ENABLING(THE(MASS(MARKET(FOR(SECURE(ID(
!August!2014!Dr.!Hemant!Mardia,!CEO!
www.idex.no!
1 13.8.14
IDEX!ASA!AT!A!GLANCE!
SmartFinger®!sensors!
SmartFinger®!algorithms!
SmartFinger®!soluHons!
Fingerprint(sensors(for(mass(markets(
Secure,(convenient(and(userFfriendly(personal(ID! !(
214(granted(and(Apple(cross(licence(
HQ(Oslo,(Norway;(Silicon(Valley,(Boston(and(Far(East(offices(with(>40(FTE(staff !!
Oslo(Axess(exchange,(>1500(shareholders !(
Include(INVESCO(and(World(Wide(Touch(
PRODUCTS(
VISION!(
STRONG!PATENTS!(
GLOBAL!OPERATION! !(
PUBLIC!LISTED!(
STRATEGIC!INVESTORS!(
13.8.14 2
• Addressing(three(aXracYve(mass(markets(driven(by(rapid(mobile(adopYon(and(payment(
• One(of(three(capaciYve(sensor(vendors(with(established(IP(in(a(billion(unit(opportunity(
• Unique(strength(in(fundamental(patents,(differenYated(sensors(and(Apple(xFlicence(
• Highly(compeYYve(product(roadmap(with(swipe,(touch(and(unique(sleek(glass(sensors(
• Solid(industrial(partners(provide(compeYYve(manufacture(and(major(customer(channels(
• Experienced(leadership(team(with(strong(commercialisaYon(track(record(
• AXracYve(outlook(F((well(funded,(strong(customer(interest,(commercialisaYon(in(2H(2014(
IDEX!STRONG!VALUE!PROPOSITION!
IDEX:!SMARTFINGER®!!
LOW!COST! ACCURATE!&!SECURE! THIN!&!FLEXIBLE!
3 13.8.14
IDEX!SENSORS!ADDRESSING!THREE!MASS!MARKETS!GROWING!!WITH!MEGATRENDS!
4(
SupporHng!mega!trends!• Password(replacement(• Mobile(payment(• PersonalisaYon(• Access(control(• Security(
Cards(ID(&(smart(
Internet(of(Things((IOT)(
Mobile(devices(
4 13.8.14
UET
5
SMARTPHONES!RAPIDLY!DOMINATING!THE!MOBILE!DEVICE!MARKET!
• IDEX!target!billion!unit!non!Apple!mobile!device!market!‒ Others:!large!market!dominated!by!growing!Chinese!OEMs!‒ New!segment:!Mobile!payment!driving!tech!Htans!to!biometric!devices!!(e.g.!Google,!PayPal,!Amazon)!
• IDEX!strategy!to!leverage!scale!and!cost!into!high!value!non!mobile!mass!market:!card/IOT!!
77
98106
111
74898485
3544513431
20
17 16
135117
10(
295(
14(
12(
Q3!13! Q4!13! Q2!14!
288(
13(
Q1!14!
15(
13(
+23%!
14(
290(
261(
Q2!13!
14(
11(
240(
12( 12(12(
Huawei( Samsung(Apple(LG(Others( Lenovo(
Units!shipped!by!top!smartphone!vendors!Million(units(shipped(
Source:(IDC;(Gartner(
Top!10!mobile!phone!manufacturers!in!2013!Million(units(shipped(
614((34%)(
Others(
69((4%)(
LG(
Nokia(
251((14%)(
TCL(
50((3%)(
53((3%)(
Huawei(
151((8%)( Apple(
33((2%)(
60((3%)(
ZTE(
Yulong(38((2%)(
Sony(
444((25%)(
Samsung(
45((3%)(
Lenovo(
Total:(1(807.0(
13.8.14
RAPID!ADOPTION!OF!FINGERPRINT!SENSORS!IN!MOBILE!DEVICES!!TOWARDS!A!NEW!MULTIBILLION!DOLLAR!MARKET!
6
185$348$
629$
879$
370$
675$
1257$
1706$
2014E$ 2015E$ 2016E$ 2017E$
FP$Sensors$(non$Apple)$m$units$ FP$Sensors$market$$m$
Forecast(mobile(devices(with(fingerprint(sensors(PenetraYon(rate(of(50%(2017(
Source:(N+1Singer,(IDEX(January(2014(
High(touch(screen(penetraYon(in(mobile(catalysed(by(Apple(in(2007(
21%(15%(
2%( 3%(
Notebook!
