feb 18-2015 vasco investor presentation

© 2014 - VASCO Data Security

`We authenticate the world

Investor presentation T. Kendall HuntChairman & CEO

February 17, 2015

© 2014 - VASCO Data Security CONFIDENTIAL

Forward Looking Statements

Statements made in this presentation that relate to future plans, events or performances are forward-looking statements within the meaning of Section 21e of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. These forward-looking statements (1) are identified by use of terms and phrases such as “expect”, “believe”, “will”, “anticipate”, “emerging”, “intend”, “plan”, “could”, “may”, “estimate”, “should”, “objective”, “goal”, “possible”, “potential”, “project” and similar words and expressions, but such words and phrases are not the exclusive means of identifying them, and (2) are subject to risks and uncertainties and represent our present expectations or beliefs concerning future events. VASCO cautions that the forward-looking statements are qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. These risks, uncertainties and other factors that have been described in our Annual Report on Form 10-K for the year ended December 31, 2013 and include, but are not limited to, (a) risks of general market conditions, including currency fluctuations and the uncertainties resulting from turmoil in world economic and financial markets, (b) risks inherent to the computer and network security industry, including rapidly changing technology, evolving industry standards, increasingly sophisticated hacking attempts, increasing numbers of patent infringement claims, changes in customer requirements, price competitive bidding, and changing government regulations, and (c) risks specific to VASCO, including, demand for our products and services, competition from more established firms and others, pressures on price levels and our historical dependence on relatively few products, certain suppliers and certain key customers. Thus, the results that we actually achieve may differ materially from any anticipated results included in, or implied by these statements. Except for our ongoing obligations to disclose material information as required by the U.S. federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.

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Company Overview

VASCO is a global leader in strong authentication, digital signatures,

and identity management solutions specializing in securing financial

transactions and protecting access to data and applications.3


Listed on NASDAQ in 1997

21% Compound Annual Growth Rate in

Revenues from 2004-2014

48 Consecutive Quarters of Profitability

Visionary in Gartner Magic Quadrant

for User Authentication

Company Overview

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10,000+ Customers in more than 100 Countries,

More than half of the Top 100 Global Banks

and 1,700+ Financial Institutions rely on VASCO

More than 200 Million Authenticators Sold

On-Premise, Mobile, and Cloud Solutions

Company Overview

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Global Company

VASCO HQ

VASCO Offices

VASCO Sales Presence

Local people/markets

Local expertise and know-how

371 employees

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Financial Institution Customers

1,700+

VASCO is the world leader in providing two-factor authentication and digital signature solutions to

financial institutions. More than half of the Top 100 Global Banks rely on VASCO solutions.

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Frequency and sophistication of attacks has increased

High-profile breaches have brought security

to the C-level and Board of Directors

New regulations are being enacted globally to protect

consumer transactions and personal privacy

Mobile is becoming the device of choice

There is a greater need to enhance security

while improving convenience for users

Key Growth Drivers

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"Two out of three attacks focus on [login] credentials at some

point in the attack. Trying to get valid credentials is part of many

styles of attacks and patterns"

- Jay Jacobs, senior analyst with Verizon

Authentication & Digital Signature Platform

Why Authentication

• Data breaches are up 49%(1)

• Protects against the newest attacks

• Easy to implement and use

(1) The Breach Level Index, released February, 2015.

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Technology and Products

19881st DIGIPASS“Access Key”

19891st DIGIPASSwith Keypad

2002VACMANController

2004DIGIPASS GO 31st 1-button token

2005IDENTIKEY

SERVER

2005DIGIPASS 810

EMV card reader

2006DIGIPASS 9051st connectedCard reader

2007DIGIPASS 270

1st thin formToken w/keypad

2008DP for Mobile

Soft tokenfor phones

VASCO Solution Timeline

1991DIGIPASS 550

with e-Signature

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2014Rabo Scanner

Card reader withCrontoSIgn technology

2014DIGIPASS for Apps

with CrontoSIgn technology

Technology and Products

2013DIGIPASS for AppsSDK for integration

into applications

VASCO Solution Timeline

2011DIGIPASS 920

Connected readerfor e-Government

2013DIGIPASS 8701st dual modee-Gov’t reader

2015Risk IDS

1st RBA withIntelligent engine

2013DIGIPASS 7601st token with

Cronto technology

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2014DIGIPASS Bluetooth

Smart-enabledAuthenticators


Host System

• VACMAN Controller: Combines all VASCO authentication technologies into a unified backend platform.

• IDENTIKEY Authentication & Federation Servers: Off-the-shelf centralized servers that with complete functionality.

• Cloud Services: Authentication and digital signature services for web and mobile application developers run on VASCO’s servers.

Client Authenticators

• DIGIPASS: Industry-leading number of hardware and software authentication and signature (electronic and digital) solutions available to customers.

