IDEX Q1 2015 Business Update Presentation

ENABLING THE MASS MARKET FOR SECURE ID

May 2015 Dr. Hemant Mardia, CEO

www.idex.no

IDEX HIGHLIGHTS: Q1 2015

2 15/07/2015

Secured NOK 297M funding from blue chip investor

Breakthrough touch sensor for IDEX launched with Cypress

Unique in-glass sensor showcased at MWC

Transfer to main list Oslo Børs (May)

Acquired patents and world class algorithm for small touch sensors

First order for Eagle for pilot in card market (May)

FULLY FUNDED TO COMMERCIALISE STRATEGIC PROGRAMS

3 15/07/2015

Source: www.trustnet.co.uk; www.telegraph.co.uk; www.thisismoney.co.uk; www.woodfordfunds.com

• Woodford Investment Management acquires 52.5M shares at NOK 5.65 each

– NOK 297 ($40) million – 11.2% of company

• 26.25M warrants, exercise price of NOK 8.5

– NOK 223M ($30M) if exercised • Jan 2014 Invesco funding NOK 300M ($40M)

– 30M warrants, exercise price of NOK 7.5 – NOK 225M ($30M) if exercised

Cards ID & smart Internet of

Things (IOT)

Mobile devices

• Highly respected UK fund manager, reference as ‘Britain’s most influential investor’

• Neil Woodford has delivered outstanding long-term performance at Invesco

• Woodford Investment Management LLP with GBP 5.4 Billion under management

IDEX is engaged in large scale opportunities in the mobile and card markets

HUGE MARKET GROWTH IN BIOMETRIC MOBILE DEVICES DRIVEN BY MOBILE PAYMENT AND PROVEN CONVENIENCE

2 000

500

1 000

2 500

3 000

1 500

0 2019 2018 2017 2016 2015

Million of mobile smart devices shipped annually

2020 2014

Non biometric smart mobile devices

Biometric mobile smart devices

65% CAGR

* Smart phones, tablets and wearables Source: The Mobile Biometric Market Research Brief, Acuity Market Intelligence, January 2015;

“…Acuity projects by 2020, a base of 4.76 billion biometrically enabled smart mobile devices generating $6 billion in biometric sensor revenue…”

Fingerprint sensors are seen as the biometric of choice due to proven mass adoption catalysed by Apple, reliable use & convenient mobile integration ~200M

~3000M

4 15/07/2015

STRONG DEMAND FOLLOWING FLAGSHIP MOBILE LAUNCHES

5 15/07/2015

• $1billion USD available market for fingerprint sensors 2016

• >$2billion USD by 2018 • Only two sensor vendors have

supplied to leading mobile OEMs outside Apple

• OEM demand has outpaced

limited supply of high quality mass deployable sensors

• IDEX have a compelling touch product and channel partners

IDEX expects to gain meaningful share as one of few credible solutions

SIGNIFICANT EMERGING BIOMETRIC CARD MARKET: IDEX HAS WON FIRST ORDER FOR NEW TOUCH SENSOR

Source: Raconteur Biometrics & Identity management publication April 30, 2015; The Nilsen Report 2013

“There has been considerable global growth in the use of biometrics … thanks to both government driven ID programmes as well as increased consumer acceptability driven by access to smartphone Technology.”

Ajay Bhalla President of enterprise safety

and security, MasterCard

Over 1.2 Billion people in ID programs planned in developing countries

IDEX has already integrated swipe in card pilots. Small pilot order for new IDEX touch sensor Chosen due to uniquely thin, flexible & low power

