ENABLING(THE(MASS(MARKET(FOR(SECURE(ID(

!November!2014!Dr.!Hemant!Mardia,!CEO!

www.idex.no!

12.11.14

•  Mass!market!valida?on!for!fingerprint!sensors!driven!by!mobile!adop?on!and!payment!

•  Enviable!patent!posi?on!and!crossFlicense!with!Apple!in!confined!patent!space!

•  Execu?ng!mobile!market!product!roadmap!with!swipe,!touch!and!unique!glass!sensors!

•  Well!posi?oned!for!emerging!second!mass!market!for!ID/payment!cards!

•  Expanding!major!ecosystem!partners!for!volume!manufacture!and!customer!channels!

•  Experienced!leadership!team!with!strong!commercialisa?on!and!biometrics!track!record!

•  AOrac?ve!outlook!F!well!funded,!strong!customer!interest,!cusp!of!commercialisa?on!

IDEX!STRONG!VALUE!PROPOSITION!

IDEX:!SMARTFINGER®!!

LOW!COST! ACCURATE!&!SECURE! THIN!&!FLEXIBLE!

12.11.14

IDEX!STRATEGY!TO!BECOME!A!LEADING!FINGERPRINT!SENSOR!PLAYER!IN!HIGH!GROWTH!MARKETS!

12.11.14

“…Our&belief&is&that&we&should&be&able&to&iden4fy&ourselves&without&having&to&use&passwords&or&PIN&numbers.&Biometric&authen4ca4on&can&help&us&achieve&this…”&

( ( (Ajay!Bhalla,!President!of!Enterprise!Security!Solu?ons!MasterCard!

“…Fingerprint&sensors&play&a&key&role&in&mobile&payment&services,&providing&authen4ca4on&for&systems&like&Apple&Pay..” ! ! ! !!

! ! ! !!!!!!!!!IHS!

“…the&next&6G12&months&will&bring&legi4mate&strong&authen4ca4on&to&the&enterprise,&help&choke&off&major&password&hacks&plaguing&the&Internet,&and&see&hundreds&of&millions&of&FIDOGready&devices&worldwide…”&

Michael(Barre+,&&FIDO(Alliance(president&

Suppor?ng!mega!trends!•  Password(replacement(•  Mobile(payment(•  PersonalisaEon(•  Access(control(•  Security(

Cards(ID(&(smart(

Internet(of(Things((IOT)(

Mobile(devices(

CLEAR!VALIDATION!OF!CAPACITIVE!FINGERPRINT!SENSORS!!FOR!THE!MASS!MARKET!DUE!TO!COMPACT!SIZE!AND!COST!POINTS!

12.11.14

Tier!one!flagship!plaborms,!each!deploying!capaci?ve!fingerprint!sensors...!

…third!party!analyst!indicate!huge!growth!from!today’s!market!of!>300!million!units!

iPhone!5s/6/6+! iPad!Air2/iPad!Mini!3!

Samsung!Galaxy!S5! Huawei!Ascend!Mate!7!

2015!

300P350(

+43%!

400P500(

2014!

#!Fingerprint!sensors!in!mobile!plaborms!Million(units;(CAGR(

Sterne!Agee!es?mates!

IHS!es?mates!

317

1(400(+28%!

2014( 2020(

Cypress!Semiconductor!Q3!earnings!call! ~40%!

Source:(IHS;(Sterne(Agee;(Cypress;(Company(websites(

“…If&you&believe&all&the&data&out&there&[on&expected&market&growth]&about&40%&CAGR&in&the&next&five&years…”&

•  Strongest(core(patent(porWolio(of(any(independent(capaciEve(fingerprint(supplier(

•  Patent(landscape(highly(constrained(due(to(vendor(consolidaEon(

•  IDEX(acquisiEon(of(Picofield(patents(in(2013(

•  Extensive(coverage(to(2023(and(beyond(

•  Key(jurisdicEons(include(Europe(and(the(US(

•  Unique(protecEon(from(crossPlicense(with(AuthenTec/Apple:(8(US(patents(

•  Apple(strengthened(the(core(‘381P(patent’(adding(118(claims(aaer(recent(challenge(

IDEX!UNIQUE!ACTIVE!CAPACITIVE!FINGERPRINT!SENSING!IP!!AND!APPLE!CROSSFLICENCE!SECURES!IDEX!MARKET!OPPORTUNITY!

5 12.11.14

Solid!patent!porbolio!protec?ng!key!sensor!elements! One!of!fingerprint!industry’s!most!solid!patented!IP!

22(registered(families( (8(pending(families(215(registered(patents (43(pending(patents(

Compe??ve!advantage!for!IDEX!as!global!OEMs!consider!patent!protec?on!as!cri?cal!

