©2016 IDEXASA©2016 IDEXASA

IDEXQ12016PRESENTATION

May11,2016Dr. HemantMardia,CEO

www.idex.no

©2016 IDEXASA11/05/20162

EXECUTINGPENETRATIONSTRATEGYFORTHREEMASSMARKETS

CardsID&smart

InternetofThings(IOT)

Mobiledevices

• Tier-onemobileOEMwinandsales• CompetitiveportfoliosamplingtoOEMs• Uniqueglasssolutionwithtier-1 partner

• Partnershipwithglobalpaymentcompany

• FlexibletouchsensorinISOcard• Enablingmassmarket

• SensorsshippedtoIOTcustomer• Leveragingsensorsandalgorithms• Marketsizecanultimatelyexceed

mobileFingerprintSensors

©2016 IDEXASA11/05/20163

HUGEGROWTHEXPECTEDACROSSALLIDEXTARGETMARKETS

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&notebooksSmartcardsIoT Smartphones

TotalIDEXaddressablemarketMillionsofunits

• Secureanduserfriendlye-commerceauthenticationdrivingfingerprintadoption• Proliferationofdevicesandapplicationsusingfingerprintverification• Fingerprintsensorsarethemostreliableandcosteffectivebiometricsolution• A‘musthave’featureinmobile

Source:Statistca;Marketsandarkets;CarnegieSecurities

©2016 IDEXASA4 11/05/2016

IDEXPATENTEDTECHNOLOGYENABLESCOMPETITIVECOSTANDPERFORMANCEFORTHEMOBILEMASSMARKET

• IDEXopportunitytoexploitOEMshiftfromsoletomulti-source

• OEMsincreasingdemandsonsensorrequirements

• IDEXproductsleveragestrongIP&biometricexpertise

• IDEXsteppingupresourcesinsupportofdirectsalestoOEMs

923

599

239237

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

700

0

1 000

1 600

1 400

500

200

800

1 200

400

100

300

600

1 100

900

1 500

1 300

2016

NumberofunitsMillions

2015

1 221

1 401

2014 2017 2018 2019

ASPUSD

2020

1 558

Source:CarnegieSecurities

SmartphoneFlagshiptomid&entryleveladoptiondrivingrapidpriceerosion

©2016 IDEXASA

IDEXHASOPTIMALTECHNOLOGIESFORSENSORSIZETRENDS

IDEXonly vendor with both off-chipandsilicon capacitive sensorsforlowest cost

Appledrivenmobilefingerprinttouchsensorareaevolution

PreAppleTouchID

1stgen.TouchID(2013)

2ndgen.TouchID(2015)

MobileMarketDemand2016

Area(mm2) ~200 ~20 ~30 ~20-30 ~36-80

Matchingalgorithm Minutae Pattern Pattern Pattern Hybrid

MID&ENTRYLEVELCostdriven

HIGHENDPerformancedriven

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©2016 IDEXASA

IDEXPRODUCTSDELIVERINGPROVENCOMPETITIVEPERFORMANCEACROSSMOBILESEGMENTS

IDEXPolymersensors:40-80mm2image

• 1-2%FRR@1:50,000FARbiometricswithhybridalgorithms

• Equivalentto3xlargersensors&minutae

Marketleadersdrivinghigherbiometricsandfeatures(e.g.Apple,Samsung,Huawei)

IDEXSiliconsensors:<30mm2 image

• Competitivewithleadingsolutions• Patternmatchingalgorithm

HIGHEND– Performancedriven MID/ENTRYLEVEL– Costdriven

LowertiersinChinadrivenbymobilepayment

Off-chiptechnologywith smallest silicon footprint combinedwith low cost polymerIDEXsilicon sensorswith very economic diesize (i.e.singlechip)

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©2016 IDEXASA

IDEXISGAININGMOBILEMARKETTRACTION

Cardinal siliconsensors Eaglepolymersensors In-Glasssensor

HIGHEND– Performancedriven• Mediumsizedsensors

PartneranddirectsamplingtoOEMs

AdditionalTier1OEMcompletingqualification

ApplyingEagletechnologytoglass,cardsandIoT

MID/ENTRY– Costdriven• Smallsizedsensors

OneoffewsuppliersshippingtoTier1OEM

LaunchedslimCardinalNsensor

MultipleOEMsactivelysampling

HIGHEND– Differentiation• CoverGlassintegration

DemonstratedimagingtoleadOEMs

CostreducedproductionsensordesignwithTier1partner

Customerevaluationtargetmid-year

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©2016 IDEXASA

O

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MASSPRODUCTIONECOSYSTEMDELIVERINGHIGHYIELDSENSORS

ASIC Packaging Modularization SalesandDistribution

IDEXPartners

IDEXIP

MOBILEOEMs

Rampingupdirectsales&modulepartnerstargetingChinaandAPACOEMs

©2016 IDEXASA9 11/05/2016

IDEXIN-GLASSSOLUTIONENABLESBESTBALANCEOFIMAGEQUALITY,AESTHETICSANDROBUSTNESS

300+micronsunderglass

200micronsunderglass

ReferenceImage

IDEXglasssolution

IDEXin-glasssensordeliverssuperiorbiometricsandcostcomparedtounder-glass• IMAGEQUALITY:degradedbylargedistancebetweensensorunderglassandfinger• COST:additionalhighvoltagedriverchiprequiredunderglass• SMARTPHONEROBUSTNESS:degradedbythinningcoverglassforunder-glasssolutions

