Connecting the Physical & Digital Worlds - and Enabling Direct Brand-to-Consumer Mobile Engagement Corporate Presentation September 2017 - Thinfilm
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Connecting the Physical & Digital Worlds
and Enabling Direct Brand-to-Consumer Mobile Engagement
Corporate Presentation
September 2017
Safe Harbor Statement
This report includes forward-looking statements covered by the Private Securities Litigation Reform Act of 1995.
Because such statements deal with future events, they are subject to various risks and uncertainties and actual results
for fiscal year 2017 and beyond could differ materially from the Company's current expectations. Forward-looking
statements, including estimates of capacity, selling price and other material considerations, are identified by words
such as "anticipates," "projects," "expects," "plans," "intends," "believes," "estimates," "targets," and other similar
expressions that indicate trends and future events.
Factors that could cause the Company's results to differ materially from those expressed in forward-looking
statements include, without limitation, variation in demand and acceptance of the Company's products and services,
the frequency, magnitude and timing of raw-material-price changes, general business and economic conditions
beyond the Company's control, timing of the completion and integration of acquisitions, the consequences of
competitive factors in the marketplace including the ability to attract and retain customers, results of continuous
improvement and other cost-containment strategies, and the Company's success in attracting and retaining key
personnel. The Company undertakes no obligation to revise or update forward-looking statements as a result of new
information, since these statements may no longer be accurate or timely.
Thinfilm financial reports may be accessed via the following web page:
http://thinfilm.no/investors-reports-and-presentations/
2
Thinfilm creates digital identities and actionable
micro-connections to physical objects
Thin Film Electronics ASA
▪ Publicly listed
▪ OSE (THIN)
▪ OTCQX (TFECY)
▪ Revolutionary Silicon Valley fab for roll-based
manufacturing of printed electronic devices
▪ Former Qualcomm facility
▪ 2,000 sq. m. state-of-the-art cleanroom
▪ 310 total patents
▪ 18 new patents issued in the first half of
2017
▪ 4 new patent families in the first half of 2017
▪ 162 employees worldwide
▪ Sales offices in San Francisco, London,
Thinfilm’s solutions turn smartphones Singapore, Shanghai 3
into intelligent agents
With Thinfilm,
End-to-End NFC Cloud Solutions
NFC “touchpoints” Cloud-based triggers Back-end analytics
for physical goods for dynamic user to assess & integrate
experience 4
Proof Points of NFC in Q2 Deployments
Largest global Consumer tapping activity 13 – 17.5X increase in Thinfilm NFC used with
deployment of NFC in in 50 US cities website conversions; 92% 20,000 emergency
wine & spirits industry lift in mobile traffic relief deliveries
(126,000 bottles)
Total of 20 deployments and Plus:
field-trials in-market or ▪ Shelf-talkers > OTC Pharma
planned/signed in Q2 2017 ▪ In-store Displays > Consumer Durables 5
▪ Metalized packaging (Tobacco)
▪ Specialty Foods
▪ Planned trials in Nutritionals and Cosmetics
Exponential Increase in
Tapping Activity
Coronado Brewing Co. Korean Red Cross Q2 deployments encompass uses
In California In South Korea in North America, Europe and Asia
Oskar Blues Brewery – ranging from local to national
Barbadillo distribution
In Spain In the USA
6
NFC Increases Consumer Engagement Call-to-action for the Surfrider / Earth Day campaign 7
Largest NFC Deployment in the Wine and Spirits industry
with Thinfilm’s Speedtap™ labels
Largest Wine & Spirits Campaign
Castillo de San Diego White Wine distributed
through 200+ major retail outlets nationally in Spain
126k
Campaign Objectives NFC Tag “Touchpoint”
• Improve Consumer Engagement Applied on reverse face of Neck
Collar directly beneath Call-to-Action
• Growth in New Brand Fans
Smart Bottles • Increase Sell Through
Instant
Prize
Consumers Tap to Win Prize
Innovative Lottery style Campaign promoted
through traditional Point of Sale + Print, TV, Radio
2000+ Thinfilm SpeedTap™ NFC enabled bottles tapped
2-11x
media Channels
More MQLs* than any other channel
2017 Campaign judged by Barbadillo to be
twice as effective as prior years because of
SpeedTap™ NFC deployment >30% Of bottles tapped were purchased and re-tapped at new
location, generating location data in CNECT
8
*Marketing Qualified Lead
NFC drove brand engagement better than Facebook and Google
Created higher quality traffic than display / banner ads
Brand Engagement for Barbadilllo Dando-en-el-Blanco summer campaign on 126,000 Castillo de San Diego bottles
