evolve and move up the value chain with that platform and fill in some of the other gaps like software, for example, that our customers need our help with to make it much, much easier for them to integrate high quality biometrics at scale into a myriad products that they have. Of course, as we move forward, we then take all of this into the merger with Precise. This is something of high value to the future company. The EGM approved the merger for that reason, and they see a great economic benefit from combining these two companies to create not only a European biometrics leader, but also strong synergies for EBITDA positive NewCo. Very, very strong economic benefits of pulling these two companies together. With that, Stefan, let me come back to you and perhaps you can help orchestrate some questions. Yes, let's first take any questions from the phone line. Thank you. We have one question at the moment. One moment. This question comes from the line of Markus Almerud from DNB Carnegie. Please go ahead. Yeah. Hi, Adam. Hi, Stefan. Hi. Yeah, hi, guys. Hi, Fredrik. Can you hear me well? Yes, we can. Good to have you on, Markus. Yeah, likewise. Maybe I'll start with AllKey. I mean, we have talked a lot about AllKey in the past quarters and also now. I mean, I'm pleased to see that 75% of the new pipeline coming in or the new pipeline is AllKey. If you look at your previous customers, how and the adoption rate and the conversion into AllKey, how is that progressing? I think, you know, we spoke about this on the last call and I shared some charts in terms of the pipeline today. Those trends are pretty consistent, right? We're seeing a lot of our existing customers move over to AllKey in the pipeline. There are some customers who will always be sensor organizations because either they don't need some of the elements that are within the AllKey portfolio or they're very high volume and that's their specialist business model is to do that integration themselves. That's exactly why I've said that we maintain and expand our sensor partnerships because, you know, we're not looking to move everyone over to AllKey. If you don't like it, tough, go somewhere else. We've got some great customers in sensors. We've built them up over many years. We have good pipeline with them and we'll continue to grow and evolve those customers. Absolutely, we see a great market for AllKey. We actually see more customers in future by revenue coming from AllKey than we do by sensor. That inflection probably in 2027, maybe 2028, we'll have to wait and see. As we look at the pipeline, we can see a greater percentage of revenue from customers in AllKey in 2027 versus sensor. 60% of our pipeline in 2027 is for AllKey, 40% is from sensors. We continue to see that trend. I think what we are also seeing, though, is now, you know, the bulk of our new pipeline for AllKey is for new customers because we've by and large been through that journey. There are still some customers who are sensor customers that may become AllKey customers. Those tend to be a little larger and therefore it takes a bit more time for them to shift over because, of course, there's an evaluation cycle to ensure that they have a strong, high quality product as well. Not only that, it also ties in with their product roadmap. You know, when they launch products, they don't just launch a new product because we have one. It has to be their product launch cycle, of course, as well. Hopefully that gives you a bit of color, Markus, as to what we're seeing on the new and existing customers. If you look at new customers, so 60% of the pipeline is new customers, which is great. Is this in line with what you had expected? That is the conversion of among old customers and new customers, is the mix in line with what you had kind of thought? I think so, yes. I mean, I didn't expect us to be 100% AllKey, as I said, because we've got, you know, lots of customers and typically higher volume customers. It's a lower ASP, but it's higher volume. You make up for it that way. I think that feels about right to me. You know, I was thinking around 50/50. That was my gut. 60/40 is better. Pretty happy with that. Of course, you know, I think in terms of the new customer mix, we're never going to get higher than, you know, we're never going to get to 100% new customers because, of course, that would mean that we're losing all of our old customers. Just that balance, I think, is really important for us to continue to monitor. I want to see us bringing in new customers. Absolutely, I want to make sure that with our existing customers, we continue to build new opportunities with them as well. Again, I think that feels pretty good and it's something we'll continue to monitor. 20%+ organic growth. Two questions there. Is this also in line with what you were expecting? Second, I mean, you have been in merger talks also during this period going on in parallel. Has that impacted operations in any way? You're still quite a small organization. Yeah. On the first question, you know, is the growth where I expected? Yes, the growth is where I expected. I think, you know, it's deep into the double-digit, which I'm really pleased about. I know the sales team worked super hard to get to that. I monitor this on a weekly [Well], actually I look at it on a daily basis, but I monitor it with the team on a weekly basis. Excuse me, very pleased about that. I think that's a very strong growth number for any company to post. Super happy about that. In terms of whether the merger had a destabilizing effect on ongoing operations, again, I would refer back to our team. I'm really proud of the team. Of course, you know, the merger was not known to most of them during that time, of course. But I'm really pleased at how the team just is agile, flexible, continues to operate super well. Very pleased. Whilst it's a small team, I feel like our productivity is pretty strong. I mentioned earlier that we've augmented our operations somewhat with AI, and we're continuing to improve how we operate using AI, not just in our products, but in our functional day-to-day operations as well. Pleased about how the team are performing. I saw no destabilizing effect in Q1 from the proposed from the merger. Okay. Talking about the merger and the licensing deals that we have seen, several of them in the last year, what are your thoughts about continuing these as you go into another unit or another entity? Yes. I think on that, we'll review the asset deals that we're writing. you know, I think there's still plenty of opportunities out there for them. As we become a new company, it makes sense to stand back and take a look at, you know, each company's strategy, what makes sense from a combined company perspective, and therefore which opportunities remain priorities and which ones don't. We're going through the integration work at the moment. Ultimately that's work that we're doing. It would be premature for me to talk about whether or not we'll continue to pursue asset deals. I think asset deals have been very helpful for us in funding the ongoing business. 'Cause you think about it, right? We're moving from being a lower-end sensor company to being a, that plus a systems company. There is a gap in the middle there as you migrate some companies from one to the other. So I think that those asset deals have been very helpful in funding that transition. As we move to be a merged company, we have a much stronger financial position, so that funding becomes less necessary. Therefore, it becomes more of an opportunity than anything else, and we can decide whether or not that's the right opportunity to pursue. I don't wanna make it too much of a politician's answer, but I think it's fair to say that, you know, we'll review that and decide whether or not that still makes sense. On that, you mentioned that you started the integration. What, I mean, both EGMs have approved the merger. Where are you in kind of integrating the businesses? What are the timelines that you are expecting, et cetera? Yeah. You know, there's some things that we won't or can't do before the merger, anything that involves sensitive customer information, for example, remains off the table. What we are doing is looking at a number of different work streams around integration, you know, around talent and people, around financial operations, around commercial operations, et cetera, and getting into detailed planning. When you think about it, you know, the tools that we use, the systems we use, how we integrate them, how we report, people's contracts, et cetera, all of those things are being thoroughly managed. We have an integration leader from the FPC side of the house, a very strong leader in our team who's got great credibility and track record in project management. We review that on a weekly basis. There's work streams already lit up that are active on a daily basis. Feel super good about the integration work. I've done many integrations myself, really pleased to see nice early work happening to make sure that we get everything done well. Doesn't mean there won't be any slip-ups. You know, it's a complex integration, we feel very good about how in control of it we are and the governance we have wrapped around it. Mm-hmm. Can you remind me when? Oh, sorry. Timing. Yeah. We think it's around the middle of July. You know, there's a number of regulatory steps that we need to take in the process. We're just going through all of those at the moment, but we think around the middle of July. Okay. Okay. Then on cash flow, can you talk me through a little bit on the cash flow front? I mean, you had no licensing deal coming in during the quarter, then you had negative operating cash flow. Can you talk me through a little bit your thoughts about the cash flow development? Yeah. Yeah, I can jump in here. Yeah, Markus. I mean, if you look at the first quarter, and you compare it to the first quarter of 2025, right? In the first quarter of 2025, we had. You know, on an EBITDA basis first, you need to strip out this SEK 29.5 million of Smart Eye. If you look at free cash flows, we're better in free cash flow in the first quarter of 2026 compared to last year. Gross profit, let's round it to SEK 12 million. You look at the EBITDA of SEK 14 million, the delta between the two is what I would call kind of cash OpEx. You know, that's a simple explanation. What I said is that we had SEK 3 million of, call it non-recurring, costs, and you strip out the SEK 3 million. You get to a pretty, you know, fair-ish quarterly OpEx run rate. You take that 4x, then you get to an annual, call it ±SEK 90 million. When we talk about cash flow, the way I look at it is our business, even though we have a wonderful gross margin, we have great clients, it is just subscale. Because operating a global company that is public, there's kind of a minimum OpEx that you need. We can argue what that minimum OpEx is, but you can look at Precise that we're merging with, you can look at other companies, and it kind of ends up being there pretty close to that, you know, call it SEK 90 million. If you're less global, you might get down to, you know, SEK 80 million or so. In terms of having negative cash flow, I would just stance it would be it's a scale challenge. Now if we doubled our revenue, when we say we doubled our gross margin, you know, our OpEx wouldn't have to scale much. Like Adam said, you know, with a flat head count, we're growing 20%. Last year, we grew 30%, and excluding OpEx, we grew 40%, right? The growth is there. It's just, it's a scale of numbers. From EBITDA to free cash flow, you don't have a lot of changes. It's not like we're tying up a lot of working capital or we're adding a ton of inventory or we're paying a ton of cash taxes, and we don't have any debt, so we don't pay any cash interest, right? The way I look at the business is like it's a scale challenge. Organically, eventually, we're gonna solve this as a business because if we grow at 20% or 30% on an annual basis, we don't add much OpEx, eventually, you know, the business is gonna be profitable, generate cash flow. You can do the math. It's gonna take some time, and that's why the merger with Precise is so beautiful because, you know, Adam showed the numbers. They're very similar revenue. Actually, it just happened to be exactly the same revenue. I think it same revenue. I think it was SEK 78 million, both companies for the financial year 2025. You look at the OpEx structure, relatively similar to us. The fact that we can double the revenue, excluding any revenue synergies, and then make sure that we don't duplicate the cost structures, that's how you get to a business that's really, really healthy. The SEK 45 million of synergies, what I would call hard synergies that we announced because it's all OpEx, the SEK 45 million is something we feel really good about because the way we made the case is it's at the vendor level. You know, we are able to be very, very, very precise on the amount, and we're able to be very precise on the timing. That's how I would answer the cash question. You know, to build a little bit more, the biggest risk usually in a merger or any M&A work is the integration. As Adam said, we feel really good about the integration. Why is that? Well, it's two biometric companies, one located in Gothenburg, one in Lund. It's a short train ride away. The majority of our employees are Swedish-based. It's a wonderful cultural fit. I would view the integration risk relatively low compared to what I've seen in the past, just from a cultural perspective, but also from a client perspective, product perspective, and go-to-market perspective. I would assume that with the SEK 45 million necessary, it's hard synergies. They should really be tangible and doable. As Adam said, you would expect a double-digit EBITDA margin on a pro forma basis. I would assume that looking at the pro forma basis for synergies would also be cash flow positive as well. I think that's a good conclusion, right? Between, again, between EBITDA and free cash flow, I mean, NewCo is unlikely to have a lot of debt, right? It's unlikely to be cash paying interest. It's unlikely to have cash paying taxes, at least in the beginning. You know, you know, working capital is fairly straightforward for the two companies. We're not building inventories. I think that's a good assumption. Mm-hmm. Mm-hmm. All right. Excellent. Thank you. Finally, maybe on the acquisition slide that you had, and the pipeline. If you look at you've built a shortlist. When was this shortlist built? Was it built during this merger process or was it built before? A follow-up on that would be that I assume it's way too early to talk about any further conversations. Did you have any conversations beforehand? A little bit of color around that would be great. Yeah, I'm happy to take that one. Good, good question. I mean, it's always a tricky one to talk about M&A because obviously we can't mention anything too specific. Not only that, having done a lot of M&A in the past, deals are gonna happen, and then they don't, and it's a very binary result. You know, to answer your question specifically, we started doing this work, well, actually since I joined, but we ramped it up really last year. We started ramping up the specificity of the sorts of acquisition targets that we had. We've always had M&A kind of bubbling underneath since I've joined, but like I said, accelerated it last year. I would say that it's more of an ongoing activity. We did it before the merger was defined and announced. We've been doing it during that time as well, and we'll continue to do it after, because the economics and the dynamics are changing in the marketplace at the moment, as always, and therefore we keep a close eye on it. There are conversations that are happening at a high level around some of those potential targets as well. We tend to keep a simmer on the M&A activity, both in terms of identifying and engaging with potential targets, and then we dial it up to a boil when we're ready to start to make a move. I don't know if that answered your two questions, Markus, but that's how I would see it. Yeah. I can just jump in on that one. I mean, Markus, I think both Adam and I and the larger team are quite fond of doing, you know, acquisitions, both consolidating acquisitions and tech specific technology add-on acquisitions and, you know. I think the company's earned the right to do acquisitions, meaning they've been in the space for a very long time. Ex of that, the client's excellence and the product is very good. Now, we've been very capital constrained, we've tried to unlock capital for acquisitions, in reality we had to fund OpEx. That's been the priority. You know, improving the product portfolio, I mean, that consumed most of the capital and, you know, we just never found the ammunition to get it going. That's what's so exciting now with the merger and Precise, is that the balance sheet will be stronger. You know, the like we talked about, EBITDA and cash flow is gonna look better. I think, Precise and FPC, I mean, is a wonderful platform to start this consolidation. It's gonna be super exciting. Okay. Well that's great. Thank you very much. Thanks Fredrik. Thanks, Adam. I'll speak to you guys soon again. Awesome. Look forward to it. Thank you so much, Markus. Thanks for joining. See you soon. Thanks. Thank you. As a reminder, to ask a question, you will need to press star one and one on your telephone. If you wish to ask a question via the webcast, please type it into the box and click submit. There are no further questions on the phone line. I will hand back to Stefan for web questions. Thank you, Madeleine. Let's end with two questions from the chat. What does FPC have that Precise does not? What's the value of the combination for shareholders? Can you comment on the general sentiment of shareholders on this merger? Yes, super. Let's take those two questions. The first one. Say that again, Stefan. Is what do FPC have that Precise do not? Is that correct? Yes. That's it. Yes. I think there's a couple of things. There's capabilities, but then there's also cost synergies. Maybe I'll talk about the capabilities, and then I'll hand to Fredrik to talk about the other synergies, the economic synergies. Let's call them that. Rather than say what FPC have that Precise don't, I think it's worth understanding what each company has that the other does not, right? As you think about it, fundamentally, Precise is a software company and FPC are a integrated hardware company. We have software, but it's tightly integrated into the hardware. Very different. I think, you know, hardware is very important in biometrics because it's important to be able to capture a really strong signal and have integrity around the storage of that on device. I think that's a really powerful synergy between the two companies. Super complementary hardware and software. Second thing I would say is that there are different modalities that the companies have, right? On the FPC side, it's hardware fingerprint and software iris. On the Precise side, it's software fingerprint and palm as well. Really nice to see multi-modalities come into the fore. I think architecturally there are different synergies that we can bring together on device because we're hardware from an FPC perspective, very powerful from a cybersecurity perspective. On the Precise side, cloud capability in terms of their access control systems too. There's these really nice different things that we can bring together in a common architecture, end-to-end architecture also. I think there are complementary things outside of the technology capabilities as it relates to the go-to-market footprint. We have quite a complementary geographical coverage model, which is highly valuable. We bring that together also. You know, I think there's plenty of different things that each company has on its own, but the phrase I would use is better together. When we bring all of those things together rather than lock them up in isolation in a smaller niche company, I think it starts to really unlock more customer value as well. That's a little bit about capabilities. There's probably more, but those are the ones I typically like to talk about. Fredrik, maybe you can touch a little bit on some of the economic synergies. Yeah. Yeah, yeah, I can. I mean, the way we look at it is that 1 + 1 = 3 in this case. Why is 1 + 1 = 3? Adam, you listed a number of items. If we come back to the hard synergies of SEK 45 million, like I said, it's done at the vendor level. We've really gone through the synergies at the greatest level of detail to make sure that we can execute on it within a reasonable timeframe. The cost, we've estimated that the cost of generating the SEK 45 million of synergies is the cash cost is roughly SEK 25 million, so that's a payback of seven months. The financial case is, you know, it's just very, very strong. If you think about the cost synergies, one example, we have two Nasdaq Stockholm listings and the infrastructure that goes around the two listings. When you think about it's two companies that have two of everything, you know. The question is, how can we combine them, you know, our cost base and make it as efficient as possible while combining our revenue base, which is at SEK 78 million each, and maintaining strong gross margins because Precise have very strong gross margins, and we have very strong gross margins. Yeah, Adam, that's how I would summarize it. It's a relatively a lot of value creation for two smallish kind of companies with fairly limited execution risk around the integration. Yeah. You know? No, I think that's a, I totally agree. I think that's a really good way of putting it. I think it comes to the second question, Stefan, that you asked, which is from my conversations anyway, what's the investor sentiment? This is from the conversations I've had. I've had quite a few. You know, clearly I'm supporting this, hence, you know, it's why I put it forward. I would say in talking to shareholders, I would say, you know, there's a lot of history that the people have been through with FPC. What I found is we talked through, okay, you guys know the transformation journey that we've been on for the last three years since I joined. You know, here is why this is a really important aspect of that continued transformation to get us to a stable platform that we can use as a springboard for additional growth because we're not having to, you know, spend money on administrative functions. It's more efficient capital utilization into growth priorities. As we talk through that with shareholders, I think there is not only acceptance, yeah, this makes sense, but actually I'm seeing a general enthusiasm about, okay, this makes sense as an investor, not just to hold serve on the investments I've already made, but actually to double down, to exercise my warrants, et cetera, to actually get behind this as well because I see that this has got greater economic potential. Again, I'm not offering advice on investing. This is some of the things that I'm hearing from our shareholders that this has got a really strong potential for shareholder return. I think, you know, the economic model alone that Fredrik just articulated is a really powerful one. You put on top all of the capability synergies that I spoke about, I think it's a really, really nice merger. That's kinda what I'm hearing from the shareholders too, once, you know, as we talk them through the logic and what this is. Okay, great. Thank you, Adam. Let me hand back to you for any closing remarks that you may have. Wonderful. Thanks very much. Just to come back to Q1, you know, I think very consistent, strong performance, 21% year-on-year growth in constant currency with gross margin of 62.3%. Very pleased with those results, particularly as you think about the context of how we've managed OpEx aggressively over the last three years. We haven't grown OpEx to do that. We've maintained low relative OpEx to be able to achieve that. Very pleased with the whole team's performance on doing exactly that. At the same time, we're not standing still. We are investing and innovating in AllKey, and we've launched some new product families. We continue to see pipeline adds, so very pleased about moving up the value chain with that 3x ASP on AllKey. Of course, in the near term future, the merger. We've spoken about why it makes sense from an economic perspective with positive EBITDA and growth, but also what type of company this creates. Not a small niche one, but actually a broader biometrics identity leader right here in Europe. Really looking forward to seeing the benefits of that new company. Also as a consolidation platform for other smaller niche players to build out more capability in this space, which is exactly what the clients need. Looking forward to that. Appreciate everyone joining the call today and coming along on the journey with us, and I look forward to speaking to you all again soon. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker 4: Good day. Thank you for standing by. Welcome to the Fingerprint Cards Q1 Results 2026 webcast and conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Alternatively, you may submit your question via the webcast. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Stefan Pettersson, Head of Investor Relations. Please go ahead. Good day. good day Thank you for standing by. thank you for standing by Welcome to the Fingerprint Cards Q1 Results 2026 webcast and conference call. welcome to the fingerprint cards q1 results 2026 webcast and conference call At this time, all participants are in a listen only mode. at this time all participants are in a listen only mode After the speaker's presentation, there will be a question- and- answer session. after the speaker's presentation there will be a question- and- answer session To ask a question during the session, you will need to press star one and one on your telephone. to ask a question during the session you will need to press star one and one on your telephone You will hear an automated message advising your hand is raised. you will hear an automated message advising your hand is raised To withdraw your question, please press star one and one again. to withdraw your question please press star one and one again Alternatively, you may submit your question via the webcast. alternatively you may submit your question via the webcast Please be advised that today's conference is being recorded. please be advised that today's conference is being recorded I would now like to hand the conference over to your speaker today, Stefan Pettersson, Head of Investor Relations. i would now like to hand the conference over to your speaker today stefan pettersson head of investor relations Please go ahead. please go ahead

