Idex Biometrics Asa · OSL:IDEX
Idex Biometrics Asa — Q1 2021 Earnings Presentation
19 slides from Idex Biometrics Asa's earnings presentation, May 13, 2021
Slide 1: First Quarter 2021 Presentation
First Quarter 2021 Presentation IDEX May 12, 2021
Slide 2: Disclaimer
Disclaimer This presentation includes 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 c
Slide 3: Introduction / Financial Summary
Introduction / Financial Summary
Slide 4: Introduction / Overview
Introduction / Overview Continued execution on repositioning strategy from 2018 TrustedBio™ extremely well-received • Driving industry partnerships and customer engagements • Mass production ready; no supply chain issues today • Shipping to multiple customers and early-adopter IDEMIA in Q1 • We anti
Slide 5: Q1 '21 Financial Summary
Q1 ’21 Financial Summary Ongoing shift to product sales; sustained quarterly shipments of second-generation sensor and initial shipments of TrustedBio Expenses under control; payroll reflects targeted headcount growth and non-cash stock compensation Expenses of US registration and Norwegian offering
Slide 6: Business Update
Business-Update © IDEX
Slide 7: Q1 '21 Commercial and Market Update
Q1 ‘21 Commercial and Market Update Further momentum toward strategic objectives; well-positioned for expected growth IDEMIA introduced its 2nd generation F.CODETM cards • IDEMIA’s first Biometric Payment Card offering based on IDEX’s TrustedBio™ sensor • Most integrated Biometric Payment Card solut
Slide 8: Payment Cards – Favorable Market Mega-Trends
Payment Cards – Favorable Market Mega-Trends Pandemic and Government Mandates Driving Accelerated Adoption Significant Pull-Forward in Transition from Cash to Card US Card Spend as a % of Total Purchase Volume Adoption of Contactless Payment Accelerating NFC infrastructure in place / customer accept
Slide 9: Payment Cards – Very Large and Growing Market
Payment Cards – Very Large and Growing Market 22 billion payment cards in circulation and growing to over 29 billion by 20231 ~5 billion new smartcards issued annually Projected Biometrics Payment Card Annual Shipments (Millions of Units)2 Strong growth universally forecast Contactless cards growing
Slide 10: Co-Existence of Mobile Payment and Payment Cards
Co-Existence of Mobile Payment and Payment Cards Trends support biometrically-enabled smartcard uptake U.S. Consumers View Cards as Safest Payment Method Percentage of respondents by payment type1 U.S. Point of Sale Payment Methods Dominated by Cards Forecast 2018—20222
Slide 11: Biometrics Payment Card Benefits
Biometrics Payment Card Benefits CONSUMER Eliminates lost/stolen, friendly fraud Identity protection Fully encrypted Peace of mind Fast, simple, secure transactions Hygienic, “touch-free” payments Compatibility with existing POS No battery No pins, no connectivity issues “Cool factor”—Appeal to tech
Slide 12: IDEX Commercialization Status
IDEX Commercialization Status • TrustedBio shipping to multiple customers • Production volumes targeted for Q3 • DC/EP initiative in China: Multiple design wins FY 2020-2021 Vetting Phase Technology Proof of Concept EMVCo ® Certification Institutions order cards for testing Introduction of IDEX Trus
Slide 13: Biometric Payment Card Value Chain
Biometric Payment Card Value Chain IDEX has customer partnerships with 10+ leaders in the payment card ecosystem Payment Networks / Specification Providers Biometric Algorithms Card Inlay Providers Fingerprint Sensors Secure Elements Card Manufacturers Card Issuers
Slide 14: IDEX Differentiation
IDEX-Differentiation © IDEX
Slide 15: IDEX TrustedBio™: Proprietary Advantages
IDEX TrustedBio™: Proprietary Advantages The only fingerprint solution designed for card-based biometric authentication SENSOR & ASIC + ALGORITHMS & SOFTWARE + SYSTEMS & SOLUTIONS Wide-area polymer sensor, ASIC, integrated package design Biometric authentication algorithm Embedded software for senso
Slide 16: IDEX's Optimized Biometric System-on-Chip
IDEX’s Optimized Biometric System-on-Chip Leveraging the power of Moore’s Law Characteristics: ✓ Large sensor area: Maximum image capture ✓ Biometric MCU: Image processing/matching ✓ PMU: Energy harvesting and powermanagement ✓ Reduced silicon area: Lowest possible cost Key: ASIC Area Sensing Area I
Slide 17: Why IDEX
WhyDEXSIDBA2 © IDEX
Slide 18: Strong Operating Leverage in Long-term Model
Strong Operating Leverage in Long-term Model Fabless Semiconductor Model: Complete solution including ASIC, Sensor, and Biometric Software Target Operating Model Three to Five Years: ✓ ~$150M annualized revenue • Potential based on payment card opportunity alone ✓ 50%+ gross margins • Consistent wit
Slide 19: Investment Highlights
Investment Highlights Oslo Børs: IDEX Nasdaq: IDBA Massive addressable market • One of only two suppliers and partnered with the ecosystem leaders • The true “pure play” in the contactless card space, with substantial differentiation and defensible IP Large-scale certification gives us advantage in