Unprocessedimages

IDEXin-glasssensordesignmodifiedtoreduceproductioncost• In-glasssensordesignedforseamlessintegrationintostandardcoverglass• ReliabilitytestingunderwaypriortoOEMevaluationmidyear• Qualifyingsupplychainforvolumeproduction

Tier1 PartnershipAdvancingtoCommercialisationofIDEXglasssensor

©2016 IDEXASA

IDEXPIONEERINGSENSORINTEGRATEDINTOISOSMARTCARD

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• SecurebiometrictransactiondemonstratedinPOSreaders

• Lowestcostoff-chipcapacitivesensorforoptimumarea

• Biometricperformanceachievedwithlowresourcealgorithms

• UnderpinnedbyIDEXbiometriccardandsensorpatents

PolymerSensorGivesSubstantialCost,FlexibilityandCardIntegrationAdvantagesoverSiliconSensors

©2016 IDEXASA

IDEXATTHEFRONTIEROFCOMMERCIALISATIONOFCARDSENSORS

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Illustration Source:Mühlbauer AG

• Sensordesignedforstandardmassproductionprocesses

• Engagementwithcardintegratorsformassdeployment

• RampingupIDEXsalesandsupportorganisation

IDEXSolutionUniquelyOptimisedforStandardCardMassProductionProcesses

• DeliveriesofinitialquantitiesintegratedintoISOcards

• ISOqualificationandcertifiedtestinginprogress

• PilotproductionandconsumertrialsduringH22016

©2016 IDEXASA

HUGEEMERGINGIOTMARKETFOLLOWINGMOBILEANDCARDS

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IDEXShippingEaglesensorsinWindowscertifiedBIO-keySideTouchTM USBFingerprintReader

• EmbeddedopportunitiesleverageIDEXsensorsfrommobileandcardsegments• Thesensorsarefullyscalableinsizeandflexibleinformfactor• IDEXoff-chiptechnologyidealforIoT - compact,lowpowerapplications

©2016 IDEXASA11/05/201613

EXPANSIONTOEXECUTEONOURGROWTHOPPORTUNITIES

Shiftingtodirectsalesinmobileforincreasedcontrol• Expandingglobalsalesandsupportteamwith

experienced industryhires

AttractingsignificantindustrytalenttoIDEX• StanSwearingen,formerlySVP&CTOAtmeland

Synaptics,joinedasstrategyadvisor• Experienced teamfrombiometric&mobileindustry• 70staffand30design/softwareconsultants

Continuedinnovationandpatentfiling• 47patentfamiliesgrantedandpending• Strengtheningtechnologyresourcesandinvestmentto

createdifferentiatedsolutions

InternationalIDEXlocations

China

USA

Norway

UK

©2016 IDEXASA11/05/201614

ADVANCINGCOMMERCIALISATIONINOURTHREETARGETMARKETS

QualifyformobileOEMsdual/multi-sourcingandsecureprograms• LaunchofTier1handsetwithIDEXsensorlateQ2• QualificationbyfurtherTier1OEMmidyear• Customerevaluationofin-glasssolutionmid-year

Setuptodeliverinitialvolumeslate2016• CardproducttrialswithglobalpaymentproviderinlateQ2• PilotconsumertrialsduringH22016• Expandecosystempartnersformassmanufactureanddeployment

Leveragecurrentproductsforhugeemergingmarketopportunities• ContinuedshipmentsofsensorswithIoT partners• Selectedreferencedesigns

RamporganisationforstepchangegrowthinIDEXtargetmarkets• Stepupindirectcustomersalesengagementandsupport• Investmentinproductinnovationandtechnologyroadmap

Mobile

Cards

IoT

IDEXgrowth

©2016 IDEXASA11/05/201615

IDEXGENERATINGREVENUESFROMSHIPMENTSINQ1

• VolumesensorshipmentsinQ1–significantcommercialmilestone

• Grossmarginsreflectinitialvolumes&partnerASICsupplymodel

• OPEXofNOK53million

• Q4OPEXexceptionalcosts

893350

50

20

30

10

80

2 500

500

70

60

4 000

3 500

3 000

1 500

1 000

2 000

00

40

QuarterlyOPEXNOKmillions

47

QuarterlyrevenuesNOKthousand

Q115 Q116

3 562

53

Q415

52

73

Q315Q215

177

48

OPEXRevenues

©2016 IDEXASA11/05/201616

STRONGBALANCESHEETWITHUSD85MCASH,NODEBT

683

764

382431

181

0

100

200

300

400

500

600

700

800

Q315Q215 Q116Q115 Q415

NetcashpositionbyquarterNOKmillions

• Q1cashoutflowmainlyoperational

• SignificantcashfundingfromshareissuestomajorUKinvestors:InvescoandWoodfordFunds

©2016 IDEXASA

SHAREPRICEDEVELOPMENT

Sharepricedevelopment(24months)

Shareprice:NOK7.40|$0.90Marketcap:NOK3,936M|$480M

SharepriceNOK

AnalystscoveringIDEXandtargetprices

NOK15.00 NOK14.00 NOK15.33

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©2016 IDEXASA©2016 IDEXASA

THANKYOU

www.idex.no