Thin Film Electronics ASA. Q Corporate Presentation 11 August 2017

Transcription

1 Thin Film Electronics ASA Q Corporate Presentation 11 August 2017

2 Safe Harbor Statement This report includes forward-looking statements covered by the Private Securities Litigation Reform Act of 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: 2

3 Thinfilm creates digital identities and actionable micro-connections to physical objects. Thinfilm s solutions turn smartphones into intelligent agents. Thin Film Electronics ASA Publicly listed OSE (THIN) Barbadillo uses Thinfilm s platform to launch largest global deployment of NFC in the Wine & Spirits industry (July 2017) 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 new patent families received a priority date in the first half of employees worldwide Sales offices in San Francisco (RocketSpace), London, Singapore, Shanghai 3

4 With Thinfilm, End-to-End NFC Cloud Solutions NFC touchpoints for physical goods Cloud-based triggers for dynamic user experience Back-end analytics to assess & integrate 4

5 Consumer Use of NFC Expanded in Q2 Deployments Largest global deployment of NFC in wine & spirits industry (126,000 bottles) Consumer tapping activity in 50 US cities X increase in website conversions; 92% lift in mobile traffic Thinfilm NFC used with 20,000 emergency relief deliveries Total of 20 deployments and field-trials in-market or planned/signed in Q Plus: Shelf-talkers > OTC Pharma In-store Displays > Consumer Durables Metalized packaging (Tobacco) Specialty Foods Planned trials in Nutritionals and Cosmetics 5

6 Exponential Increase in Tapping Activity Coronado Brewing Co. In California Barbadillo In Spain Korean Red Cross In South Korea Oskar Blues Brewery In the USA Q2 deployments encompass uses in North America, Europe and Asia ranging from local to national distribution 6

7 Increase in Consumer Engagement Compared to Existing Advertising Call-to-action used during the Surfrider / Earth Day campaign 7

8 Supply Chain & Industrial Use Case Expansion New industrial customers signed in Q2 enabled by new ecosystem partners Single tap to authenticate delivery of goods and services to consumer recipients Enable insurance companies to directly on-board customers while maintaining brokerbased sales model Ideal for toxic, perishable and high-value pharma assets that must be checked in/out by qualified personnel Secure Delivery Verification Customer On-boarding for Insurance Industry Supply Chain Tracking 8

9 Supply Chain & Industrial Use Case Expansion New industrial customers signed in Q2 enabled by new ecosystem partners Machinery and equipment that requires regular inspection, maintenance, and replacement Alerts and guides technicians on troubleshooting and maintenance of industrial assets Inspection/Logging /Reorder Preventive Maintenance 9

10 CNECT Software Platform - Thinfilm Software team expanded to 16 FTEs, half in-house and half near-shore - 10 months after Sept 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) URL 10

11 CNECT Software Platform Launch Timeline Q Q Q Q CNECT China - China CNECT China CNECT 1.1 CNECT Global - Global CNECT Global CNECT IOT-CNECT - Activities Roles/Permissions - Tag Upload - Campaign Mgmt. 1.1 Mobile Solution - Red Cross Pairing - Android CNECT Sarine Pairing - Tappe AR demo - ios NFC Scanner - Android Pairing Automated Tag id scalable to billions - Kick-Off 11

12 Apple Announcement Dramatically Expands NFC Opportunity for Consumers Apple update June 2017 Apple announced support for NFC tag WWDC System requirements: iphone 7 & higher ios 11 (available now in beta) Must be in Scan mode Apple requires use of approved apps and more user interaction Thinfilm CNECT opportunity CNECT registered companies increased from 68 at end Q1 to 260 by end July 2017 Beta version of Thinfilm NFC Tag Scanner app for ios devices developed and tested Solution supports conventional tags read by ios devices 12

13 Extending Product Portfolio to Hybrid Smart Sensor Label Temperature sensors delivered to three go-to-market distributors Met and/or exceeded customer specs for pharma and fresh food applications Multiple field trials agreed in food / perishables market 4 Deliveries to North American and Asian partners Application use areas: Displays clear indication of in/out of spec (single or double threshold) Verifies compliance / freshness throughout the supply chain Complies with requirements to monitor cold chain Temperature variations in transportation containers (source: Sensors Technology Lab, CENIM- CSIS) 13

14 Enabling 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 Roll-based production of EAS on schedule for end 2017 First production of NFC expected early Q3 2018, on schedule Thinfilm s BoD approved acceleration of capital program to fully complete line by mid 2018 Full line output by 2019 in the billions of units per year Mayor of San Jose and two Council Members showing first sheet shipped from new Junction Avenue facility on Opening Day, June The grand opening included keynote presentations from Gartner (Charles Golvin), and Google X (Raj Apte; Thinfilm Technical Advisory Committee, shown above) Broad coverage in Bay Area media and front page cover story in San Jose Mercury News 14

15 Thinfilm Q Financials 2,500 2,250 2,000 1,750 1,500 1,250 1, Revenue & Other Income* [kusd, LHS] LTM Revenue & Other Income* [kusd, RHS] 860 1,280 1, ,077 1,039 1,599 1, ,115 1,019 2,300 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Record quarter revenues as a result of: Total Revenue of USD 1.7 million 8.5M EAS tags shipped Milestone payments from Fortune 500 pharma JDA Doubling of NFC product deliveries Other income of USD 0.6 million, including USD 450k accounting gain because of disposal of fixed assets OPEX rose in the period as a result of: Increased manning by 10 FTEs related to field sales and engineering/manufacturing Higher manufacturing activity level and product deliveries Capital plan on budget; acceleration approved by Board based on market traction USD 9.5 million used in H1 on fixed and intangible assets, primarily related to the new roll-to-roll production line and facility upgrades USD 11.3 million pre-payments paid for equipment that has been ordered but not yet delivered related to the rollbased manufacturing capital plan 15 * excludes other income related to January 2014 recognition of badwill Cash balance of USD 28.2 million per end June 2017

16 Thank You Davor Sutija CEO Ole R. Thorsnes CFO