12%( 13%(12%(
Mobile!phone!
66%(
77%(
Allbinbone!
84%(
50%(
18%(
2011( 2013( 2014(2012(
+360%!
• 2014:(Flagship(demand(shiped(from(swipe(to(touch(sensors(for(Apple(like(user(experience(• 2015:(Expect(low/mid(end(smartphone(penetraYon(with(low(cost(swipe(sensors(
Source:(DisplaySearch,(Macquire(Research,(June(2013(
Now$that$Apple$has$shown$the$way,$compe2tors$are$in$a$race$to$enter$the$market$with$similar$systems$
IHS$Press$Release,$November$2013$
13.8.14
IDEX!IS!ONE!OF!ONLY!THREE!INDEPENDENT!VENDORS!WITH!CORE!IP!IN!MASS!DEPLOYED!CAPACITIVE!FINGERPRINT!SENSORS!
7
Mobile(Device(Providers(
Semiconductor(Integrators(
SubFModule(&(Packaging(Integrators((
CapaciHve!Fingerprint!Sensor!Component!Vendors!
Silicon(ASIC(Semiconductor(Manufacturers(
DreamTech(
Sold(to(SynapYcs(for($250M(
Sold(to(Apple((for($350M(
13.8.14
22(registered(families(214(registered(patents((8(pending(families(41(pending(patents(
8
OEMs!criHcally!evaluaHng!vendor!patents!• IDEX!owns!strongest,!core!IP!pordolio!in!
fingerprint!sensing!outside!Apple!!
• Low!cost!sensing,!algorithm,!two!part!sensors!in!any!material,!single!chip!sensors,!in!glass!implementaHons(
• Patent!landscape!highly!constrained!due!to!vendor!consolidaHon!
• Unique(protecYon(from(crossFlicense(with(AuthenTec/Apple:(8(US(patents(
• Apple(strengthened(the(core(‘381F(patent’(adding(118(claims(aper(recent(challenge(
• Touch(sensor(IP(expanded(acquiring(Picofield(patents(2013(
IDEX!OWNS!UNIQUE!IP!IN!CAPACITIVE!FINGERPRINT!SENSING!AND!APPLE!XbLICENCE!SETTING!HIGH!BARRIER!TO!ENTRY!
8 13.8.14
PRODUCTS! SWIPE! FIRST!GENERATION!SILICON!TOUCH!
SECOND!GENERATION!FLEX!TOUCH!
FUTURE!!UNIQUE!GLASS!!SWIPE!&!TOUCH!
BEST!IN!CLASS!MOBILE!SENSORS!
(((((
(((
((((((
COMPETITIVE!ADVANTAGE!
• Best!in!class!image!and!angle!
• Large!image!from!small!bufon!
• Lowest!cost!(<$3)!
• Small!size!needed!for!mobile!
• 3x!iPhone!5S!capture!increases!biometric!security!
• DisrupHve!cost!
• Flexible!form!factor!
• Bezel!free!design!eases!packaging!
• Durable!
• No!loss!of!performance!
SAMPLING! • NOW! • NOW! • H1!2015! SWIPE:!2015!TARGET!!
IDEX!DIFFERENTIATED!ROADMAP!LEVERAGES!CORE!PATENTS!TO!OFFER!A!UNIQUE!PRODUCT!RANGE!
9 13.8.14
10
IDEX!TWO!PART!TOUCH!SENSOR!WILL!PROVIDE!A!MAJOR!COST!ADVANTAGE!OVER!THE!LATEST!SILICON!SENSORS!
4x(
13.8.14
TradiHonal!touch!sensor! Apple!5S!sensor!
First!generaHon!mobile!touch!sensor!!
IDEX!second!generaHon!touch!!
• 12(x(18(mm(
• Silicon!(240mm2)!(• USD(~30(
• Too(large(and(costly(for(mobile(
• 4.5(x(4.5(mm(
• Silicon!(>30mm2)!