Speaker 5: Thank you, Madeleine, and good morning, everyone, and welcome to FPC's earnings call following the release of our Q1 report this morning. We'll start by a presentation of the report by our CEO, Adam Philpott, and then by our CFO, Fredrik Hedlund. If you're following the conference call on the web, you can post questions throughout the call. With that, let me now hand over to our CEO, Adam Philpott. Thank you, Madeleine, and good morning, everyone, and welcome to FPC's earnings call following the release of our Q1 report this morning. thank you madeleine and good morning everyone and welcome to fpc's earnings call following the release of our q1 report this morning We'll start by a presentation of the report by our CEO, Adam Philpott, and then by our CFO, Fredrik Hedlund. we'll start by a presentation of the report by our ceo adam philpott and then by our cfo fredrik hedlund If you're following the conference call on the web, you can post questions throughout the call. if you're following the conference call on the web you can post questions throughout the call With that, let me now hand over to our CEO, Adam Philpott. with that let me now hand over to our ceo adam philpott

Speaker 1: Thank you very much, Stefan. Good morning, everyone. Thanks for joining Fredrik and I for the Q1 2026 earnings presentation. Just in terms of the agenda, I'll go through a quick summary of the financials for Q1. We'll spend a bit of time. As always, we'll talk about AllKey. We'll talk about how that really important high-value premium product is developing. Third, we'll talk about the merger itself that we announced recently and that was recently voted through at our EGM. We're gonna spend a bit of time on that before I hand to Fredrik Hedlund, who will talk in a bit more detail about some of the key figures from Q1 2026. Let me get into the summary of our performance. Thank you very much, Stefan. thank you very much stefan Good morning, everyone. good morning everyone Thanks for joining Fredrik and I for the Q1 2026 earnings presentation. thanks for joining fredrik and i for the q1 2026 earnings presentation Just in terms of the agenda, I'll go through a quick summary of the financials for Q1. just in terms of the agenda i'll go through a quick summary of the financials for q1 We'll spend a bit of time. we'll spend a bit of time As always, we'll talk about AllKey. as always we'll talk about allkey We'll talk about how that really important high-value premium product is developing. we'll talk about how that really important high-value premium product is developing Third, we'll talk about the merger itself that we announced recently and that was recently voted through at our EGM. third we'll talk about the merger itself that we announced recently and that was recently voted through at our egm We're gonna spend a bit of time on that before I hand to Fredrik Hedlund, who will talk in a bit more detail about some of the key figures from Q1 2026. we're gonna spend a bit of time on that before i hand to fredrik hedlund who will talk in a bit more detail about some of the key figures from q1 2026 Let me get into the summary of our performance. let me get into the summary of our performance Overall, if we look at the top line, a continued growth on our top line, 4% year-on-year growth, in real terms, 21% up in constant currency. Another strong constant currency quarter in terms of revenue performance. Really pleased with the team and those results. From a margin perspective, also very happy with the margin performance. You can see here 62.3% gross margin. That was just on our core products. There were no licensing deals or other types of deals in there. Really strong core performance on the core portfolio. Really pleased to see that our premium is well-recognized by our clients, and we thank them for exactly that. Great performance on the gross margin. Overall, if we look at the top line, a continued growth on our top line, 4% year-on-year growth, in real terms, 21% up in constant currency. overall if we look at the top line a continued growth on our top line 4% year-on-year growth in real terms 21% up in constant currency Another strong constant currency quarter in terms of revenue performance. another strong constant currency quarter in terms of revenue performance Really pleased with the team and those results. really pleased with the team and those results From a margin perspective, also very happy with the margin performance. from a margin perspective also very happy with the margin performance You can see here 62.3% gross margin. you can see here 62.3% gross margin That was just on our core products. that was just on our core products There were no licensing deals or other types of deals in there. there were no licensing deals or other types of deals in there Really strong core performance on the core portfolio. really strong core performance on the core portfolio Really pleased to see that our premium is well-recognized by our clients, and we thank them for exactly that. really pleased to see that our premium is well-recognized by our clients and we thank them for exactly that Great performance on the gross margin. great performance on the gross margin As I mentioned, two of the key elements that I want to touch on today, relate to AllKey and the merger. In terms of AllKey, we spent a number of calls now talking about how we're migrating from lower-end sensors to high value, moving up the value chain with systems, and our product family name for that is AllKey. As we continue to monitor our progress and the development of that business, of all the new pipeline, so new deals that we brought into the pipeline in Q1, 75% of new pipeline is for AllKey. Really seeing momentum in that product family. Not only that, but as we look at that AllKey pipeline that we added in Q1, 60% of that pipeline was for new clients as well. As I mentioned, two of the key elements that I want to touch on today, relate to AllKey and the merger. as i mentioned two of the key elements that i want to touch on today relate to allkey and the merger In terms of AllKey, we spent a number of calls now talking about how we're migrating from lower-end sensors to high value, moving up the value chain with systems, and our product family name for that is AllKey. in terms of allkey we spent a number of calls now talking about how we're migrating from lower-end sensors to high value moving up the value chain with systems and our product family name for that is allkey As we continue to monitor our progress and the development of that business, of all the new pipeline, so new deals that we brought into the pipeline in Q1, 75% of new pipeline is for AllKey. as we continue to monitor our progress and the development of that business of all the new pipeline so new deals that we brought into the pipeline in q1 75% of new pipeline is for allkey Really seeing momentum in that product family. really seeing momentum in that product family Not only that, but as we look at that AllKey pipeline that we added in Q1, 60% of that pipeline was for new clients as well. not only that but as we look at that allkey pipeline that we added in q1 60% of that pipeline was for new clients as well Continuing momentum to bring new clients into the company, with new pipeline based on being able to reach them in new ways with the AllKey product family. Much simpler for them to be able to go and integrate that into their products as a turnkey solution. We also continue to innovate in AllKey as well. We launched the AllKey software platform. I'll spend a bit more time on that just shortly. Big news, of course, that was announced after the end of the quarter was the merger with Precise Biometrics. The EGM was held and approved that on the April 30th, a few weeks ago. What that means is that we're building an incredibly powerful European biometrics platform, so a really important company in that space. There's great synergies. Continuing momentum to bring new clients into the company, with new pipeline based on being able to reach them in new ways with the AllKey product family. continuing momentum to bring new clients into the company with new pipeline based on being able to reach them in new ways with the allkey product family Much simpler for them to be able to go and integrate that into their products as a turnkey solution. much simpler for them to be able to go and integrate that into their products as a turnkey solution We also continue to innovate in AllKey as well. we also continue to innovate in allkey as well We launched the AllKey software platform. we launched the allkey software platform I'll spend a bit more time on that just shortly. i'll spend a bit more time on that just shortly Big news, of course, that was announced after the end of the quarter was the merger with Precise Biometrics. big news of course that was announced after the end of the quarter was the merger with precise biometrics The EGM was held and approved that on the April 30th, a few weeks ago. the egm was held and approved that on the april 30th a few weeks ago What that means is that we're building an incredibly powerful European biometrics platform, so a really important company in that space. what that means is that we're building an incredibly powerful european biometrics platform so a really important company in that space There's great synergies. there's great synergies There's great synergies from a go-to-market perspective. There are great synergies from a portfolio perspective, there are also great cost synergies as well that allow us to get to an EBITDA positive position and a much stronger company fundamentals there as well. Overall, for the quarter, really strong margin profile, good top-line growth as well, and continuing that premium focus where we have great skills that are unique in the market. Let me spend a bit more time on AllKey. On the left, you can see the exact charts that we used last quarter. The reason I've used those again is they remain very consistent with what we're seeing in terms of both our product mix by revenue, but also our new customer mix. I mentioned some data points earlier that we're seeing 60% of new pipeline for new customers. There's great synergies from a go-to-market perspective. there's great synergies from a go-to-market perspective There are great synergies from a portfolio perspective, there are also great cost synergies as well that allow us to get to an EBITDA positive position and a much stronger company fundamentals there as well. there are great synergies from a portfolio perspective there are also great cost synergies as well that allow us to get to an ebitda positive position and a much stronger company fundamentals there as well Overall, for the quarter, really strong margin profile, good top-line growth as well, and continuing that premium focus where we have great skills that are unique in the market. overall for the quarter really strong margin profile good top-line growth as well and continuing that premium focus where we have great skills that are unique in the market Let me spend a bit more time on AllKey. let me spend a bit more time on allkey On the left, you can see the exact charts that we used last quarter. on the left you can see the exact charts that we used last quarter The reason I've used those again is they remain very consistent with what we're seeing in terms of both our product mix by revenue, but also our new customer mix. the reason i've used those again is they remain very consistent with what we're seeing in terms of both our product mix by revenue but also our new customer mix I mentioned some data points earlier that we're seeing 60% of new pipeline for new customers. i mentioned some data points earlier that we're seeing 60% of new pipeline for new customers That hasn't changed the overall pipeline. We expect to continue to see that moving forward. I talked about the product mix, of course, as well. For all new pipe that was added in Q1, all of that product, 75% rather of that new pipeline by revenue was for AllKey. Again, you can see how we're continuing to bring more AllKey into the mix in our pipeline, and of course, over time, that then converts through the sales cycle into revenue. We're seeing continued strength in the AllKey family product family business development too. It's not just bringing new pipe in. We're seeing the pipe shift through the sales stages, through evaluation, into design wins and into business wins. That hasn't changed the overall pipeline. that hasn't changed the overall pipeline We expect to continue to see that moving forward. we expect to continue to see that moving forward I talked about the product mix, of course, as well. i talked about the product mix of course as well For all new pipe that was added in Q1, all of that product, 75% rather of that new pipeline by revenue was for AllKey. for all new pipe that was added in q1 all of that product 75% rather of that new pipeline by revenue was for allkey Again, you can see how we're continuing to bring more AllKey into the mix in our pipeline, and of course, over time, that then converts through the sales cycle into revenue. again you can see how we're continuing to bring more allkey into the mix in our pipeline and of course over time that then converts through the sales cycle into revenue We're seeing continued strength in the AllKey family product family business development too. we're seeing continued strength in the allkey family product family business development too It's not just bringing new pipe in. it's not just bringing new pipe in We're seeing the pipe shift through the sales stages, through evaluation, into design wins and into business wins. we're seeing the pipe shift through the sales stages through evaluation into design wins and into business wins We're seeing real progress as that moves through the funnel as well, having launched that just over a year ago. We also have talked a lot about why this is important for us moving up the value chain, not just for margin, but also as we offer a greater system to our customer, it means they need to buy less pieces or fewer pieces from other players, which means that we can get greater wallet share, and this gives rise to the 3x average selling price economics. We continue to see that in our pipeline for the value of our AllKey deals per unit versus the value of our sensor deals per unit. We keep a very close eye exactly on that. We have maintained and expanded our sensor partnerships as well. We're seeing real progress as that moves through the funnel as well, having launched that just over a year ago. we're seeing real progress as that moves through the funnel as well having launched that just over a year ago We also have talked a lot about why this is important for us moving up the value chain, not just for margin, but also as we offer a greater system to our customer, it means they need to buy less pieces or fewer pieces from other players, which means that we can get greater wallet share, and this gives rise to the 3 x average selling price economics. we also have talked a lot about why this is important for us moving up the value chain not just for margin but also as we offer a greater system to our customer it means they need to buy less pieces or fewer pieces from other players which means that we can get greater wallet share and this gives rise to the 3 x average selling price economics We continue to see that in our pipeline for the value of our AllKey deals per unit versus the value of our sensor deals per unit. we continue to see that in our pipeline for the value of our allkey deals per unit versus the value of our sensor deals per unit We keep a very close eye exactly on that. we keep a very close eye exactly on that We have maintained and expanded our sensor partnerships as well. we have maintained and expanded our sensor partnerships as well We continue to see new opportunities for our sensor business, particularly in the card form factor like ID. Lots of interesting things going on. We're not walking away from that business. We're protecting and maintaining that business, continuing to expand and grow it into new segments as well, whilst also building out this premium side of our portfolio. As I talked earlier about building that premium side out, we launched the AllKey software platform in Q1. What that means is that not only do we offer the full technology stack, including MCU sensor, et cetera, but also allow customers to write custom apps to that platform as well. Even more flexibility, particularly on the software side, again, opening up new use cases for our clients. We will continue to innovate. We continue to see new opportunities for our sensor business, particularly in the card form factor like ID. we continue to see new opportunities for our sensor business particularly in the card form factor like id Lots of interesting things going on. lots of interesting things going on We're not walking away from that business. we're not walking away from that business We're protecting and maintaining that business, continuing to expand and grow it into new segments as well, whilst also building out this premium side of our portfolio. we're protecting and maintaining that business continuing to expand and grow it into new segments as well whilst also building out this premium side of our portfolio As I talked earlier about building that premium side out, we launched the AllKey software platform in Q1. as i talked earlier about building that premium side out we launched the allkey software platform in q1 What that means is that not only do we offer the full technology stack, including MCU sensor, et cetera, but also allow customers to write custom apps to that platform as well. what that means is that not only do we offer the full technology stack including mcu sensor et cetera but also allow customers to write custom apps to that platform as well Even more flexibility, particularly on the software side, again, opening up new use cases for our clients. even more flexibility particularly on the software side again opening up new use cases for our clients We will continue to innovate. we will continue to innovate We launched the AllKey software platform in Q1, but we also continue to see more opportunity, particularly on the card form factor for AllKey Ultra. Today, we offer sensors in our partnerships there. Tomorrow we believe we can offer more value, including software, taking the AllKey Ultra platform with a secure element into the smart card form factor as well. Lots going on in AllKey, lots of demand, but continued innovation to serve that demand as well as we push it through our pipeline. That's a little bit on AllKey. Let's talk a little bit about the merger as well, because we believe the merger forms a very strong combined company. In terms of what it offers is great, meaningful cost synergies. We launched the AllKey software platform in Q1, but we also continue to see more opportunity, particularly on the card form factor for AllKey Ultra. we launched the allkey software platform in q1 but we also continue to see more opportunity particularly on the card form factor for allkey ultra Today, we offer sensors in our partnerships there. today we offer sensors in our partnerships there Tomorrow we believe we can offer more value, including software, taking the AllKey Ultra platform with a secure element into the smart card form factor as well. tomorrow we believe we can offer more value including software taking the allkey ultra platform with a secure element into the smart card form factor as well Lots going on in AllKey, lots of demand, but continued innovation to serve that demand as well as we push it through our pipeline. lots going on in allkey lots of demand but continued innovation to serve that demand as well as we push it through our pipeline That's a little bit on AllKey. that's a little bit on allkey Let's talk a little bit about the merger as well, because we believe the merger forms a very strong combined company. let's talk a little bit about the merger as well because we believe the merger forms a very strong combined company In terms of what it offers is great, meaningful cost synergies. in terms of what it offers is great meaningful cost synergies Really powerful cost synergies, a much stronger financial profile. We achieve this by streamlining some of the overlapping functions and optimize the combined organizations. We've identified annual operating cost synergies of at least SEK 45 million. That really comes from consolidating administrative functions, optimizing systems and tools, streamlining commercial operations. Really just a leaner cost base to support the greater organization, leading to a potential double-digit EBITDA margin. Not only that, I mean, that's the economic side of it. There's also very complementary offerings too. We've got a much stronger, more competitive biometrics identity company as a result of the merger, integrated hardware and software solutions. We span physical and digital security in different ways together. We address the full