IDEX Q4 2014 Business Update Presentation

1. ENABLING THE MASS MARKET FOR
SECURE ID
February 2015
Dr. Hemant Mardia, CEO
www.idex.no

2. IDEX HIGHLIGHTS: Q4 2014
2
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

3. 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
3

4. 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
4
Mobile
swipe
IDEX Mobile Sensor Product Launch Milestones

5. BUILDING BLOCKS SECURED TO DELIVER BEST IN CLASS SENSORS
5
ASIC Substrate
IP Algorithm

6. COMPELLING OFF-CHIP SENSOR COST ADVANTAGE
6
“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

7. 7
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

8. 8
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 491
Off-Chip 63
LiveFinger
2
On-Chip
Navigation
641
Touch 70
Swipe 762
Capacitive
sensing
142
Pending
Issued
8
IP

9. ECOSYSTEM BUILT TO DELIVER TO TIER 1 CUSTOMERS
9
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

10. 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
10
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

11. 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 202020182014 20192015 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
2016201520142013
…compact touch sensors now expected to
dominate in flagships due to user convenience
Area Touch Swipe
11
Fingerprint Adoption 2014
– 9 OEMs Swipe
– 3 OEMs Touch

12. 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

13. $31
(228)
Cash Balance
$M
(MNOK)
$48
(295)
$57
(342)
0
1
2
3
4
5
6
7
$4.2 (25)
Q3 2014Q2 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
13

14. 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
14
“…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

15. 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
15