1 2 3
of mobile traffic is of brand engagement came from NFC and
79% of all traffic from
mobile
74% paid
54% Thinfilm SpeedTap™ enabled bottles
Social / Facebook
Thinfilm
5% Search / - 10x more
Google traffic than
16% 30% 11% Social /
79% Paid 75% 26%
Facebook
- 4x more
54% engagement
61% than banner /
display ads
Banner / 14% - Even better
Mobile
Display Ad than Google
Desktop Direct 25%
Tablet Inner circle: Share of paid traffic
Outer circle: Engagement per source
9
Mobile dominates Mobile is not free NFC was the dominant channel for brand engagement
Supply Chain & Industrial Use Case Expansion
New industrial customers signed in Q2… …enabled by new ecosystem partners
Single tap to Enable insurance Ideal for toxic, perishable
authenticate delivery of companies to directly and high-value pharma
goods and services to on-board customers assets that must be
consumer recipients while maintaining broker- checked in/out by
based sales model qualified personnel
Secure Delivery Customer Supply Chain
On-boarding for
Verification Tracking
Insurance Industry
10Supply Chain & Industrial Use Case Expansion
New industrial customers signed in Q2… …enabled by new ecosystem partners
Alerts and guides
technicians on
troubleshooting and
maintenance of
industrial assets
Machinery and
equipment that requires
regular inspection,
maintenance, and
replacement
Inspection/Logging Preventive Maintenance
/Reorder
11CNECT™ Software Platform
- Thinfilm Software team expanded to 16
FTEs, half in-house and half near-shore
- 10 months after Sept. 2016 kick-off,
completed a total of 19 sprints, four
major product releases, and supported
specific customer applications for tag
pairing, iOS scanning and AR
(augmented reality)
12Apple Announcement Dramatically Expands NFC
Opportunity for Consumers
Apple update June 2017 Thinfilm CNECT opportunity
▪ Apple announced support for NFC tag ▪ CNECT™ registered companies increased
reading @ WWDC from 68 at end Q1 to 260 by end July 2017
▪ System requirements: ▪ Beta version of Thinfilm NFC Tag Scanner
▪ iPhone 7 & higher app for iOS devices developed and tested
▪ iOS 11 (available now in beta) ▪ Solution supports conventional tags read
by iOS devices
▪ Must be in Scan mode
▪ Apple requires use of approved apps and
more user interaction
13Enabling Billions of Devices by Roll-Based Printing
▪ Successful grand opening event
▪ EAS requalified / NFC requalification on schedule
▪ First product shipped from new fab
▪ Roll-based capital expansion investment on budget
▪ Ordering of NFC line near complete, including
testing/inspection
▪ Laser ROM unit for writing memory pending
▪ Not gating start date
▪ First equipment arrives August 2017
Mayor of San Jose and The grand opening included
▪ Roll-based production of EAS on schedule for end 2017
two Council Members keynote presentations from
▪ First production of NFC expected early Q3 2018, on schedule showing first sheet shipped Gartner (Charles Golvin), and
from new Junction Avenue Google X (Raj Apte; Thinfilm
▪ Thinfilm’s BoD approved acceleration of capital program to
facility on Opening Day, Technical Advisory
fully complete line by mid 2018 Committee, shown above)
June 15 2017
▪ Full line output by 2019 in the billions of units per year
14
Broad coverage in Bay Area media and front
page cover story in San Jose Mercury News▪ Record quarter revenues as a result of:
Thinfilm Q2 2017 Financials ▪ Total Revenue of USD 1.7 million
▪ 8.5M EAS tags shipped
▪ Milestone payments from Fortune 500
pharma JDA
2,500 5,500 ▪ Doubling of NFC product deliveries
Revenue & Other Income* [kUSD, LHS] 2,300 ▪ Other income of USD 0.6 million, including
2,250 5,000 USD 450k accounting gain because of
LTM Revenue & Other Income* [kUSD, RHS]
disposal of fixed assets
2,000 4,500
4,000 ▪ OPEX rose in the period as a result of:
1,750
1,599 ▪ Increased manning by 10 FTEs related to
3,500 field sales and engineering/manufacturing
1,500
1,280 3,000 ▪ Higher manufacturing activity level and
1,250 1,188 1,186 product deliveries
1,0771,039 1,115
1,019 2,500
1,000 885 860
▪ Capital plan on budget; acceleration
811 829 2,000 approved by Board based on market
750 681 698 traction
1,500
512
500 ▪ USD 9.5 million used in H1 on fixed and
1,000 intangible assets, primarily related to the
275 285
250 new roll-to-roll production line and facility
500
upgrades
0 0 ▪ USD 11.3 million pre-payments paid for
equipment that has been ordered but 15
not yet delivered related to the roll-
based manufacturing capital plan
▪ Cash balance of USD 28.2 million per
* excludes other income related to January 2014 recognition of badwill end June 2017Thank You Davor Sutija CEO davor.sutija@thinfilm.no +47 94 84 98 86
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