Q&A from the Capital Markets Day

Published Dec 14 2016

Q: Does your 2017 revenue guidance include the effects from potential acquisitions?

A: No.

Q: Why do you not communicate more with your shareholders?
A: We communicate when we have new information to share with the market, for example in conjunction with our interim reports, product launches or organizational changes. To the greatest extent possible, we also try to meet media’s request for interviews in order to reach out this way with information about the market, our technology and the company.

Since Christian Fredrikson started in August, he has had high availability towards the press. In addition to interviews with news bureaus such as Direkt, Bloomberg and Reuters, he has also participated in a large amount of articles in Swedish business press such as Dagens Industri, Affärsvärlden and Svenska Dagbladet.

When we communicate, we do so on the basis of the conditions that prevail at any given time, in the most correct and transparent manner possible and in compliance with existing regulations for issuers. You can always find the latest news and updates from us in our newsroom.

Q: Why do you not use Twitter as a means to communicate more?
A: Twitter is primarily used for product marketing and to spread news published on our website. We are a listed company and www.fingerprints.com is our official channel for communication.

Q: I am a shareholder and worried about my investment in Fingerprint Cards. I want to know more about the future of the company and want to talk with management and the Board. I have e-mailed and called you. Why have you not called me back?
A: Fingerprint Cards is not able to come back with a personal reply to all incoming questions. Neither are companies listed on the stock exchange allowed to provide any sorts of investment advice to its shareholders.

We conduct regular investor revents and meet the analyst in order to increase knowledge about the company. Some of these events are open and accessible to all. To get access to the analysts and their research reports, one usually need to be a customer at the bank the analyst work for. However, for example Redeyes analysis of the company is available for all. Please visit www.redeye.se/bolag/fingerprint-cards (all information available in English) to take part of Redeye’s latest updates.

The company’s performance is communicated to all shareholders on a quarterly basis and through press releases and news. In conjunction with the quarterly reports, a telephone conference with the CEO and the CFO is held. During the telephone conference the company’s finances and future outlook are commented on, based on the latest published information.

The company’s financial reports and documentation from various investor events can be found at https://corporate.fingerprints.com/en/financialinfo/presentations/

Q: The share has plummeted in the past year. Why has no member of company management commented on this?
A: We never comment on Fingerprint Cards’ share, its market capitalization or the estimates of analysts.

Q: Do you not understand that the lack of communication hurt the shareholders’ confidence towards the company?
A: We are obviously aware that there is a great interest both for the company and for the share price development. We strive to create stable, long-term value in the company and hence focus on doing our best every day to the drive the business forward.

Although it was disappointing to have to adjust the forecast for 2016, the company remains the market leader, has a high operating margin and continues to grow.

We communicate with the market when we have new information to share, this is typically in conjunction with quarterly reports, product launches or organizational changes.

Q: Will any dividend be awarded in 2017?
A: This is a question for the 2017 Annual General Meeting, which will be held on April 20th 2017, in Gothenburg.

Q: Will the board to be replaced in 2017?
A: As for all listed Swedish companies, it is the Company’s nomination committee that will submit proposals for Chairman of the Board and board members. Read more about the Swedish Code of Corporate Governance.

The nomination committee of Fingerprint Cards will present its suggestions for Chairman of the Board and board members prior to the Annual General Meeting 2017.

Q: Do the Board and Management Group have a low level of confidence in the company’s share?
A: No. There is a high level of confidence in the share. Seven out of eight member of the Management Group and five out of a total of nine members of the Board own shares in the company.

Furthermore, the majority of the members of the Management Group are included in a warrants program that can be redeemed now in December 2016.

An up-to-date overview of share and warrant holdings is presented on the company’s website.