Hello, welcome to this Q4 webcast with Zwipe, hosted by Arctic Securities. My name is Kristian Spetalen. I'm an equity TMT analyst here at Arctic covering Zwipe. With me today, I have CEO André Løvestam, CTO Robert Puskaric, and also Marit Kolstad, Group Finance Manager. We will start this session by a short recap of the recent highlights or in the quarter by André, before we move to the Q&A session. For that, please use the Q&A function on your screen. I see that some have already posted some questions. With that, I leave the word to you, André. Thank you very much, Kristian, and thanks to Arctic for hosting this full-year report presentation from Zwipe and giving me an opportunity to give you all an update on what's happening with Zwipe. The agenda for today's presentation is first of all highlights from the annual report 2021, followed by a quick introduction to Zwipe and our competitive products and offering, which gives a solid foundation for commercial success in 2022 and beyond. Also just a slide with final takeaways leading into the Q&A. Let me start already by jumping into the highlights from 2021. It has been a very eventful year preparing the ground for commercial breakthrough from 2022 and beyond. We've had a lot of activity across the board on the customer side. We received the first significant commercial orders for Zwipe Pay with a combined value of more than NOK 20 million from three different card manufacturers. We announced collaborations with nine new card manufacturers, representing an annual payment card volume of around 250 million cards. In addition, a global tier one smart card manufacturer launched an evaluation process with the Zwipe Pay ONE platform and competitive platforms, which is still ongoing. The partnerships have also developed very nicely. We have entered go-to-market partnerships with seven new processors that are very important for us as a kind of a gateway to reach a lot of issuers, and also because they prepare the backend and technical foundation for banks to actually launch the biometric cards. This has also helped us to significantly increase our presence in the Middle East, Africa, Asia, and now also North America. We also entered an evaluation agreement with one of the world's largest payment service providers located in the U.S. With them, we will evaluate the potential for biometric payment cards in the North American markets and also globally through joint client meetings, preparations for the back end, and so on. On the technology side, we have, of course, completed the full upgrade to Zwipe Pay, our new technology platform, which is a cutting-edge third generation single silicon platform that provides best in class biometric performance at highly competitive cost levels. This Zwipe Pay one platform has now passed most critical milestones and major risk points. The platform was fully prepared for submission to certification by the end of 2021, including successful debugging tests. As we mentioned in the annual report, the cards were then submitted in the beginning of the year, and we are very confident based on the progress and the feedback from those ongoing tests that we are closing in on certification. We also announced 14 new Zwipe Pay pilots with 11 issuers. It's interesting to note that while we had one issuer committing to a pilot in 2020, we had two issuers in the H1 of 2021. We had nine issuers in the H2 of 2021, and we believe that this trend will continue. This is a signal of the increasing momentum and interest that is going on in the marketplace. Among those issuers is also a global tier one bank that committed to pilot Zwipe Pay in three European countries. We also announced the entry into access control with Zwipe Access. In that juncture, we also announced collaborations with leaders in the security industry, notably HID, Legrand, and Southco. We've also launched multiple supporting sales tools, for example, Zwipe Insight, looking at consumer research, Zwipe Experience, looking at an end-to-end program for issuers to run through every part of the preparation, execution, and conclusion of pilots, and also the ROI calculator, which is a comprehensive tool to help issuers calculate the financial impact of launching biometric payment cards. We now have a much broader portfolio covering two verticals. By the way, you also see part of our new visual identity and design. These are the designs for Zwipe Pay and Zwipe Access. In our organization, we've also been very active. We've strengthened the organization with a lot of very talented and competent and experienced people and continue to further you know develop the organization to meet the demand with new key positions and hires. We see that we are really attracting top industry talent and that is really exciting for us. Partly, of course, this is also thanks to our unique winning team culture in the company, which we have also been focusing on. In terms of financials, we have significantly strengthened our shareholder base and finances, of course, through Erik Selin's investment of NOK 104 million in a directed private placement. This leaves us in a situation where we have no debt, we have a continued prudent use of cash, and we have a solid cash balance. Diving more into those details, revenues are of course still at a very low level, but they are continuing to grow from NOK 1.8 million in 2020 to NOK 2.5 million in 2021. Our monthly cash use is a total operating cash use of NOK 6.4 million