ENABLING THE MASS MARKET FOR SECURE ID

February 2015 Dr. Hemant Mardia, CEO

www.idex.no

IDEX HIGHLIGHTS: Q4 2014

2

IDEX sensors shipped and inserted in products

• WWTT mobile accessories launched at CES

• CardTech: industry first ISO standard card

New off-chip touch sensor demonstrated

Additional tier one partnerships forged IP strengthened with unique software

• Acquisition of world class matcher algorithm

• Trustonic secure authentication

• High volume manufacturing readiness

• Ground breaking image quality from prototype

• Significant resources expediting final product with Cypress

IDEX HIGHLIGHTS: 2014

First IDEX Swipe and touch sensors for launched into volume

NOKm 300 ($51M USD) solid funding from global asset manager

Industry first functional in-glass sensor demonstrated at MWC

Strategic partnerships securing manufacture & mobile sales channels

Global organisational growth Attracting key industry experts

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NEW PRODUCT DEVELOPMENT MOBILE MARKET DRIVEN

Mobile silicon touch

with CrucialTec

H2 2013 Apple

iPhone 5S Touch in button

PRE 2013 Conventional

large area Touch

H1 2014 Samsung Galaxy S5 Swipe in button

H2 2014 Huawei

MATE Touch at rear

Q1 2015 Samsung Galaxy S6

Expect Rectangle Touch in button

Swipe for IOT and

cards

Mobile off chip touch with Cypress Multiple form factors

Investment into mobile

Acquired touch IP PicoField

Source: Company websites; IDC Worldwide Quarterly Mobile Phone Tracker, January 29, 2015

Fingerprint Sensor Enabled Mobile Device Launch Milestones

IDEX products ready for market uptake in 2015

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Mobile swipe

IDEX Mobile Sensor Product Launch Milestones

BUILDING BLOCKS SECURED TO DELIVER BEST IN CLASS SENSORS

5

ASIC Substrate

IP Algorithm

COMPELLING OFF-CHIP SENSOR COST ADVANTAGE

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“We note … IDEX will be able to offer a lower cost sensor than traditional silicon based sensor competitors 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 patented off-chip touch sensor

• 8 x 8 mm image

• Silicon IC 80mm2 • USD 6 – 8 ASP

• 8 x 8 mm image • Sensor in Polymer • Miniature Silicon IC <15 mm2

• >30% lower cost • One of two capacitive vendors

Silicon cost < $0.6

Other cost

< $1.5

Silicon cost $3

Other cost > $1

5x smaller IC

SUBS

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SUPERIOR ACCURACY FROM ACQUIRED ALGORITHM COMBINED WITH NEW OFF CHIP TOUCH SENSOR

Outstanding image quality delivers best in class user experience

Separate sensor enables custom size and

shapes: key differentiator New algorithm delivers superior user metrics in reduced sizes

Image Area Square mm

0

5

10

15

20

25

20 25 30 35 40 45 50 55 60 65

False reject rate %

Acceptable level

IDEX Ridge pattern Hybrid minutia

Image area reduced from 200 sq. mm to 30 sq. mm

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ALGO

8

DEEP PATENT PORTFOLIO STRENGTHENED

25 registered families 9 pending 219 registered patents 46 pending

• 7 new patents added to IDEX portfolio in 2014

– Small area algorithm – Grid array sensor – Switch embedded within a layered

fingerprint sensor array

• Apple cross licence to key industry patents for capacitive sensing

• Major mobile OEM’s due diligence confirmed IDEX’s strong IP portfolio

103

28

63

30

48

24

74

18

21

7

33

42

39

1

Other 3

Through Substrate Imaging 31

Imaging Algorithm 49 1

Off-Chip 63

LiveFinger

2

On-Chip

Navigation

64 1

Touch 70

Swipe 76 2

Capacitive sensing 142

Pending

Issued

8

IP

ECOSYSTEM BUILT TO DELIVER TO TIER 1 CUSTOMERS

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Mobile Device Providers

Semiconductor Integrators

Module & Packaging Integrators

Capacitive Fingerprint Sensor

Component Vendors

Silicon ASIC Semiconductor Manufacturers

Sold to Synaptics for $250M

Sold to Apple for $350M

STRONG VALIDATION OF FINGERPRINT SENSOR MASS ADOPTION

Research analysts confirm biometric mass adoption • IHS: “Biometrics” and “Sensors” in top ten technologies transforming the world • Acuity Market Research: 4.8B biometric mobile devices 2020; $6B sensor revenue • Juniper Research: “Securing Your Data: The Time for Encryption, Tokenisation & Biometric Authentication” #1

of 10 tech trends 2015

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Rapid mobile penetration and industry leader commitments • Sensors on flagship models (300M+ terminals) • Microsoft with biometrics Windows 10

