Thin Film Electronics ASA (“Thinfilm”)

Plastic and Printed Electronics:

Roadmap to Integrated Systems

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]

hasn’t this gap been addressed?

• Cost of silicon and integration

• Lack of scalability for conventional

electronics

Bringing intelligence to everything

Why

A Smarter Everyday

A new paradigm needed to create the

Internet of Everything

Case: Healthcare to the Home

The goal of technology-enabled homecare

is to prevent or reduce

the need for costly institutional care.

Case: Mobile Logistics

Securing the supply chain

Using printed electronics to power the next generation of low-cost

temperature-sensing labels

Sensor Label

Authentication Label

NFC / RF

Case: Cold Chain Transportation

Are extreme temperatures compromising your products?

Sensor Label

• picks up data and transmits it

• different types of sensors;

temperature variations, humidity,

chemical traces

Temperature Sensor Label

Application Example: Time-Temperature Sensor Label

Sensor & Display Labels

Temperature Monitoring for

Perishable Goods

$1.4 Billion in 2010

9% CAGR

500,000,000 color changing labels

sold per year

Printed Electronics Positioning

Lo

w

HighLow

Co

st

pe

r fu

nc

tio

n

System performance

Hig

h

Data Loggers & Alarm Tags

Simple Tracker

Colorchanginglabels

Printed

Electronics

Sweet-spot

Case: Refill Authentication and Brand Protection

Brand theft and the growing grey market dilemma

Authentication labels

Low-cost, high-security solution that protects the bottom line

Volume shipments to customers

Memory Labels Sensor and Display Labels Near Field Smart Labels

Silicon

EEProm

6.5₵

Printed

Memory

2₵ - 5₵

vs

Silicon Sensor

System

$11+

vs

Printed Sensor

System

30₵ - 50₵

Silicon sensor

systems w/

wireless

communication

$25+

vs

Printed Sensor

Label w/ near-

field read

50₵ - $1.00

Current Product: Q3 2013

Scale-up

Current Development (2014)

ExtendNext Step (2015)

Integrate

Printing electronics breaks the cost & scalability barriers

Memory Labels Sensor and Display Labels Near Field Smart Labels

Silicon

EEProm

6.5₵

Printed

Memory

2₵ - 5₵

vs

Silicon Sensor

System

$11+

vs

Printed Sensor

System

30₵ - 50₵

Silicon sensor

systems w/

wireless

communication

$25+

vs

Printed Sensor

Label w/ near-

field read

50₵ - $1.00

Current Product: Q3 2013

Scale-up

Current Development (2014)

ExtendNext Step (2015)

Integrate

Printing electronics breaks the cost & scalability barriers

Near-field communication catalyzes the

Internet of Everything

“the companies changing

the mobile landscape in the

most profound ways”

Mobile 15 2012

October 14

Thinfilm receives first

commercial order for brand

protection solution,

expected in stores Mar-14

Sept 16

Peter Fischer, former

CTO Plastic Logic, to

join Thinfilm as

Chief Product Officer

October 16

Thinfilm delivers first fully

stand-alone printed

organic sensor label

November

Stanford University hosts

Trillion Sensor symposium

Recent Highlights

December 23

Bemis and Thinfilm

extend agreement,

bring brand protection

to flexible packaging

October

Cisco launches

Internet of

Everything

campaign

December 30

Thinfilm delivers first

commercial orders to

Luxury Goods factory

Jan 21

Thinfilm

acquires

industry-

leading NFC

technology

Sept 6

Invesco Perpetual

agrees to invest

$47 Million USD in

private placement

December 20

PARC, a Xerox Company,

increases shareholding in

Thinfilm, bringing PARC to

4.0 million shares

Jan 8

Brady Corporation and

Thinfilm announce strategic

alliance for healthcare and

visitor management

Combining organic logic and printed doped polysiliconNFC Sensor Labels to be demonstrated in 2014

Proven production with commercial yields = limited technology development to implement

Standards-compliant wireless at least 2 years early

Only printed NFC supported by Google Android, other OEMs and major NFC controllers

NFC Innovation Center in heart of Silicon Valley

■ Center of market activity in Internet of Things

■ US-based site able to participate in government research, commercial partnerships

Printed Electronics Printed NFC Thinfilm Smart Label

Internet of Everything

Addressable Market of $20-25bn

Thinfilm Tags

Application

5-10

1-1.5Personal

health care

Dynamic

price display

Interactive

packaging2-5

Monitoring of

perishable goods1-2

Market size ($ bn)

2-5

Anti-theft/

brand protection 2

Logistics

NFC & "Internet

of Everything"10+

Devices

Software

Cloud

~40k

<1mm

~2bn

Trillions Attractive

opportunities

for partners to create value in

systems and

solutions

Commercial deals validate vision; Megatrends accelerate it

“Internet of Everything’ is an exponential proxy

for sensing, understanding and managing our world.Dave Evans, Chief Futurist, Cisco Systems

Connected objects by 2020:

Cisco – 50 Billion; IBM – 1 Trillion

1 in 3 Mobile Phones with NFC by 2017;

300% growth in 2012

Printed Electronics $40-$50Billion market by 2020

Agreements with Fortune 1000 companies

Consumer

Goods

• Top 2 global Toys & Games

• Monopoly, Trivial Pursuit &

Scrabble

• Global fast-moving consumer

goods company testing for brand

protection. Sales > $50bn

• Global leader in flexible packaging

• Work on intelligent packaging

• (~200bn packages/year)

• Leader in identification solutions

• More than $1billion annual revenue

Megatrends in action

Apparel & Accessories

• Luxury good manufacturer to trace

gray market activity

“Our agreement with Thinfilm could make printed electronics

a component of every package we manufacture.”

Henry Theisen, CEO, Bemis

Europe Uniquely Positioned to Deliver Commercial Value

Proven high-volume production

“Thinfilm’s high volume production is validation for the

commercialization of printed electronic devices.”

Michael Palma, IDC

Only company with both printed Memory and Logic

Extensible platform for printed integrated systems;

includes only printed NFC interface supported by major mobile suppliers

Strong Ecosystem to Deliver Complete Product

APPENDIX

Video