74

63

30

40

24

37

40

31

7

103

28

2

18

21

Other!

OnFChip!

Naviga?on!

Through!!Substrate!Imaging! 31(

Imaging!Algorithm! 41(1(

OffFChip! 61(

LiveFinger! 64(1(

Touch! 68(

Swipe! 76(2(

Capaci?ve!!sensing! 140(

Pending(Issued(

PRODUCTS! SWIPE!FIRST!

GENERATION!SILICON!TOUCH!

SECOND!GENERATION!FLEX!TOUCH!

FUTURE!!UNIQUE!GLASS!!SWIPE!&!TOUCH!

BEST!IN!CLASS!SENSORS!

(((((

(((

((((((

RELEVANT!MARKET!

•  Mobile!•  Cards!•  IoT!

•  Mobile!•  IoT!

•  Mobile!•  Cards!•  IoT!

•  Mobile!•  IoT!

COMPETITIVE!POSITION!

•  Best!in!class!accuracy!

•  Flexible!mee?ng!ISO!card!standard!

•  Compe??ve!performance!for!small!area!silicon!

•  Best!in!class!image!for!mobile!

•  >30%!lower!cost!than!Silicon!sensor!

•  One!of!only!two!offFchip!sensor!vendors!

•  Unique!in!glass!sensor!to!IDEX!

•  Non!ac?ve!screen!integra?on:!ul?mate!mobile!sensor!

TIMING! •  PILOT!PRODUCTION!

•  PILOT!PRODUCTION!

•  SAMPLE!H1!2015! •  SAMPLE!2015!

IDEX!PRODUCT!ROADMAP!LEVERAGES!CORE!PATENTS!ENABLING!WORLD!LEADING!COST!AND!ACCURACY!

12.11.14 6

IDEX!!OFFFCHIP!TECHNOLOGY!DELIVERS!THE!LOWEST!COST!!TOUCH!SENSOR!WITH!HIGH!BIOMETRIC!ACCURACY!

7 12.11.14

“We&note&…&IDEX&will&be&able&to&offer&a&lower&cost&sensor&than&tradi4onal&silicon&based&sensor&compe4tors&because&the&sensor&is&decoupled&from&the&chip&and&a&large&area&chip&is&not&required…”&

& & & & & & &&&&&&&&&&&&&&&&&&&&&Analyst!Charles!Anderson,!Dougherty!&!Company&

Typical!silicon!touch!sensor!! IDEX!second!genera?on!flex!touch!sensor!!

•  8!x!8!mm!

•  Silicon!IC!80mm2!!!•  USD!6!–!8!!

•  8!x!8!mm!!•  Polymer!sensor,!Silicon!IC!<20!mm2!

•  >30%!lower!cost!!•  Fundamental!new!technology!•  Unparalleled!imaging!

Area!!Sensor!!!!ASP!!!!

Silicon

(area(

Silicon(area(

ECOSYSTEM!PARTNERS!DISCLOSED!IN!2014!–!WORLD!CLASS!SUPPLY!AND!SALES!CHANNELS!FOR!IDEX!FINGERPRINT!SENSORS!

12.11.14

Product!focus! Partner!descrip?on!

•  Largest(touch(controller(IC(vendor(in(Asia,(target(300(million(in(2014(•  ~50%(touch(IC(market(share(in(Chinese(manufactured(smartphones(

•  Principal(independent(fingerprint(module(manufacturer(to(Asian(mobile(customers(

•  Established(leading(mixed(signal,(programmable(semiconductor(soluEon(vendor(to(major(end(device(manufacturers(

•  Shipped(over(one(billion(touchPsensing(controllers(in(total(

•  Leading(provider(of(semiconductor(packaging(and(test(services(•  Track(record(of(high(volume(manufacturing(of(finger(print(sensors(

•  Sales(>(USD(3(billion;(#2(globally(by(market(share(Sensors(for(mobile(

2nd(generaEon(touch(sensor(for(mobile(

1st(generaEon(touch(and(swipe(for(mobile(

8

Swipe(sensor(for(mobile(

ECOSYSTEM!PARTNERS!DISCLOSED!IN!2014!–!WORLD!CLASS!SUPPLY!AND!SALES!CHANNELS!FOR!IDEX!FINGERPRINT!SENSORS!(II/II)!

Partner!customer!access!Partnership!strategy!Product!focus!