spectrum of authentication, identification, and access controls. Really powerful cost synergies, a much stronger financial profile. really powerful cost synergies a much stronger financial profile We achieve this by streamlining some of the overlapping functions and optimize the combined organizations. we achieve this by streamlining some of the overlapping functions and optimize the combined organizations We've identified annual operating cost synergies of at least SEK 45 million. we've identified annual operating cost synergies of at least sek 45 million That really comes from consolidating administrative functions, optimizing systems and tools, streamlining commercial operations. that really comes from consolidating administrative functions optimizing systems and tools streamlining commercial operations Really just a leaner cost base to support the greater organization, leading to a potential double-digit EBITDA margin. really just a leaner cost base to support the greater organization leading to a potential double-digit ebitda margin Not only that, I mean, that's the economic side of it. not only that i mean that's the economic side of it There's also very complementary offerings too. there's also very complementary offerings too We've got a much stronger, more competitive biometrics identity company as a result of the merger, integrated hardware and software solutions. we've got a much stronger more competitive biometrics identity company as a result of the merger integrated hardware and software solutions We span physical and digital security in different ways together. we span physical and digital security in different ways together We address the full spectrum of authentication, identification, and access controls. we address the full spectrum of authentication identification and access controls That means that customers can come to us for different things. It means they can buy more from us. We can increase our wallet share. We can also increase our win rate with those clients also. It gives us expanded commercial reach too. We have a very complementary go-to-market coverage footprint as well with different customers in different segments to allow us to capture a larger wallet share. Finally, what this also does as a leading biometrics platform is create a platform for industry consolidation. It's a highly fragmented market. Many companies with strong technology, but very limited scale, sub-scale, if you like. We believe there's a huge opportunity to play an active role in industry consolidation. That means that customers can come to us for different things. that means that customers can come to us for different things It means they can buy more from us. it means they can buy more from us We can increase our wallet share. we can increase our wallet share We can also increase our win rate with those clients also. we can also increase our win rate with those clients also It gives us expanded commercial reach too. it gives us expanded commercial reach too We have a very complementary go-to-market coverage footprint as well with different customers in different segments to allow us to capture a larger wallet share. we have a very complementary go-to-market coverage footprint as well with different customers in different segments to allow us to capture a larger wallet share Finally, what this also does as a leading biometrics platform is create a platform for industry consolidation. finally what this also does as a leading biometrics platform is create a platform for industry consolidation It's a highly fragmented market. it's a highly fragmented market Many companies with strong technology, but very limited scale, sub-scale, if you like. many companies with strong technology but very limited scale sub-scale if you like We believe there's a huge opportunity to play an active role in industry consolidation. we believe there's a huge opportunity to play an active role in industry consolidation There's not lots of small companies that the customer has to own the complexity to go and engage with, but actually we can aggregate that together to give the customer a more simple value and choice for what they're seeking to improve their identity and security posture. That's a kind of overview, if you like, on the combined company. I will go a little deeper into some of those elements as well. Let's talk about the cost synergies, creating a platform for strong growth and profitability. On a pro forma basis, Precise and FPC together generated approximately SEK 160 million in revenue in 2025 but with a negative EBITDA of -SEK 19 million. One of the benefits of the merger is the opportunity to create a much more efficient operating cost base. There's not lots of small companies that the customer has to own the complexity to go and engage with, but actually we can aggregate that together to give the customer a more simple value and choice for what they're seeking to improve their identity and security posture. there's not lots of small companies that the customer has to own the complexity to go and engage with but actually we can aggregate that together to give the customer a more simple value and choice for what they're seeking to improve their identity and security posture That's a kind of overview, if you like, on the combined company. that's a kind of overview if you like on the combined company I will go a little deeper into some of those elements as well. i will go a little deeper into some of those elements as well Let's talk about the cost synergies, creating a platform for strong growth and profitability. let's talk about the cost synergies creating a platform for strong growth and profitability On a pro forma basis, Precise and FPC together generated approximately SEK 160 million in revenue in 2025 but with a negative EBITDA of - SEK 19 million. on a pro forma basis precise and fpc together generated approximately sek 160 million in revenue in 2025 but with a negative ebitda of - sek 19 million One of the benefits of the merger is the opportunity to create a much more efficient operating cost base. one of the benefits of the merger is the opportunity to create a much more efficient operating cost base We've identified annual synergies, as I said, of at least SEK 45 million, which come from those overlapping functions and optimization that I talked about. As these synergies get realized, the combined company is expected to deliver double-digit growth, double-digit EBITDA margins, where the adjusted pro forma shows about 17% EBITDA margins. A really powerful way of combining resources, optimizing them to deliver a much better outcome. That's a little bit on the cost base and the financial synergies. Let's talk a bit about the capabilities and how we combine those and what those mean as well. Together, we offer a very, very broad suite of capabilities, and both companies offer high efficacy identity. We've identified annual synergies, as I said, of at least SEK 45 million, which come from those overlapping functions and optimization that I talked about. we've identified annual synergies as i said of at least sek 45 million which come from those overlapping functions and optimization that i talked about As these synergies get realized, the combined company is expected to deliver double-digit growth, double-digit EBITDA margins, where the adjusted pro forma shows about 17% EBITDA margins. as these synergies get realized the combined company is expected to deliver double-digit growth double-digit ebitda margins where the adjusted pro forma shows about 17% ebitda margins A really powerful way of combining resources, optimizing them to deliver a much better outcome. a really powerful way of combining resources optimizing them to deliver a much better outcome That's a little bit on the cost base and the financial synergies. that's a little bit on the cost base and the financial synergies Let's talk a bit about the capabilities and how we combine those and what those mean as well. let's talk a bit about the capabilities and how we combine those and what those mean as well Together, we offer a very, very broad suite of capabilities, and both companies offer high efficacy identity. together we offer a very very broad suite of capabilities and both companies offer high efficacy identity That's very complementary from a cultural, from a technology perspective as well, because as we think about what's happening out there in the world, and I've talked a lot about this, we're now finally starting to see the shift away from passwords. Those alternatives to passwords typically require biometrics, whether it's FIDO tokens, whether it's access, et cetera, it typically requires biometrics. It's super important to have a company that's got the right scale to be able to respond to this. The initial hypothesis is we can serve these markets very, very well together. The future potential is to unify them. As you think about physical security today, both companies serve physical security. As you think about digital security, both companies serve that as well. That's very complementary from a cultural, from a technology perspective as well, because as we think about what's happening out there in the world, and I've talked a lot about this, we're now finally starting to see the shift away from passwords. that's very complementary from a cultural from a technology perspective as well because as we think about what's happening out there in the world and i've talked a lot about this we're now finally starting to see the shift away from passwords Those alternatives to passwords typically require biometrics, whether it's FIDO tokens, whether it's access, et cetera, it typically requires biometrics. those alternatives to passwords typically require biometrics whether it's fido tokens whether it's access et cetera it typically requires biometrics It's super important to have a company that's got the right scale to be able to respond to this. it's super important to have a company that's got the right scale to be able to respond to this The initial hypothesis is we can serve these markets very, very well together. the initial hypothesis is we can serve these markets very very well together The future potential is to unify them. the future potential is to unify them As you think about physical security today, both companies serve physical security. as you think about physical security today both companies serve physical security As you think about digital security, both companies serve that as well. as you think about digital security both companies serve that as well There's an opportunity over time to bring those two things together in a continuum, in a continuous loop, whereby we improve overall security by combining physical access, we know I'm in the building, with digital security, I'm trying to get access to an application from within that building. Very, very powerful play for both companies. If you look at how we're complementary today, we also offer a blend of enterprise and consumer markets, both companies active in different spaces, very complementary to bring that together. We offer a blend of different modalities, for example, as well, fingerprint, hardware, iris, palm, lots of different capabilities that we can offer there. There's an opportunity over time to bring those two things together in a continuum, in a continuous loop, whereby we improve overall security by combining physical access, we know I'm in the building, with digital security, I'm trying to get access to an application from within that building. there's an opportunity over time to bring those two things together in a continuum in a continuous loop whereby we improve overall security by combining physical access we know i'm in the building with digital security i'm trying to get access to an application from within that building Very, very powerful play for both companies. very very powerful play for both companies If you look at how we're complementary today, we also offer a blend of enterprise and consumer markets, both companies active in different spaces, very complementary to bring that together. if you look at how we're complementary today we also offer a blend of enterprise and consumer markets both companies active in different spaces very complementary to bring that together We offer a blend of different modalities, for example, as well, fingerprint, hardware, iris, palm, lots of different capabilities that we can offer there. we offer a blend of different modalities for example as well fingerprint hardware iris palm lots of different capabilities that we can offer there That creates a huge opportunity for upsell, cross-sell, and particularly new logos as we leverage joint expertise and expand what we're offering, but also expand what we're selling to each of our individual clients. Lots of things that are super complementary that we can bring together to offer a greater outcome to our clients. The final piece I spoke about was around the sector consolidation. The biometric industry remains highly fragmented. Many specialized technology companies typically operating at very small scale. The merger between FPC and Precise presents a first step in building a scalable biometrics platform capable of participating and frankly enabling that consolidation. When we talk about consolidation, we see two primary types of acquisition opportunities. There's portfolio consolidation, and there's capability expansion. That creates a huge opportunity for upsell, cross-sell, and particularly new logos as we leverage joint expertise and expand what we're offering, but also expand what we're selling to each of our individual clients. that creates a huge opportunity for upsell cross-sell and particularly new logos as we leverage joint expertise and expand what we're offering but also expand what we're selling to each of our individual clients Lots of things that are super complementary that we can bring together to offer a greater outcome to our clients. lots of things that are super complementary that we can bring together to offer a greater outcome to our clients The final piece I spoke about was around the sector consolidation. the final piece i spoke about was around the sector consolidation The biometric industry remains highly fragmented. the biometric industry remains highly fragmented Many specialized technology companies typically operating at very small scale. many specialized technology companies typically operating at very small scale The merger between FPC and Precise presents a first step in building a scalable biometrics platform capable of participating and frankly enabling that consolidation. the merger between fpc and precise presents a first step in building a scalable biometrics platform capable of participating and frankly enabling that consolidation When we talk about consolidation, we see two primary types of acquisition opportunities. when we talk about consolidation we see two primary types of acquisition opportunities There's portfolio consolidation, and there's capability expansion. there's portfolio consolidation and there's capability expansion Let me talk about each of those, and forgive all the text on this slide. I wanted to keep some of the detail in there for you. When it comes to portfolio consolidation, what's that? Well, those are typically well-established niche companies who've got proven products. They've got active customers, market validation. They've got strong technology, and they have a customer base, but they're limited in their ability to scale on their own. Through those types of acquisitions, we can create value through integrating their products into the combined portfolio, leveraging our combined go-to-market reach and scale, but also realize those cost synergies and operational efficiencies. Really nice opportunity there. Those are some of the slightly larger ones, hence the dots on this chart are slightly larger. Let me talk about each of those, and forgive all the text on this slide. let me talk about each of those and forgive all the text on this slide I wanted to keep some of the detail in there for you. i wanted to keep some of the detail in there for you When it comes to portfolio consolidation, what's that? when it comes to portfolio consolidation what's that Well, those are typically well-established niche companies who've got proven products. well those are typically well-established niche companies who've got proven products They've got active customers, market validation. they've got active customers market validation They've got strong technology, and they have a customer base, but they're limited in their ability to scale on their own. they've got strong technology and they have a customer base but they're limited in their ability to scale on their own Through those types of acquisitions, we can create value through integrating their products into the combined portfolio, leveraging our combined go-to-market reach and scale, but also realize those cost synergies and operational efficiencies. through those types of acquisitions we can create value through integrating their products into the combined portfolio leveraging our combined go-to-market reach and scale but also realize those cost synergies and operational efficiencies Really nice opportunity there. really nice opportunity there Those are some of the slightly larger ones, hence the dots on this chart are slightly larger. those are some of the slightly larger ones hence the dots on this chart are slightly larger On the right side of this chart, we've got capability expansion. Those are typically smaller specialist teams with really good IP expertise and complementary solutions that add value to our existing portfolio and customers. The value creation from those type of acquisitions comes from strengthening and expanding the platform's technology capabilities, accelerating the development of new solutions, in-housing, where we may have previously partnered to achieve that, and adding expertise in new technology areas. In both cases, whether it's, you know, portfolio consolidation or whether it's capability expansion, the objective remains the same. It's to expand what we can do, it's to strengthen our product portfolio, and it's to scale leveraging our commercial capacity and commercial reach. We feel this is a really great capability and company that we're putting together with FPC and Precise. On the right side of this chart, we've got capability expansion. on the right side of this chart we've got capability expansion Those are typically smaller specialist teams with really good IP expertise and complementary solutions that add value to our existing portfolio and customers. those are typically smaller specialist teams with really good ip expertise and complementary solutions that add value to our existing portfolio and customers The value creation from those type of acquisitions comes from strengthening and expanding the platform's technology capabilities, accelerating the development of new solutions, in-housing, where we may have previously partnered to achieve that, and adding expertise in new technology areas. the value creation from those type of acquisitions comes from strengthening and expanding the platform's technology capabilities accelerating the development of new solutions in-housing where we may have previously partnered to achieve that and adding expertise in new technology areas In both cases, whether it's, you know, portfolio consolidation or whether it's capability expansion, the objective remains the same. in both cases whether it's you know portfolio consolidation or whether it's capability expansion the objective remains the same It's to expand what we can do, it's to strengthen our product portfolio, and it's to scale leveraging our commercial capacity and commercial reach. it's to expand what we can do it's to strengthen our product portfolio and it's to scale leveraging our commercial capacity and commercial reach We feel this is a really great capability and company that we're putting together with FPC and Precise. we feel this is a really great capability and company that we're putting together with fpc and precise You can also see how this becomes then a platform for continuing to build on that with other acquisitions through those other types of consolidation opportunities. That's a little bit on the merger. Let me come back to you, Fredrik. Let's come back to Q1, and perhaps you can talk us through some of the key figures. You can also see how this becomes then a platform for continuing to build on that with other acquisitions through those other types of consolidation opportunities. you can also see how this becomes then a platform for continuing to build on that with other acquisitions through those other types of consolidation opportunities That's a little bit on the merger. that's a little bit on the merger Let me come back to you, Fredrik. let me come back to you fredrik Let's come back to Q1, and perhaps you can talk us through some of the key figures. let's come back to q1 and perhaps you can talk us through some of the key figures

