IDEX ASA Enabling the mass market for secure ID

8th April 2013 Hemant Mardia

Kristian Wiermyhr

CONFIDENTIAL

IDEX MISSION

To be the leading supplier of

fingerprint sensor technology for the

mass market

Secure and Simple ID by biometric

authentication of every device you own

IDEX VISION

CONFIDENTIAL 2

THIN & FLEXIBLE LOW COST ACCURATE & SECURE

IDEX’ OFFERING: SMARTFINGER®

Demand for fingerprint sensors is on the cusp of explosive growth

to a $multi-billion mass market driven by smartphone adoption

Precedence on core patents for best in class sensor technology

enabling low cost, secure & accurate fingerprint recognition

Transformation of market by Apple: 80% of smartphone market

addressable by only IDEX and 2 other principal vendors

Only sensor technology for emerging ID and smart card market

IDEX BUSINESS PROPOSITION

1

2

3

4

CONFIDENTIAL 3

2013 -

IDEX POSITIONED FOR GROWTH

Swipe sensor patent

Fingerprint sensor demonstrator

Silicon sensor

Polymer sensor R&D

Key patents

Cross licensing ST, UPEK & IDEX

Listed Oslo Axess

Card demonstrator

Volume MOUs for cards and bag locks

SmartFinger® Technology

Pioneering sensor IP Core patent era

Commercialisation for mobile and cards

Strengthened leadership team

Mobile comms partnership

Mass market cost & manufacturing set up

Productisation for Cards

Remaining vendors: Apple acquire Authentec (UPEK) IDEX, Fingerprint Cards, Validity

>$50M invested in best in class fingerprint sensor technology

Surviving mass market technology: Capacitive: deployed in volume

Multiple sensor technologies: Capacitive, optical, thermal, pressure

Key originators: IDEX, AuthenTec, ST, UPEK, Fingerprint Cards, Infineon, Fujitsu, Sony, Atmel, Hitachi, NEC, Atrua, Veridicom

2010-2012 2008-2009 2000-2007 1996-1999

CONFIDENTIAL 4

APPLE ACQUIRES FINGERPRINT SENSOR LEADER AUTHENTEC $356M IN 2012 TRANSFORMING DEMAND

TRANSFORMATION OF IDEX OPPORTUNITY

Biometrics Login to the future

The ID of you

IDEX HAS PATENT XLICENCE WITH AUTHENTEC

AUTHENTEC SUPPLIED TIER ONE OEMS: NOW CAPTIVE

IDEX ONE OF ONLY THREE SENSOR VENDORS INTO THE NON-APPLE MOBILE HANDSET MARKET

IDEX IS UNIQUELY POSITIONED WITH FUNDAMENTAL IP

FINGERPRINT SENSORS EXPECTED TO FOLLOW

CAMERA MASS ADOPTION MODEL

LOW COST <$1 ENABLING

NEW SECURE APPLICATIONS

CONFIDENTIAL 5

THE GAMECHANGER: APPLE’S PLANS?

• Fingerprint-sensor in mobile devices:

- Unlock phone

- Authentication of the user

- Mobile Payments

- Bring-Your-Own-Device (BYOD)

- Personalization of services

NOW: HOME BUTTON SENSOR

NEXT: “HOLY GRAIL” IMAGING THROUGH GLASS

ONLY IDEX patented technology enables the sensor IN the screen

CONFIDENTIAL 6

Leverage uniquely strong IP and patent portfolio: safe

haven

Proven low cost, thin, secure and accurate sensors and

algorithms

Strengthened leadership team to deliver commercial

exploitation

Developing major global OEM partners for mass market

scaling

Limited competitors with high barrier to entry in a large

market

IDEX partnerships

MOBILE DEVICES

INTERNET OF

THINGS

CARDS

ID & SMART

IDEX GO TO MARKET STRATEGY New MASS market services enabled by low cost

biometric authentication

CONFIDENTIAL 7

• Smartphones 1.2B shipments by 2015

• tabs/PC 0.75B 2013

• Non telecoms cards 2.2B shipments 2013

• Internet of Things 25B connected by 2015

IDEX MASS MARKET OPPORTUNITY

THE BILLION DOLLAR

PLAY:

