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1010 00111000010 110101010101011 0010100100110110 101000111100101010 1000111001010111001 0101000101001110001 01100110010100001 0100110101001 0110010 Third quarter 2012 - Exciting times! Commercial agreement and private placement secured 9/11: Commercial agreement with European OEM 9/11: Successful private placement Top tier industrial partner opportunities in progress Rebuilding supply-chain and adding new manufacturing prospects Customer commissioned feasibility study completed

Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

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Page 1: Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

1010 ! 00111000010 ! 110101010101011! 0010100100110110! 101000111100101010! 1000111001010111001! 0101000101001110001! 01100110010100001! 0100110101001! 0110010!

Third quarter 2012 - Exciting times!

Commercial agreement and !private placement secured"

•  9/11: Commercial agreement with European OEM!

•  9/11: Successful private placement!

•  Top tier industrial partner opportunities in progress!

•  Rebuilding supply-chain and adding new manufacturing

prospects!

•  Customer commissioned feasibility study completed!

Page 2: Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

Connectivity anytime and anyplace for anything"IDEX’ vision: !

A massive amount of new services and businesses will become enabled by biometric authentication!

–  using personal, connected, portable biometric devices carrying biometric information and a person’s credentials!

–  empowering Bring Your Own Device (BYOD), mobile payment, NFC, cloud services, access control and much more!

IDEX confidential!

Huge Market Opportunities!

2014 estimates"

•  800 million non-Apple smart phones !

•  400 million non-Apple computers/tabs!

•  100 million portable biometric devices. !

•  900 million contactless cards!

Page 3: Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

The mobile payment battle has started!

A game changer in the mobile market: “Apple buys mobile security firm AuthenTec for $356 million”!

«MasterCard readies e-wallet services» (MarketingWeek) !

«Google ups the ante in wallet wars» (MarketWatch)!

«Mobile payment will reach $1.3 trillion in 2017» (Juniper Research)!

« Within five years 54 percent of the mobile transactions worldwide will take place via remote purchases and near field communication (NFC) transactions communications».!

!

!

The start of the card revolution!

EuroSmart 7/11-2012!

Contactless card shipments"

•  Contactless payment cards shipments will grow 33% from 2012 to 2013 !

•  IDEX SmartFinger Film®; the only on-card biometric sensor solution complying smartcard form factors!

•  IDEX partner with UINT in the European project, BIRDS, that aims to develop a contactless payment card with an embedded biometric sensor !

Page 4: Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

Embedded: What you touch is yours!!

•  Major new contract"in november"

!!!!!!!•  Internet of things

in 2020 at least 24 billion connected devices!

•  AuthenTec customers looking for a replacement"

•  eGo market initiativ in 2013"

!

IDEX’ Holistic Strategy!

Credentials!

Mobile OEMs"

• Handsets, portable terminals and connectivity "

Google/MSoft"

• OS and services"• Content"• Payment"

IDEX"• Private and

secure on-device biometric authentication"

!!!

IDEX has a strong IP and

patent portfolio!!

Established and proven key

hardware and software blocks !

!Products with

key competitive advantages !

!

Identified mass volume market opportunities and

a customer base of ten early adopters!

!A strong and competent team holding expertise

within biometric technology and markets!

!IDEX is a public

company listed on the Oslo Stock exchange!

!

Page 5: Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

IDEX SmartFinger® going mobile"

Click on the picture!!

IDEX confidential!

Cost!

Eas

e of

use!

Low cost;!laptops, !

smartphones,!key-fobs!

!

Rub!

Touch!

A sensor option for every applications!

Swipe !

Medium cost; smartphones!

Higher cost; high security.!ease of use.!

governmental!

IDEX’ IP and technology enables best

in class performance, low cost and power

consumptions for every applications !

Page 6: Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

Financials 30 September 2012!

Profit and loss statements!Consolidated interimStatements of comprehensive income

1 July-30 September

1 July-30 September

1 January-30 September

1 January-30 September

1 January-31 December

Amounts in NOK 1,000 2012 2011 2012 2011 2011

Operating incomeSales and services revenue 455 64 1 026 80 99 Other operating revenue 890 482 2 413 482 1 224 Total revenue 1 345 546 3 439 562 1 323

Operating expensesPayroll expense 4 356 3 663 14 706 12 789 17 696 Research and development expenses 2 372 4 303 9 685 11 094 13 481 Other operating expenses 2 347 1 906 7 644 5 552 7 632 Total operating expenses 9 075 9 872 32 035 29 435 38 809

Profit (loss) before interest, tax, depreciation and amortization (EBITDA) (7 730) (9 326) (28 596) (28 873) (37 486) Depreciation 78 61 236 173 245 Profit before interest and tax (EBIT) (7 808) (9 387) (28 832) (29 046) (37 731)

Financial income and expensesInterest income 30 111 150 226 348 Other financial income 27 4 62 38 66 Interest expense Other financial expense (25) (7) (71) (22) (38) Net financial items 32 108 141 242 376

Net result before tax (7 776) (9 279) (28 691) (28 804) (37 355) TaxesNet profit (loss) for the period (7 776) (9 279) (28 691) (28 804) (37 355)