per month on average. This compares to NOK 5 million on average in 2020 when we came out of a major streamlining effort in the very last months of 2019. We have, for 2021, continued with utilizing our old accounting approach from the last years at Zwipe, where actually both COGS and R&D expenses are accounted for as operating expenses and therefore also included in operating cash use. In 2021, we had an investment, the last investment in the development project with IDEMIA, accounting for NOK 9.7 million, which is included in those numbers, and also about NOK half a million of COGS. If you correct for that, the average spending for the full year is about six and a half million NOK per month. Bank deposits are what were NOK 152 million at the end of the year. That compares to NOK 125 million at the end of last year. Sorry, I just need to correct myself. The thing is that if you take the net cash use of operating activities for the full year, those were NOK 76.7 million according to the annual report. If you then exclude IDEMIA, you will be down to NOK 67 million in total net cash use in operating activities. Divide that by 12, and you have NOK 5.6 million, which is the underlying operating cash use per month, excluding the IDEMIA investment. In terms of equity and shares, we have a total equity of NOK 148 million, up from NOK 122 million in the preceding year, giving an equity ratio rising to 91%. We have a total of 37 million shares at the end of 2021. Let me just give you a quick update on an introduction to Zwipe. We are, of course, fully focused on the next generation contactless experience, which means biometric cards, both for payment and for access control. We're headquartered in Oslo, and we have a global team, a growing team, very competent team. We have a long history of world's firsts in the industry, and we intend to continue that trend. We are very well-positioned for global technology and cost leadership with our disruptive technology platform and our one-stop shop offering. We have a global and very fast-growing partner network across the value chain, and we are listed on Nasdaq First North and Euronext Growth Oslo in Oslo. Let's look at the payment side first of all. I will not go into details here, but as you know, we have done a lot of consumer research in many different countries. First of all, I want to note that I find it quite astonishing how extremely consistent these results are from one market to the other, which I think just adds to the credibility of these numbers. About eight out of ten consumers want their next payment card to be biometric. About six out of ten almost are actually willing to pay for getting access to a biometric payment card, and about the same are considering to switch banks to get hold of a biometric payment card. I think the significance of this is particularly that launches of biometric payment cards will trigger competitive reactions. I think that it's interesting that, in the first country, where biometric payment cards were launched, BNP Paribas, who have also invested in TV advertising, et cetera, for it, that's where you also see the second significant launch, which is, Crédit Agricole. I think this will continue to spread from market to market, because there is quite wide agreement and consensus that the next big wave of innovation within payment cards are the biometric cards. What makes us stand out from the crowd, apart from our technology leadership, is the one-stop shop offering, where we are taking an end-to-end approach. I will get back to that. We're also providing better prices for our customers than buying components separately, because we can take an aggregator role. We are putting a lot of effort becoming a value-adding trusted advisor for our customers and our partners end-to-end. Everything from technology readiness to sales readiness to building the partner network and sharing our experience and our focus on biometric payment cards. Combined with our very you know enthusiastic, agile, passionate corporate culture and innovative approach in many respects, this has won us a lot of trust and a lot of partners all over the world. Just to talk very quickly about this product platform and offering that's laying the foundation for our commercial success. Of course, we have a complete turnkey solution, so we're offering everything our customers need to launch biometric payment cards in terms of technology, but as I said, also in terms of competence. It's both the hardware and the software and the enrollment solutions, and we can offer it in different shapes and forms. The same goes for enrollment, where we can support both envelope enrollments, we can support sleeve enrollments, and we can support in-branch enrollment, and we're putting a lot of effort into mobile enrollment, where we're doing some really very exciting technical development to stay ahead of the curve because we see a lot of interest for mobile enrollment. You know, it can reduce costs, it simplifies logistics, it reduces the challenges with environmental footprint, and it offers even a much better user guidance because you can use the screen on the mobile phone. We're also engaging with all stakeholders in the value chain. Of course, our direct customers, the smart card manufacturers, but also all other stakeholders in the value chain. So for example, issuers, processors, card bureaus, schemes like Visa and Mastercard, but we're also talking to consumers, doing in-depth