Identity is the new money

David Birch, UK consultant and media personality

Your smartphone will be your wallet and biometrics will keep your valuable information secure

Daniel Burrus, leading futurist on tech trends

“ ”

“ ”

CONFIDENTIAL 8

MOBILE PHONE MARKET SCALE

1.75B mobile phones 2012 (Gartner) 2.25B forecast 2017 (IDC)

Rapid smartphone penetration majority now to ~70% in 2017 >80% forecast share not captive to Apple

107

85

43.5

16.2 15

13.7

192

Mobile Sales by volume Q4 12

Samsung

Nokia

Apple

ZTE

LG

Huawei

Others

114.7

43.5

7.3

6.2 36

Smartphone Sales by volume Q4 12

Android

Apple

RIM

Microsoft

Other

1.2 Billion unit market accessible by IDEX in 2017 CONFIDENTIAL 9

NEXT: ID AND SMART CARD REVOLUTION

• Security and privacy in the digital world

• IDEX SmartFinger Film®; the only biometric sensor thin enough to comply to ID/smartcard form factors

3400 4200

4700 5200 5450

750

880

1050

1260 1480

160

190

240

290 350

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2009 2010 2011 2012f 2013f

Mill

ion

un

its

Eurosmart Secure Device shipments estimates

Others

Government

Banking

Telecom

4 520

5 520 6 295

7 095 7 665

+13% +8%

CONFIDENTIAL 10

• Mobile communications

- Unprecedented Billion unit market catalysed by Apple acquisition

- Apple transforms sensor market but restricts supply internally

- Other handset manufacturers rapidly developing smartphones with sensors

- 80% market available: IDEX strong position with core patents & Apple Xlicence

- Terms agreed with a global mobile comms partner in Q1 13

• Cards: ID and contactless

- Only IDEX offer thin form factor meeting Card standards

- MOU for China wide ID Q4 2012; forecast $6M 2014, immense volume 2015

- Gemalto: largest card manufacturer; e-Go consortium “touch access”

- Multiple other partners

• Internet of things:

- OEM Contract for tier 1 bag lock program Q4 2012; volumes expected 2014

- Future Electronics: fourth largest electronics distributor; IDEX global channel

- Multiple other partners

THE FUTURE FOR IDEX

CONFIDENTIAL 11

• IDEX most complete patent portfolio in capacitive fingerprint sensing outside Apple

• “First-to-file” patents covering the fundamentals of these low cost sensors

• 14 patent families granted and 3 in filing since 1997

• IDEX patents have been assessed and verified in a litigation between IDEX and UPEK

(acquired by AuthenTec)/ST Microelectronics and a cross licence agreed

IDEX CORE PATENT STRENGTH

CORE PATENTS IDEX APPLE/AUTHENTEC APPLICATION

ON THE FLY IMAGE RECONSTRUCTION

Most accurate fingerprint matching with swipe sensor

ANY MATERIAL SENSOR X

Thinnest, flexible sensor in multiple form factors

THROUGH MATERIAL SENSING (VIAS) X

Sensor IN glass screen

ACTIVE ELECTRODE

Fundamental to low cost , small swipe and touch sensors

IDEX fundamental patent coverage vs competitors is highly attractive to customers

CONFIDENTIAL 12

Picture by James Sullivan

Human fingerprint : ~ 0,6 mm

IDEX single line sensor array : 0,05-0,07 mm

THE LANDSCAPE WE EXPLORE

CONFIDENTIAL 13

• SmartFinger® offers unsurpassed image quality and biometric performance

• On the fly imaging: wide range of finger swipe speeds, directions and movement

• Sensing through material including glass using VIAS

• Thinnest sensor in flexible materials: only sensor meeting form factor for cards

