Annual Report 2010

This is Precise Biometrics

Vision and Objectives

Vision

Precise Biometrics' vision is to be a global leader and independent provider of interoperable and adaptable solutions based on fingerprint recognition intended for small secure platforms, and more complete, end-to-end solutions for specific segments.

Business concept

Precise Biometrics’ business concept is, together with strong partners and through global networks, to offer countries, government agencies, corporations and organizations user-friendly and interoperable solutions to determine personal identity in a simple, cost-effective and reliable way.

These companies and government agencies thereby save money through reduced costs for authentication and password handling, identity theft and fraud. For users this is a simple and integrity-protecting way of identifying themselves.

Objectives

The main objective of Precise Biometrics’ operations shall be long-term growth in value for the Company's shareholders. This shall be achieved through the long-term and strategic choice of profitable transactions, and be implemented though the following strategies and operational objectives.

Operational objectives

Operations shall generate profitable business by helping customers and partners to benefit from the values which Company's technology can bring to their organizations.

Operations shall focus on a limited number of specific business segments to which the company offers complete solutions for fingerprint recognition to establish personal identity. With a complete solution Precise Biometrics can take the overall responsibility for sales and the customer, and can thereby influence the sales cycle.

Precise Biometrics focuses its business to three business units; Mobile, IAM and Access Solutions. These three units will have the following focus: the substantial business potential in the fast development of SmartPhone and TabletPC (Mobile); solutions for national ID cards and governments, banks, corporations and embedded solutions (IAM); and solutions for physical access control (Access Solutions). These solutions address real challenges faced by our customers and create an added value such as increased efficiency, increased revenue possibilities or reduced costs.

The objective is that the new business units will strengthen the continued commercialization of Precise Biometrics’ unique technology as each business unit will deliver straight-forward and value adding solutions. This will have a significant effect on profitability together with the expansion of Precise Biometrics’ technology to new markets while still building on the success the company has had in the ID card segment.

Market strategy

One of Precise Biometrics’ objectives is to develop the Company’s world-leading position and to expand its market shares in its specific segments, through already established or new partners as well as in cooperation with end-customers. The overall market strategy is to continue to develop end-to-end solutions to meet specific customer demands. The strategy is also to develop concept solutions and biometric demos verified within different vertical market segments. These solutions address real challenges faced by our customers and create an added value such as increased efficiency, increased revenue possibilities or reduced costs.

Within Mobile Precise Biometrics sees great business potential. The Company has identified several different types of demand for verification where biometrics can supply enhanced utility for end users. The objective is that Mobile will help to improve the profitability of the Company and be a contributory factor in achieving Plan 2015. Precise Biometrics will offer packaged overall solutions targeting end-customers, but also potential partners in this area. The Company will also be enhancing its competence within its development activities to support the technological demands set by this business area.

Within IAM the Company will develop its position as a world leader and expand market shares in the ID card segment. The continuation of cooperation with already established partners will enable the objective of IAM to be achieved. The strategy for the national ID card market which, while expanding in terms of volumes, is also experiencing a much higher degree of competition and pressure on prices, is to establish new partnerships with chip manufacturers and to some extent with smart card manufacturers, in order to introduce the technology on the broadest possible front. This business area will also be exploring new partners for embedded solutions – Precise BioMatch Embedded.

The business area Access Solutions is mainly based on our success with established customers. Biometrics becomes an integrated part of the business concept for customers in this business area because it prevents the unauthorized use of membership cards cutting into their potential earnings, which is a big problem. Access Solutions will continue to build on the success the Company has already achieved. Precise Biometrics will be offering overall solutions directly to these end-customers in order to simplify the process and improve profitability. During the year sales will mainly focus on the European market because this is where the Company has identified the greatest potential for these types of solutions.