Speaker 2: Thank you, Adam. Back to the performance in the first quarter. Our revenue grew by 4%, and on a constant currency basis, it grew 21%. The gross margins for the quarter continued to be very strong at 62.3%, and it's higher than the gross margins that we had in the first quarter of 2025, and it's also higher than the average gross margin for the year 2025. EBITDA was -SEK 14.1 million, and this included SEK 3 million of what I would call non-recurring OpEx, which is mainly cost related to the merger. Our free cash flow was -SEK 13.2 million, and we had SEK 18.2 million of cash at the end of the quarter, and our head count was 50. Back to you, Adam. Thank you, Adam. thank you adam Back to the performance in the first quarter. back to the performance in the first quarter Our revenue grew by 4%, and on a constant currency basis, it grew 21%. our revenue grew by 4% and on a constant currency basis it grew 21% The gross margins for the quarter continued to be very strong at 62.3%, and it's higher than the gross margins that we had in the first quarter of 2025, and it's also higher than the average gross margin for the year 2025. the gross margins for the quarter continued to be very strong at 62.3% and it's higher than the gross margins that we had in the first quarter of 2025 and it's also higher than the average gross margin for the year 2025 EBITDA was - SEK 14.1 million, and this included SEK 3 million of what I would call non-recurring OpEx, which is mainly cost related to the merger. ebitda was - sek 14.1 million and this included sek 3 million of what i would call non-recurring opex which is mainly cost related to the merger Our free cash flow was - SEK 13.2 million, and we had SEK 18.2 million of cash at the end of the quarter, and our head count was 50. our free cash flow was - sek 13.2 million and we had sek 18.2 million of cash at the end of the quarter and our head count was 50 Back to you, Adam. back to you adam

Speaker 1: Very much, Fredrik. Let's summarize then what we've heard, and then we'll move to take some questions. From a performance perspective, first of all, really pleased to see up 4%. As you look at constant currency, up 21%. Really pleased with that top-line performance from the team. Our gross margin, 62.3%, continued sustained margin. As I said, that's really coming from our core products as we shift over and start to realize AllKey business also. Then, from an operating leverage perspective, we continue to do this having made significant changes in our OpEx line. For those of you who have been following us for the last two years or so, significant changes in our OpEx lines. Very much, Fredrik. very much fredrik Let's summarize then what we've heard, and then we'll move to take some questions. let's summarize then what we've heard and then we'll move to take some questions From a performance perspective, first of all, really pleased to see up 4%. from a performance perspective first of all really pleased to see up 4% As you look at constant currency, up 21%. as you look at constant currency up 21% Really pleased with that top-line performance from the team. really pleased with that top-line performance from the team Our gross margin, 62.3%, continued sustained margin. our gross margin 62.3% continued sustained margin As I said, that's really coming from our core products as we shift over and start to realize AllKey business also. as i said that's really coming from our core products as we shift over and start to realize allkey business also Then, from an operating leverage perspective, we continue to do this having made significant changes in our OpEx line. then from an operating leverage perspective we continue to do this having made significant changes in our opex line For those of you who have been following us for the last two years or so, significant changes in our OpEx lines. for those of you who have been following us for the last two years or so significant changes in our opex lines We're able to achieve this without reinvesting in capacity, either in product or in sales, but actually leverage the organization that we've had underpinned by some of the things we've been doing to optimize our capacity, augmenting it with AI, for example. Really pleased about the top-line performance whilst managing the OpEx line, of course, as well. In terms of AllKey, where we think there's massive opportunity moving forward, we continue to see a shift to the high value AllKey product family in our pipeline, and we're monitoring that that pipeline is moving through to booking. Very pleased at the progress and how that business is developing too. We're seeing new customer logos come in also. We're able to achieve this without reinvesting in capacity, either in product or in sales, but actually leverage the organization that we've had underpinned by some of the things we've been doing to optimize our capacity, augmenting it with AI, for example. we're able to achieve this without reinvesting in capacity either in product or in sales but actually leverage the organization that we've had underpinned by some of the things we've been doing to optimize our capacity augmenting it with ai for example Really pleased about the top-line performance whilst managing the OpEx line, of course, as well. In terms of AllKey, where we think there's massive opportunity moving forward, we continue to see a shift to the high value AllKey product family in our pipeline, and we're monitoring that that pipeline is moving through to booking. really pleased about the top-line performance whilst managing the opex line of course as well. in terms of allkey where we think there's massive opportunity moving forward we continue to see a shift to the high value allkey product family in our pipeline and we're monitoring that that pipeline is moving through to booking Very pleased at the progress and how that business is developing too. very pleased at the progress and how that business is developing too We're seeing new customer logos come in also. we're seeing new customer logos come in also That's something I focus the sales team on a regular basis is ensuring we're out there, we're capturing leads, we're meeting new people and bringing new logos into the pipeline also. From an AllKey perspective, it's also important to us because of its impact on the ASP, 3x ASP. We still see that in our pipelines. We're very pleased to see that. Finally, we're continuing to expand that. We launched AllKey over a year ago. We launched AllKey Ultra last year. We're continuing to evolve and move up the value chain with that platform and fill in some of the other gaps like software, for example, that our customers need our help with to make it much, much easier for them to integrate high quality biometrics at scale into a myriad products that they have. That's something I focus the sales team on a regular basis is ensuring we're out there, we're capturing leads, we're meeting new people and bringing new logos into the pipeline also. that's something i focus the sales team on a regular basis is ensuring we're out there we're capturing leads we're meeting new people and bringing new logos into the pipeline also From an AllKey perspective, it's also important to us because of its impact on the ASP, 3x ASP. from an allkey perspective it's also important to us because of its impact on the asp 3x asp We still see that in our pipelines. we still see that in our pipelines We're very pleased to see that. we're very pleased to see that Finally, we're continuing to expand that. finally we're continuing to expand that We launched AllKey over a year ago. we launched allkey over a year ago We launched AllKey Ultra last year. we launched allkey ultra last year We're continuing to evolve and move up the value chain with that platform and fill in some of the other gaps like software, for example, that our customers need our help with to make it much, much easier for them to integrate high quality biometrics at scale into a myriad products that they have. we're continuing to evolve and move up the value chain with that platform and fill in some of the other gaps like software for example that our customers need our help with to make it much much easier for them to integrate high quality biometrics at scale into a myriad products that they have Of course, as we move forward, we then take all of this into the merger with Precise. This is something of high value to the future company. The EGM approved the merger for that reason, and they see a great economic benefit from combining these two companies to create not only a European biometrics leader, but also strong synergies for EBITDA positive NewCo. Very, very strong economic benefits of pulling these two companies together. With that, Stefan, let me come back to you and perhaps you can help orchestrate some questions. Of course, as we move forward, we then take all of this into the merger with Precise. of course as we move forward we then take all of this into the merger with precise This is something of high value to the future company. this is something of high value to the future company The EGM approved the merger for that reason, and they see a great economic benefit from combining these two companies to create not only a European biometrics leader, but also strong synergies for EBITDA positive NewCo. the egm approved the merger for that reason and they see a great economic benefit from combining these two companies to create not only a european biometrics leader but also strong synergies for ebitda positive newco Very, very strong economic benefits of pulling these two companies together. very very strong economic benefits of pulling these two companies together With that, Stefan, let me come back to you and perhaps you can help orchestrate some questions. with that stefan let me come back to you and perhaps you can help orchestrate some questions

