Find out how Thinfilm Electronics has built the groundwork for the mass commercialisation of ultra low-cost Printed Electronics

1. Imagine Memory Everywhere™
Thin Film Electronics ASA (“Thinfilm”)
Printed Electronics & Thinfilm:
En-route to Mass Commercialization
Presentation at the Annual General Meeting
10th May 2012

2. Agenda
Imagine Memory Everywhere™
Printed Electronics Industry Trends
Thinfilm’s Position & Roadmap
2

3. Continued strong momentum in the
PE industry, observed by three key trends;
Imagine Memory Everywhere™
Industry participants
2009-2011 ► Number of participants growing by 15% per year
Industry
Industry +15%
1 investment &
investment & 2,250
3,000
► Positioning by large strategic/industrial companies
participation
participation ► New national PE initiatives and government funds
2009 2011
Companies offering
commercial-ready products
► Rapid technical progress across all areas
Technical &
Industry EXAMPLES
2 commercial &
investment ► PE industry moving from lab to fab
progress
participation ► First real commercialization wave underway
Market forecast
2011-2021; $ billions ► Today’s market lead by OLED display/modules (~50%
Industry
Market holds
44
of market), conductor ink (~20%) and OPV (~15%)
3 investment &
potential ► Memory, logic and sensors among the largest- and
participation 2
fastest growing segments towards 2015 and beyond
2011 2021
Source: IDTechEx; SEMI Emerging Markets; Yole Développement; Press clippings 3

4. Similar trends also observed in
Thinfilm’s ecosystem of partners
Imagine Memory Everywhere™
► Continues momentum, new partnerships
► Development of mass produced printed temperature sensors
► Raised ~$25M in series C funding (April 2012)
► World-record organic solar cell performance (Feb 2012)
► Expanded presence, doubled number of employees (2011)
► Share price up ~34% last year (April 2011- April 2012) Thinfilm uniquely
► Significant investments in R&D and lab equipment positioned for success;
► Critical enabling
► Set to double work force during 2012 technology and
► Prototypes and product samples made available industry leadership
► Strong ecosystem of
► Commercializing transparent conductive films partners
► Continued strong support from owner (Kurz Group) ► Industry momentum
► Technical progress in developing other sensor applications,
including force/strain-, optical sensors and capacitive sensing
► Successful launch of printed display technology for use in
books (April 2012)
4

5. Agenda
Imagine Memory Everywhere™
Printed Electronics Industry Trends
Thinfilm’s Position & Roadmap
5

6. Summary of achievements in 2011 and
opportunities in Thinfilm’s three focus areas
Imagine Memory Everywhere™
Launch of Oba game, Inventables
►
Commercializing ► Deliveries to leading toy companies Thinfilm revenue scenario
1 stand-alone ► Dedicated factory for production (Inktec) 2011-2020; $ millions
memory ► First public application featuring Thinfilm memory
► World’s first printed passive array memory 1,590
► Successful prototype of printed CMOS memory
Enabling ► FlexTech and IDTechEx Awards, industry leadership
integrated
2 ► Initiated development of the first integrated system
systems and prototype
smart tags
► Significant interests from prospective customers
310
► Technology agreements with component and material
Building an suppliers 0.3 3.9
3 ecosystem of ► Significant interest from various strategic and
partners and commercial parties, several ongoing discussions 2011A 2013 2016 2020
alliances
6

7. Commercializing stand-alone memory
First public application featuring Thinfilm
1
memory (at Exploratorium, March 2012)
Imagine Memory Everywhere™
► Demonstrates the unique “touch and feel”
characteristics of memory cards
• Interactive event (exceptional participation among ~1300
• More than 1000 visitors)
memory cards used ► Demonstrates ease of customization for
• Exceptional similar applications and concepts
participation
► Demonstrates robustness of Thinfilm’s
technology (zero card failures at the event)

