IDEX Q PRESENTATION

Transcription

1 IDEX Q PRESENTATION May 11, 2016 Dr. Hemant Mardia, CEO EXECUTING PENETRATION STRATEGY FOR THREE MASS MARKETS Tier-one mobile OEM win and sales Competitive portfolio sampling to OEMs Unique glass solution with tier-1 partner Mobile devices Partnership with global payment company Flexible touch sensor in ISO card Enabling mass market Cards ID & smart Fingerprint Sensors Internet of Things (IOT) Sensors shipped to IOT customer Leveraging sensors and algorithms Market size can ultimately exceed mobile 2

2 HUGE GROWTH EXPECTED ACROSS ALL IDEX TARGET MARKETS Total IDEX addressable market Millions of units % IoT Smart cards Tablets & notebooks Smartphones Secure and user friendly e-commerce authentication driving fingerprint adoption Proliferation of devices and applications using fingerprint verification Fingerprint sensors are the most reliable and cost effective biometric solution A must have feature in mobile Source: Statistca; Marketsandarkets; Carnegie Securities 3 IDEX PATENTED TECHNOLOGY ENABLES COMPETITIVE COST AND PERFORMANCE FOR THE MOBILE MASS MARKET Number of units Millions Source: Carnegie Securities Smartphone Flagship to mid & entry level adoption driving rapid price erosion ASP USD IDEX opportunity to exploit OEM shift from sole to multi-source OEMs increasing demands on sensor requirements IDEX products leverage strong IP & biometric expertise IDEX stepping up resources in support of direct sales to OEMs 4

3 IDEX HAS OPTIMAL TECHNOLOGIES FOR SENSOR SIZE TRENDS Apple driven mobile fingerprint touch sensor area evolution Pre Apple TouchID 1st gen. TouchID (2013) 2nd gen. TouchID (2015) Mobile Market Demand 2016 MID & ENTRY LEVEL Cost driven HIGH END Performance driven Area (mm 2 ) ~200 ~20 ~30 ~20-30 ~36-80 Matching algorithm Minutae Pattern Pattern Pattern Hybrid IDEX only vendor with both off-chip and silicon capacitive sensors for lowest cost 5 IDEX PRODUCTS DELIVERING PROVEN COMPETITIVE PERFORMANCE ACROSS MOBILE SEGMENTS HIGH END Performance driven IDEX Polymer sensors: mm 2 image 1-2% 1:50,000 FAR biometrics with hybrid algorithms Equivalent to 3x larger sensors & minutae MID/ENTRY LEVEL Cost driven IDEX Silicon sensors: <30 mm 2 image Competitive with leading solutions Pattern matching algorithm Market leaders driving higher biometrics and features (e.g. Apple, Samsung, Huawei) Lower tiers in China driven by mobile payment Off-chip technology with smallest silicon footprint combined with low cost polymer IDEX silicon sensors with very economic die size (i.e. single chip) 6

4 IDEX IS GAINING MOBILE MARKET TRACTION Cardinal silicon sensors Eagle polymer sensors In-Glass sensor MID/ENTRY Cost driven Small sized sensors HIGH END Performance driven Medium sized sensors HIGH END Differentiation Cover Glass integration One of few suppliers shipping to Tier 1 OEM Launched slim Cardinal N sensor Multiple OEMs actively sampling Partner and direct sampling to OEMs Additional Tier 1 OEM completing qualification Applying Eagle technology to glass, cards and IoT Demonstrated imaging to lead OEMs Cost reduced production sensor design with Tier 1 partner Customer evaluation target mid-year 7 MASS PRODUCTION ECOSYSTEM DELIVERING HIGH YIELD SENSORS ASIC Packaging Modularization Sales and Distribution IDEX IP O MOBILE OEMs IDEX Partners Ramping up direct sales & module partners targeting China and APAC OEMs 8