consumer research, and we're also in some markets, actually also engaging with both governments and central banks. Combined with our end-to-end approach, that has really delivered excellent results, and we're growing our pipeline tremendously. Readers can go in and look more at what we're delivering at each part of the value chain and how our ecosystem looks. My message here is that our end-to-end go-to-market approach, ensuring that every stakeholder is professionally supported, not only with technology, but also with our biometric expertise, our commercial insights, and our value-added services, has really proven to be a very effective go-to-market approach. The addition of our pull strategy, where we decided to reach out to all parts of the value chain, was actually quite transformative for Zwipe, because it helped us to drive the agenda, to get in front of the decision-makers and to be able to take a much more central role in the value chain. A few words on access. This, of course, is a huge market. It is much more fragmented, and also quite a lot smaller than the payment market. It does show some great potential, both because there is a lot of interest and demand for biometric solutions, and because our biometric solution, which is on card, offers the opportunity to save a lot of costs. Our focus at the moment is on access control, physical access and logical access, which means access to buildings, rooms, and so on, IT, you know, server racks, et cetera, and also logical access to IT systems. For all these different verticals, our product will be relevant and we can, you know, build one market and one use case after the other over time. Currently, as I said, we're focusing on physical and logical access. What we are bringing to market really fits perfectly with the demand for biometric identification. It's a very accessible technology for a lot of different users, providing an excellent cost-benefit ratio because there is no modification needed to existing systems as long as they use the protocols that our cards are prepared for. Of course, at the moment, that is HID, where we have a licensing agreement. Also, it's user-friendly, highly secure, hygienic, of course, all of these things that you know from payment. But importantly, you can benefit from tracing. A normal access card can be borrowed, it can be lost and stolen, whatever. Here, you will know exactly who has been where and when. Again, there are no biometric databases needed. It's all in the card. The biometric data never leaves the card. Our product, of course, is based on the Zwipe Pay platform, which means not only that it's batteryless, but also that it is, you know, highly scalable and industrializable and cost opportunities. Final takeaways to lead into the Q&A. We're seeing great traction in the market with growing interest and engagement across the value chain, as I mentioned. We're having a growing pipeline. Even though the first couple of months have been fairly quiet on the news flow side, that does not mean that we have not continued to progress and build pipeline with more or less the same speed as we have done in recent years. Piloting has started, and we're closing in on certification, as I communicated in the annual report. We're confident because we have done co-debugging. We're confident because IDEMIA obtained their certification with the same key components in their platform as we do, namely that we're seeing together with our card manufacturing partners on the certification that is currently ongoing. Therefore, we're preparing for mass volume and mass takeoff in this market. We're seeing that our go-to-market approach and regional presence is highly effective. As you know, we invested in regional presence in the Middle East in the early part of 2021, and then in Asia-Pacific in the latter part of 2021, and this is proving to be highly effective and something that we will want to follow up on going forward in other regions. The launch of Zwipe Access broadens our product portfolio and will impact our revenue stream already in 2022. As you know, there is no certification needed for Zwipe Access. It's only a matter of getting the applets from our partners fully integrated with our platform and our protocols, do the technical validation, and then start selling. This process is fully ongoing and it's progressing well. Zwipe is positioned to take a healthy market share in the markets for both biometric payment and access cards. That's why we see 2022 as the year of commercial breakthrough for Zwipe. With that, I've been through the run-through of the presentation and hand over to you, Kristian. Okay. Thank you, André. We have a lot of questions. I'll try to order them and there's some overlapping questions here that I think we can cover with some follow-ups. First, you mentioned that the Zwipe Pay platform has passed some milestones in 2021. Could you elaborate a bit more on the most important ones? Of course. For that, you know, elaborating on the technical milestones, et cetera, I think I'll pass on to Robert, our CTO. Thank you, André. Yes, 2021 was really a very busy year for us, I can say. We did pass the most critical milestones and also risk points. To me, a key achievement is that we have proven manufacturability of finished payment cards made with Zwipe components. This was a long process. Over many months, we performed a lot of experiments in close collaboration with leading industry partners and found optimal