Speaker 5: Yes, let's first take any questions from the phone line. Yes, let's first take any questions from the phone line. yes let's first take any questions from the phone line

Speaker 4: Thank you. We have one question at the moment. One moment. This question comes from the line of Markus Almerud from DNB Carnegie. Please go ahead. Thank you. thank you We have one question at the moment. we have one question at the moment One moment. one moment This question comes from the line of Markus Almerud from DNB Carnegie. this question comes from the line of markus almerud from dnb carnegie Please go ahead. please go ahead

Speaker 3: Yeah. Hi, Adam. Hi, Stefan. Hi. Yeah, hi, guys. Hi, Fredrik. Can you hear me well? Yeah. yeah Hi, Adam. hi adam Hi, Stefan. hi stefan Hi. hi Yeah, hi, guys. yeah hi guys Hi, Fredrik. hi fredrik Can you hear me well? can you hear me well

Speaker 1: Yes, we can. Good to have you on, Markus. Yes, we can. yes we can Good to have you on, Markus. good to have you on markus

Speaker 3: Yeah, likewise. Maybe I'll start with AllKey. I mean, we have talked a lot about AllKey in the past quarters and also now. I mean, I'm pleased to see that 75% of the new pipeline coming in or the new pipeline is AllKey. If you look at your previous customers, how and the adoption rate and the conversion into AllKey, how is that progressing? Yeah, likewise. yeah likewise Maybe I'll start with AllKey. maybe i'll start with allkey I mean, we have talked a lot about AllKey in the past quarters and also now. i mean we have talked a lot about allkey in the past quarters and also now I mean, I'm pleased to see that 75% of the new pipeline coming in or the new pipeline is AllKey. i mean i'm pleased to see that 75% of the new pipeline coming in or the new pipeline is allkey If you look at your previous customers, how and the adoption rate and the conversion into AllKey, how is that progressing? if you look at your previous customers how and the adoption rate and the conversion into allkey how is that progressing

Speaker 1: I think, you know, we spoke about this on the last call and I shared some charts in terms of the pipeline today. Those trends are pretty consistent, right? We're seeing a lot of our existing customers move over to AllKey in the pipeline. There are some customers who will always be sensor organizations because either they don't need some of the elements that are within the AllKey portfolio or they're very high volume and that's their specialist business model is to do that integration themselves. That's exactly why I've said that we maintain and expand our sensor partnerships because, you know, we're not looking to move everyone over to AllKey. If you don't like it, tough, go somewhere else. We've got some great customers in sensors. We've built them up over many years. I think, you know, we spoke about this on the last call and I shared some charts in terms of the pipeline today. i think you know we spoke about this on the last call and i shared some charts in terms of the pipeline today Those trends are pretty consistent, right? those trends are pretty consistent right We're seeing a lot of our existing customers move over to AllKey in the pipeline. we're seeing a lot of our existing customers move over to allkey in the pipeline There are some customers who will always be sensor organizations because either they don't need some of the elements that are within the AllKey portfolio or they're very high volume and that's their specialist business model is to do that integration themselves. there are some customers who will always be sensor organizations because either they don't need some of the elements that are within the allkey portfolio or they're very high volume and that's their specialist business model is to do that integration themselves That's exactly why I've said that we maintain and expand our sensor partnerships because, you know, we're not looking to move everyone over to AllKey. that's exactly why i've said that we maintain and expand our sensor partnerships because you know we're not looking to move everyone over to allkey If you don't like it, tough, go somewhere else. if you don't like it tough go somewhere else We've got some great customers in sensors. we've got some great customers in sensors We've built them up over many years. we've built them up over many years We have good pipeline with them and we'll continue to grow and evolve those customers. Absolutely, we see a great market for AllKey. We actually see more customers in future by revenue coming from AllKey than we do by sensor. That inflection probably in 2027, maybe 2028, we'll have to wait and see. As we look at the pipeline, we can see a greater percentage of revenue from customers in AllKey in 2027 versus sensor. 60% of our pipeline in 2027 is for AllKey, 40% is from sensors. We continue to see that trend. I think what we are also seeing, though, is now, you know, the bulk of our new pipeline for AllKey is for new customers because we've by and large been through that journey. There are still some customers who are sensor customers that may become AllKey customers. We have good pipeline with them and we'll continue to grow and evolve those customers. we have good pipeline with them and we'll continue to grow and evolve those customers Absolutely, we see a great market for AllKey. absolutely we see a great market for allkey We actually see more customers in future by revenue coming from AllKey than we do by sensor. we actually see more customers in future by revenue coming from allkey than we do by sensor That inflection probably in 2027, maybe 2028, we'll have to wait and see. that inflection probably in 2027 maybe 2028 we'll have to wait and see As we look at the pipeline, we can see a greater percentage of revenue from customers in AllKey in 2027 versus sensor. 60% of our pipeline in 2027 is for AllKey, 40% is from sensors. as we look at the pipeline we can see a greater percentage of revenue from customers in allkey in 2027 versus sensor 60% of our pipeline in 2027 is for allkey 40% is from sensors We continue to see that trend. we continue to see that trend I think what we are also seeing, though, is now, you know, the bulk of our new pipeline for AllKey is for new customers because we've by and large been through that journey. i think what we are also seeing though is now you know the bulk of our new pipeline for allkey is for new customers because we've by and large been through that journey There are still some customers who are sensor customers that may become AllKey customers. there are still some customers who are sensor customers that may become allkey customers Those tend to be a little larger and therefore it takes a bit more time for them to shift over because, of course, there's an evaluation cycle to ensure that they have a strong, high quality product as well. Not only that, it also ties in with their product roadmap. You know, when they launch products, they don't just launch a new product because we have one. It has to be their product launch cycle, of course, as well. Hopefully that gives you a bit of color, Markus, as to what we're seeing on the new and existing customers. Those tend to be a little larger and therefore it takes a bit more time for them to shift over because, of course, there's an evaluation cycle to ensure that they have a strong, high quality product as well. those tend to be a little larger and therefore it takes a bit more time for them to shift over because of course there's an evaluation cycle to ensure that they have a strong high quality product as well Not only that, it also ties in with their product roadmap. not only that it also ties in with their product roadmap You know, when they launch products, they don't just launch a new product because we have one. you know when they launch products they don't just launch a new product because we have one It has to be their product launch cycle, of course, as well. it has to be their product launch cycle of course as well Hopefully that gives you a bit of color, Markus, as to what we're seeing on the new and existing customers. hopefully that gives you a bit of color markus as to what we're seeing on the new and existing customers

Speaker 3: If you look at new customers, so 60% of the pipeline is new customers, which is great. Is this in line with what you had expected? That is the conversion of among old customers and new customers, is the mix in line with what you had kind of thought? If you look at new customers, so 60% of the pipeline is new customers, which is great. if you look at new customers so 60% of the pipeline is new customers which is great Is this in line with what you had expected? is this in line with what you had expected That is the conversion of among old customers and new customers, is the mix in line with what you had kind of thought? that is the conversion of among old customers and new customers is the mix in line with what you had kind of thought

Speaker 1: I think so, yes. I mean, I didn't expect us to be 100% AllKey, as I said, because we've got, you know, lots of customers and typically higher volume customers. It's a lower ASP, but it's higher volume. You make up for it that way. I think that feels about right to me. You know, I was thinking around 50/50. That was my gut. 60/40 is better. Pretty happy with that. Of course, you know, I think in terms of the new customer mix, we're never going to get higher than, you know, we're never going to get to 100% new customers because, of course, that would mean that we're losing all of our old customers. Just that balance, I think, is really important for us to continue to monitor. I think so, yes. i think so yes I mean, I didn't expect us to be 100% AllKey, as I said, because we've got, you know, lots of customers and typically higher volume customers. i mean i didn't expect us to be 100% allkey as i said because we've got you know lots of customers and typically higher volume customers It's a lower ASP, but it's higher volume. it's a lower asp but it's higher volume You make up for it that way. you make up for it that way I think that feels about right to me. i think that feels about right to me You know, I was thinking around 50/50. you know i was thinking around 50/50 That was my gut. 60/40 is better. that was my gut 60/40 is better Pretty happy with that. pretty happy with that Of course, you know, I think in terms of the new customer mix, we're never going to get higher than, you know, we're never going to get to 100% new customers because, of course, that would mean that we're losing all of our old customers. of course you know i think in terms of the new customer mix we're never going to get higher than you know we're never going to get to 100% new customers because of course that would mean that we're losing all of our old customers Just that balance, I think, is really important for us to continue to monitor. just that balance i think is really important for us to continue to monitor I want to see us bringing in new customers. Absolutely, I want to make sure that with our existing customers, we continue to build new opportunities with them as well. Again, I think that feels pretty good and it's something we'll continue to monitor. I want to see us bringing in new customers. i want to see us bringing in new customers Absolutely, I want to make sure that with our existing customers, we continue to build new opportunities with them as well. absolutely i want to make sure that with our existing customers we continue to build new opportunities with them as well Again, I think that feels pretty good and it's something we'll continue to monitor. again i think that feels pretty good and it's something we'll continue to monitor

Speaker 3: 20%+ organic growth. Two questions there. Is this also in line with what you were expecting? Second, I mean, you have been in merger talks also during this period going on in parallel. Has that impacted operations in any way? You're still quite a small organization. 20%+ organic growth. 20%+ organic growth Two questions there. two questions there Is this also in line with what you were expecting? is this also in line with what you were expecting Second, I mean, you have been in merger talks also during this period going on in parallel. second i mean you have been in merger talks also during this period going on in parallel Has that impacted operations in any way? has that impacted operations in any way You're still quite a small organization. you're still quite a small organization

Speaker 1: Yeah. On the first question, you know, is the growth where I expected? Yes, the growth is where I expected. I think, you know, it's deep into the double-digit, which I'm really pleased about. I know the sales team worked super hard to get to that. I monitor this on a weekly [Well], actually I look at it on a daily basis, but I monitor it with the team on a weekly basis. Excuse me, very pleased about that. I think that's a very strong growth number for any company to post. Super happy about that. In terms of whether the merger had a destabilizing effect on ongoing operations, again, I would refer back to our team. I'm really proud of the team. Yeah. yeah On the first question, you know, is the growth where I expected? on the first question you know is the growth where i expected Yes, the growth is where I expected. yes the growth is where i expected I think, you know, it's deep into the double-digit, which I'm really pleased about. i think you know it's deep into the double-digit which i'm really pleased about I know the sales team worked super hard to get to that. i know the sales team worked super hard to get to that I monitor this on a weekly [Well], actually I look at it on a daily basis, but I monitor it with the team on a weekly basis. i monitor this on a weekly [well] actually i look at it on a daily basis but i monitor it with the team on a weekly basis Excuse me, very pleased about that. excuse me very pleased about that I think that's a very strong growth number for any company to post. i think that's a very strong growth number for any company to post Super happy about that. super happy about that In terms of whether the merger had a destabilizing effect on ongoing operations, again, I would refer back to our team. in terms of whether the merger had a destabilizing effect on ongoing operations again i would refer back to our team I'm really proud of the team. i'm really proud of the team Of course, you know, the merger was not known to most of them during that time, of course. But I'm really pleased at how the team just is agile, flexible, continues to operate super well. Very pleased. Whilst it's a small team, I feel like our productivity is pretty strong. I mentioned earlier that we've augmented our operations somewhat with AI, and we're continuing to improve how we operate using AI, not just in our products, but in our functional day-to-day operations as well. Pleased about how the team are performing. I saw no destabilizing effect in Q1 from the proposed from the merger. Of course, you know, the merger was not known to most of them during that time, of course. of course you know the merger was not known to most of them during that time of course But I'm really pleased at how the team just is agile, flexible, continues to operate super well. but i'm really pleased at how the team just is agile flexible continues to operate super well Very pleased. very pleased Whilst it's a small team, I feel like our productivity is pretty strong. whilst it's a small team i feel like our productivity is pretty strong I mentioned earlier that we've augmented our operations somewhat with AI, and we're continuing to improve how we operate using AI, not just in our products, but in our functional day-to-day operations as well. i mentioned earlier that we've augmented our operations somewhat with ai and we're continuing to improve how we operate using ai not just in our products but in our functional day-to-day operations as well Pleased about how the team are performing. pleased about how the team are performing I saw no destabilizing effect in Q1 from the proposed from the merger. i saw no destabilizing effect in q1 from the proposed from the merger

