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COMPANY PRESENTATION
Ralph W. Bernstein (CEO) 19 May 2011
IDEX has delivered!
Outlook as presented on the AGM 2010:Q1 2010:– SmartFinger Film demonstrated at Cartes Asia March
2010Q2 2010: – Demo kits ready– First samples shipped to customers
Q3 2010: – SmartFinger Film designed into VALIDcardTM
Q4 2010:– First card presented at “Cartes” in Paris Dec 2010
Q1 2011: – Order from Validus received Jan 2011
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Our mission
IDEX shall ensuresafe, secure and simple
use of personal ID
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IDEX delivers world-leading fingerprint biometrics technology and products
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Our business
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IDEX; THE ID OF YOU
• IDEX brings fingerprint ID to the mass market
• The SmartFinger technology addssecurity and safeguards your privacy
• With the swipe of a finger, the card is linked uniquely to the owner
• That is: Safe, secure and simple use of personal ID in everyday life
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IMPORTANT MILESTONES AND NEW AGREEMENTS
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Important milestones reached in Q1 2011
• January: Successful testing of SmartFinger® Film; Ramp-up of to production initiated
• January: Validus Technologies ordered first batch of SmartFinger® Film sensors for their VALIDcard
• March: Agreement with Pierson Capital Technology • March: Agreement with Identita Inc.• April: Agreement with Shen Zhen Huajing Technology
• Successful private placement raised NOK 32.6 million in new equity
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Validus order• First order for SmartFinger® Film• Batch of 1,000 sensors and
software• For use with VALIDcardTM,
a new biometric card• Will be used for customer
demonstrations and pilots• Delivery scheduled
in Q2 2011
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New Cooperation Agreements
• Committed implementation plans• Specific milestones for entering into
commercial agreements• Customer product qualification planned to
the second half of 2011
• SmartFinger Film sensors are currently designed into customers biometric cards and devices
• Customers’ targeted application markets represent substantial volumes
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Key Customer Status – Pierson Capital
• Pierson Capital Technology offers the MIIKOO device and service -a fraud protection system for financial transactions
• IDEX fingerprint sensor is currently being designed into the MIIKOO in order to enable a highly secure access for sensitive applications
• The system will provide biometric end-user authentication that interfaces to existing financial transaction services.
• Qualification is planned to be completed in the second half of 2011
• Applications: – e‐banking– e‐commerce– mobile payments– one-time password
02/25/2011
IDEX CONFIDENTIAL
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02/25/2011
IDEX CONFIDENTIAL
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• Shenzhen Huajing Technology Co. Ltd is a recognized company in Shenzhen focusing on a variety of technology areas
• Shen Zhen Huajing Technology appointed to develop a biometric enabled transactional security devices utilizing IDEX ASA SmartFinger® Film fingerprint sensors and accompanying biometric software algorithms
• Huajing focusing on providing personal identity authentication solutions as part of China’s ongoing program within “Internet of things”
• Identita delivers identity management solutions involving hardware tokens and client server application software
• Identita has in-house card manufacturing and currently manufactures an acoustic one-time password (OTP) smart card, an OTP display card
• Integration work with IDEX sensor has started
02/25/2011
IDEX CONFIDENTIAL
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Customer “design-in” process
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1 • Evaluation of sensor
2 • Software porting and development
3 • Implementation based on development boards
4 • Circuit board protoype
5 • Product prototype
6 • Qualification
7 • Launch product
THE CHALLENGE
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Security concerns increasing• Unisys Security Index
indicates the highest level of concern since survey started
• Bankcard fraud the greatest single area of concern
• Identity theft the second greatest area of concern
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Unisys Security Index, March 2011, covers 12 countries. Source: http://www.unisyssecurityindex.com/ The Guardian, 4 May 2011.
On the political agenda
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• NorSIS - the Norwegian Centre for Information Security - suggests study on fingerprint sensors for national ID documents
• Letter to Department of Justice
• Media picked up the issue
Dagbladet, 26 February 2011.
