Vasco Investor Presentation

© 2014 - VASCO Data Security

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© 2014 - VASCO Data Security CONFIDENTIAL

Forward Looking Statements

Statements made in this presentation that relate to future plans, events or performances are forward-

looking statements within the meaning of Section 21e of the Securities Exchange Act of 1934 and

Section 27A of the Securities Act of 1933. These forward-looking statements (1) are identified by use

of terms and phrases such as “expect”, “believe”, “will”, “anticipate”, “emerging”, “intend”, “plan”,

“could”, “may”, “estimate”, “should”, “objective”, “goal”, “possible”, “potential”, “project” and similar

words and expressions, but such words and phrases are not the exclusive means of identifying them,

and (2) are subject to risks and uncertainties and represent our present expectations or beliefs

concerning future events. VASCO cautions that the forward-looking statements are qualified by

important factors that could cause actual results to differ materially from those in the forward-looking

statements. These risks, uncertainties and other factors that have been described in our Annual

Report on Form 10-K for the year ended December 31, 2013 and include, but are not limited to, (a)

risks of general market conditions, including currency fluctuations and the uncertainties resulting from

turmoil in world economic and financial markets, (b) risks inherent to the computer and network security

industry, including rapidly changing technology, evolving industry standards, increasingly sophisticated

hacking attempts, increasing numbers of patent infringement claims, changes in customer

requirements, price competitive bidding, and changing government regulations, and (c) risks specific to

VASCO, including, demand for our products and services, competition from more established firms and

others, pressures on price levels and our historical dependence on relatively few products, certain

suppliers and certain key customers. Thus, the results that we actually achieve may differ materially

from any anticipated results included in, or implied by these statements. Except for our ongoing

obligations to disclose material information as required by the U.S. federal securities laws, we do not

have any obligations or intention to release publicly any revisions to any forward-looking statements to

reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.

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Company Overview

VASCO is a global leader in strong authentication, digital signatures,

and identity management solutions specializing in securing financial

transactions and protecting access to data and applications.

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Listed on NASDAQ in 1997

21% Compound Annual Growth Rate in

Revenues from 2004-2014

48 Consecutive Quarters of Profitability

Visionary in Gartner Magic Quadrant

for User Authentication

Company Overview

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10,000+ Customers in more than 100 Countries,

More than half of the Top 100 Global Banks

and 1,700+ Financial Institutions rely on VASCO

More than 200 Million Authenticators Sold

On-Premise, Mobile, and Cloud Solutions

Company Overview

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Global Company

VASCO HQ

VASCO Offices

VASCO Sales Presence

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Financial Institution Customers

VASCO is the world leader in providing two-factor

authentication and digital signature solutions to

financial institutions. More than half of the

Top 100 Global Banks rely on VASCO solutions.

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Frequency and sophistication of attacks has increased

High-profile breaches have brought security

to the C-level and Board of Directors

New regulations are being enacted globally to protect

consumer transactions and personal privacy

Mobile is becoming the device of choice

There is a greater need to enhance security

while improving convenience for users

Key Growth Drivers

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"Two out of three attacks focus on [login] credentials at some

point in the attack. Trying to get valid credentials is part of many

styles of attacks and patterns"

- Jay Jacobs, senior analyst with Verizon

Authentication & Digital Signature Platform

Why Authentication

• Data breaches are up 49%(1)

• Protects against the newest attacks

• Easy to implement and use

(1) The Breach Level Index, released February, 2015.

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Technology and Products

1988 1st DIGIPASS

“Access Key”

1989 1st DIGIPASS

with Keypad

2002 VACMAN

Controller

2004 DIGIPASS GO 3

1st 1-button token

2005 IDENTIKEY

SERVER

2005 DIGIPASS 810

EMV card reader

2006 DIGIPASS 905

1st connected

Card reader

2007 DIGIPASS 270

1st thin form

Token w/keypad

2008 DP for Mobile

Soft token

for phones

VASCO Solution Timeline

1991 DIGIPASS 550

with e-Signature

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2014 Rabo Scanner

Card reader with

CrontoSIgn technology

2014 DIGIPASS for Apps

with CrontoSIgn

technology

Technology and Products

2013 DIGIPASS for Apps

SDK for integration

into applications

VASCO Solution Timeline

2011 DIGIPASS 920

Connected reader

for e-Government

2013 DIGIPASS 870

1st dual mode

e-Gov’t reader

2015 Risk IDS

1st RBA with

Intelligent engine

2013 DIGIPASS 760

1st token with

Cronto technology

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2014 DIGIPASS Bluetooth

Smart-enabled

Authenticators


Host System

• VACMAN Controller: Combines all VASCO authentication

technologies into a unified backend platform.

• IDENTIKEY Authentication & Federation Servers: Off-

the-shelf centralized servers that with complete functionality.

