NEXT well on track with breakthrough contract’s progress – receives initial NOK 6.6 million volume order from Asian distributor

08 Dec 2023 08:30 CET

NEXT Biometrics (NEXT) continues to rapidly scale its operations – the Norwegian
biometrics company has now received a new order to deliver its FAP20 fingerprint
sensors. On May 23, 2023, NEXT announced a breakthrough deal with a new Asian
distributor, which was structured as a three-year preferred supplier contract
with a minimum volume commitment. NEXT has now received its first and initial
stocking order relating to this contract. The distributor’s end-customers are
targeting the China ID market with their products and the first customer plans
for mass production in Q1 2024. NEXT’s deliveries starts in Q4 and most of the
stock is expected to be consumed by the end of Q1 2024.

Ulf Ritsvall, Chief Executive Officer at NEXT Biometrics, comments on the
business progress:
“Not only is this an important contract for us, but it is also a strong signal
of our progress in the market in China. We have excellent and reliant production
capacity and continue to rapidly scale and expand our operations in line with
our strategy. With this order, NEXT is on track towards reaching profitability.
We aim to complete our China ID certification in Q4 2023 and expect more orders
once we have the certification in place.”

The previously communicated agreement with the Asian distributor has an
estimated contract value of NOK 110 to 250 million over a three-year period. The
distributor plans to order volumes for a minimum of NOK 100 million. In
accordance with the contract, NEXT has guaranteed to reserve production capacity
for this customer of in total NOK 250 million over the three-year period.

In the agreement, the distributor has granted NEXT an exclusive, preferred
supplier contract to serve five of the largest and most prestigious fingerprint
sensor customers in Asia. Most of the distributor’s five end-customers are
already familiar with the NEXT’s Active Thermal™ FAP20 fingerprint sensor.

Joshua Chiu, Senior Vice President and Head of Sales, South-East Asia, at NEXT
Biometrics, provides further details on the order:
“Our product offering remains very strong, as security continues to be an
increasingly important market driver. With its combination of thermal technology
and strong liveness detection features, NEXT’s FAP20 is one of the world’s most
secure fingerprint sensor. The volumes in this specific contract are for
existing products on the market, where the FAP20 will replace current sensor
solutions. We’re delighted to support our customer and look forward to
fulfilling our part of the contract as we continue this partnership.”

According to the terms of the contract, the three-year contract period will
start from NEXT’s first delivery. The contract cannot be terminated before three
years. After three years, unless terminated then, the contract is automatically
extended for two years with the same terms.

This information in this stock exchange announcement is considered to be inside
information pursuant to the EU Market Abuse Regulation and is published in
accordance with section 5-12 the Norwegian Securities Trading Act.

For more information, please contact:

Ulf Ritsvall
Chief Executive Officer at NEXT Biometrics
ulf.ritsvall@nextbiometrics.com

Eirik Underthun
Chief Financial Officer at NEXT Biometrics
eirik.underthun@nextbiometrics.com

About NEXT Biometrics
NEXT provides advanced fingerprint sensor technology that delivers uncompromised
security and accuracy for the best possible user experience in the smart card,
government ID, access control and notebook markets. The company’s patented NEXT
Active Thermal™ principle allows the development of large, high quality
fingerprint sensors. NEXT Biometrics Group ASA is headquartered in Oslo, with
sales, support and development operations in Seattle, Taipei, Tokyo, New Delhi
and Shanghai.

This stock exchange announcement was published by Eirik Underthun, CFO at NEXT
Biometrics Group ASA, on 7 December 2023, at 17:45 hours (CET).

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