IDEX company presentation. January 2009

Transcription

1 IDEX company presentation January 2009

2 About IDEX ASA IDEX ASA is a public company traded on the Oslo OTC list. IDEX is headquartered near Oslo, Norway with its US office in Foster City, California. IDEX has released the SmartFinger IX 10-4 swipe fingerprint sensor based on our patented sensor technology, chip solution and imaging principle. 2

3 Our business IDEX invents, develops and delivers fingerprint sensor technology. 3

4 The landscape we explore IDEX single line sensor array, pitch: mm Human fingerprint pitch: ~ 0.6 mm Picture by James Sullivan 4

5 Sensor geometries Area sensors A full fingerprint area image is acquired directly. Large size, high cost. Swipe sensors The finger is swiped and the fingerprint image is reconstructed from a sequence of partial images. Small size, low cost. 5

6 The SmartFinger IX 10-4 The SmartFinger microsystem includes a protectively coated silicon sensor chip, an integrated electronic circuit, electrostatic discharge protection and the software algorithms. 6

7 We have made the world s best swipe fingerprint sensor! 7

8 SmartFinger features Biometric authentication Navigation Pointing Tap/double tap Scrolling Power saving and wake up functionality 8

9 The market opportunities

10 The blockbuster potential for swipe sensors Close to 2 billion USD in 2014 on consumer products. Silicon fingerprint sensor revenue forecast Revenue (USD million) Year (Frost & Sullivan) 330 million sensors Physical access Wireless Notebook PCs 10

11 The mobile phone market; A huge opportunity Mobile handsets # shipment forecast Sensor shipments for mobile phones as forecasted by Frost & Sullivan; Largely underestimated? A market penetration of 20% amounts to 400 million sensors Total High end share Sensor shipment forecast (Frost& Sullivan)

12 Case example: The rapid adoption of cameras on mobile phones 12

13 The laptop market 20% of laptops ship with fingerprint sensors. ~25 million fingerprint laptops in The main suppliers to the laptop market at present: Authentec Validity UPEK 13

14 A fast growing demand in the mobile phone market 40 fingerprint mobile models in the market. ~ 8 million fingerprint phones in Atrua and Authentec main suppliers. A sensor price level at USD 2 is prerequisite for this market to take off. 14

15 Additional important emerging markets Personal biometric devices and tokens. ID cards, bank cards, and smartcards. Point-of-sales terminals. Embedded products (door locks, cars etc.). 15

16 The Smartcard market The recent 'Payments and Settlement System Act' is expected to bring in stringent norms for the banking industry and the third-party vendors, ensuring that all payments are made through secure gateways. In addition to the existing PINs and passwords, banks are expected to follow the biometric way, ensuring that biometrics as a means to security is integrated with the existing security layer. 16

17 VISA 17

18 IDEX -The only fingerprint sensor company in this market offering IP and technology licensing The semiconductor manufacturers will become the major suppliers of fingerprint sensors in order to obtain the cost structure required to make the high volume markets to take off. The mobile phone and PC makers will prefer to build on their partnerships with vendors offering well established manufacturing capability, quality management, distribution and support. To take a part in this potentially USD 1.5 billion market (2014) IDEX main business model is to offer licensing partnerships with these manufacturing companies based on the SmartFinger technology and IP. The high biometric performance, ease of integration, and usability of the IX 10-4 also puts IDEX in a very strong position to supply components in a variety of medium volume/large margin markets. 18

19 Business models IDEX IP Technology Design IX 10-4 implementation Components Value-adding Products Software Medium volume OEMs Door locks Point of sales Health Components ( Buy-back ) License Manufacturing partner Components Marketing & sales Distribution Support Components High volume OEMs Mobile phones Laptops USB sticks End user 19

20 The IDEX SmartFinger technology

21 An extensive patent portfolio 14 patent families in USA, Europe and Asia from 1997 and onwards. Image reconstruction scheme based on a single-line sensor. AC capacitive sensing principle. Pointing and navigation functionality. Single-chip and chip scale module solution. Measurement System. Live Finger detection. 21

22 SmartFinger - Main differentiators. Excellent biometric performance: High security, low false rejections. Swipe speeds up to 60 cm/s. Unmatched skew correction. High dynamic range; accepts wet and dry fingers. Ease of integration. The dual chip solution. 22

23 Ease of integration Flat surface; all connections at the rear side of sensor. Sensor chip thickness less than 0.8 mm. High flexibility in material choice and packaging solutions. 23

24 Status The IX 10-4 fingerprint sensor has been successfully realized by industrially established manufacturing processes. Development modules are available for evaluation by potential customers. A demo application including image capture, authentication and navigation is available. A Software Development Kit (SDK) is available. The IX 10-4 is now running with the end-to-end software suite that is bundled with major fingerprint laptop brands. The next generation fingerprint sensors are under development. 24