Payment and mainstream applications embracing fingerprint • Mobile payment: Apple Pay, Alipay Wallet • Banks to allow account access • Mastercard support on card biometrics

Source: Company websites

STRONG MARKET VALIDATION

100% PENETRATION OF BIOMETRICS IN SMART DEVICES EXPECTED

500

3 000

2 500

2 000

1 000

0

1 500

Million of mobile smart devices

2017 2020 2018 2014 2019 2015 2016

Biometric mobile smart devices

Non biometric smart mobile devices

65% CAGR

Huge growth in biometric mobile smart devices*…

Source: The Mobile Biometric Market Research Brief, Acuity Market Intelligence, January 2015; Fingerprint Cards Q3 presentation, November 2014 * Smart phones, tablets and wearables

80%

70%

10%

30%

40%

100%

0%

60%

90%

50%

20%

TAM value share by sensor type

2016 2015 2014 2013

…compact touch sensors now expected to dominate in flagships due to user convenience

Area Touch Swipe

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Fingerprint Adoption 2014 – 9 OEMs Swipe – 3 OEMs Touch

IDEX AT A GLANCE

Share details

Larry Ciaccia • Former CEO of AuthenTec Michael Barrett • Former chairman FIDO Alliance, CISO

PayPal, VP Security American Express

Dr Hemant Mardia, CEO • Former CEO of Filtronic Plc, LSE listed

telecoms, founder of technology start ups Fred Benkley, CTO IDEX America • Co-Founder Validity David Geoffroy, Director of Engineering • Co-Founder Validity Larry Hattery, VP System Engineering • Former VP Software Validity

Locations

Employees

Share price: NOK 5.08 | $ 0.66 Market cap: NOK 2,102M | $ 275M

Oslo, Norway (HQ); Silicon Valley, Boston USA; Asia

51 staff* and 12 consultants**

Share price development (24 months)

IDEX team expanded with strong biometric & technology track records

Strategy Advisory Board

Andy MacLeod • CTO of Vodafone plc’s EMEA and

Asia-Pacific region

Management team

Lunji Qiu, GM and VP of IDEX China • Former GM/VP Next Biometrics China

and GM/VP AuthenTec China Art Stewart, SVP of Product Management • Former VP Synaptics and VP AuthenTec

Recent key hires

* Includes employees and ongoing contractors ** Project based consultants

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$31

(228)

Cash Balance $M

(MNOK)

$48

(295) $57

(342)

0

1

2

3

4

5

6

7

$4.2 (25)

Q3 2014 Q2 2014

OPEX run rate $M (MNOK)

$4.6 (29)

$6.1 (42)

Q4 2014

$4.9 (30)

Q1 2014

Other

R&D

Sales and marketing

$41

(261)

SCALABLE BUSINESS WITH ATTRACTIVE MARGIN FROM FABLESS MODEL

• Initial sales achieved from production shipments of sensors • Cash $31M, no debt

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IDEX TARGETS THREE MULTI BILLION USD MARKETS

•Product platform for three markets

• Solid IP & patents •First tier partners • Industry experts

Cards ID & smart

Internet of Things (IOT)

Mobile devices

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“…4.8B biometric mobile devices 2020…” Acuity Research, January 2015

“…more than 80 billion Internet-connected devices projected to be in use in 2024…”

IHS, Top 10 technologies transforming the world “…over 9 billion payment cards in circulation globally increasing to 16 billion by 2020…” Company data

2015 IDEX OUTLOOK

Patents, products, people and funding in place to deliver significant market share • Key milestones in 2015 will unlock IDEX’s growth

• PRODUCT DEVELOPMENT:

• Launch of new ground breaking touch sensor at MWC in March with Cypress • Extensive sampling to mobile OEMs with partners to win programs in Q2 • Demonstration of progress on glass swipe sensor technology at MWC • Flex touch product development to enable ID/payment biometric cards • Product sampling to meet emerging demand for IOT applications

• STRATEGIC DEVELOPMENT: • Increasing investor access e.g. ROTH investor conference, USA March 2015 • Progress with further major partner agreements underpinning growth

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