Hi, everyone, and welcome to ABG Investor Days. My name is Nikola Kalanoski, and I'm an equity research analyst here at ABG. With us today, we have the CEO of Precise Biometrics, Joakim Nydemark. The idea is that he will present Precise to us for about 20 minutes, and then we will have an opportunity for a Q&A for about 5 minutes. And with that said, Joakim, the floor is yours. Thank you so much, and thank you for the opportunity to come here to present today. So, security and safety is on a lot of people's minds today, and biometrics is an important part of solving the problems we have related to security and safety nowadays. In today's presentation, I will explain why it's a great thing that you are the key, and what Precise Biometrics is doing to make that happen. I will also tell you about the contribution we do to have a safer and more secure daily life for citizens. And finally, why I believe that Precise Biometrics is a company of the future with great potential. So in short, Precise Biometrics is about identification, software, and solutions. So in essence, this is that you use face, hand, the palm, fingerprint to identify people, and that can be used for a variety of, of solutions. We have been in, on the Swedish Stock Exchange, Nasdaq Stockholm, for, for a number of years. We have, customers and partners globally, working with big brands like Qualcomm, Infineon, and Egis Tech, to mention a few. We have an annual recurring revenue that is growing, and, we also have a, footprint on the market for our algorithms that is, 100 million + devices out there. So we have been around for a number of years, and what I think is important is to emphasize that this is sort of a, a totally different company from, from, like, five years ago. I don't think that all of our shareholders and potential new shareholders knows that. So, I would like to show you that this is why you would like to invest in Precise at this moment. We are in a phase for growth and targeting profitability here in the near future. We are working with solutions for safety and security, and that is, I think, as I mentioned before, on a lot of people's mind. A solution to this is a lot related to biometrics. We are a leader in this space. We have been here for more than 20 years, and to provide solutions in biometrics is our DNA. So, we are hardware agnostic, meaning that we can apply our technology in a variety of verticals. Mobile phones is our biggest volumes currently, but we are also growing into new verticals, including smart locks, automotive, PC, laptops, and so on. It's the same sort of software base, but new application areas. This is some parts where we see a good growth potential here moving forward. As many may know, the mobile industry has had a few tough years with decreasing revenues and decreasing volumes. What we see now is that in 2024 and onwards, there is a change, and we will move towards increasing the volumes again. We have partners, a good relationship with, with big partners out there, so with a market that is turning into growth, I think we have a very good opportunity to capture and capitalize on that. We have a new leadership team from actually this fall. I am pretty new into the company as well. I've been the CEO here for a little more than two months. But I've been able to set the new leadership team in place and doing some restructuring and fine-tuning sort of the strategy moving forward. And I think that our priority number one is doing growing sales and accelerating sort of our growth. I spent several weeks during my first period here, traveling around, meeting partners, customers, both in Asia and United States, to get sort of the ear to the ground and get an understanding of where we are. I think we have a strong relationship, we have a good presence out there, and there is a lot of trust in us as a company and our solution. I'm very confident that we will be able to capitalize on this here moving forward. We are approaching a United States for our YOUNiQ solutions. So, YOUNiQ solution is access system for that where we use biometrics for opening doors and register visitors in your premises. We have a strong partnership there with a company called Genetec, and this is something that we have worked on here for some time, and it's now getting settled, and I see that that will open up a lot of possibilities here moving forward. forward. There is also a high potential in the European market. We have in our visitor system called EastCoast here in Sweden, we have a big market share, and we will sort of use and capitalize on that market share here with accelerating the growth and moving into new markets as well. Primarily the Nordics, but then growing into Europe here during next year and the year to come. So, all in all, I think, given sort of the valuation we have today, unfortunately, I think related to some new emission we have done here earlier this year, I think it's a good timing. We are on a path here with cash in the bank, good opportunities here for growth, and also being able to move towards profitability here in the near future. So again, I mentioned earlier, you are the key. So basically, this is boiling down to that you use your body to identify yourself. We are developing software, so software is our core business. We do this with software algorithms, biometric algorithms, face, fingerprint, palm you can use, and we license this technology to mobile phone vendors, automotive companies, and laptops, smart locks, and so on and so forth. So that is one part of the business. The other part of the business is related to systems. So here we have where we apply sort of the biometrics into turnkey solutions, and that is for the YOUNiQ access, and and this is to open doors by using face primarily. Could be fingerprint and and palm as well, but face is the most common one. And this is to improve and increase the security, but also, I, I would say, an amount of convenience. There is a big difference from making sure