ENABLING THE MASS MARKET FOR SECURE ID
February 2015 Dr. Hemant Mardia, CEO
www.idex.no
IDEX HIGHLIGHTS: Q4 2014
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IDEX sensors shipped and inserted in products
• WWTT mobile accessories launched at CES
• CardTech: industry first ISO standard card
New off-chip touch sensor demonstrated
Additional tier one partnerships forged IP strengthened with unique software
• Acquisition of world class matcher algorithm
• Trustonic secure authentication
• High volume manufacturing readiness
• Ground breaking image quality from prototype
• Significant resources expediting final product with Cypress
IDEX HIGHLIGHTS: 2014
First IDEX Swipe and touch sensors for launched into volume
NOKm 300 ($51M USD) solid funding from global asset manager
Industry first functional in-glass sensor demonstrated at MWC
Strategic partnerships securing manufacture & mobile sales channels
Global organisational growth Attracting key industry experts
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NEW PRODUCT DEVELOPMENT MOBILE MARKET DRIVEN
Mobile silicon touch
with CrucialTec
H2 2013 Apple
iPhone 5S Touch in button
PRE 2013 Conventional
large area Touch
H1 2014 Samsung Galaxy S5 Swipe in button
H2 2014 Huawei
MATE Touch at rear
Q1 2015 Samsung Galaxy S6
Expect Rectangle Touch in button
Swipe for IOT and
cards
Mobile off chip touch with Cypress Multiple form factors
Investment into mobile
Acquired touch IP PicoField
Source: Company websites; IDC Worldwide Quarterly Mobile Phone Tracker, January 29, 2015
Fingerprint Sensor Enabled Mobile Device Launch Milestones
IDEX products ready for market uptake in 2015
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Mobile swipe
IDEX Mobile Sensor Product Launch Milestones
BUILDING BLOCKS SECURED TO DELIVER BEST IN CLASS SENSORS
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ASIC Substrate
IP Algorithm
COMPELLING OFF-CHIP SENSOR COST ADVANTAGE
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“We note … IDEX will be able to offer a lower cost sensor than traditional silicon based sensor competitors because the sensor is decoupled from the chip and a large area chip is not required…” Analyst Charles Anderson, Dougherty & Company
Typical silicon touch sensor IDEX patented off-chip touch sensor
• 8 x 8 mm image
• Silicon IC 80mm2 • USD 6 – 8 ASP
• 8 x 8 mm image • Sensor in Polymer • Miniature Silicon IC <15 mm2
• >30% lower cost • One of two capacitive vendors
Silicon cost < $0.6
Other cost
< $1.5
Silicon cost $3
Other cost > $1
5x smaller IC
SUBS
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SUPERIOR ACCURACY FROM ACQUIRED ALGORITHM COMBINED WITH NEW OFF CHIP TOUCH SENSOR
Outstanding image quality delivers best in class user experience
Separate sensor enables custom size and
shapes: key differentiator New algorithm delivers superior user metrics in reduced sizes
Image Area Square mm
0
5
10
15
20
25
20 25 30 35 40 45 50 55 60 65
False reject rate %
Acceptable level
IDEX Ridge pattern Hybrid minutia
Image area reduced from 200 sq. mm to 30 sq. mm
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ALGO
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DEEP PATENT PORTFOLIO STRENGTHENED
25 registered families 9 pending 219 registered patents 46 pending
• 7 new patents added to IDEX portfolio in 2014
– Small area algorithm – Grid array sensor – Switch embedded within a layered
fingerprint sensor array
• Apple cross licence to key industry patents for capacitive sensing
• Major mobile OEM’s due diligence confirmed IDEX’s strong IP portfolio
103
28
63
30
48
24
74
18
21
7
33
42
39
1
Other 3
Through Substrate Imaging 31
Imaging Algorithm 49 1
Off-Chip 63
LiveFinger
2
On-Chip
Navigation
64 1
Touch 70
Swipe 76 2
Capacitive sensing 142
Pending
Issued
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IP
ECOSYSTEM BUILT TO DELIVER TO TIER 1 CUSTOMERS
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Mobile Device Providers
Semiconductor Integrators
Module & Packaging Integrators
Capacitive Fingerprint Sensor
Component Vendors
Silicon ASIC Semiconductor Manufacturers
Sold to Synaptics for $250M
Sold to Apple for $350M
STRONG VALIDATION OF FINGERPRINT SENSOR MASS ADOPTION
