©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&notebooksSmartcardsIoT 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

11/08/201610

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

14 11/08/2016

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