©2017 IDEX ASA©2017 IDEX ASA

IDEX ASA PRESENTATIONFOURTH QUARTER 2016

23 February 2017

Hemant Mardia, CEOHenrik Knudtzon, CFO

www.idex.no

©2017 IDEX ASA

DISCLAIMER

This quarterly presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for IDEX ASA (IDEX) and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the IDEX businesses, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although IDEX believes that its expectations and the information in this presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this presentation. IDEX ASA nor any other company within the IDEX Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the presentation, and neither IDEX ASA, any other company within the IDEX Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in this presentation. IDEX ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in this presentation.

2

©2017 IDEX ASA3

Leadership through innovation in fingerprint sensors

Differentiated technology enabling growth

©2017 IDEX ASA

COMMERCIALISATION IN THREE MASS MARKETS

4

Off chip technology

Leading smartcard adoption

Momentum in mobile

Traction in emerging IoT

Capacitive sensing platform

©2017 IDEX ASA

Silicon fingerprint sensors Off-Chip fingerprint sensors

ONLY VENDOR OFFERING FULL CAPACITIVE SENSOR PORTFOLIO

5

©2017 IDEX ASA

OFF-CHIP SENSING DIFFERENTIATION IN PERFORMANCE AND COST

6

ID & SmartCards

ID & Smartcards

Mobile

Internet of Things (IoT)

Flexibility across markets and applications

< 13mm silicon

Low cost and highly adaptable form factor

5x smaller IC

©2017 IDEX ASA

INVESTING TO DRIVE TECHNOLOGY LEADERSHIP

7

Next-generation ASIC platform….

• Advanced 65nm process with digital intelligence enhancing performance– Low energy consumption– On-board microcontroller supporting algorithms– Encryption engine

• Platform for multiple applications– Enabler for low cost contactless biometric cards

• Compelling price point– Small silicon footprint: die size ~12mm2

– Produced on 12 inch wafers

• Direct sourcing from TSMC foundry partner– High quality production with significant capacity

…with lowest cost vs performance in the industry

Sensor products ready for sampling in Q2 2017 - Mass production expected to start in 2H 2017

©2017 IDEX ASA

OFF-CHIP IDEAL FOR NEXT GENERATION BIOMETRIC APPLICATIONS

2017 2018 2019 2020 2021 2022

8

INDICATIVE ADOPTION*

Current mobile solutions: glass and coated buttons

Smartcards

Leveraging product differentiation to drive growth and profitability in target segments

> 3 billion units

Rigid IoT

*Source: IDEX estimates, Statista and Gartner

©2017 IDEX ASA

FURTHEST STAGE IN MASS DEPLOYABLE BIOMETRIC CARDS

Diverse mass market opportunity

Off-chip sensing technology uniquely suited for standard cards

End-to-end solution developed with top tier partners

Advanced commercial status for global deployment

9

IDEX targets #1 position in biometric smartcards

©2017 IDEX ASA

IDEX SMARTCARD MARKET OPPORTUNITY

10

Banking

ID

Other

Financialinclusion

Access

Card integrators Market enablers End customers

Benefits distribution

Differentiation

Enhanced security

Banking

Government

Other

Government

Enterprise Convenience

Value driverMarket verticals

©2017 IDEX ASA

OFF-CHIP TECHNOLOGY UNIQUELY SUITED FOR CARDS

11

Large image size• Enhanced user experience• Superior biometrics with limited processing

Flexible • Sensor is thin polymer, not brittle silicon

Low cost • Polymer sensor, small silicon footprint <13 sq mm• High level of integration with on-board controller

Low powerconsumption

Strong IP • Extensive patents and innovative roadmap

• Contact & contactless power harvesting from POS terminals• Card operation without batteries

©2017 IDEX ASA

END-TO-END SOLUTION FOR COMMERCIAL DEPLOYMENT

12

Compatible with card

manufacturingprocess

Designed intomass

enrolmentsystem

Compatible with existingpoint of sales

terminals

Manufacturing Bank Retail

©2017 IDEX ASA

Level of commercial maturity

ADVANCED STAGE TOWARDS COMMERCIAL ADOPTION

13

Strategic partnerships ISO compatibility End user testing Certification Commercial deployment

Global paymentprovider

Card integrators

Integrated in ISO standard cards

ISO card bendingtests passed

Provencompatibility withcontact POS

Readiness for cardproduction

ASIC for contactlesssensor completed

Successful live pilot with global paymentpartner

Commercial orders to support customer trials

End-customertrials underway

• Securecertificationprocess

• Commercial deployment at programme with global payment provider

• Banking and financial inclusion

• ID

• Access control

• Other

Expanded engagement to multiple tier one partners - Multiple market opportunities

©2017 IDEX ASA

IDEX STRATEGY FOR THE MOBILE MARKET

2017 2018 2019 2020 2021 2022

Coated button Glass button In-display

14

IDEX offers solutions to capture market growth now and for the next generation

INDICATIVE ADOPTION*

Current: Coated buttons• Commercial momentum with

Cardinal silicon sensor

Next generation: Flexible OLED• Technology development

Interim: Ceramic/ glass buttons• Q117 launch of Cardinal

ceramic & glass sensors

*Source: IDEX estimates, Statista and Gartner

©2017 IDEX ASA

MOMENTUM IN MOBILE – MORE THAN 3 MILLION UNITS SHIPPED

Dec '15 Feb '16 Apr '16 Jun '16 Aug '16 Oct '16 Dec '16 Feb '17 Apr '17 Jun '17

15

Major Asianmobile customer

Chinese mobilecustomer

• 8 mobile design wins, 3 launches and 3 customers with Cardinal sensor• Production orders received in advance of further smartphone launches• Ongoing qualification of off-chip sensor with tier one OEM

