IDEX Q1 2015 Business Update Presentation

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

2. 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)

3. 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

4. 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
20192018201720162015
Million of mobile smart
devices shipped annually
20202014
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

5. 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

6. 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

7. 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
15/07/20157

8. 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

9. 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. 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. 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 491
Off-Chip 63
LiveFinger
2
On-Chip
Navigation
641
Touch 70
Swipe 762
Capacitive
sensing
142
Pending
Issued
11 15/07/2015
IP

12. 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

13. $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)

14. 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