8. Commercializing stand-alone memory
Thinfilm is working focused towards
1
commercialization in toys & games
Imagine Memory Everywhere™
Thinfilm value proposition Prototype & TDK customers Status and outlook
► Lowest system cost Company Size Concept ► Very positive feedback received
► Unique and attractive “touch & feel” A $3-5bn Music game ► Timeline and possible hurdles for
characteristics receiving large quantity orders:
► Ease of personalization B $1-2bn HH card game • Development cycle typically
12-16 months
C $1-2bn Board games
• Thinfilm memory a product
+ D $3-5bn Figurines
component
• Vigorous and comprehensive
Memory (~$0.05) ASIC ($0.4-0.551) E Inventor Monetizing “toy playing tests” (card
/Game Online Game insertion, scratch, abrasion
System cost per memory, $
Dev. etc.)
0.6
0.4 Handful of world’s leading toys &
Thinfilm games companies are evaluating
0.2 sweet spot concepts with Thinfilm memory
0.0
0 5 10 15 20
# memories per system
1 Price depending on bit count of memory (and volumes) 8

9. Commercializing stand-alone memory
Thinfilm Passive Array MemoryTM
1
provides additional market opportunities
Imagine Memory Everywhere™
Thinfilm Passive Array MemoryTM Market opportunities
► Suitable for a range of additional applications,
including use in secure documents, ticketing and
stored value cards
► Significant interest received from various
industries and parties
► Engineering orders received, demonstrating
16-bit PA design 16-bit PA printed
commercial market opportunities
► Scalable printed memory (up to 100+ bits) Thinfilm Receives First Order for
Scalable Array Printed Memory
► More compact design and lower costs “Delivery of engineering quantities of Passive
Array Memory to customer Q2 2012”
► Reduced number of contact points, lower 6 March, 2012
cost of integration
Thinfilm Receives Contract for Parts
► Enabling component in printed integrated Identification using Printed Memory
systems and smart tags for the “Internet “Passive Array Memory will further increase the amount of
of Things” (IoT) parts information that can be stored in a very thin profile”
12 April, 2012
9

10. Enabling integrated systems and smart tags
2 The “building blocks” of printed integrated systems
Example of tag types (integrated systems)
• Thinfilm
Imagine Memory Everywhere™
Memory proprietary
Sensor tag
(temperature)
• Co-development
Logic and exclusive
license
• Co-development
Sensor agreement with
PST Sensors
Dynamic price
• Licensed leading display
Display low-cost display
• Secured privileged
Battery access to custom
battery
• Internal development RFID tag
Antenna and numerous (contactless
external options rewritable tag)
10

11. Combine components to increase value and
progressively unlock new markets
Imagine Memory Everywhere™
Application Market size ($ bn) System
Monitoring of
1-2
perishable goods
Interactive
2-5
packaging
Personal
~0.5
health care
Dynamic
5-10
price display
Anti-theft/
2
brand protection
Logistics
2-5
(RFID)
Personal
~0.5+
health care
NFC & "Internet
10+
of Things"

12. Commercial break-through expected
around 2013; ~$1.5bn in revenues by 2020
Revenue scenario, 2011-2020; USD millions
Imagine Memory Everywhere™
Applications Market estimates (global) Thinfilm mkt. share
~1500
Key applications: • ~$12bn in 2019 (source: • ~8% (2020)
NFC & “Internet of things”
Contactless tags/systems (smart tags) IDTechEx: Printed/chipless tags)
Closed systems
RFID (retail/logistics) • ~$500 in 2010, ~$2.5bn in 2020 • ~5% (2020)
(source: ODIN, VDC Research)
• Change in product mix Ticketing (transportation) • LU tickets issued: ~9bn in 2009 • ~7% volume share
• Increased price as more (source: Innovision R&T) (2020)1
functionality is added Dynamic price displays • ~$10bn in 2020 (Thinfilm • ~3% (2020)
(retail) estimates)
~300
Monitoring of perishable goods/ • TTI market2: ~$1.4bn in 2010, • ~4% (2020)
drugs (temperature sensor) ~$3.2bn in 2020 (source: Frost &
Sullivan, Freedonia, BCC+)
Interactive packaging • ~$5bn in 2020 (Thinfilm • ~2% (2020)
(FMCG/retail) estimates)
Other (both contactless- • Other applications/products: 20-bit • 1-9% (2020)
3
0.3 and closed systems) memory, diaper humidity sensor,
anti-theft , calibration sensors etc.
2011A 2013 2016 2020
# tags sold
~0 40 5,000 22,000
(millions)
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.)