• Cloud Services: Authentication and digital signature

services for web and mobile application developers run on

VASCO’s servers.

Client Authenticators

• DIGIPASS: Industry-leading number of hardware and

software authentication and signature (electronic and digital)

solutions available to customers.

• Embedded & OEM Solutions: DIGIPASS integrated into

client devices such as Intel’s Identity Protection Technology.

VASCO’s Product Offerings

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On-Premise Business Model

Banking:

• Corporate Accounts

• Consumer Accounts

• Internet and Mobile

Applications

Enterprise Security:

• Remote access

• Application Security for

B-to-B and B-to-C

• Employee network access

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Cloud-Based Business Model

A cloud-based expansion of VASCO’s traditional

on-premise solution.

“By 2017, more than 50% of enterprises

will choose cloud-based services as the

delivery option for new or refreshed

user authentication implementations,

up from less than 10% today.” - Gartner

Cloud advantages:

• Easy to implement

• Unlimited scalability

• Low implementation cost

• Operating vs. Capital expense

• Rapid deployment

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• Strong Authentication in the cloud

• Allows customers to reduce implementation time and cost

• Provides strong authentication protection without

requiring a high level of expertise on staff

• Host system software maintained on VASCO servers:

• Business-to-Business (B2B)

• Business-to-Employee (B2E)

• Business-to-Consumer (B2C)

• Recurring revenue paid by the customer

DIGIPASS as a Service

DIGIPASS as a Service

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Key Product Initiatives

DIGIPASS

760

New Attack Methods Require Innovative Solutions

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DIGIPASS

for Apps

DIGIPASS

Bluetooth

Risk-Based

Authentication


• Developed by Cambridge University PhD’s

• Acquired by VASCO in May 2013

• Next generation HD Color QR Code

with greatly expanded data capacity

• Combines strong authentication and

signature capabilities with a high level

of user convenience

• Defeats Man-in-the-Middle attacks

• Fully supported by VACMAN and IDENTIKEY

• Works from a mobile device or DIGIPASS 760

Cronto Visual Image Authentication

DIGIPASS 760

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Cronto Visual Image Authentication

How it Works – Scan to Sign

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• Incorporates security directly into the application

DIGIPASS for APPS

DIGIPASS for APPS

• Native integration

of two-factor

authentication

• Developers focus

on their application

and outsource the

security to VASCO

Source: Gartner

Global App Downloads Passed 100 Billion Last Year

Estimated mobile app downloads worldwide (in billions)

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DIGIPASS for APPS

A Library of Advanced Security Applications

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All of the necessary building

blocks to secure applications at

every level, from provisioning to

the human interface.

© 2014 - VASCO Data Security CONFIDENTIAL 21

Geolocation

OS Version

JailBreak &

Rootkit

Malware

PIN Activated

Behavior

Analysis

Biometric

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Calc

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Action 2

Action 3

Action 4

Action 5

Action 6

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Action 1

Action 2

Action 3

Action 4

Action 5

Action 6

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DIGIPASS for APPS

Intelligent Risk Scoring for Mobile Devices


• Eliminates the biggest hurdles to cloud adoption

• Boosts customer trust

• Security as a competitive differentiator

• Ease of implementation

• Provides a pay-as-you-grow approach

• Next step in DIGIPASS as a Service

Cloud-based Security for Application Developers

DIGIPASS for APPS

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Bluetooth Smart-enabled

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Bluetooth Smart Enables Authentication

with almost any User Device

• Solves the problem of mobile devices with no USB port

• More convenient with no cables to connect

• Secure Bluetooth Smart-enabled connection

• Works in connected and unconnected mode


Risk-Based

Authentication

How it works:

Risk IDS

Source: Gartner

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• Contextual analysis to apply the appropriate level of security

• Real-time analysis and intelligent decision engine focusing on:

• Web and mobile application login

• Financial transactions via online and mobile channels

• Monitoring non-monetary events such as change of address

• Identification of accounts that demonstrate abnormal characteristics

for the prevention of money laundering.

Risk IDS

Risk-Based Authentication

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Financials

Historical Overview

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Revenue and Operating Income

Revenue Operating Incomein millions USD in millions USD

CAGR (revenue)

2004-2014

21%

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Cash Balance and Net Working Capital

Net Cash Balance Net working capitalin millions USD in millions USD

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Copyright

2014 VASCO Data Security. All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, or

transmitted, in any form or by any means, electronic, mechanical, photocopying,

recording, or otherwise, without the prior written permission of VASCO Data

Security.

Trademarks

VASCO®, VACMAN®, IDENTIKEY®, aXsGUARD®, DIGIPASS® Cronto®

MYDIGIPASS.COM® and the ® logo are registered or unregistered

trademarks of VASCO Data Security, Inc. and/or VASCO Data Security

International GmbH in the U.S. and other countries

Copyright & Trademarks

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