Connecting the Physical & Digital Worlds and Enabling Direct Brand-to-Consumer Mobile Engagement. Q Corporate Presentation November 10, 2017

Transcription

1 Connecting the Physical & Digital Worlds and Enabling Direct Brand-to-Consumer Mobile Engagement Q Corporate Presentation November 10, 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 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 22,000+ sq. m. state-of-the-art cleanroom 310 total patents 171 employees worldwide Sales offices in San Francisco, London, Singapore, Shanghai Thinfilm s solutions turn smartphones into intelligent agents 3

4 End-to-End Mobile Marketing Solutions NFC TOUCHPOINTS FOR PHYSICAL GOODS CLOUD-BASED TRIGGERS FOR DYNAMIC USER EXPERIENCE BACK-END ANALYTICS TO ASSESS & ENHANCE 4

5 Brand Owners Challenge Today: The customer journey is changing and brands must stay in touch with loyal customers to succeed Mobile Marketing is Controlled by Global Giants Take Control over Consumer Engagement E-Commerce Scrolling Search & Social Media Consumers looking for Olive Oil E-commerce sites determine product ranking independent of brand value Amazon alone: 46% of US sales Consumers looking for Olive Oil Brands pay for listing Consumer behavior data captured by software platform, not brand Offline-to-Online (Omnichannel) Brands connect with consumers when they tap with an NFC enabled smartphone Both in the store, at home, and to reorder 5

6 Q Announcements Snapshot Thinfilm Launches NFC Scanner App for iphones Thinfilm and GSK Bring NFC Technology to Flonase Barbadillo Doubles MQLs* with NFC Thinfilm and Charming Trim Bring NFC /AR to Apparel NEXGEN Uses Thinfilm NFC to Battle Industrial Fraud SFS to Use SpeedTap for Building Industry Specialized Products Valmont Brings Thinfilm NFC to Cosmetics Thinfilm Announces First Customer in Publishing 6 * Marketing Qualified Leads

7 New Customers, Deployments, and Use Cases NFC enabled direct mail inserts for a North American tobacco firm promoting its new smokeless and main cigarette products A top-7 global drinks firm to launch Applesupported NFC magnets integrated with Thinfilm SpeedTap tags in Q4 In-store display of Consumer Electronics featuring NFC SpeedTap for product information Market deployment of Personalized Bottle Experience with NFC SpeedTap by leading North American wine maker A leading nutritionfocused multi-tier marketer is adding SpeedTap tags to its primary packaging for new-member welcome packs

8 Largest NFC Deployment in the Wine and Spirits industry with Thinfilm s Speedtap labels C 33 mm Largest Wine & Spirits Campaign Castillo de San Diego White Wine distributed through 200+ major retail outlets nationally in Spain CM MY CY CMY K El tapón de esta botella puede tener NOS LAS LLEVAMOS A MARES me las quitan de los tentáculos da en el blanco y gana descubre cómo TOCA Y GANA esta me la bebo como que me llamo cigala M Y NFC 126k Smart Bottles Instant Prize Campaign Objectives Improve Consumer Engagement Growth in New Brand Fans Increase Sell Through Consumers Tap to Win Prize Innovative Lottery style Campaign promoted through traditional Point of Sale + Print, TV, Radio media Channels 2017 Campaign judged by Barbadillo to be twice as effective as prior years because of SpeedTap NFC deployment NFC Tag Touchpoint Applied on reverse face of Neck Collar directly beneath Call-to-Action x >30% El tapón de esta botella puede tener Activa el NFC y acerca tu smartphone aquí o entra en: dandoenelblanco.es Thinfilm SpeedTap NFC enabled bottles tapped More MQLs* than any other channel El tapón de esta botella puede tener Of bottles tapped were purchased and re-tapped at new location, generating location data in CNECT platform 8 *Marketing Qualified Lead

9 NFC Drove More Time on Site than Google, Facebook and Banner Ads Combined Brand Engagement for Barbadillo Dando-en-el-Blanco summer campaign on 126,000 Castillo de San Diego bottles 79% of all traffic from mobile % of mobile traffic is paid 54% of brand engagement came from NFC and Thinfilm SpeedTap enabled bottles 5% 16% 79% Mobile Desktop Tablet Mobile dominates Paid 75% Direct 25% Mobile is not free Search / Google 30% Social / Facebook 11% 61% Banner / 14% Display Ad 26% 54% Inner circle: Share of paid traffic Outer circle: Engagement per source Thinfilm - 10x more traffic than Social / Facebook - 4x more engagement than banner / display ads - Even better than Google NFC was clearly the best channel for brand engagement 9

10 Apple Announcement Dramatically Expands NFC Opportunity for Brands Apple ios11 Apple opens support for NFC tag reading System requirements: iphone 7 & higher ios 11 App must be in scan mode Apple requires use of approved apps and more user interaction Thinfilm CNECT opportunity Thinfilm NFC Scanner app for ios devices available in Apple App Store Solution supports conventional tags read by ios devices First commercial deployments of Applereadable tags in market now with Thinfilm customers. 10

11 CNECT Software Platform Cloud-based multi-tenant system (SaaS) for tag administration, campaign management, and consumer interaction analytics Allows brand owners to effectively drive consumer interaction with contextually relevant experiences based on geo-location, time-of-day, # of taps, product state (open/sealed) & unique ID Acquired data gives insight in understanding consumer behavior and measuring effectiveness of various campaigns; speeds new product introduction, product development and innovation +413% Thinfilm Software team expanded to 16 FTEs, half in-house/half near-shore Completed four major product releases, and supported specific customer applications for tag pairing, ios scanning and AR (augmented reality) Registered companies have increased steadily since Feb 2017 introduction Mar 17 May 17 Jul 17 Sep 17

12 Mobile Marketing Association Smarties Award Thinfilm and Coronado were recognized for technology innovations in the category Internet of Things: Products in the Market for their smart coaster campaign 12

13 Producing Billions of Devices via Roll-Based Printing EAS and NFC front-end die production fully requalified in Q3 Roll-based capital expansion Ordering of NFC line complete First equipment arrived starting August 2017, currently under permitting and installation Start of roll-based production of EAS moves to Q First production of NFC expected late Q Roll-based manufacturing capital expansion essentially on budget (within 5%) Full line output by 2020, now expected to reach 7B unit capacity per year based on planned dieshrinks (previously 5.2B units per year) Back-end improvements now expected to increase gross margins by 15 percentage points Roll-based manufacturing equipment units now being installed in the production fab at Thinfilm s Junction Avenue facility in San Jose, CA. Rolls of thin stainless steel and other substrates to be used to produce the front-end die for EAS tags and NFC tags. 13

14 Thinfilm Q Financials Record shipment quarter 2,500 2,250 2,000 LTM revenue & other income* [kusd, RHS] Revenue & other income* [kusd, LHS] 2,300 6,000 5,500 5,000 Over 10 million units of wireless product shipped Total Revenue of USD 1.2 million Other income of USD 0.1 million from accounting gain because of disposal of fixed assets 1,750 1,500 1,250 1, ,280 1, ,077 1,039 1, , ,019 1,115 1,310 4,500 4,000 3,500 3,000 2,500 2,000 OPEX went slightly down in the quarter Lower joint development activities Increased capitalization of development costs One-time costs related to move to new fab and rebranding in Q2 Cash balance of USD 12.9 million per end September ,500 1, Successful capital raise (October 2017) of USD ~110 million, pending approval by EGM of Tranche 2 on 13 November Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q * excludes other income related to January 2014 recognition of badwill

15 Thank You Davor Sutija CEO Ole R. Thorsnes CFO