Page 7: Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

Balance sheets – assets!Consolidated interim balance sheets 30 September 30 September 31 December

Amounts in NOK 1,000 2012 2011 2011

ASSETSLong-term assetsFixed assetsMachinery and office equipment 703 792 939 Total fixed assets 703 792 939

Financial assetsLong-term receivables 325 319 325 Total financial assets 325 319 325

Total long-term assets 1 028 1 111 1 264

Current assetsReceivablesAccounts receivable 3 19 Other receivables 2 227 1 798 3 161 Prepaid expenses 524 713 343 Total receivables 2 754 2 511 3 523

Cash and bank depositsCash and bank deposits 5 683 29 180 21 462 Total cash and bank deposits 5 683 29 180 21 462

Total current assets 8 437 31 691 24 985

TOTAL ASSETS 9 465 32 802 26 249

Balance sheets –equity and liabilities!

Consolidated interim balance sheets 30 September 30 September 31 December

Amounts in NOK 1,000 2012 2011 2011

EQUITY AND LIABILITIESEquityPaid-in-capitalShare capital 42 343 40 794 40 794 Share premium reserve 71 625 63 418 63 429 Other paid-in capital 11 098 6 268 7 409 Total paid-in-capital 125 066 110 480 111 632 Other equity (120 958) (83 715) (92 266) Total equity 4 108 26 765 19 366

LiabilitiesShort-term liabilitiesAccounts payable 1 654 2 104 2 230 Public duties payable 520 634 471 Other short-term liabilities 3 183 3 299 4 182 Total short term liabilities 5 357 6 037 6 883

Total liabilities 5 357 6 037 6 883

TOTAL EQUITY AND LIABILITIES 9 465 32 802 26 249

Page 8: Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

Cash flow statements!

Consolidated interim cash flow statements

1 July-30 September

1 July-30 September

1 January-30 September

1 January-30 September

1 January-31 December

Amounts in NOK 1,000 2012 2011 2012 2011 2011Profit (loss) before interest and taxes (7 808) (9 387) (28 832) (29 046) (37 731) Share-based remuneration (equity part) 1 315 1 166 3 689 3 267 4 409 Depreciation 78 61 236 173 245 Interest paid Change in working capital and other items 40 (2 424) (766) (455) (608) Net cash flow from operational activities (6 375) (10 584) (25 673) (26 061) (33 685)

Purchases of property, plant and equipment (333) (552) Change in long-term receivables (7) Interest received 30 111 150 226 348 Net cash provided by investing activities 30 111 150 (107) (211)

Share issues (19) 11 586 9 744 42 699 42 709 Paid-in, not registered share capital (176) Net cash provided by financing activities (19) 11 410 9 744 42 699 42 709

Net change in cash and cash equivalents (6 364) 937 (15 779) 16 531 8 813 Opening cash balance 12 047 28 243 21 462 12 649 12 649 Closing cash balance 5 683 29 180 5 683 29 180 21 462

Changes in equity!

Consolidated interimstatements of changes in equity Share Share Other

Retained earnings Total

Amounts in NOK 1,000 capital premium paid-in capital (uncovered loss) equity

Balance 1 January 2012 40 794 63 429 7 409 (92 266) 19 366 Share issues 1 548 8 196 9 744 Share-based compensation 3 689 3 689 Total comprehensive income for the period (28 691) (28 691) Balance 30 September 2012 42 342 71 625 11 098 (120 957) 4 108

Balance 1 January 2011 32 240 29 274 3 000 (54 911) 9 603 Share issues 8 554 34 145 42 699 Share-based compensation 3 267 3 267 Total comprehensive income for the period (28 804) (28 804) Balance 30 September 2011 40 794 63 419 6 267 (83 715) 26 765

Balance 1 January 2011 32 240 29 274 3 000 (54 911) 9 603 Share issues 8 554 34 155 42 709 Share-based compensation 4 409 4 409 Total comprehensive income for the period (37 355) (37 355) Balance 31 December 2011 40 794 63 429 7 409 (92 266) 19 366

Page 9: Third quarter 2012 - Exciting times! - IDEX Biometrics · within biometric technology and markets!! IDEX is a public company listed on the Oslo Stock exchange!! ... IDEX presentation

IDEX - the obvious choice!

3 players fighting for 800 million devices"

•  IDEX known for best image quality and speed!

•  Best IP and Patent portfolio!

•  Most flexible due to patented Via technology!

•  IDEX aims for cost effective-solutions !

Immense opportunities for IDEX"•  The final confirmation of mass adoption of fingerprint biometrics!•  Representing a game changer within secure mobile payments, mobile

banking, online commerce ID and access!•  IDEX one of very few players with early, unique, core IP in the business"•  Increased enquires from AuthenTec’s customer base!Not only mobile:"•  Cloud security and Internet of Things"

–  In 2020 24 billion devices will be connected through the IoT !–  Fingerprint biometrics is the obvious choice for personal security and

privacy!•  Contactless biometric cards"

–  On-card fingerprint systems allows secure contactless transactions and reduce the risk of skimming. !

–  Virtually no competition"