• Protected by extensive patent portfolio

Acquire fingerprint

data

Reconstruct image

Extract features

Match vs. template

SmartFinger® sensor

Image Algorithm Processing Secure chip

YES/NO

1040 1045 1050 1055 1060 1065 1070 1075 1080 1085 1090

0

20

40

60

80

100

120

140

160

180

200

line number

sig

nal le

vel

image channel

corresponding speed channel

IDEX OFFERS A COMPLETE RECOGNITION SOLUTION

CONFIDENTIAL 14

IDEX SENSOR COMPETITIVE ADVANTAGE

KEY BENEFIT FEATURE IDEX Company A Company B

SENSOR CARD INTEGRATION

Ultrathin Flexible sensor *** x **

SENSOR MOBILE DEVICE INTEGRATION

Small sized, low pin count surface mount sensor

*** ** x

SINGLE LINE, ROBUST ON-THE-FLY IMAGING

Algorithm handles varying finger directions and movements

*** x **

BIOMETRIC PERFORMANCE

Image quality: lowest false rejection/false acceptance

*** ** **

ON-DEVICE SECURITY Compact algorithm allows secure on-device authentication

*** x x

TOUCH-SCREEN IMPLEMENTATION

Sensor-IN-glass solution *** x x

LOW POWER COSUMPTION

Low power fingerprint imaging and processing

** *** *

IDEX best in class technology for low mobile devices and cards

CONFIDENTIAL 15

IDEX MASS MARKET OPPORTUNITY

2015 Consumer Electronics Cards Other markets

IDEX mass market volumes expected 2014; design wins 2012/2013 IDEX positioned for significant market share as one of three vendors

Total Industry Revenue 3,95 Billion USD Total Industry Revenue 2,0 Billion USD

1 billion Consumer Electronics with fingerprint sensors sold , ASP 1,1 USD (Consumer electronics includes smart phones, tablets, laptops, gaming consoles etc)

150 million cards, ASP 2,5 USD 130 million other devices, ASP 4,5 USD

2017

1,5 billion CE with fingerprint sensor sold , ASP 0,9 USD 700 million cards, ASP 2 USD 400 million other devices, ASP 3 USD

CONFIDENTIAL 16

IDEX INVESTMENT PROPOSITION

• R&D investment and focus on emerging biometric market for

smart card/ IOT where highest performance i.e

security/accuracy/speed/thin/flexible/low power are critical

– Only vendor with a ISO card solution

– Now well positioned for smartphone explosion

– Billion unit and billion dollar market opportunities

• Best in class swipe sensor performance

• Unique “holy grail” sensor in glass

• Fully protected by early patents and Apple/Authentec xlicence

• Now marketing to smartphone sector for the first time

• Manufacturing being established for volume & low cost

• Product and technology roadmap to support major partners

CONFIDENTIAL 17

IDEX INVESTMENT PROPOSITION

IDEX AND FINGERPRINTCARDS SHARE PRICE INCREASE SINCE APPLE BOUGHT AUTHENTEC

Cusp of significant growth exploiting leading IP platform in fingerprint sensors • Executing a global partner strategy to exploit mobile market during 2013

• Exploitation of high value added ID/smartcard and “Internet of things” following

• Investment to scale team and products to support market leading partners

• Significant value growth from mass market opportunity with limited competition

- IDEX $100M vs Fingerprints Cards $300M market cap Mar 13

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

FingerprintCards IDEX

CONFIDENTIAL 18

• 2012 limited R&D revenues of £0.5M • Restructuring in 2012; loss £3.6M principally R&D investment • 2013 expansion of R&D and sales channels: estimated opex • TAX LOSS CARRYFORWARD ≈£35M

- 28% tax rate, no ageing restriction

• LISTED IN OSLO - 1,185 shareholders, 95 percent Norwegian - 28% shareholding outside Norway