• Embedded & OEM Solutions: DIGIPASS integrated into client devices such as Intel’s Identity Protection Technology.

VASCO’s Product Offerings

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On-Premise Business Model

Banking:

• Corporate Accounts

• Consumer Accounts

• Internet and Mobile Applications

Enterprise Security:

• Remote access

• Application Security for B-to-B and B-to-C

• Employee network access

BankingEnterprise & application

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Cloud-Based Business Model

Services

A cloud-based expansion of VASCO’s traditional on-premise solution.

“By 2017, more than 50% of enterprises will choose cloud-based services as the

delivery option for new or refreshed user authentication implementations,

up from less than 10% today.” - Gartner

Cloud advantages:• Easy to implement• Unlimited scalability• Low implementation cost• Operating vs. Capital expense• Rapid deployment

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• Strong Authentication in the cloud

• Allows customers to reduce implementation time and cost

• Provides strong authentication protection without

requiring a high level of expertise on staff

• Host system software maintained on VASCO servers:

• Business-to-Business (B2B)

• Business-to-Employee (B2E)

• Business-to-Consumer (B2C)

• Recurring revenue paid by the customer

DIGIPASS as a Service

DIGIPASS as a Service

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Key Product Initiatives

DIGIPASS 760

New Attack Methods Require Innovative Solutions

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DIGIPASS for Apps

DIGIPASS Bluetooth

Risk-BasedAuthentication


• Developed by Cambridge University PhD’s

• Acquired by VASCO in May 2013

• Next generation HD Color QR Code with greatly expanded data capacity

• Combines strong authentication and signature capabilities with a high level of user convenience

• Defeats Man-in-the-Middle attacks

• Fully supported by VACMAN and IDENTIKEY

• Works from a mobile device or DIGIPASS 760

Cronto Visual Image Authentication

DIGIPASS 760

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Cronto Visual Image Authentication

How it Works – Scan to Sign

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• Incorporates security directly into the application

DIGIPASS for APPS

DIGIPASS for APPS

• Native integration

of two-factor

authentication

• Developers focus

on their application

and outsource the

security to VASCO

Source: Gartner

Global App Downloads Passed 100 Billion Last YearEstimated mobile app downloads worldwide (in billions)

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DIGIPASS for APPS

A Library of Advanced Security Applications

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All of the necessary building blocks to secure applications at every level, from provisioning to

the human interface.

© 2014 - VASCO Data Security CONFIDENTIAL 21

Geolocation

OS Version

JailBreak & Rootkit

Malware

PIN Activated

Behavior Analysis

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DIGIPASS for APPS

Intelligent Risk Scoring for Mobile Devices


• Eliminates the biggest hurdles to cloud adoption

• Boosts customer trust

• Security as a competitive differentiator

• Ease of implementation

• Provides a pay-as-you-grow approach

• Next step in DIGIPASS as a Service

Cloud-based Security for Application Developers

DIGIPASS for APPS

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Bluetooth Smart-enabled

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Bluetooth Smart Enables Authentication with almost any User Device

• Solves the problem of mobile devices with no USB port

• More convenient with no cables to connect

• Secure Bluetooth Smart-enabled connection

• Works in connected and unconnected mode


Risk-Based Authentication

How it works:

Risk IDS

Source: Gartner

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• Contextual analysis to apply the appropriate level of security

• Real-time analysis and intelligent decision engine focusing on:

• Web and mobile application login

• Financial transactions via online and mobile channels

• Monitoring non-monetary events such as change of address

• Identification of accounts that demonstrate abnormal characteristics

for the prevention of money laundering.

Risk IDS

Risk-Based Authentication

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Financials

Historical Overview

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Revenue and Operating Income

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

22.929.9

54.6

76.1

120.0133.0

101.7 108.0

168.1

154.0 155.0

201.5

1.1 5.6 11.018.9

30.1 28.1

12.6 12.424.8 21.0

13.7

38.1

Revenue Operating Incomein millions USD in millions USD

CAGR(revenue)

2004-2014

21%

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Cash Balance and Net Working Capital

2006 2007 2008 2009 2010 2011 2012 2013 2014

12.6

38.8

57.7

67.6

85.5 84.5

106.5

98.6

137.4

22.1

52.4

75.9

87.6

96.9

108.6

129.5124.5

161.0

Net Cash Balance Net working capitalin millions USDin millions USD

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Thank you


Copyright 2014 VASCO Data Security. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of VASCO Data Security.

Trademarks VASCO®, VACMAN®, IDENTIKEY®, aXsGUARD®, DIGIPASS® Cronto®

MYDIGIPASS.COM® and the ® logo are registered or unregistered trademarks of VASCO Data Security, Inc. and/or VASCO Data Security International GmbH in the U.S. and other countries

Copyright & Trademarks

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