Research analysts confirm biometric mass adoption • IHS: “Biometrics” and “Sensors” in top ten technologies transforming the world • Acuity Market Research: 4.8B biometric mobile devices 2020; $6B sensor revenue • Juniper Research: “Securing Your Data: The Time for Encryption, Tokenisation & Biometric Authentication” #1
of 10 tech trends 2015
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Rapid mobile penetration and industry leader commitments • Sensors on flagship models (300M+ terminals) • Microsoft with biometrics Windows 10
Payment and mainstream applications embracing fingerprint • Mobile payment: Apple Pay, Alipay Wallet • Banks to allow account access • Mastercard support on card biometrics
Source: Company websites
STRONG MARKET VALIDATION
100% PENETRATION OF BIOMETRICS IN SMART DEVICES EXPECTED
500
3 000
2 500
2 000
1 000
0
1 500
Million of mobile smart devices
2017 2020 2018 2014 2019 2015 2016
Biometric mobile smart devices
Non biometric smart mobile devices
65% CAGR
Huge growth in biometric mobile smart devices*…
Source: The Mobile Biometric Market Research Brief, Acuity Market Intelligence, January 2015; Fingerprint Cards Q3 presentation, November 2014 * Smart phones, tablets and wearables
80%
70%
10%
30%
40%
100%
0%
60%
90%
50%
20%
TAM value share by sensor type
2016 2015 2014 2013
…compact touch sensors now expected to dominate in flagships due to user convenience
Area Touch Swipe
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Fingerprint Adoption 2014 – 9 OEMs Swipe – 3 OEMs Touch
IDEX AT A GLANCE
Share details
Larry Ciaccia • Former CEO of AuthenTec Michael Barrett • Former chairman FIDO Alliance, CISO
PayPal, VP Security American Express
Dr Hemant Mardia, CEO • Former CEO of Filtronic Plc, LSE listed
telecoms, founder of technology start ups Fred Benkley, CTO IDEX America • Co-Founder Validity David Geoffroy, Director of Engineering • Co-Founder Validity Larry Hattery, VP System Engineering • Former VP Software Validity
Locations
Employees
Share price: NOK 5.08 | $ 0.66 Market cap: NOK 2,102M | $ 275M
Oslo, Norway (HQ); Silicon Valley, Boston USA; Asia
51 staff* and 12 consultants**
Share price development (24 months)
IDEX team expanded with strong biometric & technology track records
Strategy Advisory Board
Andy MacLeod • CTO of Vodafone plc’s EMEA and
Asia-Pacific region
Management team
Lunji Qiu, GM and VP of IDEX China • Former GM/VP Next Biometrics China
and GM/VP AuthenTec China Art Stewart, SVP of Product Management • Former VP Synaptics and VP AuthenTec
Recent key hires
* Includes employees and ongoing contractors ** Project based consultants
12
$31
(228)
Cash Balance $M
(MNOK)
$48
(295) $57
(342)
0
1
2
3
4
5
6
7
$4.2 (25)
Q3 2014 Q2 2014
OPEX run rate $M (MNOK)
$4.6 (29)
$6.1 (42)
Q4 2014
$4.9 (30)
Q1 2014
Other
R&D
Sales and marketing
$41
(261)
SCALABLE BUSINESS WITH ATTRACTIVE MARGIN FROM FABLESS MODEL
• Initial sales achieved from production shipments of sensors • Cash $31M, no debt
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IDEX TARGETS THREE MULTI BILLION USD MARKETS
•Product platform for three markets
• Solid IP & patents •First tier partners • Industry experts
Cards ID & smart
Internet of Things (IOT)
Mobile devices
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“…4.8B biometric mobile devices 2020…” Acuity Research, January 2015
“…more than 80 billion Internet-connected devices projected to be in use in 2024…”
IHS, Top 10 technologies transforming the world “…over 9 billion payment cards in circulation globally increasing to 16 billion by 2020…” Company data
2015 IDEX OUTLOOK
Patents, products, people and funding in place to deliver significant market share • Key milestones in 2015 will unlock IDEX’s growth
• PRODUCT DEVELOPMENT:
• Launch of new ground breaking touch sensor at MWC in March with Cypress • Extensive sampling to mobile OEMs with partners to win programs in Q2 • Demonstration of progress on glass swipe sensor technology at MWC • Flex touch product development to enable ID/payment biometric cards • Product sampling to meet emerging demand for IOT applications
• STRATEGIC DEVELOPMENT: • Increasing investor access e.g. ROTH investor conference, USA March 2015 • Progress with further major partner agreements underpinning growth
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