PROFIT AND LOSS STATEMENT

-5000

-4000

-3000

-2000

-1000

0

1000

2012 2011

P&L (£k)

Revenue EBIT

0

1000

2000

3000

4000

5000

2013E 2012 2011

Operating Expense (£k)

R&D Sales G&A

CONFIDENTIAL 19

• NO FINANCIAL DEBT, FUNDED BY EQUITY • CASH 31 DEC 2012 £2.2M • WORKING CAPITAL VIRTUALLY NIL • 2013 funding for business development ahead of

revenue step change 2014

CASHFLOW STATEMENT

£k 2013 2012 2011

Net cash flow from operational activities -£3,211 -£3,815

Net cash provided by financing activities £3,090 £4,756

Opening cash balance £2,204 £2,313 £1,395

Closing cash balance £2,204 £2,313

CONFIDENTIAL 20

• High barrier to entry due to fundamental patents and technology

• Cross license with Apple on core patents

• Building out an exciting roadmap for low cost sensors

• A market ready for takeoff sparked by Apple

• Mobile market now, card market tomorrow, IOT the future…

• Limited competition in a multibillion volume market

• Valuable IP and attractive valuation vs competition

SUMMARY

CONFIDENTIAL 21

SUPPORTING INFORMATION

CONFIDENTIAL 22

IDEX PATENT FAMILIES FOR “SINGLE LINE” SWIPE FINGERPRINT SENSORS

SENSOR MODULE • The fingerprint sensor measurement

system • The implementation of IDEX’

electronics chip • EP1292 227B1 and 7,184,581

“SINGLE LINE” SWIPE SENSOR • Capacitive sensing principle • Image reconstruction based on single

line images • Measuring movement of finger • World wide exclusive licenses to IDEX • Essential for swipe sensors • EP0988614 and US 7,110,577 (and

continuations)

LIVE FINGER DETECTION • A system for characterization of the

physiological conditions of the human skin

• A fingerprint sensor which also can determine weather an object consists of living skin

• EP1503668 and US 7,856,262

NAVIGATION AND POINTING TOOLS • Fingerprint sensor that also can be

used for on-screen navigation and pointing, e.g. on mobile devices

• EP1312037 and US 7,129,926 • EP1328919B1 and 7,251,351

FINGERPRINT SENSOR WITH SUBSTRATE VIAS • Sensing part and electronics separated • Allows for polymer and PC based sensors • Electronics optimized independent from

sensing part • Thin, bendable sensors for card integration • EP1303828 and US 7,251,351 (polymer) • Silicon

CONFIDENTIAL 23

IDEX SINGLE LINE IMAGING VS. STITCHING

BASED ON MEASUREMENT OF FINGER MOVEMENT

0 100 200 300

50

100

150

200

250

300

no. of rows scanned

-100 0 100 200 300 400

100

200

300

400

500

BASED ON “STITCHING” OF PARTIAL IMAGES

ACCEPTED

Finger swipe direction +40

Enrolled fingerprint - normal swipe direction

CONFIDENTIAL 24

FINGERPRINT BIOMETRICS – SECURITY FOR MASS MARKETS

• Added security by multifactor authentication:

– Something you have; card

– Something you know; password

– Something you are; fingerprint

• Fingerprint biometrics

– Everyone has a unique fingerprint

– Reliable and secure authentication

– Compact readers, low cost and low power consumption

– Simple use for every-day, personal use

FINGERPRINTS IS OBVIOUS CHOICE DUE TO

LOW COST

IMMUNE TO ENVIRONMENTAL

PROVEN HERITAGE

1 2 3

CONFIDENTIAL 25

BALANCE SHEET

Balance sheet 2012 2011Amounts in NOK 1,000

ASSETS

Machinery and office equipment 626 939

Long-term receivables 332 325

Total long-term assets 958 1 264

Accounts receivable 17 19

Other receivables 3 715 3 161

Prepaid expenses 512 343

Total receivables 4 244 3 523

Cash and bank deposits 19 833 21 462

Total cash and bank deposits 19 833 21 462

TOTAL ASSETS 25 035 26 249

EQUITY AND LIABILITIES

Total paid-in-capital 143 949 111 632

Other equity (125 631) (92 266)