parameters for card production. Because that is what our customers, card manufacturers expect from Zwipe, so they can build cards with high quality. André, you mentioned already an important milestone with the IDEMIA reference October 2021. That gave proof that cards based on the same secure element and operating system can be certified. Now we need to do the same, of course, and we are with our own ISO contact plate module, our own inlay reference design. Of course, the whole payment card industry is highly regulated for good reasons. Therefore it is so critical to certify components and cards with payment schemes before any financial institution can make deployments. This also points to the risk items, right? It was important that we passed the so-called debug tests in 2021 that you mentioned earlier. We built and manufactured many reference cards, submitted to accredited labs, and performed those debug tests. Passing these successfully gave us the confidence. We ruled out the high risk items in certification tests that are now running since January. The last important milestone I want to emphasize again is that I'm really proud about the comprehensive offering we created around enrollment solutions. We got very good feedback from customers on this one. Okay. Thank you, Robert. Just to follow a bit up on that on the technology side. We have a lot of questions here relating to certification. Could you perhaps elaborate a bit more, André or Robert, on what is holding the certification process back? Why isn't Zwipe Pay certified yet? Because you did announce back in the fall of 2021 that you have a quite similar solution to the IDEMIA F. CODE card, which kind of verifies your technology. We knew that this was going to be rather sequential process. Although we had already started preparing for submission to certification when IDEMIA got their certification confirmed in November. I would say actually that nothing is holding this back. It's a very comprehensive process. It contains. Yeah, I would assume for Visa and Mastercard combined, it's more than 100 different tests with hundreds and hundreds of cards. It's progressing according to plan. We had hoped that this whole process would have been slightly earlier, but as we have mentioned before, you know, COVID has impacted the preparation process because you can only imagine what kind of unexpected kind of hurdles that you have to go through when you need to send cards all across the world. Sometimes cards have even been locked in customs for up to six weeks. I would say nothing is holding certification back. It is a long procedure, and it's proceeding according to plan. You said that you expected it to happen earlier. Do you mean that you, this fall, expected it to have happened by 2022? We had hopes that we would be able to initiate the process slightly earlier, but I think that we communicated that even in 2021 and have learned a lesson from that actually, where we hope that certification would happen by the end of 2021. The lesson learned is that we do not want to give specific guidance on timings or volumes. You know, when will certification happen? When will the first deliveries happen? What will be the expected volumes? Those things we will decline to comment on. We will rather focus on delivering the results and then reporting them after the fact. But you do imply that you expected it by the end of 2021, so we should perhaps expect it soon. In that regard, it's taking us to the next set of questions. Around orders, should we expect orders or large commercial orders to come when Zwipe Pay is certified or, like we saw with IDEX or IDEMIA, for example? Or may it come like two months after, et cetera. Could you elaborate a bit on that? You know, it's very hard to speculate on whether customers are ready with their finger on the button or not. I don't want to make those calls on behalf of our customers. We have already received orders from some of our most advanced customers. The small one that we received from the third supplier is, as we communicated in the press release, already due for delivery in this quarter. So like I said, we will report on this after the fact. With the ongoing pilots, can you say anything about the actual response you have received so far and what is perhaps holding back some larger commercial orders? Is that how the pilots are going, or are they waiting for certification? Yeah, that's a good point. I think that actually what we are seeing is that quite a lot of issuers want to have the product certified even before the final stage of their pilots. You see, a lot of these banks take a three-step approach to piloting. First, they want to do some internal testing. Secondly, they will want some friends and family tests. Thirdly, you have the kind of street pilots, which is a pilot with random consumers and customers spread geographically and maybe even with a kind of a representative split of gender and age and what have you. What we're seeing is that a lot of the banks want to wait with doing the final parts of the pilot until certification has happened. Have any pilots been finalized? Do you have some assessments from some pilots that are now have been finalized, and maybe you could announce some news around that? Yeah. No, no pilots have been finalized. That reminds me, you also asked what has the feedback been, and the feedback has been very good. As we also communicated in the annual report, the cards are working very