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THE SOLUTION
Fingerprint biometrics:the obvious solutionMultifactor authentication
– Something you have– Something you know– Something you are
Fingerprint biometrics– Everyone has a unique
fingerprint– Reliable and secure recognition– Compact and low cost readers– Suitable for mass market
applications
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BIOMETRIC TEMPLATE-ON-CARD
1. Fingerprint images or templates stored on card2. Fingerprint transferred from card to reader3. Extraction and match on reader
Conventional biometric cards
Requires infrastructure of readers for enrollment and verification
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1. Fingerprint template stored on card2. Enrollment, extraction and match takes place on card
The IDEX solutionBIOMETRIC SYSTEM-ON-CARD
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BIOMETRIC SYSTEM-ON-CARD
1. Fingerprint template stored on card2. Enrollment, extraction and match takes place on card
Fingerprint information never leaves the cardDoes not require infrastructure for enrollment and verification
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The IDEX solution
Biometric system-on-card
• All-in-one: Fingerprint reader incorporated in the card
• On-card enrollment and verification
• Fingerprint information stored on card and never leaves card
• Suitable for mass market applications
Safe, secure and simple use of personal ID in everyday life
Display (visual OTP)
Fingerprint reader(No biometric data is transmitted to or from the card)
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One-time-password (OTP) cards recently deployed by major players
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Biometric cards; The road to mass marked adoption
• Added card security is highly focused in the financial sector
• Large scale ongoing national ID card projects based on biometrics world wide
• Card based biometrics is increasingly adopted in transportation, corporate access and health care
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Our solution offers
Added security and convenience- No PIN codes and passwords to remember
Safeguarding privacy- Safe management of personal information- Fingerprint never deposed on external readers- Fingerprint never leaves card- No centralized of fingerprints databases
Utilizes existing infrastructure- ATMs and terminals- Internet- Enterprise systems- Access gates
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OUR AWARD-WINNING TECHNOLOGY
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The SmartFinger sensor• Covered by IDEX patents• Thinnest and most flexible: 0.05 mm• Unsurpassed image quality and
biometric performance • A variety of customizable
geometries available
• Designed for card integration• Complies with ISO Card form factor • Smallest software footprint for
on-card authentication
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Sensing area; 0,05 mm thick
Electronics; 0,35 mm thick
Connector
Ramp-up to volume production
• Key manufacturingand assembly processes established
• Global supply-chainin place
• Successful testing completed• Ongoing ramp-up to volume production
– Transfer to high volume manufacturing and testing
– Product qualification program– Cost reduction of core components
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Ionics EMS• IDEX’ sensor manufacturing partner• 7 manufacturing sites in Philippines• 55,000 square meters of production area• 60 Surface Mount Technology (SMT) lines• 1600 employees• ISO9001-2000, ISO14000 TL9000,
TS16949 certified• Recipient of HSBC’s “Asia’s 100 Best
Companies” award
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MARKET UPDATE
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IDEX’ application area road map
Current: Display cards – First shipments of sensors for biometric
OTP cards and tokens
Next: Biometric Smart Cards– Transportation– Corporate– Financial– Government
Future: Biometric mobile solutions
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One-time-password (OTP) devices Shipment forecast
• Finance• Healthcare• Enterprise• Government• Manufacturing• Telecom
Source:Frost & Sullivan
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0
20
40
60
80
100
120
140
160
2011 2012 2013
Dev
ice
ship
men
ts (m
illio
ns)
USB tokens
OTP tokens
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• Transportation– Transportation cards
• Corporate– Physical access– Logical access
• Financial– Credit and debit cards– Contactless payment
• Government– National ID– Driving License– Travel documents– Government ID
Source:Frost & Sullivan EUROSMART
0
500
1000
1500
2000
2500
2011 2012 2013
Smar
tcar
dsh
ipm
ents
(mill
. uni
ts)
Transport
Corporate
Financial
Governement
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Smart cards – shipment forecast
Main actors in the SmartCard market
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Mobile handset shipment forecast
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Source: iSuppli, USA
Bill
ion
units
SUMMARY
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Summary• ID theft and fraud are immense challenges in the society• Additional security factors required in financial, governmental,
transportation and corporate markets• Fingerprint verification is the obvious solution• The IDEX biometric solution for system-on-card enables secure,
safe and simple ID verification for the mass market
• IDEX has made substantial progress on product development and has started ramp-up to volume production
• The first order for SmartFinger Film sensors received• New, important Cooperation Agreements entered into• Customers’ targeted market applications represent substantial
volumes
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