Total equity 18 318 19 366

Accounts payable 2 561 2 230

Public duties payable 906 471

Other short-term liabilities 3 250 4 182

Total liabilities 6 717 6 883

TOTAL EQUITY AND LIABILITIES 25 035 26 249

CONFIDENTIAL 26

BIOS LEADERSHIP TEAM Dr. Ralph Bernstein: CEO & CTO. At IDEX from 2006 bringing Smartfinger IP technology to market and achieving listing on Oslo Stock Exchange; Research Director in microsystems and nanotechnology and 15 years experience at Sintef, the leading R&D organisation in Norway. Ph.D in Physical Electronics from Norwegian Inst. Of Science and technology.

Morten Opstad: Chairman at IDEX since 1997. Partner and Chairman at Advokatfirma Raeder DA. Provided legal assistance with several technology innovation companies. Directorships include Thin Film ASA and cXense AS.

Erling Svela: CFO at IDEX since 2008. Extensive experience in various industries and listed companies. M.Sc in economics (Norway) and MBA from Henley. Certified European Financial Analyst.

Øyvind Slogedal: VP Business Development. At IDEX since 2006 driving technology innovation, product roadmaps and solutions with strategic partners. 15 years industrial experience. M.Sc in mechanical engineering (USA).

Kristian Wiermyhr: VP Strategy. Joined IDEX in 2013 to support strategic partner projects and investor relations. 20 years experience in financial sector in Norway and internationally. Served as senior partner in investment banks RS Platou Markets and ABG Sundal Collier.

Inge Berge: IR Officer and business developer at IDEX since 2012. Formerly associated partner in the PR and consulting firm First House. 20 years experience in the media industry as journalist, editor and owner including starting and managing three financial online businesses. B.Sc in finance from BI Norwegian Business School.

Robert Keith: Consultant for IDEX in 2013. Extensive strategic experience in investing in technology innovation businesses particularly in Norway and dealing with international partners. Established track record of significant value creation.

Dr Hemant Mardia: Strategy Consultant for IDEX in 2013. President of Axxcss Wireless Ltd. Formerly CEO at Filtronic Plc, a UK FTSE listed telecomms company. 28 years experience in technology and commercialising start ups, with leadership positions in the telecoms, security and defence sectors. Ph.D in signal processing from Leeds University (UK).

CONFIDENTIAL 27

TOP 20 SHAREHOLDERS Name Number of shares Per cent

A.S. Holding A/S 77 225 875 25

Charles Street International Ltd 37 107 236 12

Colargol Invest AS 17 500 318 5.7

Euroclear Bank S.A./N.V. (nominee) 16 997 966 5.5

MP Pensjon 7 500 000 2.4

Storebrand Vekst 7 385 514 2.4

Hedger Management SA 6 000 000 1.9

Lars Frithjof Rønne 5 700 000 1.8

Sven Christian Rønne 4 760 953 1.5

Marc O'Polo Norge AS 4 613 148 1.5

Six Sis AG (Nominee) 4 513 073 1.5

Big Top Holding AS 3 500 000 1.1

Stålhe Invest AS 3 257 282 1.1

Harald Voigt 3 115 443 1

Jens Andre Henriksen 3 070 000 1

Jon Ola Frankplads 3 014 200 1

Marit Høvding 2 947 342 1

Simen Falck Engelstad 2 487 788 0.8

Luum AS 2 284 696 0.7

Egge Gård AS 2 156 550 0.7

TOTAL 215 137 384 69.5

CONFIDENTIAL 28

IDEX ASA Rolfsbuktveien 17, NO-1364 Fornebu, Norway

THANK YOU

Phone: (+47) 67 83 91 19 EMAIL: mailbox@idex.no

CONFIDENTIAL