NEXT BIOMETRICS - otc.nfmf.nootc.nfmf.no/public/news/13978.pdf · Ex. SONY ERICSSON CEO ......
Transcript of NEXT BIOMETRICS - otc.nfmf.nootc.nfmf.no/public/news/13978.pdf · Ex. SONY ERICSSON CEO ......
<<<<<
NEXT management team Inc Board of Directors and Advisory Board
Tore Etholm-Idsøe, CEO (MBA)
• CEO of NEXT Biometrics since 2004
• Extensive experience as business architect and
entrepreneur in a number of successful and fast
growing IT, retail and marketing concepts
• Former founding CEO of Binders AS
• Co-founder of UNIC-Gruppen AS,
Matias Troccoli, VP Technology (PhD)
• Joined Next in 2006 and manages all technology
projects from Seattle, where the engineering team
is based.
• Matias has 12 years’ experience within the area of
low temperature poly silicon (LTPS) technology and
systems: NEXT’s core production process
Vincent Su, Manger Taiwan (MBA)
• Prior to joining NEXT in 2013, he worked 2 years
as manager for Authentec Taiwan (acquired by
Apple)
• Vincent has 19 years of experience working for
international companies like Phoenix, Sandisk,
Insilicon and Seagate in the Taiwanese market
Ngoc Minh Dinh, Chief Technologist (MS)
• Inventor of the Active Thermal Principle and founder of the
Company
• More than 20 years experience within the area of
fingerprint sensor technology
• Focusing core sensor design research and development
activities
Robert Muller, System Level Fingerprint Technology
Expert (PhD)
• Joined NEXT in 2009
• Over 15 years experience within Biometrics, Smartcards,
Data security and NFC-Payments
• He has worked more than 10 years for Munich-based
Giesecke & Devrient - one of the world leading suppliers of
authentication-related security solutions
Dr Lunji Qiu, GM China Operations (PhD)
• Dr. Qiu previously held positions as VP and GM of
Authentec China, GM of Atrua China (acquired by
Authentec), GM of Broadcom China, and before this
multiple positions within Motorola in Singapore.
• Dr. Qiu will oversee all aspects of NEXT BIOMETRICS
China, including business development activities and the
expansion of the customer support, logistics and sales
teams in the largest world market.
TROND WENNBERG (FINANCING) / PROFESSOR MILTIADIS HATALIS (LTPS TECHNOLOGY) /
BRUCE GRANT (TELECOM, FINANCIAL, STRATEGIC) / BERT NORDBERG (TELECOM) /
MAX WU (IT-INDUSTRY, STRATEGIC) / JOAO NETO ( BRAZIL), X (INDIA) , NEW RESOURCES (2-3 HIGH LEVEL PERS.)
Board of Directors
JAN EIVIND FONDAL (CHAIRMAN) / KETIL FRIDHEIM (PAYMENT INDUSTRY EXECUTIVE) / NGOC MINH DINH (INVENTOR) /
TORE ETHOLM-IDSOE (CEO) / RALPH HØIBAKK (IT-INDUSTRY) / MARIT INSTANES (INVESTOR REPRESENTATIVE)
Advisory Board
Management
INCLUDING :
Ex. SONY ERICSSON CEO
Ex. ACER AMERICAS CEO
Ex. TANDBERG DATA CEO
2
NEXT
employees:
Seattle:
12
Taipei:
2
Shanghai:
5
Norway /
Germany:
3
++
10+ man-years
outsourced
<<<<<
The NEXT fingerprint opportunity
Fingerprint biometrics
market set to take off
Proven technology at
specs with credible mass
market references
Significant cost
advantage
3
Production cost reduced
by 70 – 80% vs
same quality
alternatives..
Patents, Mobile & IPO
NEXT BIOMETRICS GROUP AS
ESTABLISHED 2001
$ 14 MILL RAISED 2004-2013
$ 15.8 MILL RAISED SEPT 2013
<<<<<
SILICON AREA SENSORS
SALES PRICES $ 15 -30
COST PROBLEM
VOLUMES
(MILL UNITS)
CHECK-IN AT AIRPORTS
CORPORATE/PUBLIC ACCESS CONTROL
CORPORATE TIME & ATTENDENCE
MOBILE LAW ENFORCEMENT SYSTEMS
SAFES, GUNS, ETC……
MANY
CREDIBLE
EXISTING
REFERENCES
Credible mass market references
LEVEL OF SECURITY & CONVENIENCE
WORLD MARKET SYSTEM INTEGRATORS
DO NOT MAKE COMPROMISES ON…
-SENSOR SIZE
-SENSOR RESOLUTION
-SYSTEM ERGONOMICS
-ENROLMENT PROCEDURE
-USER GUIDANCE
-QUALITY OF ALGORITHM
<<<<<
«We have investigated every
biometric trait, the only solid
technology is fingerprint»
«Swipe sensors are inconvenient and
unreliable»
«We want to move away from swipe
sensors»
THE FINGERPRING SENSOR
MARKET NOW ENJOYS THE
STRONGEST POSSIBLE
DRIVERS
INDUSTRY LEADER
STATEMENTS AND ACTIONS
ALL CONFIRM THE UNIQUE
POSITIONING OF
THE NEXT TECHNOLOGY
The new industry drivers… Mass market biometric user authentication
Area sensor
launched
September 10th
2013
«Our intention is to obliterate User
IDs, Password and Pins, including in
enterprises around the world»
- Michael Baret, PayPal
5
<<<<<
100’EDS
10’S
1’S
VOLUMES
(MILL UNITS)
Existing market sensors
SILICON AREA SENSORS
Sales price $ 15 -35
Mass market disqualified
SILICON SWIPE SENSORS
Sales price $ 2-5
Poor quality & user experience
OPTICAL SENSORS
Sales price $ 4-30
Bulky format
6 LEVEL OF SECURITY & CONVENIENCE
2014
SMALL AREA SENSORS
Sales price $ 8-10
Fingerprint sensor market - 2013 Changes
x
<<<<<
100’EDS
10’S
1’S
The NEXT sensor…
VOLUMES
(MILL UNITS)
Production cost reduced
by 70 – 80% vs
same quality alternatives..
