IDEX ASA. DNB SME Conference, April 2017 IDEX.NO

Transcription

1 IDEX ASA DNB SME Conference, April 2017 IDEX.NO

2 DISCLAIMER This 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

3 LEADERSHIP THROUGH INNOVATION IN FINGERPRINT SENSORS DIFFERENTIATED TECHNOLOGY ENABLING GROWTH 3

4 IDEX AT A GLANCE UNIQUE TECHNOLOGY HUGE GROWTH MARKETS Fingerprint imaging, recognition and authentication Only vendor offering full capacitive sensor portfolio Designed specifically for mass-market solutions Smartcards, Mobile and IOT EXPERIENCED LEADERSHIP Executives from Validity, Synaptics and AuthenTec GLOBAL OPERATION Oslo, Norway; Silicon Valley, Boston, US; UK and Far East Offices with ~110 staff PUBLICLY LISTED STRONG PATENTS Oslo Stock Exchange, ~2,500 shareholders Market Cap: ~NOK 4 billion USD 465 million Investors, including Invesco & Funds managed by Woodford Fundamental IP assets in fingerprint sensing 49 granted and pending patent families

5 COMMERCIALISATION IN THREE MASS MARKETS Leading smartcard adoption Off chip technology Momentum in mobile Traction in emerging IoT Capacitive sensing platform 5

6 ONLY VENDOR OFFERING FULL CAPACITIVE SENSOR PORTFOLIO Silicon fingerprint sensors Off-Chip fingerprint sensors 6

7 OFF-CHIP SENSING DIFFERENTIATION IN PERFORMANCE AND COST Low cost and highly adaptable form factor Flexibility across markets and applications ID & Smart Cards ID & Smartcards < 13mm silicon Mobile 5x smaller IC Internet of Things (IoT) 7

8 OFF-CHIP IDEAL FOR NEXT GENERATION BIOMETRIC APPLICATIONS INDICATIVE ADOPTION* > 3 billion units Smartcards Current mobile solutions: glass and coated buttons Leveraging product differentiation to drive growth and profitability in target segments *Source: IDEX estimates, Statista and Gartner 8

9 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 IDEX targets #1 position in biometric smartcards 9

10 IDEX SMARTCARD MARKET OPPORTUNITY Market verticals Card integrators Market enablers End customers Value driver Financial inclusion Government Benefits distribution Banking Banking Differentiation ID Government Enhanced security Access Enterprise Convenience Other Other 10

11 OFF-CHIP TECHNOLOGY UNIQUELY SUITED FOR CARDS 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 power consumption Contact & contactless power harvesting from POS terminals Card operation without batteries Strong IP Extensive patents and innovative roadmap 11

12 END-TO-END SOLUTION FOR COMMERCIAL DEPLOYMENT Manufacturing Bank Retail Compatible with card manufacturing process Designed into mass enrolment system Compatible with existing point of sales terminals 12

13 ADVANCED STAGE TOWARDS COMMERCIAL ADOPTION Strategic partnerships ISO compatibility End user testing Certification Commercial deployment Global payment provider Card integrators Integrated in ISO standard cards ISO card bending tests passed Proven compatibility with contact POS Readiness for card production Successful live pilot with global payment partner Commercial orders to support customer trials End-customer trials in progress Secure certification process Commercial deployment at programme with global payment provider ASIC for contactless sensor completed Banking and financial inclusion ID Level of commercial maturity Access control Other Expanded engagement to multiple tier one partners - Multiple market opportunities 13

14 IDEX STRATEGY FOR THE MOBILE MARKET INDICATIVE ADOPTION* Coated button Glass button In-display Current: Coated buttons Commercial momentum with Cardinal silicon sensor Interim: Ceramic/ glass buttons Ceramic & glass sensors recently introduced Next generation: Flexible OLED Technology development *Source: IDEX estimates, Statista and Gartner IDEX offers solutions to capture market growth now and for the next generation 14

15 IDEX IS INVESTING IN NEXT GENERATION MOBILE SOLUTIONS Market development towards infinity displays Samsung S8 recently launched with infinity edge-to-edge display Two expected developments: Fingerprint sensors move to the back of the handset and grow in size Ultimately sensors are embedded in the display IDEX off-chip capacitive sensing ideally suited Competitive cost position for larger sensors Same architecture as touch panels Sensor made of polymer material Investment prioritised on intercepting mobile display evolution Hired team of display integration experts 15

16 IDEX VALUE PROPOSITION 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 Talented organisation Expanded organisation with extensive industry experience Solid financial position Strong balance sheet with USD 64 million, no debt Strong IP portfolio One of the industry s strongest patent portfolios in capacitive sensing 16

17 Appendix

18 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 D W Design win DW L DW L L L Market launch Indicative market launch Major Asian mobile customer DWDWDWDW DW L L L L L Chinese mobile customer DW L 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

19 SCALING TO CAPTURE MARKET GROWTH UK: Card Product Development Norway: Head office US/ Rochester: Silicon Centre of Excellence Norway US/ Boston: Advanced Sensor Technology & Software San Jose Boston Rochester UK China South Korea China: FAE Team Appointed Comtech as distributor Silicon Valley: Appointed Paragon Technical as sales agent 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 19

20 FOURTH QUARTER KEY FINANCIALS Quarterly OPEX NOK million Q4 15 Q1 16 Q2 16 Q3 16 Q Quarterly revenues NOK million 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 Revenues Payroll R&D Other Op.Ex 20

21 STRONG BALANCE SHEET WITH USD 64M CASH, NO DEBT Net cash position by quarter NOK million Fourth quarter cash outflow of NOK 47 million EBITDA of NOK -47 million 500 Working capital increase of NOK 6 million Strong cash balance of NOK 533 million