5 IDEX IN-GLASS SOLUTION ENABLES BEST BALANCE OF IMAGE QUALITY, AESTHETICS AND ROBUSTNESS IDEX in-glass sensor delivers superior biometrics and cost compared to under-glass IMAGE QUALITY: degraded by large distance between sensor under glass and finger COST: additional high voltage driver chip required under glass SMARTPHONE ROBUSTNESS: degraded by thinning cover glass for under-glass solutions Reference Image 300+ microns under glass 200 microns under glass IDEX glass solution Unprocessed images IDEX in-glass sensor design modified to reduce production cost In-glass sensor designed for seamless integration into standard cover glass Reliability testing underway prior to OEM evaluation mid year Qualifying supply chain for volume production Tier 1 Partnership Advancing to Commercialisation of IDEX glass sensor 9 IDEX PIONEERING SENSOR INTEGRATED INTO ISO SMARTCARD Secure biometric transaction demonstrated in POS readers Lowest cost off-chip capacitive sensor for optimum area Biometric performance achieved with low resource algorithms Underpinned by IDEX biometric card and sensor patents Polymer Sensor Gives Substantial Cost, Flexibility and Card Integration Advantages over Silicon Sensors 10

6 IDEX AT THE FRONTIER OF COMMERCIALISATION OF CARD SENSORS Sensor designed for standard mass production processes Engagement with card integrators for mass deployment Ramping up IDEX sales and support organisation Deliveries of initial quantities integrated into ISO cards ISO qualification and certified testing in progress Illustration Source: Mühlbauer AG Pilot production and consumer trials during H IDEX Solution Uniquely Optimised for Standard Card Mass Production Processes 11 HUGE EMERGING IOT MARKET FOLLOWING MOBILE AND CARDS IDEX Shipping Eagle sensors in Windows certified BIO-key SideTouch TM USB Fingerprint Reader Embedded opportunities leverage IDEX sensors from mobile and card segments The sensors are fully scalable in size and flexible in form factor IDEX off-chip technology ideal for IoT - compact, low power applications 12

7 EXPANSION TO EXECUTE ON OUR GROWTH OPPORTUNITIES Shifting to direct sales in mobile for increased control Expanding global sales and support team with experienced industry hires International IDEX locations Attracting significant industry talent to IDEX Stan Swearingen, formerly SVP & CTO Atmel and Synaptics, joined as strategy advisor Experienced team from biometric & mobile industry 70 staff and 30 design/software consultants USA UK Norway China Continued innovation and patent filing 47 patent families granted and pending Strengthening technology resources and investment to create differentiated solutions 13 ADVANCING COMMERCIALISATION IN OUR THREE TARGET MARKETS Mobile Qualify for mobile OEMs dual/multi-sourcing and secure programs Launch of Tier 1 handset with IDEX sensor late Q2 Qualification by further Tier 1 OEM mid year Customer evaluation of in-glass solution mid-year Cards IoT Set up to deliver initial volumes late 2016 Card product trials with global payment provider in late Q2 Pilot consumer trials during H Expand ecosystem partners for mass manufacture and deployment Leverage current products for huge emerging market opportunities Continued shipments of sensors with IoT partners Selected reference designs IDEX growth Ramp organisation for step change growth in IDEX target markets Step up in direct customer sales engagement and support Investment in product innovation and technology roadmap 14

8 IDEX GENERATING REVENUES FROM SHIPMENTS IN Q1 Quarterly OPEX NOK millions Quarterly revenues NOK thousand Volume sensor shipments in Q1 significant commercial milestone Gross margins reflect initial volumes & partner ASIC supply model OPEX of NOK 53 million Q4 OPEX exceptional costs Q1 15 Q2 15 Q3 15 Q4 15 Q Revenues OPEX 15 STRONG BALANCE SHEET WITH USD 85M CASH, NO DEBT Net cash position by quarter NOK millions Q1 cash outflow mainly operational Significant cash funding from share issues to major UK investors: Invesco and Woodford Funds Q1 15 Q2 15 Q3 15 Q4 15 Q

9 SHARE PRICE DEVELOPMENT Share price NOK Share price development (24 months) Share price: NOK 7.40 $ 0.90 Market cap: NOK 3,936M $ 480M Analysts covering IDEX and target prices NOK NOK NOK THANKYOU