13. ILLUSTRATIVE
Revenue potential driven by cost/functionality
Example: Monitoring of perishable goods/drugs (Temperature Sensor/TTI market)
Volume
Imagine Memory Everywhere™
Units sold, 2010; millions
6,000 “Labels”
Total market
of ~$1.4bn
(2010) Thinfilm TTI market size projections
• Price: $0.005-0.08 2013 2016 2020
• Volume: 3-6bn
Product/tag E.g., max/ min E.g., time- E.g., wireless
“Time labels” “Alarm tags” “Wireless & functionality temp.(counter) temp. exposure alarm tags
Integrated devices”
Cost/tag ~$0.30 ~$0.20 ~$0.10
• Price: $0.1-0.4 • Price: $15-25 • Price: $250-1000
3,000 • Volume: 0.5-1bn • Volume: ~15mn • Volume: ~1mn
Addressable
0.1 0.4 1.2
market, $bn
400
5
0
0 0.08 0.4 25 1000
Price
$ per unit, 2010
Share of 10% 5% 25% 60%
market ($140mn) ($70mn) ($0.4bn) ($0.9bn)
Source: Frost & Sullivan; BCC Research; Freedonia; Sensitech; Omega Engineering; Honeywell; ATI; Vitsab International; 2DI; ABB

14. Printed smart tags – Why now?
CAGR, 2011-2015
The “Internet of Things”: a Megatrend
Imagine Memory Everywhere™
Market size projections1
Intelligent system & Internet of Things, USD trillions
Identifies Top 10 Strategic Technologies
“….there has been an acceleration in the number and types of things
that are being connected and in the technologies for identifying,
sensing and communicating. These technologies are reaching critical 2.0
mass and an economic tipping point over the next few years” +19%
October, 2011 1.8
1.5
Intelligent Systems: The Next Big Opportunity 1.3
“The evolution of embedded systems from fixed function and 1.1
disconnected systems to intelligent systems continues to gain
momentum and puts intelligent systems on track to bring the 0.9
Internet of Things to reality” September, 2011
The Internet of Things
“More objects are becoming embedded with sensors and gaining the
ability to communicate. The resulting information networks promise
to create new business models, improve business processes, and
reduce costs and risks” McKinsey Quarterly, 2010 2010 2011 2012 2013 2014 2015
1 Based on numbers from IDC (Intelligent Systems) , September 2011 14

15. Printed smart tags – Why Thinfilm?
Plastic memory firm signs partners for printed systems
Imagine Memory Everywhere™
“Thinfilm has joined forces with a number of partners to develop a low-cost
October 2011: printed electronic sensor platform that could be used to monitor the
Successful prototype of first temperature of perishable goods such as food and pharmaceuticals”
1 scalable printed CMOS memory
Demonstrated that addressable memory can be
January 24 , 2012
combined with sensors, displays and antennas
Smart tag lets you print electronics on plastic
“The smart tag, an electronics device with basic computing components printed
November 2011: on a strip of plastic, features Thinfilm's memory with printable transistors from
research company PARC, a sensor, a battery, and display”
Organic semiconductor inks
2 developed for high volume printing
High quality semiconductor inks available. Partner with
January 24 , 2012
Thinfilm CEO Wants Your Stuff To Talk To You
Polyera to bring printed CMOS memory to market
“…. Norwegian company Thinfilm has been making headlines for its unique
technology…once Thinfilm’s tags are integrated with sensing technology, food
January 2012: can let us know when its spoiled, based on temperature and ammonia levels..”
Established partnerships for display, December 14, 2011
3 sensor and battery technology
Secured remaining “building blocks” for enabling smart Even Bananas Could Have Memory
tags (with Acreo, PST Sensors and Imprint Energy)
“…. Thinfilm offers a cheap way to give almost anything a memory….working
towards a world where virtually every item that we use is tagged with memory
and sensors, harvesting information locally that can then be gathered at leisure”
December 15 , 2011

16. Imagine Memory Everywhere™
Q&A