Opens new markets today using:
Pin codes, passwords, signature,
photo ID and/or physical keys
Competitive positioning – Going forward Unique value proposition
Existing market sensors
SILICON AREA SENSORS
Sales price $ 15 -35
Mass market disqualified
SILICON SWIPE SENSORS
Sales price $ 2-5
Poor quality & user experience
OPTICAL SENSORS
Sales price $ 4-30
Bulky format
7 LEVEL OF SECURITY & CONVENIENCE
2014
SMALL AREA SENSORS
Sales price $ 8-10
x
DEMO…
<<<<<
Players
The core technology
Area sensor technology
Thermal conductivity Capacitive sensing
A heat pulse is generated and a response measured by every
pixel An electrical radio frequency signal is generated and response
is measured by every pixel
Players
8
MULTILEVEL
DEFENCE :
5 APPROVED PATENTS
(ALL MAJOR MARKETS)
2 PENDING PATENTS
+
TRADE SECRETS
+
FIRST MOVER
ADVANTAGE
=
2-5 YEARS..
<<<<<
The importance of sensor size NEXT sensor size is defined by leading system integrators
NIST
RECOMMENDATION
256 mm2
AUTHENTEC ( DP)
230 mm2
NEXT BIOMETRICS
201 mm2
FINGERPRINTC (FPC)
AUTHENTEC (DP)
148 mm2
2014:
FPC & VALIDITY
100 mm2
iPhone 5S
64 mm2
Its small size is
outside of historic
system spec
Security level allow
access control and
payments on
iTunes
Convenient and secure mass market proven formats
Forced into smaller
area sizes due to
market verdict on
swipe sensors
+
high cost of silicon
Smallest sensor
area ever sold in
volumes to mass
market system
integrators
Size defined in
collaboration with
major world player
in payments and
public ID
No #1 in silicon
area sensor
markets
10 mill + sold
(and used)
FIPS approved
Recommended size
for one-to-one
matching
applications
is 16.4 *16.4 mm
Smaller formats
N/A Sales
price: USD 8 – 10
(Expected)
USD 15 - 20 (Historic / Present)
USD 28 – 35
(Historic / Present)
9
FPC – Q1 / Q2
VALIDITY – Q2 / Q3
<<<<<
Q1/Q2/Q3 – 2013…
10
<<<<<
Investment case summary
Fingerprint biometrics
market set to take off
Proven technology with
credible mass market
references
Significant cost
advantage over
competitors
Unique investment
opportunity
6
Production cost reduced
by 70 – 80% vs
same quality
alternatives..
Jan Mar May Jul Aug Sep
Second Lot of 25k Sensors
PCB Modules and USB
Sensors
200.000
ASIC’s
produced
Mobile
Module
Qualified
Android SDK w/Sensors
Delivered to Customer
Distribution, Logistics
&
Warehousing Deal
Signed
Production Ready
Mobile Module
<<<<<
Investment case summary
Fingerprint biometrics
market set to take off
Proven technology with
credible mass market
references
Significant cost
advantage over
competitors
Unique investment
opportunity
6
Production cost reduced
by 70 – 80% vs
same quality
alternatives..
PO Production Lot of
180.000 Sensors
ETA Nov.
1’st Smartphone
Project Initiated
$ 15.8 mill equity
raised
<<<<<
OCTOBER – 2013…
11
Week 1 Week 2 Week 3 Week 4
First commercial PCB-
module completed
Seattle staff with three new
experienced engineers.
Out of 11 Seattle engineers, five
speaks mandarin.
First silicon of new cost
and space saving
ASIC received in Seattle
<<<<<
Investment case summary
Fingerprint biometrics
market set to take off
Proven technology with
credible mass market
references
Significant cost
advantage over
competitors
Unique investment
opportunity
6
Production cost reduced
by 70 – 80% vs
same quality
alternatives..
INNOLUX CORPORATION CEO
and CTO pledges increased project
support
Hunter Hu recruited as Sales
Manager of NEXT China.
