Engaging Consumers 1:1 at the Point of Purchase & Beyond

Transcription

1 Engaging Consumers 1:1 at the Point of Purchase & Beyond NFC Mobile Marketing Solutions in a Mobile-First Era Davor Sutija CEO

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 2018 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:

3 Thinfilm at-a-glance Thinfilm enables the Internet-of-Everything Thinfilm s NFC solutions transform physical objects into digital marketing channels One-Stop-Shop for NFC mobile marketing - Hardware (printed and conventional NFC tags) and CNECT Software Printed & Roll-based manufacturing - Ultrascalable - billions of tags capacity - Silicon Valley based production facility Flexible & durable tags - On-Package or Loosely coupled - High volume bottling production lines Over 300 patents and patent applications 170 employees in Oslo, San Jose, Linkoping, San Francisco, London, Singapore, Hamburg and Shanghai Listed on Oslo Stock Exchange (THIN) and OTCQX (TFECY) and turn smartphones into direct brand-to-consumer gateways.

4 End-to-End Mobile Marketing Solutions Hardware Smartphone Software NFC touchpoints turn physical products into digital marketing channels Smartphone tap triggers dynamic and unique mobile experiences Powerful cloud platform for real-time campaign management, analytics, and reporting Global ecosystem for label conversion and tag integration services

5 Brands Can Take Control of the User Experience COMPETITOR BRAND #2 SEARCH? COMPETITOR BRAND #1 YOUR BRAND Direct 1:1 connection On-brand messaging

6 CNECT Software Platform CNECT 2.0 launching April 2018 Bridging the gap between the physical and digital worlds Cloud based Real time data Uncover consumer behavior - Find Insights not available anywhere else - Optimize campaigns on the fly - Use data to enhance other marketing efforts Deliver content based on: - Tap sequence - Time of day - Day of week - Geography Remotely manage destination URLs Add tag ID, device ID, and UTM marketing parameters to the destination URLs

7 7 Snapshot Recent Announcements Iovate pumps up active nutrition brands with NFC Campari smart refrigerator magnets fuel ecommerce Mundipharma uses NFC to promote new product Connected tequila bottles deliver custom content Unseong uses NFC to engage with Millennials Kilchoman smart whisky bottles educate consumers SFS uses SpeedTap to provide product instructions PengWine uses NFC for consumer gamification

8 Novel Use Cases Apple-supported NFC refrigerator magnets from Campari that enable instant order/ re-order via a leading alcohol delivery platform. On Carton NFC tags for Dunhill cigarettes deliver exclusive, interactive content. NFC enabled welcome packs from a leading nutrition-focused marketer deliver product information based on time of day.

9 NFC Provides New Source of Insights: Product Distribution & Consumer Behavior Supply chain transparency Consumer Behavior Product flow Mail Distribution Virality Consumption habits Associated habits Information consumption Identify where batches are distributed geographically Determine when direct mail pieces are being received based on Postal Service bulk mail delivery 40% of tapped coasters were tapped by multiple people Secondary taps imply that wine is consumed just as much for lunch as for dinner Diet shake consumers eat later than average, and do not consume dinner shakes on weekends People most likely to smoke / consume tobacco messaging b/w 2-5pm; do not smoke at meal times Specialty Gin On Label Chewing Tobacco Direct Mail Craft Beer Coasters Wine Bottle Neck Hangers Nutrition Supplements Welcome Package Tobacco Direct Mail

10 Rep Performance Field Marketing Initiative Company launched a new beer and had field reps onsite at bars to promote it. Coasters with Thinfilm tags were produced to promote the beer and provide interesting facts 20 Reps Insights 12% of reps accounted for 50% of the tap activity Top 30% delivered 75% of the activity. 20% of their reps had no engagement whatsoever No Taps Actions Client could clearly see which reps were most engaged Allows for accountability and auditing with field reps Can adjust training materials and process to increase field rep participation Can terminate reps that aren t working

11 Scaling to Billion-Unit Volumes for EAS, SpeedTap and OpenSense in New Facility Using R2R Manufacturing Partially roll-processed quads of EAS front-end die 2581 Junction Avenue, San Jose, California

12 Thinfilm unique feature: Laser Encoded Read-Only Memory Top view of ablated ( 0 ) and intact ( 1 ) fuse links Readout of 0 and 1 bits Cross section of ablated and unablated fuses Ablated fuses ( 0 ) Dielectric Fuse material Unablated fuses ( 1 ) Laser Encoding is key to a factory-programmed, unalterable NFC 128 bit code

13 Cost-down roadmap Roll-to-roll Backend Attach Conversion Test

14 Thinfilm Q Financials Record annual revenue of USD 5.9 million Q4 Revenue and Other Income of USD 1.2 million 2,500 2,250 LTM revenue & other income* [kusd, RHS] Revenue & other income* [kusd, LHS] 2,300 6,000 5,500 Product revenues affected by seasonality in EAS shipments Other revenues increased as a result of higher activity on R2R projects eligible for government funding 2,000 1,750 1,500 1,250 1, Q Q ,280 Q ,188 Q Q ,077 Q ,039 Q ,599 Q Q ,186 Q Q ,019 Q ,115 Q Q ,310 Q ,182 Q ,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, OPEX averaging USD 15.3 million per quarter since move to new manufacturing site in Q2 Installation of R2R equipment on site and CNECT development led to higher Services related costs One-time accruals related to changes in activity level in Linkoping led to USD 0.5 million in accrued cost in the quarter Depreciation, amortization and impairment in the quarter of USD 4.4 million Write-down of equipment in the Swedish subsidiary (USD 1.3 million) Impairment of IP related to battery program (USD 1.2 million) Increased depreciation as consequence of higher total asset base Cash balance of USD 98 million per end December 2017 * excludes other income related to January 2014 recognition of badwill

15 Thank You Davor Sutija CEO