Speaker 3: Okay. Talking about the merger and the licensing deals that we have seen, several of them in the last year, what are your thoughts about continuing these as you go into another unit or another entity? Okay. okay Talking about the merger and the licensing deals that we have seen, several of them in the last year, what are your thoughts about continuing these as you go into another unit or another entity? talking about the merger and the licensing deals that we have seen several of them in the last year what are your thoughts about continuing these as you go into another unit or another entity

Speaker 1: Yes. I think on that, we'll review the asset deals that we're writing. you know, I think there's still plenty of opportunities out there for them. As we become a new company, it makes sense to stand back and take a look at, you know, each company's strategy, what makes sense from a combined company perspective, and therefore which opportunities remain priorities and which ones don't. We're going through the integration work at the moment. Ultimately that's work that we're doing. It would be premature for me to talk about whether or not we'll continue to pursue asset deals. I think asset deals have been very helpful for us in funding the ongoing business. 'Cause you think about it, right? Yes. yes I think on that, we'll review the asset deals that we're writing. you know, I think there's still plenty of opportunities out there for them. i think on that we'll review the asset deals that we're writing you know i think there's still plenty of opportunities out there for them As we become a new company, it makes sense to stand back and take a look at, you know, each company's strategy, what makes sense from a combined company perspective, and therefore which opportunities remain priorities and which ones don't. as we become a new company it makes sense to stand back and take a look at you know each company's strategy what makes sense from a combined company perspective and therefore which opportunities remain priorities and which ones don't We're going through the integration work at the moment. we're going through the integration work at the moment Ultimately that's work that we're doing. ultimately that's work that we're doing It would be premature for me to talk about whether or not we'll continue to pursue asset deals. it would be premature for me to talk about whether or not we'll continue to pursue asset deals I think asset deals have been very helpful for us in funding the ongoing business. 'Cause you think about it, right? i think asset deals have been very helpful for us in funding the ongoing business 'cause you think about it right We're moving from being a lower-end sensor company to being a, that plus a systems company. There is a gap in the middle there as you migrate some companies from one to the other. So I think that those asset deals have been very helpful in funding that transition. As we move to be a merged company, we have a much stronger financial position, so that funding becomes less necessary. Therefore, it becomes more of an opportunity than anything else, and we can decide whether or not that's the right opportunity to pursue. I don't wanna make it too much of a politician's answer, but I think it's fair to say that, you know, we'll review that and decide whether or not that still makes sense. We're moving from being a lower-end sensor company to being a, that plus a systems company. we're moving from being a lower-end sensor company to being a that plus a systems company There is a gap in the middle there as you migrate some companies from one to the other. there is a gap in the middle there as you migrate some companies from one to the other So I think that those asset deals have been very helpful in funding that transition. so i think that those asset deals have been very helpful in funding that transition As we move to be a merged company, we have a much stronger financial position, so that funding becomes less necessary. as we move to be a merged company we have a much stronger financial position so that funding becomes less necessary Therefore, it becomes more of an opportunity than anything else, and we can decide whether or not that's the right opportunity to pursue. therefore it becomes more of an opportunity than anything else and we can decide whether or not that's the right opportunity to pursue I don't wanna make it too much of a politician's answer, but I think it's fair to say that, you know, we'll review that and decide whether or not that still makes sense. i don't wanna make it too much of a politician's answer but i think it's fair to say that you know we'll review that and decide whether or not that still makes sense

Speaker 3: On that, you mentioned that you started the integration. What, I mean, both EGMs have approved the merger. Where are you in kind of integrating the businesses? What are the timelines that you are expecting, et cetera? On that, you mentioned that you started the integration. on that you mentioned that you started the integration What, I mean, both EGMs have approved the merger. what i mean both egms have approved the merger Where are you in kind of integrating the businesses? where are you in kind of integrating the businesses What are the timelines that you are expecting, et cetera? what are the timelines that you are expecting et cetera

Speaker 1: Yeah. You know, there's some things that we won't or can't do before the merger, anything that involves sensitive customer information, for example, remains off the table. What we are doing is looking at a number of different work streams around integration, you know, around talent and people, around financial operations, around commercial operations, et cetera, and getting into detailed planning. When you think about it, you know, the tools that we use, the systems we use, how we integrate them, how we report, people's contracts, et cetera, all of those things are being thoroughly managed. We have an integration leader from the FPC side of the house, a very strong leader in our team who's got great credibility and track record in project management. We review that on a weekly basis. Yeah. yeah You know, there's some things that we won't or can't do before the merger, anything that involves sensitive customer information, for example, remains off the table. you know there's some things that we won't or can't do before the merger anything that involves sensitive customer information for example remains off the table What we are doing is looking at a number of different work streams around integration, you know, around talent and people, around financial operations, around commercial operations, et cetera, and getting into detailed planning. what we are doing is looking at a number of different work streams around integration you know around talent and people around financial operations around commercial operations et cetera and getting into detailed planning When you think about it, you know, the tools that we use, the systems we use, how we integrate them, how we report, people's contracts, et cetera, all of those things are being thoroughly managed. when you think about it you know the tools that we use the systems we use how we integrate them how we report people's contracts et cetera all of those things are being thoroughly managed We have an integration leader from the FPC side of the house, a very strong leader in our team who's got great credibility and track record in project management. we have an integration leader from the fpc side of the house a very strong leader in our team who's got great credibility and track record in project management We review that on a weekly basis. we review that on a weekly basis There's work streams already lit up that are active on a daily basis. Feel super good about the integration work. I've done many integrations myself, really pleased to see nice early work happening to make sure that we get everything done well. Doesn't mean there won't be any slip-ups. You know, it's a complex integration, we feel very good about how in control of it we are and the governance we have wrapped around it. There's work streams already lit up that are active on a daily basis. there's work streams already lit up that are active on a daily basis Feel super good about the integration work. feel super good about the integration work I've done many integrations myself, really pleased to see nice early work happening to make sure that we get everything done well. i've done many integrations myself really pleased to see nice early work happening to make sure that we get everything done well Doesn't mean there won't be any slip-ups. doesn't mean there won't be any slip-ups You know, it's a complex integration, we feel very good about how in control of it we are and the governance we have wrapped around it. you know it's a complex integration we feel very good about how in control of it we are and the governance we have wrapped around it

Speaker 3: Mm-hmm. Can you remind me when? Mm-hmm. mm-hmm Can you remind me when? can you remind me when

Speaker 1: Oh, sorry. Timing. Yeah. We think it's around the middle of July. You know, there's a number of regulatory steps that we need to take in the process. We're just going through all of those at the moment, but we think around the middle of July. Oh, sorry. oh sorry timing Timing. oh sorry timing Yeah. yeah We think it's around the middle of July. we think it's around the middle of july You know, there's a number of regulatory steps that we need to take in the process. you know there's a number of regulatory steps that we need to take in the process We're just going through all of those at the moment, but we think around the middle of July. we're just going through all of those at the moment but we think around the middle of july

Speaker 3: Okay. Okay. Then on cash flow, can you talk me through a little bit on the cash flow front? I mean, you had no licensing deal coming in during the quarter, then you had negative operating cash flow. Can you talk me through a little bit your thoughts about the cash flow development? Okay. okay Okay. okay Then on cash flow, can you talk me through a little bit on the cash flow front? then on cash flow can you talk me through a little bit on the cash flow front I mean, you had no licensing deal coming in during the quarter, then you had negative operating cash flow. i mean you had no licensing deal coming in during the quarter then you had negative operating cash flow Can you talk me through a little bit your thoughts about the cash flow development? can you talk me through a little bit your thoughts about the cash flow development

Speaker 2: Yeah. Yeah, I can jump in here. Yeah, Markus. I mean, if you look at the first quarter, and you compare it to the first quarter of 2025, right? In the first quarter of 2025, we had. Yeah. yeah Yeah, I can jump in here. yeah i can jump in here Yeah, Markus. yeah markus I mean, if you look at the first quarter, and you compare it to the first quarter of 2025, right? i mean if you look at the first quarter and you compare it to the first quarter of 2025 right In the first quarter of 2025, we had. in the first quarter of 2025 we had You know, on an EBITDA basis first, you need to strip out this SEK 29.5 million of Smart Eye. If you look at free cash flows, we're better in free cash flow in the first quarter of 2026 compared to last year. Gross profit, let's round it to SEK 12 million. You look at the EBITDA of SEK 14 million, the delta between the two is what I would call kind of cash OpEx. You know, that's a simple explanation. What I said is that we had SEK 3 million of, call it non-recurring, costs, and you strip out the SEK 3 million. You get to a pretty, you know, fair-ish quarterly OpEx run rate. You know, on an EBITDA basis first, you need to strip out this SEK 29.5 million of Smart Eye. you know on an ebitda basis first you need to strip out this sek 29.5 million of smart eye If you look at free cash flows, we're better in free cash flow in the first quarter of 2026 compared to last year. if you look at free cash flows we're better in free cash flow in the first quarter of 2026 compared to last year Gross profit, let's round it to SEK 12 million. gross profit let's round it to sek 12 million You look at the EBITDA of SEK 14 million, the delta between the two is what I would call kind of cash OpEx. you look at the ebitda of sek 14 million the delta between the two is what i would call kind of cash opex You know, that's a simple explanation. you know that's a simple explanation What I said is that we had SEK 3 million of, call it non-recurring, costs, and you strip out the SEK 3 million. what i said is that we had sek 3 million of call it non-recurring costs and you strip out the sek 3 million You get to a pretty, you know, fair-ish quarterly OpEx run rate. you get to a pretty you know fair-ish quarterly opex run rate You take that 4x, then you get to an annual, call it ±SEK 90 million. When we talk about cash flow, the way I look at it is our business, even though we have a wonderful gross margin, we have great clients, it is just subscale. Because operating a global company that is public, there's kind of a minimum OpEx that you need. We can argue what that minimum OpEx is, but you can look at Precise that we're merging with, you can look at other companies, and it kind of ends up being there pretty close to that, you know, call it SEK 90 million. If you're less global, you might get down to, you know, SEK 80 million or so. You take that 4x, then you get to an annual, call it ± SEK 90 million . you take that 4x then you get to an annual call it ± sek 90 million When we talk about cash flow, the way I look at it is our business, even though we have a wonderful gross margin, we have great clients, it is just subscale. when we talk about cash flow the way i look at it is our business even though we have a wonderful gross margin we have great clients it is just subscale Because operating a global company that is public, there's kind of a minimum OpEx that you need. because operating a global company that is public there's kind of a minimum opex that you need We can argue what that minimum OpEx is, but you can look at Precise that we're merging with, you can look at other companies, and it kind of ends up being there pretty close to that, you know, call it SEK 90 million. we can argue what that minimum opex is but you can look at precise that we're merging with you can look at other companies and it kind of ends up being there pretty close to that you know call it sek 90 million If you're less global, you might get down to, you know, SEK 80 million or so. if you're less global you might get down to you know sek 80 million or so In terms of having negative cash flow, I would just stance it would be it's a scale challenge. Now if we doubled our revenue, when we say we doubled our gross margin, you know, our OpEx wouldn't have to scale much. Like Adam said, you know, with a flat head count, we're growing 20%. Last year, we grew 30%, and excluding OpEx, we grew 40%, right? The growth is there. It's just, it's a scale of numbers. From EBITDA to free cash flow, you don't have a lot of changes. In terms of having negative cash flow, I would just stance it would be it's a scale challenge. in terms of having negative cash flow i would just stance it would be it's a scale challenge Now if we doubled our revenue, when we say we doubled our gross margin, you know, our OpEx wouldn't have to scale much. now if we doubled our revenue when we say we doubled our gross margin you know our opex wouldn't have to scale much Like Adam said, you know, with a flat head count, we're growing 20%. like adam said you know with a flat head count we're growing 20% Last year, we grew 30%, and excluding OpEx, we grew 40%, right? last year we grew 30% and excluding opex we grew 40% right The growth is there. the growth is there It's just, it's a scale of numbers. it's just it's a scale of numbers From EBITDA to free cash flow, you don't have a lot of changes. from ebitda to free cash flow you don't have a lot of changes It's not like we're tying up a lot of working capital or we're adding a ton of inventory or we're paying a ton of cash taxes, and we don't have any debt, so we don't pay any cash interest, right? The way I look at the business is like it's a scale challenge. Organically, eventually, we're gonna solve this as a business because if we grow at 20% or 30% on an annual basis, we don't add much OpEx, eventually, you know, the business is gonna be profitable, generate cash flow. You can do the math. It's gonna take some time, and that's why the merger with Precise is so beautiful because, you know, Adam showed the numbers. They're very similar revenue. Actually, it just happened to be exactly the same revenue. I think it same revenue. It's not like we're tying up a lot of working capital or we're adding a ton of inventory or we're paying a ton of cash taxes, and we don't have any debt, so we don't pay any cash interest, right? it's not like we're tying up a lot of working capital or we're adding a ton of inventory or we're paying a ton of cash taxes and we don't have any debt so we don't pay any cash interest right The way I look at the business is like it's a scale challenge. the way i look at the business is like it's a scale challenge Organically, eventually, we're gonna solve this as a business because if we grow at 20% or 30% on an annual basis, we don't add much OpEx, eventually, you know, the business is gonna be profitable, generate cash flow. organically eventually we're gonna solve this as a business because if we grow at 20% or 30% on an annual basis we don't add much opex eventually you know the business is gonna be profitable generate cash flow You can do the math. you can do the math It's gonna take some time, and that's why the merger with Precise is so beautiful because, you know, Adam showed the numbers. it's gonna take some time and that's why the merger with precise is so beautiful because you know adam showed the numbers They're very similar revenue. they're very similar revenue Actually, it just happened to be exactly the same revenue. actually it just happened to be exactly the same revenue I think it same revenue. i think it same revenue I think it was SEK 78 million, both companies for the financial year 2025. You look at the OpEx structure, relatively similar to us. The fact that we can double the revenue, excluding any revenue synergies, and then make sure that we don't duplicate the cost structures, that's how you get to a business that's really, really healthy. The SEK 45 million of synergies, what I would call hard synergies that we announced because it's all OpEx, the SEK 45 million is something we feel really good about because the way we made the case is it's at the vendor level. You know, we are able to be very, very, very precise on the amount, and we're able to be very precise on the timing. That's how I would answer the cash question. I think it was SEK 78 million, both companies for the financial year 2025. i think it was sek 78 million both companies for the financial year 2025 You look at the OpEx structure, relatively similar to us. you look at the opex structure relatively similar to us The fact that we can double the revenue, excluding any revenue synergies, and then make sure that we don't duplicate the cost structures, that's how you get to a business that's really, really healthy. the fact that we can double the revenue excluding any revenue synergies and then make sure that we don't duplicate the cost structures that's how you get to a business that's really really healthy The SEK 45 million of synergies, what I would call hard synergies that we announced because it's all OpEx, the SEK 45 million is something we feel really good about because the way we made the case is it's at the vendor level. the sek 45 million of synergies what i would call hard synergies that we announced because it's all opex the sek 45 million is something we feel really good about because the way we made the case is it's at the vendor level You know, we are able to be very, very, very precise on the amount, and we're able to be very precise on the timing. you know we are able to be very very very precise on the amount and we're able to be very precise on the timing That's how I would answer the cash question. that's how i would answer the cash question You know, to build a little bit more, the biggest risk usually in a merger or any M&A work is the integration. As Adam said, we feel really good about the integration. Why is that? Well, it's two biometric companies, one located in Gothenburg, one in Lund. It's a short train ride away. The majority of our employees are Swedish-based. It's a wonderful cultural fit. I would view the integration risk relatively low compared to what I've seen in the past, just from a cultural perspective, but also from a client perspective, product perspective, and go-to-market perspective. You know, to build a little bit more, the biggest risk usually in a merger or any M&A work is the integration. you know to build a little bit more the biggest risk usually in a merger or any m&a work is the integration As Adam said, we feel really good about the integration. as adam said we feel really good about the integration Why is that? why is that Well, it's two biometric companies, one located in Gothenburg, one in Lund. well it's two biometric companies one located in gothenburg one in lund It's a short train ride away. it's a short train ride away The majority of our employees are Swedish-based. the majority of our employees are swedish-based It's a wonderful cultural fit. it's a wonderful cultural fit I would view the integration risk relatively low compared to what I've seen in the past, just from a cultural perspective, but also from a client perspective, product perspective, and go-to-market perspective. i would view the integration risk relatively low compared to what i've seen in the past just from a cultural perspective but also from a client perspective product perspective and go-to-market perspective