First complete phone
demonstrated to
NEXT in Asia (not this design)
2 experienced FAE’s recruited
in Shanghai
<<<<<
New sensor markets identified Existing sensor markets
PCs
Smartphone access
Flash drives
USB tokens (e.g. Chinese internet banking)
Smartcard reader
USB sensors (e.g. mouse and keyboards) Doors & Turnstiles
OTP generators
Global market for fingerprint biometrics is projected to
reach USD 10 billion by 2018
Source: GIA, “Fingerprint Biometrics: A Global Strategic Business Report”
(February 2013)
Significant “NEXT-enabled” growth opportunities Multiple applications identified for the sensor – the first contracts already in place
Time & Attendance Payment terminals
Biometric “Keyfobs”
Sales contract II • 3.6 million sensors • 12 million sensor min
target • Industry record size
Sales contract I • 4 million sensors • Grant support • Industry record size
12
Smartphone based MORE DEMANDING :
Payments Cloud access
Physical access
Existing fingerprint sensor markets represents the
fastest route to sales and profitability
Replacements of existing high cost capacitive area
sensors are margin-attractive targets
<<<<<
NEXT Smartphone Project #1 Shipping in volumes in Q1/14
Competitors w/ potential solutions NEXT’s sensor for smartphone
13
Q1-Q3 / 2014..
FINGERPRINTCARDS
& VALIDITY
USD 8 – 10 (Expected)
USD 5 – 8
Q4-13/Q1-14
NEXT
NEXT SENSOR SMARTPHONE
LAUNCHES IN CHINA IN DEC-13
<<<<<
ASIC size and cost road map Continuously working towards reducing size and cost
Module V1: - ASIC
- M0
- Miscl.
Module V0: - ASIC
- M0
- Miscl.
- Bias Ckt
Module V2: - SiP
- Miscl.
ASIC SIZE REDUCTION
TO
TA
L C
OS
T Oct. 2013
July 2013
Dec. 2013
Mar. 2014
Module V3: - SiP-cs
- Miscl.
Jun 2014
Demo Module: - ASIC
- M0
- Miscl.
- Bias Ckt
- Power IC
Power IC
Removed &
other
Considerations
Current Sources
Removed
Multi-Die Package
Lower Cost ASIC
* Total Listed Components (excl. Sensor, Coating, FPC & Assembly)
14
<<<<<
Asset light business model Contracts in place with highly renowned manufacturers and system integrators
Manufacturing
Assembly and
system
integration
Product development/
Sensor design
Partner Partner
NEXT team dedicated to
sensor design,
technology development
and IP
Production of the NEXT
sensors & ASICS
outsourced to leading
global manufacturing
partners
/ Partner
Sales &
Marketing
/ Partner
NEXT team dedicated to
sensor sales and
marketing
15
Market leading system
integrators will develop
a long range of
applications based on
NEXT technology
<<<<<
Significant “NEXT-enabled” growth opportunities Bottom-up model on identified market opportunities
0
50
100
150
200
250
300
350
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its (
millio
n)
EXISTING MARKETS
Projected sales level
based on existing and
new markets
MOBILE DEVICES
KEYFOBS
SENSOR SMARTCARDS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 16
Apple effect not included
2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
<<<<<
Financial forecasts
Revenues and gross margin ambitions
Q3
2014
10
15
20
25
0
-5
Q4
2015
Q3
2015
5
Q1
2015
Q2
2014
Q4
2014
Q2
2015
USD million
30
Q1
2014
Q4
2013
Q3
2013
17
Targeting positive cash generation from Q3 2014
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
60
Gross margin %
2015
164
2014
37
2013
0
USD million
0
120
30
45
165
15
75
90
105
135
150
Gross margin
Total Revenues
Firm contracts
Estimated revenue from first two contracts as % of total forecasted revenue:
2013 100%
2014 25%
2015 14%
<<<<<
Investment case summary
Fingerprint biometrics
market set to take off
Firm trends backing convenient security solutions that eliminates passwords and pin codes
Industry leaders’ (Apple, Microsoft, PayPal) statements and actions all support fingerprint
recognition as the superseding technology – iPhone 5S launched 10 September 2013
Already large existing markets such as Physical Access Control
Significant growth from new markets such as mobile phone expected from 2014
Proven technology with
credible mass market
references
NEXT’s proprietary and patented technology a result of more than 15 years of research
NEXT utilize area (touch) sensors, which are proven to be superior to the now
commonly used swipe sensors
The size of NEXT’s sensor is defined in collaboration with major global leaders in
payments and public ID – providing the required level of security
Significant cost
advantage over
competitors
Production cost currently significantly below competitors with area sensors due to
proprietary and patented technology
Capital light with manufacturing, assembly and integration outsourced to industry leaders
Clear cost road map with highly achievable goal of reducing cost by a further 66%
Unique investment
opportunity
Highly talented and experienced management team and Advisory Board
2 industry record sized sales contracts with revenues from Q4 -2013 signed
Smartphone development project with major Asian mobile phone producer
Opportunity to come in at attractive pricing level – IPO planned in Q2-2014
18