Design win

Market launchL

L

L

L

L L L L

LIndicativemarket launchDW

DW

DW

DW

DWDWDWDW DW

L

©2017 IDEX ASA

NEW GLASS & CERAMIC BUTTON SOLUTION LAUNCHED

IDEX expands mobile product portfolio

• Meets OEM demand for ´glass look and feel´ for the front of smartphone through existing volume supply chain

• New glass and ceramic range based on Cardinal architecture in partnership with CanvasBio

• Strong biometric performance and competitive cost

• To be showcased at MWC and sampling in Q2

16

©2017 IDEX ASA

IDEX IS INVESTING IN NEXT GENERATION MOBILE SOLUTIONS

IDEX off-chip capacitive sensing ideally suited

• Same architecture as touch panels

• Competitive for large size sensors

• Sensor made of polymer material

17

Market development towards infinity displays

• Lower cost solutions with larger capacitive sensors on the back of the handset

• Flagships can support costly in-display sensors

• New sensor technologies emerging –capacitive sensors proven

Investment prioritised on intercepting mobile display evolution

• Appointed VP Product Marketing from Synaptics

• Hired team of display integration experts

• Re-focus development resources from in-glass

©2017 IDEX ASA

IDEX OFF-CHIP SENSOR IN MULTIPLE NEW IOT PRODUCTS

18

SidePassTM for Windows

IDEX’s sensor selected due to strong value proposition

• Biometric performance demands medium to larger sized sensor

• Compelling cost

• Great flexibility in sensor material and form factors

-- Pursuing selected emerging opportunities with current products --

New USB readers

The TouchLockTM line of padlocks

Q-180 Touch, a Micro USB for Android devices FreePassTM, a wearable for Windows

©2017 IDEX ASA

China

Boston

Norway

UK

South Korea

Rochester

SCALING TO CAPTURE MARKET GROWTH

19

San Jose

Strengthened technical team to accelerate product development

• Organisation grown from 65 to 92 over 2016 including outsourced software team

• Strengthening prioritised segments: cards and mobile display integration

US/ Rochester: Silicon Centre of Excellence

US/ Boston: Advanced Sensor Technology & Software

UK: Card Product Development

Silicon Valley: Appointed Paragon Technical as sales agent

China: FAE Team

Appointed Comtech as distributor

Norway: Head office

©2017 IDEX ASA

KEY MILESTONES AND OUTLOOK

• Smartcard payment programme with strategic partners

- Completion of customer trials Q2 2017

- Commercial launch 2H 2017

• Launch of low power flexible sensor for contactless cards in Q2 2017

- Mass production in 2H 2017

20

• Sampling of silicon-based glass and ceramic sensor products after MWC

• Smartphone launches and additional design wins

• Product pipeline from new low power ASIC platform

• Increased shipments to IoT customers

©2017 IDEX ASA21

FOURTH QUARTER KEY FINANCIALS

10

0 0

80

10

15

5

70

50

40

30

20

60

14

53

17

6

8

7

12

7

23

57

10

Q3 16

47

12

25

40

73

37

Q4 16

22

4

Q4 15

32

Q1 16

25

45

Q2 16

21

27

R&DPayrollRevenues Other Op.Ex

Growth in revenue, mostly from LG programmes

• 2016 revenues of NOK 38.6 million

• Q4 revenues of NOK 12.5 million

Gross margin of 15 per cent in 2016

• Mainly Cardinal sensors

• Initial volumes of Eagle

Operating expenses

• Underlying salary increasing due to staff expansion

• Q4 R&D cost lower due to completion of new ASIC platform

Quarterly revenuesNOK million

Quarterly OPEX NOK million

©2017 IDEX ASA22

STRONG BALANCE SHEET WITH USD 64M CASH, NO DEBT

533579

623

683

764

0

100

200

300

400

500

600

700

800

Q3 16Q1 16Q4 15 Q2 16 Q4 16

Net cash position by quarterNOK million

Fourth quarter cash outflow ofNOK 47 million

• EBITDA of NOK -47 million

• Working capital increase of NOK 6 million

Strong cash balance of NOK 533 million

©2017 IDEX ASA

IDEX VALUE PROPOSITION

23

Huge market potential

Three target markets – each with multi-billion unit potential

Unique technology Off-chip technology offers differentiation with flexible sensors and competitive cost

Strong IP portfolio One of the industry’s strongest patent portfolios in capacitive sensing

Talented organisation

Expanded organisation with extensive industry experience

Solid financial position

Strong balance sheet with USD 64 million, no debt

©2017 IDEX ASA©2017 IDEX ASA

THANK YOU

All information is provided “as is” and without warranty or representation.

©2017 IDEX ASA

IDEX AT A GLANCE

Fingerprint imaging, recognition and authentication• Designed specifically for mass-market solutions

Fundamental IP assets in fingerprint sensing• 45 granted and pending patent families

Oslo, Norway; Silicon Valley, Boston, US; UK and Far East • Offices with ~100 staff

Oslo Stock Exchange, ~2500 shareholders• Market Cap: ~NOK 3,950 million|USD 460 million• Investors, including Invesco & Funds managed by Woodford

Executives from Validity, Synaptics and AuthenTec

UNIQUE TECHNOLOGY

STRONG PATENTS

GLOBAL OPERATION

PUBLIC LISTED PUBLICLY LISTED

Mobile, Smart and ID cards, IOTGROWTH MARKETS

EXPERIENCED LEADERSHIP