Communication Policy

The overall objective of Fingerprint Cards’ (Fingerprints’) communication is to support the business targets and strengthen the image of the company by raising knowledge and awareness of Fingerprints and its activities.

The main principles for Fingerprints’ external information disclosure are to:

• treat all stakeholders in the capital market equally
• provide material information on time and in a correct manner
• maintain high ethical standards
• ensure the information’s reliability by establishing fixed procedures for information

All communication shall follow the rules stated in Fingerprints’ agreements with NASDAQ OMX, the Swedish Code of Corporate Governance, the Swedish Companies Act, the Swedish Annual Accounts Act and other applicable rules. The communication shall be based on Fingerprints’ business concept, vision and mission.

DIVISION OF RESPONSIBILITY

The Chief Executive Officer (CEO) has overriding responsibility for Fingerprints’ information disclosure. The CEO may choose to appoint spokespersons for specific topics or delegate the information responsibility to other members of Group management, such as the CFO, CTO or the head of Investor Relations (if this is somebody other than the CEO or CFO).
The main rule is that communication shall be provided by the person who has the relevant expertise and an adequate overview of the Group’s activities. However, it is not permitted for a person who has not been delegated information responsibility to discuss Fingerprints’ activities with external stakeholders.
The Chairman of the Board can make statements regarding issues related to the Board’s composition and day-to-day work, shareholder issues and issues concerning the CEO role. The Chairman of the Board shall, to the furthest possible extent, consult with the CEO in these issues and establish support for potential statements in the Board of Directors.

INVESTOR RELATIONS

The objective of Fingerprints’ communication with the capital markets is to increase the knowledge and understanding of the company and its activities. The primary target groups for the communication are existing and potential shareholders, financial analysts, the business media and other capital market stakeholders (e.g. lenders).
Over time, well-functioning communication with the capital markets should create conditions for a true and fair valuation of Fingerprints and reduce the risk premium for the company’s shares, which creates added value for the company’s shareholders.
Fingerprints does not comment on rumors, competitor activities or the valuation of the company. In the event that the rumors were to have a major impact on the share price, possible actions shall be discussed with NASDAQ OMX.

INFORMATION CHANNELS

The investor relations channels primarily comprise the company’s financial reporting (annual report and interim reports), press releases, presentations for capital market stakeholders, meetings with capital market stakeholders and interviews with the media.

FINANCIAL STATEMENTS

Besides fulfilling relevant legal requirements and the agreement with NASDAQ OMX, the financial reporting shall be structured in such a manner so as to facilitate the assessment of the company by external stakeholders. For example, this can take place by the CEO’s comments to the interim reports providing some supplemental, qualitative and quantitative information.
Before the quarterly reports, the company must observe a “silent period” of 30 days. During this period, the company has meetings with investors and analysts only on an exceptional basis and does not comment on the financial development of the company other than in the cases that require a press release.

PRESS RELEASES

According to the agreement with NASDAQ OMX, information that can potentially be price-sensitive must be communicated without delay. Examples of such information are:
• financial results
• changes to the business emphasis
• large orders or orders of a strategic nature
• product launches of a strategic nature
• acquisitions and divestments
• other significant business transactions
• changes to the Board or management group
• notices convening a General Meeting

There is considerable room for the interpretation of what information is price-sensitive, especially with regard to normal business with “design wins” and orders. However, significant and/or strategic orders of such a size or importance that they are deemed to have a material impact on Fingerprints’ earnings, both in the long and short term, must be communicated without delay. However, it is ultimately Corporate Communication that determines if the information is of such a nature that it requires a press release.

FORECASTS (“GUIDANCE”)

The Company refrains from further guidance.

PRESENTATIONS IN CONNECTION WITH REPORTS

In connection with financial reporting (interim reports), Fingerprints should offer the capital market’s stakeholders the opportunity to discuss the reports with company management. This normally takes place through a conference call where the company management briefly presents the report after which the floor is opened for questions from analysts and the media. The length of the conference call should be a maximum of 60 minutes.
Fingerprints may also choose to conduct roadshows in connection with the financial reporting. This usually occurs in connection with a securities broker or investment bank. Fingerprints’ policy is to primarily prioritize partners that have an active, well-functioning analysis coverage of the company as it provides conditions for the participants in the meetings to have adequate prior knowledge of Fingerprints. Other criteria in the selection of partners include what geographic markets the partner can offer access to, what balance between existing and potential new shareholders is offered and that the partner offers well-functioning logistics including clear feedback from the meetings.

CAPITAL MARKET DAY

Fingerprints should strive to invite a large number of market players and media to a capital market day once a year at which the company management discusses Fingerprints’ markets, products and strategies in detail. The content in the presentation is of course adapted to the current issues relevant to the capital market, but should typically include presentations by:
• the CEO (strategy, overall market conditions)
• the CFO (financial development, guidance)
• representatives from the Executive Management Team (R&D, sales etc).

The company should strive to hold the capital market day at around the same time every year to maintain continuity in information disclosure. It is suitable for the event to normally be arranged in the end of the year.

MEDIA

Fingerprints should strive for a high level of availability to the business media, especially in connection with the publication of financial information. The prioritization should normally be:
• News agencies (Direkt, Reuters, Bloomberg, etc.)
• Business media with a short time to publication (Dagens Industri, Financial Times, Wall Street Journal, SvD Näringsliv, DN Ekonomi, etc.)
• Business media with a longer time to publication

The media are offered the opportunity to listen in on the company’s quarterly conference calls. Separate interview times are arranged for questions from the media. Since Fingerprints is listed on Nasdaq Stockholm, Swedish media will be prioritized in case there are a large amount of simultaneous media enquiries.

INCORRECTLY DISCLOSED INFORMATION AND INFORMATION LEAKS

If price-sensitive information is incorrectly disclosed, the same information must immediately be communicated through established news distributors. The same procedure applies in the event of information leaks.

NEGATIVE PUBLICITY THAT CAN IMPACT BUSINESS RELATIONSHIPS AND VALUATION

If Fingerprints becomes subject to strong negative publicity that can impact business relationships or the valuation of the company, all disclosures shall be made through the CEO or CFO. The CEO or a delegated person is responsible for a crisis plan being prepared and the management group being made aware of it.