Speaker 3: I would assume that with the SEK 45 million necessary, it's hard synergies. They should really be tangible and doable. As Adam said, you would expect a double-digit EBITDA margin on a pro forma basis. I would assume that looking at the pro forma basis for synergies would also be cash flow positive as well. I would assume that with the SEK 45 million necessary, it's hard synergies. i would assume that with the sek 45 million necessary it's hard synergies They should really be tangible and doable. they should really be tangible and doable As Adam said, you would expect a double-digit EBITDA margin on a pro forma basis. as adam said you would expect a double-digit ebitda margin on a pro forma basis I would assume that looking at the pro forma basis for synergies would also be cash flow positive as well. i would assume that looking at the pro forma basis for synergies would also be cash flow positive as well

Speaker 2: I think that's a good conclusion, right? Between, again, between EBITDA and free cash flow, I mean, NewCo is unlikely to have a lot of debt, right? It's unlikely to be cash paying interest. It's unlikely to have cash paying taxes, at least in the beginning. You know, you know, working capital is fairly straightforward for the two companies. We're not building inventories. I think that's a good assumption. I think that's a good conclusion, right? i think that's a good conclusion right Between, again, between EBITDA and free cash flow, I mean, NewCo is unlikely to have a lot of debt, right? between again between ebitda and free cash flow i mean newco is unlikely to have a lot of debt right It's unlikely to be cash paying interest. it's unlikely to be cash paying interest It's unlikely to have cash paying taxes, at least in the beginning. it's unlikely to have cash paying taxes at least in the beginning You know, you know, working capital is fairly straightforward for the two companies. you know you know working capital is fairly straightforward for the two companies We're not building inventories. we're not building inventories I think that's a good assumption. i think that's a good assumption

Speaker 3: Mm-hmm. Mm-hmm. All right. Excellent. Thank you. Finally, maybe on the acquisition slide that you had, and the pipeline. If you look at you've built a shortlist. When was this shortlist built? Was it built during this merger process or was it built before? A follow-up on that would be that I assume it's way too early to talk about any further conversations. Did you have any conversations beforehand? A little bit of color around that would be great. Mm-hmm. mm-hmm Mm-hmm. mm-hmm All right. all right Excellent. excellent Thank you. thank you Finally, maybe on the acquisition slide that you had, and the pipeline. finally maybe on the acquisition slide that you had and the pipeline If you look at you've built a shortlist. if you look at you've built a shortlist When was this shortlist built? when was this shortlist built Was it built during this merger process or was it built before? was it built during this merger process or was it built before A follow-up on that would be that I assume it's way too early to talk about any further conversations. a follow-up on that would be that i assume it's way too early to talk about any further conversations Did you have any conversations beforehand? did you have any conversations beforehand A little bit of color around that would be great. a little bit of color around that would be great

Speaker 1: Yeah, I'm happy to take that one. Good, good question. I mean, it's always a tricky one to talk about M&A because obviously we can't mention anything too specific. Not only that, having done a lot of M&A in the past, deals are gonna happen, and then they don't, and it's a very binary result. You know, to answer your question specifically, we started doing this work, well, actually since I joined, but we ramped it up really last year. We started ramping up the specificity of the sorts of acquisition targets that we had. We've always had M&A kind of bubbling underneath since I've joined, but like I said, accelerated it last year. I would say that it's more of an ongoing activity. We did it before the merger was defined and announced. Yeah, I'm happy to take that one. yeah i'm happy to take that one Good, good question. good good question I mean, it's always a tricky one to talk about M&A because obviously we can't mention anything too specific. i mean it's always a tricky one to talk about m&a because obviously we can't mention anything too specific Not only that, having done a lot of M&A in the past, deals are gonna happen, and then they don't, and it's a very binary result. not only that having done a lot of m&a in the past deals are gonna happen and then they don't and it's a very binary result You know, to answer your question specifically, we started doing this work, well, actually since I joined, but we ramped it up really last year. you know to answer your question specifically we started doing this work well actually since i joined but we ramped it up really last year We started ramping up the specificity of the sorts of acquisition targets that we had. we started ramping up the specificity of the sorts of acquisition targets that we had We've always had M&A kind of bubbling underneath since I've joined, but like I said, accelerated it last year. we've always had m&a kind of bubbling underneath since i've joined but like i said accelerated it last year I would say that it's more of an ongoing activity. i would say that it's more of an ongoing activity We did it before the merger was defined and announced. we did it before the merger was defined and announced We've been doing it during that time as well, and we'll continue to do it after, because the economics and the dynamics are changing in the marketplace at the moment, as always, and therefore we keep a close eye on it. There are conversations that are happening at a high level around some of those potential targets as well. We tend to keep a simmer on the M&A activity, both in terms of identifying and engaging with potential targets, and then we dial it up to a boil when we're ready to start to make a move. I don't know if that answered your two questions, Markus, but that's how I would see it. We've been doing it during that time as well, and we'll continue to do it after, because the economics and the dynamics are changing in the marketplace at the moment, as always, and therefore we keep a close eye on it. we've been doing it during that time as well and we'll continue to do it after because the economics and the dynamics are changing in the marketplace at the moment as always and therefore we keep a close eye on it There are conversations that are happening at a high level around some of those potential targets as well. there are conversations that are happening at a high level around some of those potential targets as well We tend to keep a simmer on the M&A activity, both in terms of identifying and engaging with potential targets, and then we dial it up to a boil when we're ready to start to make a move. we tend to keep a simmer on the m&a activity both in terms of identifying and engaging with potential targets and then we dial it up to a boil when we're ready to start to make a move I don't know if that answered your two questions, Markus, but that's how I would see it. i don't know if that answered your two questions markus but that's how i would see it

Speaker 2: Yeah. I can just jump in on that one. I mean, Markus, I think both Adam and I and the larger team are quite fond of doing, you know, acquisitions, both consolidating acquisitions and tech specific technology add-on acquisitions and, you know. I think the company's earned the right to do acquisitions, meaning they've been in the space for a very long time. Ex of that, the client's excellence and the product is very good. Now, we've been very capital constrained, we've tried to unlock capital for acquisitions, in reality we had to fund OpEx. That's been the priority. Yeah. yeah I can just jump in on that one. i can just jump in on that one I mean, Markus , I think both Adam and I and the larger team are quite fond of doing, you know, acquisitions, both consolidating acquisitions and tech specific technology add-on acquisitions and, you know. i mean markus i think both adam and i and the larger team are quite fond of doing you know acquisitions both consolidating acquisitions and tech specific technology add-on acquisitions and you know I think the company's earned the right to do acquisitions, meaning they've been in the space for a very long time. i think the company's earned the right to do acquisitions meaning they've been in the space for a very long time Ex of that, the client's excellence and the product is very good. ex of that the client's excellence and the product is very good Now, we've been very capital constrained, we've tried to unlock capital for acquisitions, in reality we had to fund OpEx. now we've been very capital constrained we've tried to unlock capital for acquisitions in reality we had to fund opex That's been the priority. that's been the priority You know, improving the product portfolio, I mean, that consumed most of the capital and, you know, we just never found the ammunition to get it going. That's what's so exciting now with the merger and Precise, is that the balance sheet will be stronger. You know, the like we talked about, EBITDA and cash flow is gonna look better. I think, Precise and FPC, I mean, is a wonderful platform to start this consolidation. It's gonna be super exciting. You know, improving the product portfolio, I mean, that consumed most of the capital and, you know, we just never found the ammunition to get it going. you know improving the product portfolio i mean that consumed most of the capital and you know we just never found the ammunition to get it going That's what's so exciting now with the merger and Precise, is that the balance sheet will be stronger. that's what's so exciting now with the merger and precise is that the balance sheet will be stronger You know, the like we talked about, EBITDA and cash flow is gonna look better. you know the like we talked about ebitda and cash flow is gonna look better I think, Precise and FPC, I mean, is a wonderful platform to start this consolidation. i think precise and fpc i mean is a wonderful platform to start this consolidation It's gonna be super exciting. it's gonna be super exciting

Speaker 3: Okay. Well that's great. Thank you very much. Thanks Fredrik. Thanks, Adam. I'll speak to you guys soon again. Okay. okay Well that's great. well that's great Thank you very much. thank you very much Thanks Fredrik. thanks fredrik Thanks, Adam. thanks adam I'll speak to you guys soon again. i'll speak to you guys soon again

Speaker 1: Awesome. Look forward to it. Thank you so much, Markus. Thanks for joining. See you soon. Awesome. awesome Look forward to it. look forward to it Thank you so much, Markus. thank you so much markus Thanks for joining. thanks for joining See you soon. see you soon

Speaker 3: Thanks. Thanks. thanks

Speaker 4: Thank you. As a reminder, to ask a question, you will need to press star one and one on your telephone. If you wish to ask a question via the webcast, please type it into the box and click submit. There are no further questions on the phone line. I will hand back to Stefan for web questions. Thank you. thank you As a reminder, to ask a question, you will need to press star one and one on your telephone. as a reminder to ask a question you will need to press star one and one on your telephone If you wish to ask a question via the webcast, please type it into the box and click submit. if you wish to ask a question via the webcast please type it into the box and click submit There are no further questions on the phone line. there are no further questions on the phone line I will hand back to Stefan for web questions. i will hand back to stefan for web questions

Speaker 5: Thank you, Madeleine. Let's end with two questions from the chat. What does FPC have that Precise does not? What's the value of the combination for shareholders? Can you comment on the general sentiment of shareholders on this merger? Thank you, Madeleine. thank you madeleine Let's end with two questions from the chat. let's end with two questions from the chat What does FPC have that Precise does not? what does fpc have that precise does not What's the value of the combination for shareholders? what's the value of the combination for shareholders Can you comment on the general sentiment of shareholders on this merger? can you comment on the general sentiment of shareholders on this merger

Speaker 1: Yes, super. Let's take those two questions. The first one. Say that again, Stefan. Is what do FPC have that Precise do not? Is that correct? Yes, super. yes super Let's take those two questions. let's take those two questions The first one. the first one Say that again, Stefan. say that again stefan Is what do FPC have that Precise do not? is what do fpc have that precise do not Is that correct? is that correct

