IDEX Biometrics ASA · OSL:IDEX
IDEX Biometrics ASA — DNB Nordic TMT & Consumer Conference 2020
21 slides from IDEX Biometrics ASA's conference presentation, Sep 2, 2020
Slide 1: DNB Nordic TMT & Consumer Conference
DNB Nordic TMT & Consumer Conference 2 September 2020
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: IDEX Strategy and Competitive Advantage
IDEX Strategy and Competitive Advantage Company Overview Locations and Markets • Strategy: Focused on developing technology for • Locations: U.S., EU, APAC biometric payment cards • Markets: Payments, Access, Govt. and • Problems to solve: Fraud Healthcare, Transportation, Retail prevention and prod
Slide 4: Highly Experienced Management Team and Board
Highly Experienced Management Team and Board Management Team Vince Graziani Derek D’Antilio Stan Swearingen Anthony Eaton CEO CFO SVP CTO Board of Directors Morten Opstad Lawrence John Ciaccia Deborah Davis Stephen Skaggs Hanne Høvding Chair Deputy Chair Board Member Board Member Board Member
Slide 5: Business Update and Recent highlights
Business Update and Recent highlights • COVID-19 is accelerating a touch-free society; while COVID caused short-term delays in pilots, IDEX sees this as a market acceleration catalyst • IDEX’s technology was certified by two major global payment networks: China Union Pay and a large US based network
Slide 6: Payment Card Market
PAY MENJ-CARD-MARKET © IDEX
Slide 7: Market Trends – Very Positive
Market Trends – Very Positive COVID: Contactless mandate Contactless limit increased All EU payment terminal in 31 countries. Contactless from 12/19 As of April 75% of all Mastercard Transactions in EU were contactless (source: Mastercard) Strong Customer CUP, Mastercard and VISA Authentication: hav
Slide 8: Payment Cards - a Very Large and Growing Market
Payment Cards - a 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 450 1 billion plus • Payment cards projected to 400 continue strong growth 350 • Contactless growing even faster driven by: 300 ‒
Slide 9: Biometric Card Value Chain
Biometric Card Value Chain Key customer partnerships with 10+ leaders in the payment card ecosystem Payment Networks / Specification Providers Biometric Algorithms Fingerprint Sensors Card Manufacturers Card Issuers * * * Card Inlay Providers Secure Elements * * *
Slide 10: Other Large and Growing Markets
OTHER LARGE AND GROWING MARKETS
Slide 11: Other Markets (Excluding Payment)
Other Markets (Excluding Payment) Multiple industry verticals can utilize biometric smart cards as a competitive advantage to enhance product features 2023E Smart Cards Shipped Segment Breakdown Govt. and Healthcare Retail and Other • Financial inclusion • Loyalty cards 250M 14 % • Secure identifica
Slide 12: Products and Technology
PRODUCTS AND TLEGHNOLOGY © IDEX
Slide 13: Lowering Manufacturing Complexity and Card Cost
Lowering Manufacturing Complexity and Card Cost TrustedBio™ yields cost, performance, and reduced manufacturing complexity $40+ ~$15 - $20 ~$5 FIRST GENERATION CARD CURRENT GENERATION CARDS IDEX TrustedBio™ CARDS • Battery/supercapacitor • No battery or supercapacitor • Fully Integrated, Improved Pe
Slide 14: IDEX's Optimized Biometric System-on-Chip Advantage
IDEX’s Optimized Biometric System-on-Chip Advantage IDEX off-chip BSoC Competitor Silicon Sensor Features: Features: • Large sensor area • Limited sensor area • Image capture SENSING • Image capture only • MCU: image processing SENSING and feature extract AREA AREA Additional Costs: • PMU: Energy ha
Slide 15: Customers
CUSTOMERS © IDEX
Slide 16: Current and Target Customers
Current and Target Customers Customer relationships with 30%+ of global payment card manufacturers, with additional on horizon Global Payment Card Manufacturers Global Customer Base 24 % Thales 35 % IDEMIA G+D Mobile Security Eastcompeace Technology Target Customers XH Smart Tech 20 % Other 2% 4% 15
Slide 17: Key Financials and Financial Model
KEY FINANCIALS AND FINANCIAL MODEL August 2020
Slide 18: Strong Operating Leverage in Financial Model
Strong Operating Leverage in Financial Model Cost reduction implemented as planned Fabless semiconductor model: Operating expenses down 27 % since Q4-19 • 50% gross margins and stable opex at scale Cash Operating Expenses1 in USD (millions) • 30% operating margins at scale • Break-even target of bet
Slide 19: Financial Update
Financial Update P&L • Q2 revenue was USD 149 thousand compared to USD 43 thousand in the second quarter of 2019 • Gross margin during the quarter was 79% largely driven by high margin product sales • Operating expenses were USD 5.8 million compared to USD 7 million in the second quarter of 2019 (op
Slide 20: Investment Highlights
Investment Highlights • 22B payment cards in circulation and growing (source: Nilson report) Massive Addressable • Contactless cards have accelerated significantly Market • USD 2B+ biometric payment cards by 2024; 200% plus CAGR for biometric payment card shipments • Only fingerprint company to achi
Slide 21: Thank You
Fhank-You © IDEX
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