25 Business models and forecast

26 Licensing and product business models To be part of the very high volume markets IDEX offers licensing partnerships with manufacturing companies based on the SmartFinger technology and IP. The performance and usability of the SmartFinger also puts IDEX in a position to provide products to a variety of medium volume/large margin markets. 26

27 Business model based on licensing and value-added product sales. The figure illustrates the combination of business based on revenue from royalty as well as value-added products. The products can be based on a buy-back agreement with the semiconductor manufacturers and could include sensors, modules and software Revenue Year Royalty 1 Royalty 2 Products gross profit Total revenues 27

28 Business vision IDEX will be one among ~5 technology providers in a market forecasted at USD 1,600 million in Manufacturing costs constitutes 50%, and hence 800 million left for component and technology suppliers. Assuming 25% of the revenue to the technology and IP providers, i.e. 40 million USD each. 28

29 Conclusion IDEX has extensive and strong IP portfolio. IDEX has demonstrated one of the highest performing fingerprint sensors based on the SmartFinger technology. The biometric market grows rapidly (67% i 2009). There is a large potential for silicon swipe sensor in consumer products such as laptop PCs and mobile phones. The adoption of fingerprint biometrics by governmental and public sector programs will open for new medium volume products. IDEX offers a unique business model enabling semiconductor manufacturers to take part in this market. 29

30 IDEX invents the ID of you 30

31 Appendix

32 Top 20 shareholders VPS as at 13 January

33 Financials Latest published report: Q3/2008

34 Consolidated Profit and Loss Statement Unaudited. Amounts in NOK 1,000 1 Jul-30 Sep 1 Jul-30 Sep 1 Jan-30 Sep 1 Jan-30 Sep 1 Jan-31 Dec Operating income Sales revenue Other operating revenue Total revenue Operating expenses Payroll expense Share-based remuneration (139) Research and development expenses Other operating expenses Total operating expenses Profit (loss) before interest, tax, depreciation and amortization (EBITDA) (3 715) (12 504) (12 531) (33 995) (32 553) Depreciation Profit before interest and tax (EBIT) (3 719) (12 506) (12 545) (34 005) (32 565) Financial Income and Expenses Interest income Other financial income Interest expense (553) (2 000) (1 650) (2 001) (1 690) Other financial expense (3) (1) (4) (26) (35) Net financial items (514) (1 989) (1 445) (1 883) (1 107) Net result before tax (4 233) (14 495) (13 990) (35 888) (33 672) Taxes - - Net profit (loss) for the period (4 233) (14 495) (13 990) (35 888) (33 672) Profit (loss) per share -basic and diluted (NOK.øre) (0.15) (0.70) (0.48) (1.73) (1.53) 34

35 Consolidated Balance Sheet 30 Sep Sep Dec 2007 Unaudited. Amounts in NOK 1,000 ASSETS Long-term assets Fixed assets Machinery and office equipment Total fixed assets Financial assets Long-term receivables Total financial assets Total long-term assets Current assets Receivables Account receivables 29 - Other receivables Prepaid expenses Total receivables Cash and bank deposits Cash and bank deposits Total cash and bank deposits Total current assets TOTAL ASSETS

36 Consolidated Balance Sheet 30 Sep Sep Dec 2007 Unaudited. Amounts in NOK 1,000 EQUITY AND LIABILITIES Equity Paid-in-capital Share capital Share premium reserve Other paid-in capital Total paid-in-capital Other equity (27 505) (35 862) (15 207) Total equity (3 315) (22 815) (741) Liabilities Short-term liabilities Short-term loan Account payable Public duties payable Other short-term liabilities Total short term liabilities Total liabilities TOTAL EQUITY AND LIABILITIES

37 Consolidated Cash Flow Statement Unaudited. Amounts in NOK 1,000 1 Jul-30 Sep 1 Jul-30 Sep 1 Jan-30 Sep 1 Jan-30 Sep 1 Jan-31 Dec Profit (loss) before taxes (4 233) (14 495) (13 990) (35 888) (33 672) Depreciation Change in receivables (275) (391) (49) (1 140) 63 Change in payables (2 440) (1 575) Net change in other items Cost of share-based remuneration (139) Net cash flow from operational activities (4 262) (5 029) (15 911) (16 012) (30 813) Investments (40) Net cash provided by investing activities (40) Issuance of shares (net) Change in long-term receivables (45) Change in short-term loan Net cash provided by financing activities Net change in cash and cash equivalents (5 029) (5 076) (15 517) (1 413) Opening cash balance Closing cash balance Consolidated Statement of Changes in Equity Unaudited. Amounts in NOK 1,000 1 Jul-30 Sep 1 Jul-30 Sep 1 Jan-30 Sep 1 Jan-30 Sep 1 Jan-31 Dec Equity at start of period (9 811) (8 917) (741) Issuance of shares Share issuance costs (100) (100) (2) (347) Convertible loan Share-based compensation (139) Net result for the period and other items (4 228) (14 471) (13 985) (35 852) (33 672) Equity at end of period (3 315) (22 815) (3 315) (22 815) (741) 37