well. Consumers or the test respondents that have been involved have done successful enrollment and successful use of the card. Can you say anything about the status of the partnerships that you have ongoing now with, for example, OP or Vuppi, or the tier one bank that was going to launch a pilot in three European countries? Not much more than what I've already said, because that covers you know the commenting around those customers. They're all you know fully committed, they're all fully active, and then you know they will proceed according to their plans and their prioritization, et cetera. Okay. Then we have a question from Niklas Sävås at Redeye. Number one, considering the challenges in the supply chain and the shortage of certain electrical components, how quick can a NOK 10 million commercial order convert to sales if a customer wants the product as soon as possible? To follow up on that, what are the terms against suppliers? Do you pay them upfront? No, we do not pay them upfront. We have normal payment terms. I don't want to give the exact details, but we do not pay upfront. When it comes to a hypothetical 10 million unit order, that, of course, is quite a tall order when we have just announced 2021 with NOK 2.5 million in revenue. We would not be able to, in a way, magically deliver 10 million units from one day to the next. What we do have is we have taken steps to ensure that we have a good coverage for the demand that we expect in 2022. We feel confident that we will be able to deliver. Hopefully, you know, if we don't, then that's a luxury situation. Okay. Moving a bit over to access control. There is someone in the chat here speculating that Raritan is said to be the first customer for Zwipe Access cards. Asking why this order isn't press released for that customer. We will press release orders when they happen. You can assume that, if we haven't announced it, there hasn't been an order yet. We are, as I mentioned, fully involved in the technical preparations for rolling out. I don't know, Robert, maybe you'd like to just comment very briefly on that. If you have anything to add. Just, I mean, you saw, of course, our announcement during the TRUSTECH. We have demonstrated that the technology is working, but we still have some homework to do before we are ready to really mass deploy this one. It is only natural also then that customer order is not yet there, but it's all moving in the right direction. Perhaps, André, could you elaborate a bit on when you expect access control to add some revenues? Well, it's hard to speculate on that. Even on this page, we say that it will impact the revenue stream already in 2022. I don't want to promise any specific date, but of course, what we have in front of us is just finalizing the technical validation and then, you know, making sure that we have customers ready or card manufacturing partners ready to produce, and then we will be able to deliver. It will not take a very long period of time. A bit on the details here. Could you remind us of the ASP for the Zwipe Pay biometric payment card and the access control cards? Sure. For Zwipe Pay, our communicated assumed ASP has always been $4. This was calculated based on a weighted average of our assumed mix, where some customers would place orders for the full platform, others would place orders maybe only for selected parts of the platform, with the lowest unit being our contact plate module, which is the secure element, the single chip secure element mounted on the back of the contact plate, which is often referred to as the payment chip. The reality, as we have seen and communicated multiple times, is that so far our customers have all chosen to buy the full platform, including sensor and everything. Therefore, the ASP in the short term at least, maybe also in the medium term, will be higher than what we communicated. For the access control side, prices are generally much higher in the market. It's partly because the market is more fragmented, volumes are lower, et cetera. We are assuming an ASP of $25 in that market. Thank you. Do you have a timeline for expectations of break-even? And do you consider Zwipe to be fully financed? We have an expectation for break-even. I will not time it, as I said. We have communicated before that the cash flow break-even volume that we have estimated is around 6 million units. Both because we are expecting a slightly higher ASP in payment and because we have launched access control with significantly higher ASPs and margins. You can assume that those 6 million break-even volume, that volume is actually quite conservative. That's the question, you know, when will we reach that level? When it comes to whether we are fully financed or not, the answer is that yes, as we are communicating and have done several times, we are fully funded thanks to the latest private placement through the commercial launches. After that, volumes and gross profits will start kicking in. A little bit on the cost side here and organizational ramp up. You do indicate some hires going forward. At what level do you see Zwipe being ramped up sufficiently to meet the expected high demand? Well, I mean, you know, it's hard to say when it becomes really high demand. We are planning and preparing for volumes that will reach more than 100 million units. You know, it won't happen tomorrow, but we are preparing for it and it will happen. What our organization will look like then is hard to predict. As you can