IDEX - Q1 presentation 20160511IDEX Q1 2016 PRESENTATION May 11, 2016 Dr.Hemant Mardia, CEO 2...
Transcript of IDEX - Q1 presentation 20160511IDEX Q1 2016 PRESENTATION May 11, 2016 Dr.Hemant Mardia, CEO 2...
©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¬ebooksSmartcardsIoT 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
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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
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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