• USD(8+(
• Image(area(small(for(opYmal(recogniYon(
• Costly(sapphire(cover(• Drive(bezel(needed(
• 8(x(8(mm(
• Silicon!(80mm2)!(• USD(6(–(8((• OpYmised(size(and(
lower(cost(for(mobile(
• Drive(bezel(and(thick(coaYng(needed(
• 8(x(8(mm((• Polymer!sensor!• Silicon!IC!<20!mm2!• >30%!lower!cost!
• Sensor(shape(can(be(rapidly(adapted(
• No(drive(bezel(and(thin(coaYng(
Area!!Sensor!!!ASP!!Comment!!
• IDEX(sampled(first(generaYon(small(touch(and(swipe(sensors(to(over(10(consumer(device(customers(with(CrucialTec(partnership(‒ CrucialTec(established(fingerprint(module(vendor(into(mobile(‒ Samples(supplied(Selected(for(qualificaYon(in(specific(mobile(programs(‒ First!Design!Win!for!touch!sensor!with!an!Asian!Tier!2!OEM!flagship!phone(
• Partnership!with!Cypress!to!deliver!secondbgeneraHon!twobpart!touch!sensors(‒ Cypress(a(leading(semiconductor(soluYon(vendor(to(Yer(1(mobile(customers(‒ Lower(price(than(silicon(sensors(being(used(today(‒ Combined(development(to(achieve(superior(performance(and(security(features((
• Secured(order(with(World(Wide(Touch(for(300k(units(for(mobile(accessories(
• Increased(customer(acYvity(for(secure(card(products(for(ID,(access(control(and(payments.(IDEX(flexible(sensor(is(ideal(including(CardTech(order(for(iniYal(customer(samples(backed(by(a(global(Yer(1(manufacturing(partner(
• Unique(development(to(implement(thirdFgeneraYon(sensor(family(in(glass(- Strong(interest(for(sleek(inFglass(soluYon(- Industry(first(swipe(demonstraYon(at(Mobile(World(Congress(this(year(- InacYve(display(area(“sop(buXon”(
BROAD!PROGRESS!IN!IDEX!PRODUCT!AND!MARKET!DEVELOPMENT!!IN!2014!INCLUDING!FIRST!MOBILE!FLAGSHIP!DESIGN!WIN!
13.8.14 11
SOLID!INDUSTRY!PARTNERSHIPS!ENABLING!COMPETITIVE!SUPPLY!CHAIN!
12 13.8.14
IP!Licence!Silicon(design(and(
algorithm(
Silicon!ASIC!Manufacture(
Fingerprint!Module!Manufacture!
Assemble(ASIC(with(substrate(
Sensor!Substrate!Low(cost(flex/glass(
Module!supply!
Customer!sales!!&!applicaHon!
support!
Mobile!device!
IDEX(moneYses(through(IP(licensing(of(algorithm(&(silicon(and(via(sales(of(sensor(component(for(the(mobile(market(
IDEX(delivers(complete(sensor(soluYons(for(non(mobile(markets(
Strategy!Advisory!Council!!• Formerly(CEO(of(AuthenTec(Inc.,(leading(supplier(of(fingerprint(sensors,(responsible(for(sale(to(Apple(Inc.(Successful(
track(record(of(growing(private(and(public(businesses.(
• Chairman(FIDO(Alliance,(Ex(CISO(PayPal,(formerly(VP(Security(American(Express,(highly(influenYal(in(mobile(security(
EXPERIENCED!LEADERSHIP!TEAM!WITH!STRONG!!COMMERCIALISATION!TRACK!RECORD!
• CEO(of(IDEX(since(May(2013((• Track(record(of(commercialising(high(technology(growth(businesses(over(30(years.(• Formerly(CEO(of(Filtronic(Plc,(a(technology(telecoms(business(listed(on(the(London(Stock(Exchange((FTSE)(• InnovaYve(technologies(and(products(in(mulYple(markets(including(semiconductors,(mobile(&(aerospace(
Hemant!Mardia!CEO!(PhD)!
• Joined(IDEX(in(2006(as(CTO(and(was(also(CEO(in(2008F2013(• ExperYse(in(nanotechnology/MEMs(at(SINTEF,(the(leading(R&D(insYtute(in(Norway.(• Holds(internaYonal(patents(in(the(field(of(sensors(and(fingerprint(technology.(Ph.D.(in(semiconductor(physics((
Ralph!Bernstein!CTO!(PhD)!
