IDEX Q2 2016 PRESENTATION · IDEX Q2 2016 PRESENTATION August 11, 2016 Dr.Hemant Mardia, CEO 2...
Transcript of IDEX Q2 2016 PRESENTATION · IDEX Q2 2016 PRESENTATION August 11, 2016 Dr.Hemant Mardia, CEO 2...
©2016IDEXASA©2016IDEXASA
IDEXQ22016PRESENTATION
August11,2016Dr. HemantMardia,CEO
www.idex.no
©2016IDEXASA11/08/20162
OURTECHNOLOGYISADDRESSINGTHREEMULTIBILLIONDOLLARMARKETOPPORTUNITIES
CardsID&smart
InternetofThings(IOT)
Mobiledevices
• Shiftedtodirectsalesstrategy
• Tier1LGlaunchedIDEXsensorinStylo 2Plus
• SecuredfurtherOEMDesignWinmomentum
• Steppingupresources
• Tier1Globalpaymentprogram
• FlexiblesensorforISOsmartcards
• LeveragingexistingproductsideallysuitedtoIOT
• SideTouchTM launchedbyBIO-keywithMicrosoft
FingerprintSensors
©2016IDEXASA11/08/20163
MOBILEADOPTIONDRIVINGHUGEGROWTHACROSSOURTARGETMARKETS
567845
201256
227
145
324193
167
97573
1 370
2017
119
2018
1 076
+52%
20202019
1 200
2 048
1 302
1 712
2016
622
2015
2559
Tablets¬ebooksSmartcardsIoT Smartphones
TotalIDEXaddressablemarketMillionsofunits
• Mobile:IDEXofferingsiliconanddifferentiatedoff-chipsensorsinstronggrowthmarket• Cards&IOT:IDEXoff-chipsensorsenablingbiometricproductsinemergingmassmarkets• IDEXoff-chipplatformhasuniqueflexibilitytoexploitmarketevolution
Source:Statistca;Marketsandarkets;CarnegieSecurities
©2016IDEXASA11/08/20164
IDEXOFFERSBOTHSILICONANDOFF-CHIPCAPACITIVESENSORS
2013 2016
Crowdedspace• Siliconareaisexpensive• Size/costcompromise• Customchippersensor
Highentrybarriers• Off-chiphassmallsiliconfootprintforlargesensingarea
• IDEXOff-chipplatformchipisscalableacrossapplications
• Premiumperformanceatlowcost
©2016IDEXASA11/08/20165
IDEXOFF-CHIPPLATFORMISUNIQUELYSCALABLEACROSSAPPLICATIONS
Rigidsensors
Flexiblesensors
Glasssensors
• Conventionalmodules/buttons• Inproductionformobile/IoT
• Thin/bendableproductsforcards/IoT
• FutureflexibleOLEDdisplayintegration
• Inactivedisplaycoverglassintegration
• Productdevelopmentformobile/IoT
• SingleprogrammableASICforupto10x10mmsensors• Encryptedcommunications• Noisecancellation
Platformoff-chipASIC
©2016IDEXASA11/08/20166
OFF-CHIPTECHNOLOGYENABLESLOWCOSTPREMIUMPERFORMANCESENSORS
Favourableperformancedynamicsforoff-chipsolutioninpremiummobileapplications• Costpressuresdrivingsiliconsensorstoassmallas16sqmmimages• Demandforlargersensingareaforsecurityandusabilityforpaymentapplications
– AppleiPhonesensorhasincreasedsensingareaby30%– TieroneOEMsdemanding2%FRRimprovingto1%@1:50kFAR– OEMsdrivingreducedenrolmenttouches– Antispoofingwithoutdegradingusability
5xsmallerIC
ConventionalsiliconIDEXoff-chip
©2016IDEXASA11/08/20167
MARKETCONVERGENCEWITHIDEXPRODUCTSANDROADMAP
Favourabledynamicsforoff-chipsolutioninproductintegrationand
industrialdesign
• Aestheticsdrivingthinner,button-freedevices
• Displayintegration
• Cardintegration
SmartphoneDisplayTechnology isevolving
• OLEDdisplaysareemerginginmobileflagships
