Leveraging Roll-to Roll Technology to Expand the Internet of Things

Transcription

1 Leveraging Roll-to Roll Technology to Expand the Internet of Things

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 2016 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 Thin Film Electronics ASA Providing digital identities to physical objects through printing Near Field Communications (NFC) for IoT enablement Global leader in Printed Electronics Scaling to the billions of units by roll based manufacturing Publicly listed OSE/OTCQX Strong patent portfolio Over 290 patents in total 2016: 17 new patents issued and 7 new patent families received priority date Award-winning NFC Innovation Center in Silicon Valley Broad & diverse global partner ecosystem 3

4 Thinfilm s Vision Add a little bit of intelligence to a lot of things. 4

5 Consumer Engagement Mobile Marketing Today Tapping (NFC Smartphones) E-commerce scrolling Search & Social Media Consumer Engagement with Brand Consumers researching Olive Oil Consumers hunting for good deals and highly reviewed products Consumers researching Olive Oil Brands pay for listing Traffic determined by search provider Offline-to-Online (Omnichannel) Brands connect directly with consumers when they tap on products 5

6 Thinfilm Solutions PLATFORM Applications PRODUCTS SpeedTap OpenSense 6

7 Thinfilm is targeting millennials through several key vertical markets Craft Beers Wine & Spirits Diamonds Tobacco Pharma Health & Beauty Products Specialty Foods Subscription Boxes 7

8 Key vertical: Tobacco Traction within producers, packagers and brand agency Arc Worldwide Digital activation partner Leo Burnett s digital activation group 3rd largest agency in the world Thinfilm exclusive partner to deliver NFC Solutions to clients Arc Worldwide customer expects field trial in Q Non-disclosed customers Leading tobacco brands NA brand: 900 million unit opportunity European brand: Request for budgetary quote received this month for 100 million and 1 billion labels respectively Asian specialty solutions provider for tobacco: Related pilots and field trials expected in first half of 2017 using engagement portal hosted in China The opportunity we saw was for sending pre- and post-purchase messaging to smartphones. If you know the moment when a package has been opened it s a game-changer for marketers. Nick Jones, EVP Innovation & Growth Arc Worldwide (Leo Burnett) 8

9 Key vertical: OTC Integrated high-volume production for OTC Provider of premier packaging solutions for J&J and Nestlé Engaging pharmaceutical industry to integrate NFC OpenSense into Rx/OTC packaging Automated application of OpenSense integrated in Jones high-volume production line Pilot with leading OTC pharma company Link to Jones video: "Thinfilm s unique printed NFC solution addresses multiple needs within the pharmaceutical channel, particularly around product integrity and patient safety. Chris Jones Harris Strategic Initiatives & Alliances, Jones Packaging 9

10 Key vertical: Medical devices Improving patient outcomes Non-disclosed customer Fortune 500 global leader Partnership with leading global pharma company in their largest prescription franchise Improve patient adherence to prevent acute attacks and manage therapeutic treatment of chronic disease Request made to leading handset manufacturer to support pharma applications Ypsomed Global leader in injection systems Injection pen for chemotherapy, blood thinning and fertility treatments 50 million CHF invested in next-gen injection/infusion systems "Ypsomed has identified a need amongst its customers for injection devices that in the long run support the administration of medicine with intelligent functions realised by electronics and soft are." 2015/16 semi-annual report 10

11 Key vertical: Drinks Innovative brands marketing to millennials Hopsy Fresh craft beer directly to consumers Enables microbreweries to engage with consumers, educate customers, and differentiate their brands Barbadillo and Ferngrove Product authentication of exclusive wine Barbadillo: Leading Spanish winery Ferngrove: Major Australian wine supplier to APAC region Diageo World s first smart bottle Thinfilm and Diageo collaborated to develop Johnnie Walker Blue Label smart bottle prototype Ongoing integration work with label partner We believe Thinfilm s technology gives our partner breweries a powerful tool to connect with their customers beyond the brewery. Sebastien Tron, Co-Founder & CEO, Hopsy 110 unique articles; 41 international; 4,000+ tweets Link to Hopsy video: 11