that it's the right person entering sort of the facility, compared to if it's just sort of the card, you don't know actually who it is. So this is something that tremendously increases sort of the security level. Then we have YOUNiQ Visit, and that is sort of in a way related to YOUNiQ Access, but this is about visitor system, where we can in a very automatic way register visitors to companies and new facilities. And we can use then either QR code, but also face biometrics to identify the visitor coming, and then automatically register that visitor, and triggering also a message to the person that is expecting this visitor. I think overall, looking at the business model for YOUNiQ Access and YOUNiQ Visit, this is where we have the recurring revenue. So, here we build up a monthly fee per installation, and that is something that is growing here and has been, and this is also an area where I see that we will be able to increase growth moving forward with measures we are now doing. We have in the algorithm licensing, this is more of a royalty-based model, where we charge per shipped unit. The more, the more we shipped, the better for us, and there is actually no more cost for us, so there's no difference between 1 million or 10 million or 100 million devices for a certain model, which of course improves the overall margin. One important area, I think, in moving forward is biometrics in cars and automotive in general. We expect the biometrics in automotive to grow with 22.5% here moving towards 2029. This is related to sort of camera sensor, fingerprint sensors, and so on, in cars, where we can play a very important role. We have a very strong relationship with Infineon Technologies. So Infineon is one of the biggest supplier to the automotive when it comes to hardware solution. And we have a very close relationship with Infineon, where they or we together have integrated our technology, our software into their sensor chips, and then we are shipping that to typically OEMs, so that could be sort of the big big car brands. We have projects, commercial projects ongoing, so it looks looks good here for the coming years. And we have also started to plan joint activities in terms of some in terms of marketing, and we talked about CES, for instance, Consumer Electronics Show, where we'll be able to show demos with the Infineon hardware and our software. And we are the only biometric partner they have within the automotive space. I was myself down in Munich here some month ago, and we made a presentation for all of their, maybe not all, but a number of their distribution and integration partners. And we did that as the only biometric company at that show. So looking at the customer base, we have a good customer base. As you may see, there are big names in this industry, including Qualcomm-... Egis Tech, Infineon, Genetec is the U.S. company I mentioned, that is providing sort of access management system, where we add sort of the biometric part, and together we can provide a much stronger and more secure solution to their customers. And the beauty with that kind of relationship is that we can use their sales force that is distributed widely. And we are then able to scale this in a totally different way. And we are working on more partnership in both in the U.S., but also in Europe for the same kind of logic in the system to accelerate the growth. So, some of the operational highlights here for this year. We have earlier this year worked on the OpEx, and we are, we have sort of fine-tuned everything. We have changed things in the organization to get even more focused on sales and business, which is very important. We have hired more salespeople, and also people now joining the management team is very sales and let's call it lead generation-focused, which I think is very important. I'm hired as well. That is also news. And I think that looking forward here, and what also has happened here during the quarter is that we have done things in marketing and sales activities. Some things we cannot talk about yet, but will be announced here as soon as sort of is there and ready to release. But, for instance, we were at ISC here last week, together with Genetec, and had a great show. This is one of the biggest security shows. ISC is International Security Conference, and this is to promote sort of the access and visitor systems for us. Looking at the current key financials, this is not where I want us to be, but this is where we are. We are working hard to change this. We had a revenue last quarter here of SEK 7.7 million, slightly decreased from last year, but pretty flat if you compare it to previous quarters. We had a one-time write-off on cost, so we dropped down below EBITDA zero, so SEK -1.1. But actually, everything else same, that would be sort of positive if it wasn't for this one-time write-down. So, again, this is where we are. This is not where I want us to be. We are moving forward, and we are moving fast. So to summarize this, I think that we are in a position where we have a lot of opportunities, and we also have a market that is changing. It will not happen, like, first of January, because this is sort of a trend, but I see that the mobile market is picking up, which I think is very positive. We also have a lot of things ongoing here with the sales and the strategies related to that, where we are increasing sales towards U.S. We are increasing our sales also in the European region, growing from Sweden for the YOUNiQ solution, moving towards Nordics and then down to Europe. And here we are approaching and have good discussion with new partners as well, that will be announced here in the near future, that will help us to scale this in a fast way. If we look at the numbers, it looks... I mean, again, of course, this is forecast from, from, analysts, but, it all looks very positive when you look at the, the growth numbers here. So we are, I mean, 10%-20%, in, in that range for, for annual growth in the business, segments