• LGDisplayannouncedinvestmentofUSD1.8Bin6th generationflexible
OLEDdisplaytoleadinnewwaveofmobiledeviceapplications
• IDEXoff-chipsensortechnologyalignswithglasssensorsnowand
flexibleOLEDdisplayintegrationinthefuture
Source:LGDisplay
©2016IDEXASA11/08/20168
IDEXPRODUCTANDROADMAPBUILDINGONFUNDAMENTALIPPLATFORMWITHVALUABLENEWINNOVATIONS
• Patentprotectionincreasingpriorityforlargecustomerswithinternationalsales
• Freedomtooperate
• IDEXfocusedIPinvestmentalignedwithtargetmarketevolution
measurementprinciple
sensordesign
biometricalgorithm
systemsolutions
Touch,swipecapacitivesensing
Off-chip,glass,singlechip,navigation,livefinger
Matching,enrolment,reconstruction
Sensorsforsmartphones,smartcards,IoT
45patentfamilies
©2016IDEXASA
STRONGMOMENTUMINMOBILEWITHMULTIPLEWINS
11/08/20169
• LGStylus2PluslaunchedinJunewithIDEXsensor– positiveconsumerreviewsonperformance
• AdditionalDWmomentum,expectlaunchesQ416
• IDEXoneoffewvendorsonTier-onehandsets
• HighcustomeractivityandmoreDWsexpected– Integrationatmultiplecustomersandprograms– Pipelinegrowingfollowingdirectsalesshift– MultiplemoduleintegratorsinChina&Korea
• Qualificationwithtier-onemobileOEMpendingfinalcustomisedsoftwareintegration
©2016IDEXASA
CUSTOMERENGAGEMENTWITHDIFFERENTIATEDGLASSTOUCHSENSOR
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StrongpullfromOEMsforsensorsintegratedintodisplay
Nosolutioncurrentlyscalable
Ceramicorglassbuttonsinterimsolution
Pleasingaesthetics
Durable Superiorimagequality
IDEXglassmoduleoffersuncompromisedvalueproposition
• Demonstratedimagingquality
• Durabilitytestspassed
• Industrialdesignbeingoptimisedwithleadcustomerfeedback
• Increasedcustomerengagementwithoptimisedsamplesinnexttwomonths
• Expandingandqualifyingsupplyecosystemforvolumereadinessend2016
©2016IDEXASA
PRODUCTLEADERSHIPFORCARDTOUCHSENSORS
11/08/201611
IDEXdesignandintegrationlevelenableslowcost• Compatiblewithvolumecardintegrationprocess• ProvenwithexistingSecureElements&POSterminals
Inherentbenefitsfromprovenoff-chiptechnology• FlexiblepolymersensorpassesISObendingtests• Significantcostadvantageduetosmallsiliconfootprint
withlargersensingarea
©2016IDEXASA
TIERONECARDPARTNERSHIPSSECUREDFORMASSDEPLOYMENT
11/08/201612
Customerengagementacrossmultiplesmartcardapplications• Payment,IDandaccesscontrol• Additionalcardintegratorpartnershipsbeingestablished
IllustrationSource:Mühlbauer AG
ProductionreadinessforGlobalPaymentCompanyProgram• Qualificationtrialsnearingcompletionwithpartners• Endtoendecosystemestablishedforenrolment,
personalisationandsecurityforbiometricpaymentcard
©2016IDEXASA
EAGLETOUCHSENSORWELLMATCHEDFORIOTADOPTION
11/08/201613
IDEXsensorinIOTproductlaunchedforretailmarkets
• LaunchedinBIO-KeyUSBfingerprintreader“SideTouchTM”
• Bio-Keydistributionintohigh-volumechannels• MicrosoftWindowsHelloTM certifiedplugandplaysolution
LeveragingexistingEaglesensorstoselectIOTopportunities