imagine, even now, with increasing numbers of engagements with different customers, increasing activity, pilots, you know, industrialization, sales processes, et cetera, the activity level at Zwipe is going through the roof. We need more capacity. You know, we are doing all this with just over 30 people on our team. We do need to add more capacity. As we approach volume deliveries, it will also be important to have more people on the quality side, supply chain side, field application engineers for on-site customer support, et cetera. In addition, we want to have regional presence. Over time, we will build a greater organization and a bigger, larger organization. The point is, you know, Zwipe has an extremely scalable business model. Our volumes, revenues, and gross profits will grow at a much higher rate than our operating expenses once volumes are taking off. Before that, we are, in a way, preparing for the takeoff, and at that time, we need to carefully uplift our organization in order to handle the increased activity level, and that's exactly what we are doing now. I must also just emphasize, I'm really fascinated and super proud of that Zwipe is, like I said, attracting top industry talent. We have done a lot of fantastic recruitments, adding to our team, and we will continue to do so going forward. Okay. We're gonna move a bit over to some more industry-wide questions. If anyone listening in haven't do not feel like their question has been answered, please just post them again. The first, there's been some speculation about IDEMIA breakup and potential sale to Thales. How would that affect Zwipe if it will happen? Yeah. I mean, of course, that is a completely hypothetical solution, and if it were to happen, there has also been a lot of speculation that the card manufacturing side of IDEMIA would not be accessible to direct competitors for antitrust, anti-competitive reasons. I'm not too sure that this is a realistic scenario that would impact the parts of IDEMIA that we are working with. Even if that were the case, it's important to emphasize that we have rock-solid agreements in place with IDEMIA on the collaboration and the rights to the single silicon biometric secure element. Even in that case, the impact would be very limited. There's a question here asking that the Zwipe card is seemingly competing with the IDEMIA F.CODE card, and asking if you could go or elaborate a bit more on how this dynamic with IDEMIA is working for Zwipe. That's a good question. It's a deep question, and it's an interesting case. I have talked about it a long time ago, because IDEMIA initiated the development of the disruptive single silicon secure element before we started collaborating with them. They understood that this is a disruptive technology. They have known from experience that in order to really break through with disruptive technology, it's important to have proliferation and wide accessibility to that disruptive technology. They wanted a partner that could work with the rest of the industry in order to enable that proliferation. We had already had some talks with IDEMIA collaboration, acknowledging our competence and track record and you know, experience in this field. That's how this collaboration came about. The essence of this partnership is really that we are enabling competitors of IDEMIA to launch competitive products to the F.CODE 2 product that IDEMIA is launching, based on the same secure element and using, at least for now, the same fingerprint sensor. Apart from that, we have kind of built our own platform, which is the Zwipe Pay platform. While we are a technology partner with IDEMIA, we are also commercially, in a way, at least indirectly, a competitor to IDEMIA by working with their competitors. I see. Then there's a question about the hardware wallets. I guess the person is referring to the opportunity in China of a cashless society and asking what Zwipe's view on that market is. I think, you know, hardware wallets are an interesting use case for this technology. It's quite logical. It's of course on our monitor screen. You know, we won't stop with Zwipe Pay and Zwipe Access. We will go beyond that. We have multiple opportunities for doing so, and when we decide to move, we will announce it. Okay. We have the last question here. Not sure if I fully understand it, but asking who is running the certification office? I don't understand that question either. We do, of course, have a certification specialist working on this fully dedicated in Robert's team. We have multiple people engaged in it. Just to cover all options of what this question could mean, we are of course using and submitting the cards to the accredited test labs that have been appointed by the schemes for running the whole certification process. Those are the ones that are actually doing all the tests, submitting at the end the reports that the schemes will be using to issue the certifications in the end. Okay. I think that concludes today's presentation and Q&A. We are out of questions, so thank you very much to the Zwipe team for presenting and letting us host the Q4 webcast. Thank you for everyone listening in. Do you have any concluding remarks, André? No, I don't. It's except that it's a very exciting year. We're seeing a lot of traction. We're really excited about the future based on all the prospects that we have been highlighting. Apart from that, a big thank you to Arctic Securities for once again hosting our webcast.