Idex Biometrics Asa · OSL:IDEX
Idex Biometrics Asa — Q1 2021 Earnings Presentation
19 slides from Idex Biometrics Asa's earnings presentation, May 12, 2021
Slide 1: First Quarter 2021 Presentation
First Quarter 2021 Presentation 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
Slide 5: Q1 '21 Financial Summary
Q1 ’21 Financial Summary ✓ Ongoing shift to product sales; sustained quarterly shipments of Summary Profit & Loss Statement ($000) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 second-generation sensor and initial Product $ 623 $ 593 $ 246 $ 121 $ 53 shipments of TrustedBio Services 1 5 2 28 47 ✓ Expenses
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 sol
Slide 8: Payment Cards – Favorable Market Mega-Trends
Payment Cards – Favorable Market Mega-Trends Pandemic and Government Mandates Driving Accelerated Adoption Adoption of Contactless Payment Accelerating Significant Pull-Forward in Transition from Cash to Card NFC infrastructure in place / US Card Spend as a % of Total Purchase Volume 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 ▪ Strong growth universally forecast Shipments (Millions of Units)2 ▪ Contactless cards gro
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. Point of Sale Payment Methods U.S. Consumers View Cards as Safest Payment Method Dominated by Cards Percentage of respondents by payment type 1 Forecast 2018 - 20222 (1) Pew Research, Mobile P
Slide 11: Biometrics Payment Card Benefits
Biometrics Payment Card Benefits CORE CONSUMER BANK/ISSUER BENEFITS • Eliminates lost/stolen, friendly fraud Reduces unrecoverable losses from • Identity protection Increased fraud and associated operational costs • Fully encrypted Security for chargebacks and investigations • Peace of mind Incremen
Slide 12: IDEX Commercialization Status
IDEX Commercialization Status IDEX Commercialization Status - Pin and Chip Card - Contactless Cards • TrustedBio shipping to multiple customers - Biometric Cards • Production volumes targeted for Q3 Chip & PIN (contact) = 18 years • DC/EP initiative in China: Multiple design wins Contactless = 8 yea
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 Fingerprint Sensors Card Manufacturers Card Issuers Card Inlay Providers Secure Elements
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, Biometric authentication algorithm Card architecture, reference design ASIC, integrated packag
Slide 16: IDEX's Optimized Biometric System-on-Chip
IDEX’s Optimized Biometric System-on-Chip Leveraging the power of Moore’s Law IDEX "Off-Chip" BSoC Competitor Silicon Sensor Characteristics: Characteristics: ✓ Large sensor area: Limited sensor area: Maximum image capture SENSING Reduced image capture ✓ Biometric MCU: SENSING Image processing/mat
Slide 17: Why IDEX / IDBA?
WhytDEXS-IDBA? © 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