Thin film electronics introduction for packbridge 170913

Imagine Memory Everywhere™

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


► 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 embeddedelectronic 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)


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


First Integrated System Products (2014)

Brand Protection (Q3 2013)

Bemis Intelligent Packaging Platform (2015)

Product readiness depends on complexityElectronic Blocks

Required


Four customer agreements secured during the last 10 months

Short termvalue

capture(< 1 year)

Memory/components:

Integratedsystems:

Longer term value

capture(~2 year)

CustomersToys & 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

http://www.bemis.com/


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:

http://www.parc.com/

http://www.inktec.com/main.asp

http://www.solvay.com/


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 codes49%

► Approximately $600 billion is lost each year due to counterfeiting

► Largest counterfeit categories include consumer products, clothing and electrical devices

PriceHIGH LOW

LO

WH

IGH

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%


Brand Protection: Micro View

Authentic Not authenticMeasuring…

Thinfilm Authentication Label Reader

Unit


Closed-System Sensor LabelsLooking back after 12 months of 30 month planThinfilm 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

Electrodes for addition of sensor ink

Memory

July 2012Concept Illustration at start

Dec 2012Thinfilm 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


Disruptive TechnologyUnique Cost-Functionality Trade-off

► Higher system performance than color changing labels (quantitative vs qualitative; digital vs optical)

► Significantly lower cost than silicon electronics

Lo

w

HighLow

Co

st p

er f

un

ctio

n

System performance

Hig

h

Sweet-spot

Data Loggers & Alarm Tags

Simple Tracker

EXAMPLE: TEMPERATUREMONITORING MARKET

Colorchanginglabels

$0.5 Billion

$0.9 Billion

http://www.omega.com/ppt/pptsc_lg.asp?ref=omwt-temp15&Nav=


Addressable Market of $20-25bn

Thinfilm

sDevices

Software

Cloud

S E

R V

I C

E

L A

Y E

R S

~40k

<1mm

~2bn

Trillions

Application

5-10

1-1.5Personal 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+


Attractive pricing & licensingterms

Thinfilm Key Revenue Drivers

Scalable businessmodel

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 tag2014-2020; $ 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 partners2014-2020; Per cent

2011 2021

1 IDTechEx; Yóle Development

2014

100

50

0

2016 2018 2020

2014

30

20

02016 2018 2020

10

Market price

Licensing fee


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 20202 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 2020Thinfilm revenue projections, 2012-2020; USD millions


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.


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


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”


Q & AFurther questions:[email protected]+47 40 40 14 85