IDEX Biometrics ASA · OSL:IDEX
IDEX Biometrics ASA — Q2 2019 Earnings Presentation
16 slides from IDEX Biometrics ASA's earnings presentation, August 2019
Slide 1: Q2 Investor Update
Q2 INVESTOR UPDATE August 2019
Slide 2: Disclaimer
DISCLAIMER This presentation includes and is based, inter alia, on 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 projec
Slide 3: Q2 Highlights
Q2 HIGHLIGHTS Significant milestones achieved • Landmark multi-year, multimillion-dollar commitment for IDEX’s dual-interface technology • Partnerships with key players in Asia to accelerate adoption of biometric smart cards • Low-cost, go-to-market solution achieved through pre-lam supply agreement
Slide 4: A Growing Market with Huge Potential
A GROWING MARKET WITH HUGE POTENTIAL Total number of smart cards shipped Units million; Biometric card penetration rate 5,531 4,755 • Underlying growth in multiple card verticals is healthy • Drivers of biometric penetration: ‒ Unique security 0.1% 0.9% 2.7% 6.3% 9.7% ‒ Convenient for end-user ‒ Wel
Slide 5: Multiple Card Verticals Suitable for Biometrics
MULTIPLE CARD VERTICALS SUITABLE FOR BIOMETRICS Expected # of smart cards shipped in 2023 by vertical (millions) • Banks want to differentiate Banking & payment • Fraud reduction 3700 • Favorable consumer experience Govt & healthcare • Financial inclusion 730 • Secure identification • Voting Transpo
Slide 6: The Evolution of an Exciting New Market
THE EVOLUTION OF AN EXCITING NEW MARKET Further progress in the ecosystem formation MASS ADOPTION 2020+ ECOSYSTEM FORMATION 2018-19 Initial orders & end-user trials Certifications EMBRYONIC Industrialisation of manufacturing 2015-17 Defining business models • Technology development Multi-vendor inte
Slide 7: Biometric Smart Card Certification Is Underway
BIOMETRIC SMART CARD CERTIFICATION IS UNDERWAY Multiple elements to biometric smart card certification Biometric Performance • New & Specific to Biometric Cards • Typically involves 3rd party validation Card Physical Aspect • Flexion, Torsion, ISO compliance • EMV + scheme complementary tests • Chem
Slide 8: Progress Towards Mass Manufacturing and Certification
PROGRESS TOWARDS MASS MANUFACTURING AND CERTIFICATION Mass manufacturing • Biometric smart cards are complex; require embedded circuitry and specialist expertise to mass manufacture IDEX is uniquely positioned to accelerate card integrators’ ramp to high volume • Off-the-shelf reference design • Ful
Slide 9: Publicly Showcased Dual-Interface Biometric Cards with IDEX Sensors
PUBLICLY SHOWCASED DUAL-INTERFACE BIOMETRIC CARDS WITH IDEX SENSORS Feitian card showcased at the Secure Feitian card showcased at RSA Conference XH Smart Tech demoing IDEX dual-interface card at Technology Alliance Payments Summit The Mobile World Congress in Barcelona Exelsecu biometric card Hengb
Slide 10: IDEX Is Enabling the Market with Patented Enrollment Solution
IDEX IS ENABLING THE MARKET WITH PATENTED ENROLLMENT SOLUTION Traditional card enrollment is a complex process… …IDEX has foundational patents on this revolutionary concept “…Simplifying the registration process Visit to physical branch will help speed adoption of biometrics by issuers and consumers
Slide 11: A Product Roadmap to Market Leadership
A PRODUCT ROADMAP TO MARKET LEADERSHIP Objectives 1. Significantly reduced cost: architecture and leverage display technology 2. Increased value in sensor: consolidate smart card elements into biometric ASIC 2021+ 3. Enhanced security: encryption, match on secure element Enhanced secure element solu
Slide 12: Growing Breadth of Innovation
GROWING BREADTH OF INNOVATION Patent Portfolio By Category • Patent portfolio reflects increasing innovation capability at IDEX Remote Enrollment • Quality of patents over quantity Total Number of Biometric Algorithm portfolio patents/applications • Patents beyond simple biometric sensors Pending 99
Slide 13: Summary
SUMMARY • Biometrics are the next generation of security validation ➢ Unique, personalized, increasing consumer acceptance • The market for biometric smart cards is considerable and demand is building ➢ By 2021, over 5 billion smart cards estimated to ship globally, and growing • The biometric smart
Slide 14: Key Financials
KEY FINANCIALS
Slide 15: OPEX Overview
OPEX OVERVIEW OPEX NOK million 63.2 64.6 58.1 61.5 60.1 • Continue to ship thousands of engineering and customer test units in Q2 at high gross margins • Q2’19 OPEX excl. share based renumeration of NOKm 54.8; lower than previous quarter • OPEX levels expected to be stable for remainder of 2019 • St
Slide 16: Cash Balance
CASH BALANCE Cash balance NOK million 224.9 • Estimated break even at low-double-digit million units shipped 189.9 155.1 • Stable quarterly cost level expected for 2019 130.5 • No financial debt 83.7 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 16 IDEX Biometrics - Q2 2019 update