•  Sensor(packaging(technology(&(mass(producEon(services((

•  Established(high(volume(semiconductor(and(mobile(customers(

•  Mobile(OEM(customer(integraEon(and(support(

•  Asian(mobile(and(tablet(customers(

•  Very(strong(posiEon(in(China(

•  Mobile(OEM(customer(integraEon(and(support(

•  IC mass manufacturing

•  Semiconductor solutions to global(EerPone(mobile(customers(

•  Module(manufacturing(•  Mobile(OEM(customer(integraEon(and(support(

•  Module(soluEons(to(Asian(mobile(customers(

12.11.14 9

Sensors(for(mobile(

2nd(generaEon(touch(sensor(for(mobile(

1st(generaEon(touch(and(swipe(for(mobile(

Swipe(sensor(for(mobile(

MARKET!LANDSCAPE!AND!INDUSTRY!CHALLENGES!DEPLOYING!FIRST!GENERATION!MOBILE!FINGERPRINT!SENSORS!

12.11.14

24%(

5%(

12%(

5%(

5%(

49%(

Smartphone!market!share!Q3!2014!Percent(of(units(shipped(

•  Apple!shiued!demand!from!swipe!to!touch!•  Acquired(AuthenTec(only(market(ready(small(touch(

sensor((silicon)(•  ePcommerce,(driving(increased(security(i.e.(5P6(digit(

PIN(equivalent((

Others(

•  Synap4cs/Validity((offPchip(sensors)((•  Deploying(swipe(sensors(to(Samsung(•  No(other(reported(mobile(deployments(•  Expect(touch(sensor(deployment(early(2015(

–(analysts(report(as(deferred(from(original(inserEon(expectaEons(

•  Fingerprint&Cards&(silicon(sensors)(•  swipe(sensor(inserEons(in(Asia,(

first(touch(sensors(in(smartphones(2H(2014(

•  Reports(deferred(acEvity(due(to(fewer(smartPphones(launched(than(anEcipated(in(2014(

•  IDEX&(offGchip&and&silicon&sensors)&•  Design(win(in(Asian(smartphone(first(generaEon(silicon(touch(sensor(via(CrucialTec,(one(of(two(sources(P(

launch(deferred(•  Feedback(from(other(mobile(OEMs(confirms(deferred(programs(•  IDEX(successfully(commenced(silicon(touch(sensor(shipments(to(WWTT(for(mobile(accessories(

Source:(IDC;(Company(websites(

10

High!Image!quliaty!from!2nd!genera?on!prototype!shows!the!micro!pores!

IDEX!PROMOTION!OF!GROUND!BREAKING!OFF!CHIP!TOUCH!DEMONSTRATOR!AND!SWIPE!SENSOR!TO!MOBILE!CUSTOMERS!

12.11.14

•  IDEX!one!of!only!two!OFF!CHIP!fingerprint!sensor!vendors:!partnership!with!Cypress!Semiconductor!

–  Product(leadership(in(cost(and(performance(with(second(generaEon(touch(sensor(expedited(for(H1(2015(sampling(

–  Joint(demonstrator(promoEon(from(November(with(lead(mobile(customers,(proves(groundPbreaking(image(quality(

–  CulminaEon(of(years(of(IDEX(IP(and(Picofield(acquisiEon((founders(of(Validity)(creaEng(new(sensing(principle(

(

Image!of!sensor!from!mass!volume!manufacturing!

•  IDEX!swipe!sensor!promo?on!and!sampling!in!Asia:!partnership!with!FocalTech!

–  High(volume(Eer(one(supply(chain(qualified(with(Amkor(

–  Pilot(volumes(completed(with(>90%(yield(

–  Prepared(for(mass(producEon(to(target(market(expansion(into(mid(end(mobile(devices(

–  Strong(lead(in(to(mass(producEon(for(2nd(generaEon(touch(

11

Customers!

Card!integra?on/!

manufacturers!

EMV!chip!providers!

Capaci?ve!Fingerprint!Sensor!

Component!Vendors!

Government!ID!programs!

IDEX!WELL!POSITIONED!IN!BIOMETRICS!CARD!MARKET!FOR!2015!DUE!TO!FLEXIBLE!SENSOR!TECHNOLOGY!

12.11.14

•  Massive!addressable!market!–!payments!and!ID!–  7(billion(payment(cards(shipped(in(2012(–  1.8(billion(were(EMV(cards((PIN)(–  Several(naEonal(ID(programs(launched((e.g.(

Netherlands,(UAE,(India)(

•  Flexible!substrate!complies!with!ISO!standard!card!stress!test,!not!large!briOle!silicon!IC!

•  Best!in!class!biometric!accuracy!–  Swipe:(algorithms(for(40%(skew(and(speed(range(–  Second(generaEon(touch:(Superior(image(quality(

•  Strong!algorithms!suitable!for!card!use!with!low!footprint!and!low!power!opera?on!

!•  Industry!lowest!cost!posi?on!for!touch!sensors!

based!on!offFchip!technology!

IDEX!strong!value!proposi?on!for!the!card!market!IDEX!sensors!ideally!suited!for!card!integra?on!!