Speaker 5: Yes. That's it. Yes. yes That's it. that's it

Speaker 1: Yes. I think there's a couple of things. There's capabilities, but then there's also cost synergies. Maybe I'll talk about the capabilities, and then I'll hand to Fredrik to talk about the other synergies, the economic synergies. Let's call them that. Rather than say what FPC have that Precise don't, I think it's worth understanding what each company has that the other does not, right? As you think about it, fundamentally, Precise is a software company and FPC are a integrated hardware company. We have software, but it's tightly integrated into the hardware. Very different. I think, you know, hardware is very important in biometrics because it's important to be able to capture a really strong signal and have integrity around the storage of that on device. Yes. yes I think there's a couple of things. i think there's a couple of things There's capabilities, but then there's also cost synergies. there's capabilities but then there's also cost synergies Maybe I'll talk about the capabilities, and then I'll hand to Fredrik to talk about the other synergies, the economic synergies. maybe i'll talk about the capabilities and then i'll hand to fredrik to talk about the other synergies the economic synergies Let's call them that. let's call them that Rather than say what FPC have that Precise don't, I think it's worth understanding what each company has that the other does not, right? rather than say what fpc have that precise don't i think it's worth understanding what each company has that the other does not right As you think about it, fundamentally, Precise is a software company and FPC are a integrated hardware company. as you think about it fundamentally precise is a software company and fpc are a integrated hardware company We have software, but it's tightly integrated into the hardware. we have software but it's tightly integrated into the hardware Very different. very different I think, you know, hardware is very important in biometrics because it's important to be able to capture a really strong signal and have integrity around the storage of that on device. i think you know hardware is very important in biometrics because it's important to be able to capture a really strong signal and have integrity around the storage of that on device I think that's a really powerful synergy between the two companies. Super complementary hardware and software. Second thing I would say is that there are different modalities that the companies have, right? On the FPC side, it's hardware fingerprint and software iris. On the Precise side, it's software fingerprint and palm as well. Really nice to see multi-modalities come into the fore. I think architecturally there are different synergies that we can bring together on device because we're hardware from an FPC perspective, very powerful from a cybersecurity perspective. On the Precise side, cloud capability in terms of their access control systems too. There's these really nice different things that we can bring together in a common architecture, end-to-end architecture also. I think that's a really powerful synergy between the two companies. i think that's a really powerful synergy between the two companies Super complementary hardware and software. super complementary hardware and software Second thing I would say is that there are different modalities that the companies have, right? second thing i would say is that there are different modalities that the companies have right On the FPC side, it's hardware fingerprint and software iris. on the fpc side it's hardware fingerprint and software iris On the Precise side, it's software fingerprint and palm as well. on the precise side it's software fingerprint and palm as well Really nice to see multi-modalities come into the fore. really nice to see multi-modalities come into the fore I think architecturally there are different synergies that we can bring together on device because we're hardware from an FPC perspective, very powerful from a cybersecurity perspective. i think architecturally there are different synergies that we can bring together on device because we're hardware from an fpc perspective very powerful from a cybersecurity perspective On the Precise side, cloud capability in terms of their access control systems too. on the precise side cloud capability in terms of their access control systems too There's these really nice different things that we can bring together in a common architecture, end-to-end architecture also. there's these really nice different things that we can bring together in a common architecture end-to-end architecture also I think there are complementary things outside of the technology capabilities as it relates to the go-to-market footprint. We have quite a complementary geographical coverage model, which is highly valuable. We bring that together also. You know, I think there's plenty of different things that each company has on its own, but the phrase I would use is better together. When we bring all of those things together rather than lock them up in isolation in a smaller niche company, I think it starts to really unlock more customer value as well. That's a little bit about capabilities. There's probably more, but those are the ones I typically like to talk about. Fredrik, maybe you can touch a little bit on some of the economic synergies. I think there are complementary things outside of the technology capabilities as it relates to the go-to-market footprint. i think there are complementary things outside of the technology capabilities as it relates to the go-to-market footprint We have quite a complementary geographical coverage model, which is highly valuable. we have quite a complementary geographical coverage model which is highly valuable We bring that together also. we bring that together also You know, I think there's plenty of different things that each company has on its own, but the phrase I would use is better together. you know i think there's plenty of different things that each company has on its own but the phrase i would use is better together When we bring all of those things together rather than lock them up in isolation in a smaller niche company, I think it starts to really unlock more customer value as well. when we bring all of those things together rather than lock them up in isolation in a smaller niche company i think it starts to really unlock more customer value as well That's a little bit about capabilities. that's a little bit about capabilities There's probably more, but those are the ones I typically like to talk about. there's probably more but those are the ones i typically like to talk about Fredrik, maybe you can touch a little bit on some of the economic synergies. fredrik maybe you can touch a little bit on some of the economic synergies

Speaker 2: Yeah. Yeah, yeah, I can. I mean, the way we look at it is that 1 + 1 = 3 in this case. Why is 1 + 1 = 3? Adam, you listed a number of items. If we come back to the hard synergies of SEK 45 million, like I said, it's done at the vendor level. We've really gone through the synergies at the greatest level of detail to make sure that we can execute on it within a reasonable timeframe. The cost, we've estimated that the cost of generating the SEK 45 million of synergies is the cash cost is roughly SEK 25 million, so that's a payback of seven months. The financial case is, you know, it's just very, very strong. Yeah. yeah Yeah, yeah, I can. yeah yeah i can I mean, the way we look at it is that 1 + 1 = 3 in this case. i mean the way we look at it is that 1 + 1 = 3 in this case Why is 1 + 1 = 3? why is 1 + 1 = 3 Adam, you listed a number of items. adam you listed a number of items If we come back to the hard synergies of SEK 45 million, like I said, it's done at the vendor level. if we come back to the hard synergies of sek 45 million like i said it's done at the vendor level We've really gone through the synergies at the greatest level of detail to make sure that we can execute on it within a reasonable timeframe. we've really gone through the synergies at the greatest level of detail to make sure that we can execute on it within a reasonable timeframe The cost, we've estimated that the cost of generating the SEK 45 million of synergies is the cash cost is roughly SEK 25 million, so that's a payback of seven months. the cost we've estimated that the cost of generating the sek 45 million of synergies is the cash cost is roughly sek 25 million so that's a payback of seven months The financial case is, you know, it's just very, very strong. the financial case is you know it's just very very strong If you think about the cost synergies, one example, we have two Nasdaq Stockholm listings and the infrastructure that goes around the two listings. When you think about it's two companies that have two of everything, you know. The question is, how can we combine them, you know, our cost base and make it as efficient as possible while combining our revenue base, which is at SEK 78 million each, and maintaining strong gross margins because Precise have very strong gross margins, and we have very strong gross margins. Yeah, Adam, that's how I would summarize it. It's a relatively a lot of value creation for two smallish kind of companies with fairly limited execution risk around the integration. If you think about the cost synergies, one example, we have two Nasdaq Stockholm listings and the infrastructure that goes around the two listings. if you think about the cost synergies one example we have two nasdaq stockholm listings and the infrastructure that goes around the two listings When you think about it's two companies that have two of everything, you know. when you think about it's two companies that have two of everything you know The question is, how can we combine them, you know, our cost base and make it as efficient as possible while combining our revenue base, which is at SEK 78 million each, and maintaining strong gross margins because Precise have very strong gross margins, and we have very strong gross margins. the question is how can we combine them you know our cost base and make it as efficient as possible while combining our revenue base which is at sek 78 million each and maintaining strong gross margins because precise have very strong gross margins and we have very strong gross margins Yeah, Adam, that's how I would summarize it. yeah adam that's how i would summarize it It's a relatively a lot of value creation for two smallish kind of companies with fairly limited execution risk around the integration. it's a relatively a lot of value creation for two smallish kind of companies with fairly limited execution risk around the integration

Speaker 1: Yeah. Yeah. yeah

Speaker 2: You know? You know? you know

Speaker 1: No, I think that's a, I totally agree. I think that's a really good way of putting it. I think it comes to the second question, Stefan, that you asked, which is from my conversations anyway, what's the investor sentiment? This is from the conversations I've had. I've had quite a few. You know, clearly I'm supporting this, hence, you know, it's why I put it forward. I would say in talking to shareholders, I would say, you know, there's a lot of history that the people have been through with FPC. What I found is we talked through, okay, you guys know the transformation journey that we've been on for the last three years since I joined. No, I think that's a, I totally agree. no i think that's a i totally agree I think that's a really good way of putting it. i think that's a really good way of putting it I think it comes to the second question, Stefan, that you asked, which is from my conversations anyway, what's the investor sentiment? i think it comes to the second question stefan that you asked which is from my conversations anyway what's the investor sentiment This is from the conversations I've had. this is from the conversations i've had I've had quite a few. i've had quite a few You know, clearly I'm supporting this, hence, you know, it's why I put it forward. you know clearly i'm supporting this hence you know it's why i put it forward I would say in talking to shareholders, I would say, you know, there's a lot of history that the people have been through with FPC. i would say in talking to shareholders i would say you know there's a lot of history that the people have been through with fpc What I found is we talked through, okay, you guys know the transformation journey that we've been on for the last three years since I joined. what i found is we talked through okay you guys know the transformation journey that we've been on for the last three years since i joined You know, here is why this is a really important aspect of that continued transformation to get us to a stable platform that we can use as a springboard for additional growth because we're not having to, you know, spend money on administrative functions. It's more efficient capital utilization into growth priorities. As we talk through that with shareholders, I think there is not only acceptance, yeah, this makes sense, but actually I'm seeing a general enthusiasm about, okay, this makes sense as an investor, not just to hold serve on the investments I've already made, but actually to double down, to exercise my warrants, et cetera, to actually get behind this as well because I see that this has got greater economic potential. Again, I'm not offering advice on investing. You know, here is why this is a really important aspect of that continued transformation to get us to a stable platform that we can use as a springboard for additional growth because we're not having to, you know, spend money on administrative functions. you know here is why this is a really important aspect of that continued transformation to get us to a stable platform that we can use as a springboard for additional growth because we're not having to you know spend money on administrative functions It's more efficient capital utilization into growth priorities. it's more efficient capital utilization into growth priorities As we talk through that with shareholders, I think there is not only acceptance, yeah, this makes sense, but actually I'm seeing a general enthusiasm about, okay, this makes sense as an investor, not just to hold serve on the investments I've already made, but actually to double down, to exercise my warrants, et cetera, to actually get behind this as well because I see that this has got greater economic potential. as we talk through that with shareholders i think there is not only acceptance yeah this makes sense but actually i'm seeing a general enthusiasm about okay this makes sense as an investor not just to hold serve on the investments i've already made but actually to double down to exercise my warrants et cetera to actually get behind this as well because i see that this has got greater economic potential Again, I'm not offering advice on investing. again i'm not offering advice on investing This is some of the things that I'm hearing from our shareholders that this has got a really strong potential for shareholder return. I think, you know, the economic model alone that Fredrik just articulated is a really powerful one. You put on top all of the capability synergies that I spoke about, I think it's a really, really nice merger. That's kinda what I'm hearing from the shareholders too, once, you know, as we talk them through the logic and what this is. This is some of the things that I'm hearing from our shareholders that this has got a really strong potential for shareholder return. this is some of the things that i'm hearing from our shareholders that this has got a really strong potential for shareholder return I think, you know, the economic model alone that Fredrik just articulated is a really powerful one. i think you know the economic model alone that fredrik just articulated is a really powerful one You put on top all of the capability synergies that I spoke about, I think it's a really, really nice merger. you put on top all of the capability synergies that i spoke about i think it's a really really nice merger That's kinda what I'm hearing from the shareholders too, once, you know, as we talk them through the logic and what this is. that's kinda what i'm hearing from the shareholders too once you know as we talk them through the logic and what this is

Speaker 5: Okay, great. Thank you, Adam. Let me hand back to you for any closing remarks that you may have. Okay, great. okay great Thank you, Adam. thank you adam Let me hand back to you for any closing remarks that you may have. let me hand back to you for any closing remarks that you may have

Speaker 1: Wonderful. Thanks very much. Just to come back to Q1, you know, I think very consistent, strong performance, 21% year-on-year growth in constant currency with gross margin of 62.3%. Very pleased with those results, particularly as you think about the context of how we've managed OpEx aggressively over the last three years. We haven't grown OpEx to do that. We've maintained low relative OpEx to be able to achieve that. Very pleased with the whole team's performance on doing exactly that. At the same time, we're not standing still. We are investing and innovating in AllKey, and we've launched some new product families. We continue to see pipeline adds, so very pleased about moving up the value chain with that 3x ASP on AllKey. Of course, in the near term future, the merger. Wonderful. wonderful Thanks very much. thanks very much Just to come back to Q1, you know, I think very consistent, strong performance, 21% year-on-year growth in constant currency with gross margin of 62.3%. just to come back to q1 you know i think very consistent strong performance 21% year-on-year growth in constant currency with gross margin of 62.3% Very pleased with those results, particularly as you think about the context of how we've managed OpEx aggressively over the last three years. very pleased with those results particularly as you think about the context of how we've managed opex aggressively over the last three years We haven't grown OpEx to do that. we haven't grown opex to do that We've maintained low relative OpEx to be able to achieve that. we've maintained low relative opex to be able to achieve that Very pleased with the whole team's performance on doing exactly that. very pleased with the whole team's performance on doing exactly that At the same time, we're not standing still. at the same time we're not standing still We are investing and innovating in AllKey, and we've launched some new product families. we are investing and innovating in allkey and we've launched some new product families We continue to see pipeline adds, so very pleased about moving up the value chain with that 3x ASP on AllKey. we continue to see pipeline adds so very pleased about moving up the value chain with that 3x asp on allkey Of course, in the near term future, the merger. of course in the near term future the merger We've spoken about why it makes sense from an economic perspective with positive EBITDA and growth, but also what type of company this creates. Not a small niche one, but actually a broader biometrics identity leader right here in Europe. Really looking forward to seeing the benefits of that new company. Also as a consolidation platform for other smaller niche players to build out more capability in this space, which is exactly what the clients need. Looking forward to that. Appreciate everyone joining the call today and coming along on the journey with us, and I look forward to speaking to you all again soon. We've spoken about why it makes sense from an economic perspective with positive EBITDA and growth, but also what type of company this creates. we've spoken about why it makes sense from an economic perspective with positive ebitda and growth but also what type of company this creates Not a small niche one, but actually a broader biometrics identity leader right here in Europe. not a small niche one but actually a broader biometrics identity leader right here in europe Really looking forward to seeing the benefits of that new company. really looking forward to seeing the benefits of that new company Also as a consolidation platform for other smaller niche players to build out more capability in this space, which is exactly what the clients need. also as a consolidation platform for other smaller niche players to build out more capability in this space which is exactly what the clients need Looking forward to that. looking forward to that Appreciate everyone joining the call today and coming along on the journey with us, and I look forward to speaking to you all again soon. appreciate everyone joining the call today and coming along on the journey with us and i look forward to speaking to you all again soon

Speaker 4: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Thank you. thank you This concludes today's conference call. this concludes today's conference call Thank you for participating. thank you for participating You may now disconnect. you may now disconnect