• Uniquerequirementsvs smartphone• Easeofusewithinconstrainedprocessingenvironment• IDEXportfolioaddresseshighperformanceandcostadvantagethroughmediumsizedoff-chipsensors
©2016IDEXASA
O
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IDEXDELIVERINGTHROUGHTIER-ONE ECOSYSTEM&DIRECTSALESTEAMEXPANSION
ASIC Packaging Modularization SalesandDistribution
IDEX
Partners
IDEXIP
MOBILEOEMs
• Experienceddirectsales&marketingteamrecruited
• YangChiah YeeSVPWWSales
• StrengtheningofAPACpresence
• Customerpipelinegrowing
©2016IDEXASA11/08/201615
ADVANCINGCOMMERCIALISATIONINOURTHREETARGETMARKETS
QualifyforsupplytoadditionalmobileOEMsandsecurefurtherwins• AdditionalDWforCardinalsensorandsmartphonelaunchesQ4• QualificationbyfurtherTier1OEMinQ3• Increasecustomerengagementonglasssensorinnexttwomonths
Broadencustomerengagementswithleadingcardsensorsolution• CardproducttrialswithglobalpaymentproviderinAug/Sept• PilotconsumertrialsduringQ42016• Severalkeypartnerannouncementsexpectedinthenextfewmonths• Additionalcustomerprogramswillbelaunched
Leveragecurrentproductstoinitiateemergingmarketopportunities• IncreasedshipmentsofsensorswithIoT partners• Selectedreferencedesigns
RamporganisationforstepchangegrowthinIDEXtargetmarkets• Stepupindirectcustomersalesengagementandsupport• Investmentindifferentiatedproductsandroadmaptoaddressmarkettrends• ExpandingR&Dteamattractingproveninnovatorsinsensorspace
Mobile
Cards
IoT
IDEXgrowth
©2016IDEXASA11/08/201616
Q2WITHREVENUEGROWTH
• SolidrevenuegrowthfromsensorshipmentinQ2
• Grossmarginsreflectinitialvolumes&partnerASICsupplymodel
• OPEXofNOK45millioninQ2,YTDNOK98.1
60
40
5010
15
5
80
10
0
30
20
0
70
53
Q415
73
0
Q315
52
0
Q215
4
48
Q116
0
Q216
QuarterlyrevenuesNOKmillion
QuarterlyOPEXNOKmillion
45
14
OPEXRevenues
©2016IDEXASA11/08/201617
STRONGBALANCESHEETWITHUSD75MCASH,NODEBT
623683
764
382431
0
100
200
300
400
500
600
700
800
Q216Q116Q415Q315Q215
NetcashpositionbyquarterNOKmillions
• Q2cashoutflowdrivenbyOPEXandincreaseofworkingcapital
• SignificantcashfundingfromshareissuestomajorUKinvestors:InvescoandWoodfordFunds
©2016IDEXASA
SHAREPRICEDEVELOPMENT
Sharepricedevelopment(24months)
Shareprice:NOK8.00|$0.97Marketcap:NOK4,257M|$514M
SharepriceNOK
AnalystscoveringIDEXandtargetprices
NOK15.00 NOK14.00 NOK15.3311/08/201618
NOK13.00
©2016IDEXASA©2016IDEXASA
THANKYOU
www.idex.no
©2016IDEXASA
IDEXASAATAGLANCE
20
SmartFinger®sensors
SmartFinger®algorithms
SmartFinger®solutions
CONFIDENTIAL11/08/2016
Fingerprintsolutionsformassmarkets• Off-chippolymersensors• Siliconsensors
• 45grantedandpendingpatentfamilies• Applecrosslicense
HQOslo,Norway;SiliconValley,Boston,US;UKandFarEastofficeswith~100staff
OsloBørs exchange,~2800shareholders
IncludeInvescoandFundsmanagedbyNeilWoodford
PRODUCTS
STRONGPATENTS
GLOBALOPERATION
PUBLICLISTED
STRATEGICINVESTORS
PUBLICLYLISTED
• Mobile,SmartandIDcards,IOTMARKETS
INSTITUTIONALINVESTORS