we are dealing. And, and this is only sort of the, the general growth. Now, we are capturing market shares, so naturally, we will have a higher growth rate, than, than this. We are down at the, an OpEx level that I think, is where we want to be. So, this is now, where we can really execute and, and put full attention on, on sales and market growth. Looking here into next year, that is our key focus. I'm really excited about Precise Biometrics, and the opportunities are here in the future and years to come, and I see great opportunities. I think we have now the resources, we have the focus, and we have the strategy to grow this to a very healthy company. Thank you. Excellent. Thank you very much. Just a few questions from my end. Sure. I think if we start on the Algo side. I believe you delved into it, almost, but, you know, historically, you've generated perhaps SEK 20 million of sales in Algo per quarter. That number is a bit lower now. Could you perhaps explain why that's the case, and, what sort of mechanisms would have to play out for you to return to the historical levels? Yeah. Yeah, so, one important part there is that we basically have sort of the same partner. Mm. This is a lot related to sort of the downturn we have seen in the mobile market in general. Mm. I see that that is now changing, and in parallel, that we are now working even harder to gain new project and also approaching sort of the OEMs and so on in that industry. I'm very optimistic that we will see sort of a growing volume here in the coming years. Yeah. So when there's some de-stocking, is what you're saying, among the OEMs, your margin, your- Mm ... volumes will recover. Yeah -a bit- So, it's a combination, and there is also this parameter that has been sort of oversupply of- Mm ... of hardware. Yeah. That has been also a problem that they needed to get out on the market. Yeah. And we see that that has now happened, and we see that moving forward here, it looks promising. Mm, mm ... for sure. In terms of, I guess it's more of a general question: How will you maintain your competitive position going forward in the Algo segment? Yeah. So, I mean, the Algo segment is very special. Mm ... because it's far more complicated than you may think. There is a lot of things also changing in that industry. For instance, we have had like, sensors on the phone has been like a separate unit. Mm ... but then it went under the display. Mm-hmm. And that sort of made it sort of the industry needed to change to another kind of sensor, and we played a role there to secure the algorithm. Mm. Then the displays became more and more high resolution, so then it needed another kind of, of sensor, based on ultrasonic. So, it's an ongoing sort of evolution, and we have been in this industry for many years, and we have the smartest people and the most experienced people, I would say, in the industry for this. Yeah. We have been around for more than 20 years, and many in the core team has been with us for 15 years. Mm. So we really, really know this, this industry in depth, is how we, we stay competitive. We have the- Yeah ... the best solution. Yep. And you mentioned the automotive vertical- Yeah ... today. What sort of potential do you see? You delved it a bit into that one, but could you perhaps provide some more color on what sort of potential you see in the automotive segment? Yeah, sure. So, I believe that the automotive in general have a good potential. Mm. I think that with, first of all, with more and more features and functionality in the car- Mm ... that will sort of require system for instance, payment. So, perhaps you want to pay for charging, perhaps you want to pay for streaming services. I just came home from China, and a trend in China is actually that people use their car- Mm ... as sort of a camping wagon. Mm. So they have mattresses and so on, big TVs, and then you want streaming media, right? So that is one other matter. But then in general, I think that identifying the driver, who is driving, making sure that you are allowed to drive, getting the right settings is one thing, and then the sensors as such in cars is increasing exponentially here moving forward. And I think that also open up a lot of opportunities for us in sort of a next phase here, where we can add value with our expertise in deep learning and stuff- Mm ... and other kinds of sensors related to what we have today. Yep. Yeah, that's certainly helpful regarding the Algo segment. I think if we go into the digital identity- Yeah ... segment, you've done some work, you're actively commercializing that business area. Indeed. Could you perhaps let us know what sort of work has been completed in the last year to continue on the commercialization of the segment? Yeah. So a lot of it, the focus has been, during the last year, to to get sort of these partnerships in place. Yeah. Genetec, I've said it several times, is one of the important, but they are a huge player in this segment, for sure, in the United States. Mm. To get sort of... I mean, we signed the agreement, but it's not like, "Okay, so now we take a step back and wait for the deals." That is not how it works. So now, what we have done here during sort of most of this year, is to make sure that all their sort of distributing network have access to and access to the right tools. So they need demos, they need product material, they need presentation material to sell this, and that is what is sort of happening right now. Now, they have all the tools in place, and we will sort of use that now to grow the business. In parallel, we are working with more partnership. We want more partnership in United States potentially also, but also in Europe, for sure, to make this grow. That is what we have spent time and what we will spend time on here moving forward as well. Yeah. Perfect. Well, I'm afraid that we're out of time, but thank you very much, Joakim, for the presentation. Thank you. Thank you to everybody for listening in. Thanks!