Image for illustration only

6 15/07/2015

SENSOR TYPE OFF CHIP SWIPE SILICON TOUCH NEW OFF CHIP

TOUCH

FUTURE IN GLASS

SWIPE & TOUCH

IDEX PRODUCT

STATUS

• Production ready • New form factors sampling

• Sample from May • Target sampling end 2015

KEY MILESTONE ACHIEVED

• Tier-one supply chain in Asia

• Industry-first 0.76mm thin standard card demonstrated

• First volume delivered

• Demonstrator mobile devices for customer evaluation

• First small pilot order for cards Q3 delivery

• Technology development with industrial partners

IDEX PRODUCTS READY FOR MARKET UPTAKE IN 2015

15/07/2015 7

SAMPLING NEW GENERATION TOUCH SENSORS TO MAJOR MOBILE CUSTOMERS END MAY

8 15/07/2015

New IDEX touch sensor launched in 3 form factors to maximise opportunities

9x9 8x8 4x9

• Immense market pull due to limited supply of small sensors

• IDEX sensor increases security level and user experience • Strong interest from major mobile OEMS after MWC launch • Integrated into demonstrator phones for customer sampling • IC expedited in record time with Cypress for joint promotion

with sampling end May to target 2015 mobile insertion

“…Ours is out, it works, and we're confident enough about it to actually put a fingerprint image on the cover of the Annual Report that it actually came from our chip which is now sampling….”

T.J. Rodgers, CEO Cypress Semiconductor,

Q1 earnings call, April 30, 2015

OFF-CHIP SENSOR PROVIDES COMPELLING DIFFERENTIATION

9 15/07/2015

SENSOR

SIGNIFICANT COST

ADVANTAGE

• IDEX off chip technology separates sensor and silicon IC

• 8x8mm silicon sensor area ~80mm2 vs <15mm2 IDEX

• Lowest cost without compromising touch sensing area

FORM FACTOR FLEXIBILITY

• New Cypress/IDEX IC supports a range of form factors

• 3 touch sensor products developed simultaneously

• Offers rapid time to market and customisation

SUPERIOR BIOMETRICAL

PERFORMANCE

• Result of years of design by leading industry experts

• Best off chip imaging through new patented concepts

• Can image micro pores, operate with wet and dry fingers and suppress noise in mobile devices

5x smaller IC

10

TURNKEY ADVANTAGE FOR SMALL AREA TOUCH SENSORS

10 15/07/2015

ALGO

1. Mobile OEMs require small sensors to compete with Apple convenience with higher security • Touch enables one hand

operation & 360 degree rotation vs. swipe

2. Very few small area matching algorithms available in the market • Apple/AuthenTec over 8 years of R&D and

patent coverage • 3rd party cost and performance limitations

3. IDEX acquired established matching algorithm and patents

• Superior benchmarked performance

4. IDEX turnkey solution • Cost advantage • Optimal performance

11

IDEX CORE PATENTS KEY TO SUPPLY IN CONSTRAINED SPACE

25 registered families 9 pending 219 registered patents 46 pending

• Capacitive fingerprint sensing IP is highly constrained outside Apple due to consolidation

• IDEX continues building on strong early patents

• Unique patent cross licence with Apple • Customers require safe IP for global deployment • Mobile OEMs completed positive due diligence

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

11 15/07/2015

IP

ECOSYSTEM BUILT TO DELIVER MASS VOLUME TO CUSTOMERS

12

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

15/07/2015

$31

(228)

Cash Balance $M

(MNOK)

$48

(295)

0

1

2

3

4

5

6

7

Q1 2015

$ 6.1 (47)

Q4 2014

$6.2 (42)

Q3 2014

$4.6 (29)

Q2 2014

$4.2 (25)

OPEX run rate $M (MNOK)

Other

Sales and marketing

R&D

$41

(261)

15/07/2015

INVESTMENT IN COMMERCIALISING MASSIVE OPPORTUNITY MOBILE IN 2015 AND DEVELOPMENT OF CARD MARKET 2016/2017

• Initial sales achieved from production shipments of sensors • Q1 2015 non cash cost impact of share based remuneration valuation $0.7M • $22M cash, no debt at end Q1 2015 • $40M additional cash following Woodford investment

13

$22

(181)

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:

• Sampling new touch sensor to mobile OEMs with partners in Q2 for insertion in 2015 • Industrialisation of in-glass sensor for mobile with target to sample by end 2015 • Flex sensor pilot integration to enable ID/payment biometric card market

• BUSINESS DEVELOPMENT:

• Attracting strong skills globally - development, support and sales teams in Europe, USA and China • Readiness for volume later in 2015 with systems and partners

• STRATEGIC DEVELOPMENT: • Progress with further major partner agreements underpinning growth

14 15/07/2015