12

IDEX!WELL!POSITIONED!IN!BIOMETRICS!CARD!MARKET!FOR!2015!DUE!TO!FLEXIBLE!SENSOR!TECHNOLOGY!

12.11.14

IDEX!sensor!in!world’s!first!ISO!compliant!payment/ID!card!launched!by!Card!Tech!…!

•  Initial sales from IDEX swipe sensors delivered in September to Card Tech

•  Industry first ISO standard dual interface (contact/contactless) biometric card for

ID and payments integrating IDEX sensor

•  Demonstrated at Cartes exhibition early November, strong customer interest and Card Tech sampling underway

•  Standard card thickness and passed ISO tests for flexing due to off chip sensor

…!and!IDEX!targe?ng!card!market!with!other!partnership!ini?a?ves!!

•  IDEX(working(with(several(integrators(due(to(unique(low(cost(flexible(swipe(sensor(and(compact(algorithms(

•  IDEX(forthcoming(second(generaEon(touch(sensor(enables(disrupEve(cost(for(mass(adopEon(

•  Off(chip(sensing(meets(ISO(standard(thickness((0.76mm(cards)(and(flexing((

13

IDEX!CONTINUES!TO!STRENGTHEN!TEAM!FOR!COMMERCIALISATION!AND!ATTRACT!INDUSTRY!VETERANS!

12.11.14

Several!industry!veterans!joined!recently!aOracted!by!unique!IP!and!roadmap!

Strategy!Advisory!Council!with!industry!pioneers!Larry!Ciaccia!!•  Former(CEO(of(AuthenTec,(responsible(for(growth(and(sale(to(

Apple(Inc.((

Michael!BarreO!!•  Chairman(FIDO(Alliance,(formerly(CISO(PayPal,(VP(Security(

American(Express(

•  Staff!doubling!across!12!month!period!with!exper?se!from!fingerprint!biometrics!and!mobile!product!commercialisa?on!

•  Loca?ons!in!Europe,!US,!Asia(

Increased!investment!in!organiza?on!!FTEs*!

5 6114

6 6

820

22

27

31

3

Q3!14!

50!

Q2!14!

39!

Q1!14!

32!

Q4!13!

27!

OperaEons(

Sales(and(markeEng(

R&D(

*(Including(IDEX(employees(and(individual(contractors((

IDEX!global!expansion!

14

8(((46.5)&

Cash!balance!$M(((MNOK)(

48((294.7)&

57((342.5)&

4.0(

4.5(

5.0(

3.5(

3.0(

2.5(

2.0(

1.5(

1.0(

0.5(

0.0(

3.5((21.1)(

Q4!2013!

3.9!(23.5)!

OPEX!run!rate!$M((MNOK)&

3.3((20.4)(

Q2!2014!

4.2!(25.0)(

0.7((4.3)(

0.5((3.1)(

3.0((17.7)(

Q1!2014!

4.9!(30.0)!

0.8((5.0)(

0.6((3.9)(

Q3!2014!

4.6!(29.0)!

0.8((5.1)(

0.6((3.6)(

0.5((2.7)(

0.6((3.8)(

2.8((17.0&

Other(

R&D(

Sales(and(markeEng(

41((261.4)&

12.11.14

STRONG!CASH!BALANCE!!SUSTAINING!INCREASED!COMMERCIAL!ACTIVITY!

AOrac?ve!business!model!with!licensing!and!sensor!sales!via!outsourced!manufacture!and!strong!industrial!partnerships!

15

•  1st(generaEon(touch(and(swipe(sensors(sampling(and(producEon(

•  2nd(generaEon(touch(promoEon(now(with(Cypress(for(H1(2015(sampling,(H2(2015(producEon(

SECURE!MARKET!TRACTION!

Mobile!

ATTRACTIVE!OUTLOOK!–!WELL!FUNDED,!STRONG!CUSTOMER!INTEREST!AND!CUSP!OF!COMMERCIALIZATION!WITH!TIER!ONE!PARTNERS!

•  WWTT(order(upgraded(to(1st(generaEon(touch.(IniEal(shipments(conEnue(Q4(2014(

•  Sampling(swipe(sensor(

INITIAL!PRODUCT!SHIPMENTS!

IOT/Peripheral!

•  Deliveries(to(CardTech(P(integrated(in(industry(first(launch(of(ISO(card(

•  Increased(card(partner(acEvity(

•  H2(2015(product(deployment(

DEMONSTRATOR!PHASE!

ID/Smart!Cards!

•  AuracEng(significant(Tier(1(partner(acEvity(

(

•  Investment(in(product(leadership(through(patents,(IC,(&(algorithms(

•  Development(of(unique(glass(sensor((

EXPANSION!OF!STRATEGIC!PARTNERS!

Business!Opera?ons!

12.11.14 16