12 Key vertical: Specialty food Authenticating quality: Extra virgin olive oils Thinfilm partnered with winning Green Award Italian app platform iolive 150 Tuscan producers use iolive to provide product information and for quality authentication, including Buonamici, La Ranocchiaia, SPO, and Il Cavallino iolive digitizes the International Olive Council profile sheet for assessment of olive oil (used in 44 countries) the wine industry has done a much better job [than the olive oil industry] of educating customers on how to evaluate, buy and enjoy wine. That s why I created iolive. I believe it will do for olive oil consumers what the leading wine apps have done for wine lovers. And I m very excited about using SpeedTap technology to take it to the next level. Peter Barachini, Director, iolive 12

13 Key vertical: Diamonds Create digital identity for diamonds Thinfilm and Sarine using NFC to create digital identities for diamonds SpeedTap integrated into Sarine Profile sales and consumer support system Tags tell each diamond s story in real-time, supports buying decisions with scientific accuracy, and provides digital proof of lineage and ownership. Field trial planned Sarine is leveraging world-leading NFC technology to advance the performance of Sarine Profile in jewelry retail settings in real time. Uzi Levami, CEO, Sarine Technologies. 13

14 Simplifying Supply Chain Adding NFC to Hang Tags Ideal for promotional campaigns Integrating SpeedTap technology into popular ElastiTag hang tags Eliminates the need for more formal integration with product labels and packaging Makes NFC accessible to companies of all sizes Bedford clients include Unilever, P&G, Diageo, Nestle, L Oreal, and Colgate- Palmolive Thinfilm s revolutionary SpeedTap technology, combined with the distinctive personally of ElastiTags, will create compelling consumer experience on nearly any type of product. Kim Millbrandt, President Bedford Industries 14

15 Key vertical: Temporary worker ID cards Holoptica Leader in holographic solutions for brand protection and document security Combine technology to deliver printed nanotechnology anticounterfeiting solutions First use-case in temporary worker ID cards We re excited about the role these innovative tags can play in effectively addressing the document security needs of governments and related authorities around the globe. George Perkous, CEO Holoptica 15

16 Scaling to Billion-Unit Volumes and cash break-even Goals Roll-to-Roll equipment (examples) 5 billion unit NFC annual capacity Material dominates per-die cost Total front-end die cost reduced by 10x USD 600+ million annual revenue potential with 30% gross margin Cash break-even by end 2018 / early 2019 Capex of USD 32 million for R2R and USD 5 million for sustaining activities 16

17 Modern Facility to House Roll-to-Roll Line Progress Site is leased for 12 years Vendor finalists selected Ordering of line-related equipment in process EAS production end 2017, NFC by Q Site Former Qualcomm site 22,000+ m2 class 10-10,000 clean room Office-space remodelling ongoing Move-in April Junction Avenue, San Jose, California 17

18 Appendix 18

19 Top 10 Strategic Technology Trends 2017 Gartner on Intelligent Apps By 2018, Gartner expects most of the world s largest 200 companies to utilize the full toolkit of big data and analytics improve customer experience Intelligent Things Trends coincide with Thinfilm s solutions and strategy Existing things including IoT devices will become intelligent things...enabled systems everywhere including home, office, factory floor and medical facility Digital Twins billions of thins will be represented by digital twins, a dynamic software model of a physical thing or system Digital Technology Platforms Digital technology platforms are the building blocs for digital business new platforms and services for IoT, AI and conversational systems will be a key focus Source: Gartner 19

20 Key vertical: Anti-theft Anti-theft solution provided for global fast fashion retailer Global leader in providing retail sector with anti-theft systems, store automation systems, RFID stock control systems, and customer experience technology Partnered with Thinfilm to supply global fast-fashion brands with high-value loss prevention system featuring EAS (electronic article surveillance) tags Currently in market under the Nedap!FaST brand Thinfilm has delivered 13 million units Our mission at Nedap, ultimately, is to protect the profits of our clients while enhancing the shopping experience of their customers. Thinfilm s EAS labels help us do just that. Rob Schurrman, director and GM Nedap Retail 20

21 Key vertical: Memory Xerox Printed Memory built on Thinfilm technology Manufacturing scale-up partner Global leader in business services, digital printing & document management Launched two products featuring Thinfilm Memory 1.3B unit capacity in Rochester, NY plant Traction with customs agencies and governments re: tax-stamp solutions Link to Xerox video: 21