• CFO(of(IDEX(since(1(August(2014((• Prior(to(joining,(he(was(a(Director(at(the(private(equity(firm(Herkules(Capital(and(consultant(at(McKinsey(
Henrik!Knudtzon!CFO!
• Formerly(CEO(at(PicoField(Technologies,(Inc.(a(fingerprint(sensor(technology(start(up(in(Silicon(Valley(• Veteran(entrepreneur(with(operaYons,(finance(experience(in(developing(leading(technology(based(companies(
Thar!Casey!President!b!IDEX!America!
• Over(30(years(of(experience(in(the(semiconductor(technology(and(biometrics(industries(• Founded(Picofield(Technologies(in(2010(and(developed(a(disrupYve(touch(fingerprint(Sensor(technology.(• Founded(Validity(in(2002,(patented(world’s(first(offFchip(flex(swipe(sensor.(Acquired(by(SynapYcs(in(2013($255M(
Fred!Benkley!CTO!b!IDEX!America!
Larry!Ciaccia!!
Michael!Barref!
13 13.8.14
• $315M((1970MNOK)(market(capitalisaYon(August(2014(• Opex($4.2M(Q2(2014((25.4MNOK)(
• Cash(balance(Q2(2014($48M((295(MNOK)(‒ $49M((300MNOK)(Invesco(funding(‒ $37M((225MNOK)(Invesco(warrants(at(7.5NOK(can(
be(exercised(within(2(years(
• Unique(patent(breadth(&(protecYon(with(Apple(X(licence(• Highly(differenYated(mass(market(product(roadmap(• Low(opex(through(fabless(model(and(licensing(to(partners(
to(exploit(mulYple(markets(concurrently(• Strong(balance(sheet(to(support(Yer(one(partners(
ATTRACTIVE!INVESTMENT!PROPOSITION!
14
InflecHon!point!for!$!mulHbillion!opportunity!for!biometrics!
13.8.14
IDEX$ASA$(NORWAY$LISTING)$SHARE$PRICE$(NOK)$
15
10((60.5)$
Cash!balance!$M(((MNOK)(
56((342.5)$
8(((46.5)$
4.5(
2.0(
1.0(
4.0(
3.0(
0.5(
1.5(
2.5(
0.0(
3.5(
5.0(
Quarterly!OPEX!run!rate!$M((MNOK)$
Q1!2014!
0.7((4.3)(
Q2!2014!
0.5((3.1)(
4.2!(25.0)$
3.0((17.7)(2.8((17.0$
3.5((21.1)(3.2!(19.3)$
0.7((4.0)$
0.6((3.9)(0.4((2.6)$
2.1((12.7)(
Q4!2013!
0.5((2.7)(
0.6((3.8)(
Q3!2013!
0.8((5.0)(
3.9!(23.5)!
4.9!(30.0)!
Other(
Sales(and(markeYng(
R&D(
48((294.7)$
13.8.14
STRONG!CASH!BALANCE!SUSTAINING!INCREASING!ACTIVITY!
• Devices(with(IDEX(1st(generaYon(sensors(to(launch(H2(2014(for(iniYal(revenues(
• 2nd(generaYon(developing(with(Cypress(for(2015(
SECURE!MARKET!TRACTION!
Mobile!
ATTRACTIVE!OUTLOOK!b!STRONG!CUSTOMER!INTEREST!AND!COMMERCIALIZATION!OF!PRODUCTS!EXPECTED!DURING!H2!2014!
• IntegraYon(&(launch(in(devices(mid(2014(
• Several(OEMs(sampling(sensors(
• Volume(H2(2014(from(WWTT(order(
INITIAL!PRODUCT!SHIPMENTS!
IOT/Peripheral!
• Card(prototypes(H2(2014(to(OEMs(
• First(order(secured(with(CardTech(
(• 2015(OEM(product(launch(
DEMONSTRATOR!PHASE!
ID/Smart!Cards!
• Tier(1(partner(acYvity(
• Global(recruitment(
• Patent,(ASIC,(glass(&(algorithm(investment(
EXPANSION!OF!STRATEGIC!PARTNERS!
Business!OperaHons!
16 13.8.14