Thin Film Electronics ASA presentation at Packbridge, 17th of Septmeber 2013: The Future in packaging communications - Next Generation Technology

1. ImagineMemoryEverywhere™
Thin Film Electronics ASA (“Thinfilm”):
A Smarter Everyday Powered
by Printed Electronics
Bringing Intelligence To Everything
Kai Leppänen, VP, Sales and Business Development, Europe
Presentation for Packbridge, 17 September 2013

2. ImagineMemoryEverywhere™
► hasn’t this market gap been addressed?
• Cost & lack of scalability for silicon
electronics
• Device aggregators (e.g., smart phones)
only recently becoming widespread
The $100bn Market Gap
60 million
[# cars sold in 2012]
1 Global semiconductor market (2012)
Source: IDC; Gartner; World Bank; IMF; The Semiconductor Industry Association ; OICA; IC Insight; MarketLine; Apparel Market; Planet Forward
2.3 billion
[# computing /mobile
devices sold in 2012]
15 billion
[# microcontrollers
sold in 2012]
80 billion
[# apparel items
sold in 2012]
5-10 trillion
[# disposable items
sold in 2012]
Value of embedded
electronic intelligence1:
$315bn
[~21% of retail value]
Penetration of electronic intelligence in physical objects
Existing market
The market gap
Value potential of
adding intelligence:
$100bn
[~1% of retail value]
► Bringing intelligence to everything,
including disposable products, would enable
a for consumers
Why
smarter everyday
► This emerging world, where practically every
item has intelligence, is supported by a
megatrend – often referred to as the
Internet of Things (IoT)

3. ImagineMemoryEverywhere™
Thinfilm Product Families
Memory Labels Sensor Labels Display Labels
Ferroelectric polymer only
Current product; used in
Brand Protection Solution
Scale-up
Focus for development
Logic required;
key components
demonstrated
Extensible
Leverages development
Driven by use-cases
for strategic
customers/partners
Opportunistic

4. ImagineMemoryEverywhere™
First Integrated System Products (2014)
Brand Protection (Q3 2013)
Bemis Intelligent Packaging Platform (2015)
Product readiness depends on complexity
Electronic Blocks Required

5. ImagineMemoryEverywhere™
Four customer agreements secured during the last 10 months
Short term
value
capture
(< 1 year)
Memory/
components:
Integrated
systems:
Longer
term value
capture
(~2 year)
Customers
Toys & games:
Brand protection:
Sensor labels:
ID/smart labels:
Undisclosed
Undisclosed
1
2
3
4
►2nd largest toy marker in the world
►Known for household brands such as
Monopoly, Trivial Pursuit & Scrabble
►Sales of $4.3bn (5 800 employees)
►Leading global consumer goods
company
►Sales > $10bn
►Global leader in flexible packaging
►78 manufacturing facilities worldwide
(~200bn packages/year)
►Sales of $5.3bn (Fortune 500)
►Major company in high-value labels
►Sales > $1bn
Commercial Agreements with
Forbes 2000 Companies
“Our agreement with
Thin Film Electronics
ASA is an investment
in technology that
could eventually make
printed electronics a
component of every
package we
manufacture.”
Henry Theisen,
CEO, Bemis

6. ImagineMemoryEverywhere™
Commercialization Success Factors
1. Significant customer pull with go-to-market partners secured
2. Proven
mass
production
process;
complete
value chain
established
3. Strong ecosystem of manufacturing and technology partners
Brand protection:
Undisclosed
Toys & games:
ID/smart labels:
Undisclosed
Sensor Labels:

7. ImagineMemoryEverywhere™
Brand Protection Market: Macro View
1 Global market for anti-counterfeiting, brand protection and security
packaging; Source: Frost & Sullivan; Global Industry Analysts (GIA);
Markets and Markets; International Anti Counterfeiting Coalition (IACC)
Market opportunity1 Thinfilm positioning
$79bn
2009
$52bn
2014
x CAGR
Inks/
watermarks
7%
Holograms
12%
Taggants 11%
RFID
21%
Bar
codes
49%
► Approximately $600 billion is lost each year
due to counterfeiting
► Largest counterfeit categories include consumer
products, clothing and electrical devices
Price
HIGH LOW
LOWHIGH
Security/
Ease of use
RFID
Taggants
Holograms
Watermarks
► Thinfilm MemoryTM has a unique price/ security
trade-off vs existing technologies
► Similar price point as holograms (~$5bn market
segment), but with better security features
► Only electronic verification available at price-point
and scale compatible with CPG and FMCG applications
Bar codes
9%

8. ImagineMemoryEverywhere™
Brand Protection: Micro View
Authentic Not authenticMeasuring…
Thinfilm
Authentication
Label
Reader
Unit

9. ImagineMemoryEverywhere™
Closed-System Sensor Labels
Looking back after 12 months of 30 month plan
Thinfilm technical progress ahead of plan
Target Specifications
 Printed Memory
 Electrodes for incorporating resistive sensor
 Printed Logic for reading sensor
 Printed Logic to write to memory
 Thin-film power source (batteries)
 Wireless read via near-field RF
Electrodesforaddition
of
sensorink
Memory
July 2012
Concept Illustration at start
Dec 2012
Thinfilm Temp Sensor POC Demonstration
Demonstrated in December 2012
 Printed Memory
 Resistive sensor included
 Printed Logic for reading sensor data
 Printed Logic to write to memory
 External power source
 Contact-based read-out
 Printed display
 External display driver

