FacePhi Biometría S A : Consolidated Audited Accounts 2023

Annual Report 2023

Consolidated Audited Accounts

2024

Restringido

Letter from the CEO

Javier Mira

As Facephi's CEO, I have a duty to ensure that the information we share with the marketplace is accurate, reliable and transparent. We would like to report that, after a thorough audit process, we have identified certain discrepancies regarding a turnover adjustment with our auditing firm. This adjustment amounts to €25.15M compared to the €30M

announced in our February 2024 earnings preview for the last financial year.

This variance relates to the recognition of revenue related to the delivery of licences, where their delivery and subsequent availability took place in 2023, although the formalisation of the agreements took place at the beginning of 2024.

The auditing firm's recommendation is that this revenue should be recognised in the current financial year. Such a change in the measurement approach to standardise the income statement is a practice that had not been applied in previous reviews, where the availability of products to customers had been considered as a benchmark for revenue recognition.

I would like to stress that these differences do not compromise Facephi's financial strength or strategic orientation. Over the past year, we have seen unprecedented growth, which can be illustrated by the positive evolution of the figures in this document. Equally, significant investments have supported this growth, both in technology and human talent, as well as our commitment to international expansion.

This has a direct impact on the current year's turnover. Thus, during the first four months of 2024, we have achieved a turnover of €25.15M, compared to the €22.24M recorded in the same period in 2023, which represents an increase of 12.88% compared to the period between 2022 and 2023.

By adopting our financial auditors' recommendations and accounting criteria, we took steps to change our revenue recognition model, aligned with our new product profiles and consistent with our growth and consolidation plan. We firmly believe that this measure will not only allow us to address the variables identified but will also strengthen our ability to adapt and thrive in a constantly evolving business environment.

Once again, I would like to express my confidence in the strength of our company, as well as in our team's commitment and dedication. Together, we can learn from this experience to become stronger, focusing on further establishing our position in the marketplace.

We are grateful for your continued support and understanding during this period. Facephi is committed to open and transparent communication that builds trust and ensures a promising future together.

01

Contents

03

Business	02 Management
development	report
	Our Strategy
	Technology
	Business
	Organisation and
	people
Financial	04 Conclusion
report
Financial information
Turnover and EBITDA

Annual Report 2023 ACFS

01Business development

Annual Report 2023 ACFS

About Facephi

Experts in user digital identity verification,

specialising in digital onboarding and biometric authentication solutions.

Annual Report 2023 ACFS

Our technology

Moving towards end-to-end

Digital Identity Management

						Interoperable
Passive	Blacklist	Governmental	Video	Fingerprint	Facial	Hybrid
liveness	validation	Databases	onboarding			User-centered
OCR	Document	Video	NFC	Behaviour	Voice
Scanning	validation	recording	Verification

Operations

Antifraud

Design Studio

UX | UI

Privacy

AI

Behaviour

Annual Report 2023 ACFS

Our products

Our solutions are designed to be more effective, faster and more autonomous for the customer, which gives us a competitive edge.

Effectiveness	Speed	Autonomy
Security	User experience

Welcome to

Welcome to

Facephi

Over a decade of major milestones

					Procured
				Became our	electronic
				signature
				main product	company
				Team growth	Dual
				listing in
				Opened	Paris
	First
	First major		APAC office
	customer	bank on		Facephi's
	acquired	board		main
			€1.7m	product
		The team
Founded	Public listing	granted
in Alicante,	in Spain	begins to
grow
Spain

2012

13-14

15-16

2017

2018

2019

2020

	Launched	International
	Facephi	partnership
	Identity	and growth
	Wallet	commitment
Opened		with the
	Korean
LATAM office	Partner	Hancom Group
	Channel
	opening and
Launched	consolidation
Opened
EMEA office
Doubled our
customer
base
Major
increase in
staff

2021

2022

2023

2024

Annual Report 2023 ACFS

Our technology

Our technology adapts to the needs of the market and industries that demand it.

Financial

Services

Airlines Telecommunication

Hospitality	Fintech	E-Commerce	Sports
			Events

Investment

Security

E-Learning

Pensions

Insurance

Travel and Transport

Shared

Mobility

Legal

Services

Health

Public Administration

Crypto

Online

Gaming

Annual Report 2023 ACFS

Our technology

Digital identity,

a global trend on all agendas

Financial institutions	• Emerging banking models such as Open Banking or Open
Fintech depend on generating ecosystems based on trust.
	• New regulatory developments will impact the sector and less
	regulated environments such as crypto.
	• Fraud control and risk minimisation

Public Institutions	•	ID Wallet in EU expected to be available by 2030

• UN and World Bank promoting Digital Identity with ID4D project

• NIST promotes Digital ID standardisation project

Transport and borders

e-services

• Many initiatives are underway to standardise how digital identities are used in airports, including IATA's One ID.
• Facephi already supports projects that securely enhance the traveller experience, based on identity verification technology.

• Digital first customers operating exclusively online need secure environments, bound by regulatory frameworks such as GDPR.
• KYC and qualified identity building is set to become the cornerstone of the entire ecosystem on which CX is built.

Annual Report 2023 ACFS