Connecting the Physical & Digital Worlds and Enabling Direct Brand-to-Consumer Mobile Engagement Corporate Presentation September 2017
Safe Harbor Statement This report includes forward-looking statements covered by the Private Securities Litigation Reform Act of 1995. 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: http://thinfilm.no/investors-reports-and-presentations/ 2
Thin Film Electronics ASA Thinfilm creates digital identities and actionable micro-connections to physical objects ▪ Publicly listed OSE (THIN) ▪ 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 ▪ 2017 4 new patent families in the first half of 2017 ▪ ▪ 162 employees worldwide ▪ Sales offices in San Francisco, London, Thinfilm’s solutions turn smartphones Singapore, Shanghai 3 into intelligent agents
With Thinfilm, End-to-End NFC Cloud Solutions NFC “touchpoints” Cloud-based triggers Back-end analytics for physical goods for dynamic user to assess & integrate experience 4
Proof Points of NFC in Q2 Deployments Largest global Consumer tapping activity 13 – 17.5X increase in Thinfilm NFC used with deployment of NFC in in 50 US cities website conversions; 92% 20,000 emergency wine & spirits industry lift in mobile traffic relief deliveries (126,000 bottles) Total of 20 deployments and Plus: field-trials in-market or ▪ Shelf-talkers > OTC Pharma 5 planned/signed in Q2 2017 ▪ In-store Displays > Consumer Durables ▪ Metalized packaging (Tobacco) ▪ Specialty Foods Planned trials in Nutritionals and Cosmetics ▪
Exponential Increase in Tapping Activity Coronado Brewing Co. Korean Red Cross Q2 deployments encompass uses In California In South Korea in North America, Europe and Asia – ranging from local to national Oskar Blues Brewery Barbadillo distribution In the USA In Spain 6
NFC Increases Consumer Engagement Call-to-action for the Surfrider / Earth Day campaign 7
Largest NFC Deployment in the Wine and Spirits industry with Thinfilm’s Speedtap ™ labels Largest Wine & Spirits Campaign Castillo de San Diego White Wine distributed through 200+ major retail outlets nationally in Spain 126 k Campaign Objectives NFC Tag “Touchpoint” • Improve Consumer Engagement Applied on reverse face of Neck Collar directly beneath Call-to-Action • Growth in New Brand Fans Smart Bottles • Increase Sell Through 2000+ Instant Consumers Tap to Win Prize Thinfilm SpeedTap ™ NFC enabled bottles tapped Innovative Lottery style Campaign promoted Prize through traditional Point of Sale + Print, TV, Radio 2-11x media Channels More MQLs* than any other channel 2017 Campaign judged by Barbadillo to be >30% Of bottles tapped were purchased and re-tapped at new twice as effective as prior years because of 8 location, generating location data in CNECT SpeedTap™ NFC deployment *Marketing Qualified Lead
NFC drove brand engagement better than Facebook and Google Created higher quality traffic than display / banner ads Brand Engagement for Barbadilllo Dando-en-el-Blanco summer campaign on 126,000 Castillo de San Diego bottles 1 2 3 74% of mobile traffic is 54% of brand engagement came from NFC and 79% 79 74% 54% of all traffic from Thinfilm SpeedTap™ enabled bottles paid mobile Social / Facebook Thinfilm 5% Search / - 10x more Google traffic than 30% 11% Social / 16% 26% Paid 75% 79% Facebook - 4x more 54% engagement than banner / 61% display ads 14% Banner / - Even better Mobile Display Ad than Google Direct 25% Desktop Tablet Inner circle: Share of paid traffic Outer circle: Engagement per source 9 Mobile dominates Mobile is not free NFC was the dominant channel for brand engagement
Supply Chain & Industrial Use Case Expansion New industrial customers signed in Q2… …enabled by new ecosystem partners Single tap to Enable insurance Ideal for toxic, perishable authenticate delivery of companies to directly and high-value pharma goods and services to on-board customers assets that must be checked in/out by consumer recipients while maintaining broker- qualified personnel based sales model Customer Secure Delivery Supply Chain On-boarding for Verification Tracking Insurance Industry 10
Supply Chain & Industrial Use Case Expansion New industrial customers signed in Q2… …enabled by new ecosystem partners Alerts and guides technicians on troubleshooting and maintenance of industrial assets Machinery and equipment that requires regular inspection, maintenance, and replacement Inspection/Logging Preventive Maintenance /Reorder 11
CNECT™ Software Platform - Thinfilm Software team expanded to 16 FTEs, half in-house and half near-shore - 10 months after Sept. 2016 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) 12
Apple Announcement Dramatically Expands NFC Opportunity for Consumers Apple update June 2017 Thinfilm CNECT opportunity ▪ Apple announced support for NFC tag ▪ CNECT™ registered companies increased reading @ WWDC from 68 at end Q1 to 260 by end July 2017 ▪ System requirements: ▪ Beta version of Thinfilm NFC Tag Scanner app for iOS devices developed and tested ▪ iPhone 7 & higher ▪ Solution supports conventional tags read ▪ iOS 11 (available now in beta) by iOS devices ▪ Must be in Scan mode ▪ Apple requires use of approved apps and more user interaction 13
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 ▪ The grand opening included Mayor of San Jose and Roll-based production of EAS on schedule for end 2017 ▪ keynote presentations from two Council Members ▪ First production of NFC expected early Q3 2018, on schedule Gartner (Charles Golvin), and showing first sheet shipped Google X (Raj Apte; Thinfilm from new Junction Avenue ▪ Thinfilm’s BoD approved acceleration of capital program to Technical Advisory facility on Opening Day, fully complete line by mid 2018 Committee, shown above) June 15 2017 Full line output by 2019 in the billions of units per year ▪ 14 Broad coverage in Bay Area media and front page cover story in San Jose Mercury News
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