10. ImagineMemoryEverywhere™
Disruptive Technology
Unique Cost-Functionality Trade-off
► Higher system
performance
than color changing
labels (quantitative
vs qualitative; digital
vs optical)
► Significantly lower
cost than silicon
electronics
Low
HighLow
Costperfunction
System performance
High
Sweet-spot
Data Loggers & Alarm Tags
Simple
Tracker
EXAMPLE: TEMPERATURE
MONITORING MARKET
Color
changing
labels
$0.5
Billion
$0.9
Billion

11. ImagineMemoryEverywhere™
Addressable Market of $20-25bn
Thinfilm
sDevices
Software
Cloud
SERVICELAYERS
~40k
<1mm
~2bn
Trillions
Application
5-10
1-1.5
Personal
health care
Dynamic
price display
Interactive
packaging
2-5
Monitoring of
perishable goods
1-2
Market size ($ bn)
2-5
Anti-theft/
brand protection
2
Logistics
(RFID)
NFC & "Internet
of Things"
10+

12. ImagineMemoryEverywhere™
Attractive
pricing &
licensing
terms
Thinfilm Key Revenue Drivers
Scalable
business
model
Massive
market
potential
3
2
1
►Strong customer interest across industries
►$40-50bn market; new & existing applications
►Rapid market adoption expected due to unique
cost-functionality trade-offs of technology
Blended price/fee per tag
2014-2020; $ cents (¢)
44
2
PE market forecast1
2011-2021; $ billions
►Increasing market price (per tag) due to change in
product mix and more functionality added to tags
►Strong IP position protects licensing fee level over
time
►Own/JV manufacturing capacity initially to accelerate
time to market (know-how transfer to partners etc.)
►Attractive licensing model for partners: Low CAPEX
and manufacturing complexity
Share of volumes sold
from licensing partners
2014-2020; Per cent
2011 2021
1 IDTechEx; Yóle Development
2014
100
50
0
2016 2018 2020
2014
30
20
0
2016 2018 2020
10
Market price
Licensing fee

13. ImagineMemoryEverywhere™
Contactless tags
Dynamic display tags
Key product categories:
# tags sold
(millions)
30 2,600 20,800
• Change in product mix
• Increased price as more
functionality is added
• Shift to licensing model
<0.1
2020
~1,500
2016
~300
2014
9
2012A
0.7
Sensor tags
NFC & “Internet of things”
(smart tags)
Application (examples) Market estimates (global) Thinfilm mkt. share
• ~$12bn in 2019 (source:
IDTechEx: Printed/chipless tags)
• ~8% (2019)
• ~$500 in 2010, ~$2.5bn in 2020
(source: ODIN, VDC Research)
• Limited use tickets issued: ~9bn
in 2009 (source: Innovision R&T)
• ~5% (2020)
• ~7% volume share
(2020)1
RFID tags (retail/logistics,
limited use ticketing etc.)
• ~$10bn in 2020 (Thinfilm
estimates)
• ~3% (2020)Dynamic price displays
(retail)
• ~$5bn in 2020 (Thinfilm
estimates)
• ~2% (2020)Interactive packaging
(FMCG/retail)
1 Assuming no growth in number of LU tickets issued worldwide from 2009 to 2020
2 Time-Temperature Indicators (used in transportation/packaging, i.e., excluding other industries, e.g., automotive, HVAC/refrigeration etc.)
Monitoring of perishable
goods/drugs (temperature
sensor)
• TTI market2: ~$1.4bn in 2010,
~$3.2bn in 2020 (source: Frost &
Sullivan, Freedonia, BCC+)
• ~4% (2020)
Revenue Target of $1.5bn By 2020
Thinfilm revenue projections, 2012-2020; USD millions

14. ImagineMemoryEverywhere™
Invesco funds invest USD 23 million in Thinfilm
Thinfilm announced today that funds managed by Invesco
Asset Management Limited have agreed to acquire
56,000,000 shares in the Company.
The investment totals USD 23,000,000. Invesco will hold
13.3% of the shares in the Company.
Invesco will also receive 46,666,666 warrants, each with an
exercise price of USD 0,49. The warrants are exercisable
after a 12-month holding period, and expire in 3 years.

15. ImagineMemoryEverywhere™
Award Winning Technology Portfolio
►2012 Wall Street Journal Innovation Awards
►2012 World Technology Award, sponsored by
CNN, Time, Science, and Technology Review
►2012 IDTechEx Product Development (#1
consulting firm in Printed Electronics)
►2012 FlexTech Innovation Award (US National
Consortium on Printed and Flexible Electronics)
►2010 Frost & Sullivan Product Development
►2009 IDTechEx Manufacturing Award

16. ImagineMemoryEverywhere™
Thinfilm Recognized As One of The
World’s Most Innovative Companies
18 September, 2012
“These are the companies that are
changing or could potentially
change the mobile landscape in the
most profound ways”

17. ImagineMemoryEverywhere™
Q & A
Further questions:
kai.leppanen@thinfilm.no
+47 40 40 14 85