Connecting the Physical & Digital Worlds
and Enabling Direct Brand-to-Consumer Mobile Engagement Corporate Presentation September 2017
Connecting the Physical & Digital Worlds and Enabling Direct - - PowerPoint PPT Presentation
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
and Enabling Direct Brand-to-Consumer Mobile Engagement Corporate Presentation September 2017
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
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/
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▪ Publicly listed
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OSE (THIN)
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OTCQX (TFECY)
▪ Revolutionary Silicon Valley fab for roll-based
manufacturing of printed electronic devices
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Former Qualcomm facility
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2,000 sq. m. state-of-the-art cleanroom
▪ 310 total patents
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18 new patents issued in the first half of 2017
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4 new patent families in the first half of 2017
▪ 162 employees worldwide ▪ Sales offices in San Francisco, London,
Singapore, Shanghai
Thinfilm creates digital identities and actionable micro-connections to physical objects
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Thinfilm’s solutions turn smartphones into intelligent agents
End-to-End NFC Cloud Solutions
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Largest global deployment of NFC in wine & spirits industry (126,000 bottles) Consumer tapping activity in 50 US cities 13 – 17.5X 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 Q2 2017 Plus: ▪ Shelf-talkers > OTC Pharma ▪ In-store Displays > Consumer Durables ▪ Metalized packaging (Tobacco) ▪ Specialty Foods ▪ Planned trials in Nutritionals and Cosmetics
Coronado Brewing Co.
Q2 deployments encompass uses in North America, Europe and Asia – ranging from local to national distribution
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Barbadillo Korean Red Cross Oskar Blues Brewery
In California In Spain In South Korea In the USA
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Call-to-action for the Surfrider / Earth Day campaign
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Instant Prize
Consumers Tap to Win Prize Innovative Lottery style Campaign promoted through traditional Point of Sale + Print, TV, Radio media Channels Campaign Objectives
Smart Bottles Largest Wine & Spirits Campaign Castillo de San Diego White Wine distributed through 200+ major retail outlets nationally in Spain
NFC Tag “Touchpoint” Applied on reverse face of Neck Collar directly beneath Call-to-Action
Thinfilm SpeedTap™ NFC enabled bottles tapped
More MQLs* than any other channel
*Marketing Qualified Lead
Of bottles tapped were purchased and re-tapped at new location, generating location data in CNECT
2017 Campaign judged by Barbadillo to be twice as effective as prior years because of SpeedTap™ NFC deployment
9 Brand Engagement for Barbadilllo Dando-en-el-Blanco summer campaign on 126,000 Castillo de San Diego bottles
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79% 5% 16%
mobile
paid
Desktop Mobile Tablet
Direct Paid 25% 75%
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Created higher quality traffic than display / banner ads
26% 61% 11% 54% 14% 30%
Thinfilm
traffic than Social / Facebook
engagement than banner / display ads
than Google Search / Google Banner / Display Ad Social / Facebook
Thinfilm SpeedTap™ enabled bottles
Inner circle: Share of paid traffic Outer circle: Engagement per source
NFC was the dominant channel for brand engagement Mobile dominates Mobile is not free
New industrial customers signed in Q2…
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Secure Delivery Verification
Customer On-boarding for Insurance Industry
Supply Chain Tracking
Single tap to authenticate delivery of goods and services to consumer recipients Enable insurance companies to directly
while maintaining broker- based sales model Ideal for toxic, perishable and high-value pharma assets that must be checked in/out by qualified personnel
…enabled by new ecosystem partners
New industrial customers signed in Q2…
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Preventive Maintenance
Alerts and guides technicians on troubleshooting and maintenance of industrial assets
Inspection/Logging /Reorder
Machinery and equipment that requires regular inspection, maintenance, and replacement
…enabled by new ecosystem partners
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FTEs, half in-house and half near-shore
completed a total of 19 sprints, four major product releases, and supported specific customer applications for tag pairing, iOS scanning and AR (augmented reality)
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▪ Apple announced support for NFC tag reading @ 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
Apple update June 2017 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
14 ▪ 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 Broad coverage in Bay Area media and front page cover story in San Jose Mercury News
Mayor of San Jose and two Council Members showing first sheet shipped from new Junction Avenue facility on Opening Day, June 15 2017 The grand opening included keynote presentations from Gartner (Charles Golvin), and Google X (Raj Apte; Thinfilm Technical Advisory Committee, shown above)
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275 285 681 698 811 829 Revenue & Other Income* [kUSD, LHS] LTM Revenue & Other Income* [kUSD, RHS] 2,250 2,500 250 500 750 1,000 1,250 1,500 1,750 2,000
500 1,000 1,500 2,000 2,500 4,000 3,500 3,000 5,500 5,000 4,500
1,039 2,300 1,115 1,019 1,186 1,599 1,077 1,188 1,280 860 885 512
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Record quarter revenues as a result of: ▪
Total Revenue of USD 1.7 million
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8.5M EAS tags shipped
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Milestone payments from Fortune 500 pharma JDA
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Doubling of NFC product deliveries
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Other income of USD 0.6 million, including USD 450k accounting gain because of disposal of fixed assets
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OPEX rose in the period as a result of: ▪
Increased manning by 10 FTEs related to field sales and engineering/manufacturing
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Higher manufacturing activity level and product deliveries
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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
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USD 11.3 million pre-payments paid for equipment that has been ordered but not yet delivered related to the roll- based manufacturing capital plan
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Cash balance of USD 28.2 million per end June 2017
* excludes other income related to January 2014 recognition of badwill
Davor Sutija CEO davor.sutija@thinfilm.no +47 94 84 98 86