Precise Biometrics (PREC) investor relations material

Merger rationale and strategic direction

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

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

• The combined entity aims to expand geographically, enhance cross-selling, and pursue further consolidation in the biometrics and security sector.

• The new organization features a blended management team and board, leveraging expertise from both companies.

• Integration is underway with 14 active work streams, including IT, finance, and customer contracts, and is progressing ahead of schedule.

Market opportunities and growth areas

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

• The company is well-positioned in logical and physical access, national ID, ultrasonic sensors for mobile, and biometric payment cards.

• Over 800 enterprise customers are served, with strong presence in Europe and the U.S., and expansion into Asia and India.

• Structural tailwinds from AI, digitalization, and global security concerns are driving demand for advanced biometric solutions.

• The company plans both organic growth and targeted M&A, focusing on smaller tech firms and larger strategic acquisitions as opportunities arise.

Financial outlook and funding

• Pro forma 2025 revenue is SEK 156 million, with cost synergies expected to deliver a 17% EBITDA margin.

• A rights issue aims to raise SEK 110 million (SEK 100 million guaranteed) to fund integration, commercial initiatives, and bridge financing.

• Cost savings stem from consolidating management, administration, IT, and office locations, with most benefits realized by 2027.

• The company is focused on maintaining current customer relationships while accelerating sales and marketing for new offerings.

• Future M&A financing will depend on the size and nature of each acquisition, with larger deals potentially requiring additional capital.