Roadmap to Integrated Systems The $100bn Market Gap Penetration of - - PowerPoint PPT Presentation

Thin Film Electronics ASA (“Thinfilm”)

Plastic and Printed Electronics: Roadmap to Integrated Systems

The $100bn Market Gap

60 million

[# cars sold in 2012]

1 Global semiconductor market (2012) - Source: IDC; Gartner; World Bank; IMF; The Semiconductor Industry Association ; OICA; IC Insight; MarketLine; Apparel Market; Planet Forward

2.3 billion

[# computing /mobile devices sold in 2012]

15 billion

[# microcontrollers sold in 2012]

80 billion

[# apparel items sold in 2012]

5-10 trillion

[# disposable items sold in 2012]

Value of embedded electronic intelligence1:

$315bn

[~21% of retail value]

Penetration of electronic intelligence in physical objects

Existing market The market gap

Value potential of adding intelligence:

$100bn

[~1% of retail value]

hasn’t this gap been addressed?

• Cost of silicon and integration
• Lack of scalability for conventional

electronics Bringing intelligence to everything

Why

A Smarter Everyday

A new paradigm needed to create the

Internet of Everything

Case: Healthcare to the Home

The goal of technology-enabled homecare is to prevent or reduce the need for costly institutional care.

Case: Mobile Logistics

Securing the supply chain

Using printed electronics to power the next generation of low-cost temperature-sensing labels

Sensor Label Authentication Label

NFC / RF

Case: Cold Chain Transportation

Are extreme temperatures compromising your products?

Sensor Label

• picks up data and transmits it
• different types of sensors;

temperature variations, humidity, chemical traces

Temperature Sensor Label

Application Example: Time-Temperature Sensor Label

Sensor & Display Labels

Temperature Monitoring for Perishable Goods $1.4 Billion in 2010 9% CAGR 500,000,000 color changing labels sold per year Printed Electronics Positioning

Low High Low Cost per function System performance High

Data Loggers & Alarm Tags Simple Tracker Color changing labels

Printed Electronics Sweet-spot

Case: Refill Authentication and Brand Protection

Brand theft and the growing grey market dilemma

Authentication labels

Low-cost, high-security solution that protects the bottom line Volume shipments to customers

Memory Labels Sensor and Display Labels Near Field Smart Labels

Silicon EEProm 6.5₵ Printed Memory 2₵ - 5₵ vs Silicon Sensor System $11+ vs Printed Sensor System 30₵ - 50₵ Silicon sensor systems w/ wireless communication $25+ vs Printed Sensor Label w/ near- field read 50₵ - $1.00 Current Product: Q3 2013 Scale-up Current Development (2014) Extend Next Step (2015) Integrate

Printing electronics breaks the cost & scalability barriers

Memory Labels Sensor and Display Labels Near Field Smart Labels

Silicon EEProm 6.5₵ Printed Memory 2₵ - 5₵ vs Silicon Sensor System $11+ vs Printed Sensor System 30₵ - 50₵ Silicon sensor systems w/ wireless communication $25+ vs Printed Sensor Label w/ near- field read 50₵ - $1.00 Current Product: Q3 2013 Scale-up Current Development (2014) Extend Next Step (2015) Integrate

Printing electronics breaks the cost & scalability barriers

Near-field communication catalyzes the

Internet of Everything

“the companies changing the mobile landscape in the most profound ways” Mobile 15 2012

October 14

Thinfilm receives first commercial order for brand protection solution, expected in stores Mar-14

Sept 16

Peter Fischer, former CTO Plastic Logic, to join Thinfilm as Chief Product Officer

October 16

Thinfilm delivers first fully stand-alone printed

• rganic sensor label

November

Stanford University hosts Trillion Sensor symposium

Recent Highlights

December 23

Bemis and Thinfilm extend agreement, bring brand protection to flexible packaging

October

Cisco launches Internet of Everything campaign

December 30

Thinfilm delivers first commercial orders to Luxury Goods factory

Jan 21

Thinfilm acquires industry- leading NFC technology

Sept 6

Invesco Perpetual agrees to invest $47 Million USD in private placement

December 20

PARC, a Xerox Company, increases shareholding in Thinfilm, bringing PARC to 4.0 million shares

Jan 8

Brady Corporation and Thinfilm announce strategic alliance for healthcare and visitor management

Combining organic logic and printed doped polysilicon

NFC Sensor Labels to be demonstrated in 2014

Proven production with commercial yields = limited technology development to implement Standards-compliant wireless at least 2 years early Only printed NFC supported by Google Android, other OEMs and major NFC controllers NFC Innovation Center in heart of Silicon Valley ■ Center of market activity in Internet of Things ■ US-based site able to participate in government research, commercial partnerships Printed Electronics Printed NFC Thinfilm Smart Label

Internet of Everything

Addressable Market of $20-25bn

Thinfilm Tags

Application 5-10 1-1.5 Personal health care Dynamic price display Interactive packaging 2-5 Monitoring of perishable goods 1-2 Market size ($ bn) 2-5 Anti-theft/ brand protection 2 Logistics NFC & "Internet

• f Everything"

10+

Devices Software Cloud

~40k <1mm ~2bn Trillions

Attractive

• pportunities

for partners

to create value in systems and solutions

Commercial deals validate vision; Megatrends accelerate it

“Internet of Everything’ is an exponential proxy for sensing, understanding and managing our world.

Dave Evans, Chief Futurist, Cisco Systems

Connected objects by 2020: Cisco – 50 Billion; IBM – 1 Trillion 1 in 3 Mobile Phones with NFC by 2017; 300% growth in 2012 Printed Electronics $40-$50Billion market by 2020 Agreements with Fortune 1000 companies

Consumer Goods

• Top 2 global Toys & Games
• Monopoly, Trivial Pursuit &

Scrabble

• Global fast-moving consumer

goods company testing for brand

• protection. Sales > $50bn
• Global leader in flexible packaging
• Work on intelligent packaging
• (~200bn packages/year)
• Leader in identification solutions
• More than $1billion annual revenue

Megatrends in action

Apparel & Accessories

• Luxury good manufacturer to trace

gray market activity

“Our agreement with Thinfilm could make printed electronics a component of every package we manufacture.” Henry Theisen, CEO, Bemis

Europe Uniquely Positioned to Deliver Commercial Value

Proven high-volume production

“Thinfilm’s high volume production is validation for the commercialization of printed electronic devices.” Michael Palma, IDC

Only company with both printed Memory and Logic

Extensible platform for printed integrated systems; includes only printed NFC interface supported by major mobile suppliers

Strong Ecosystem to Deliver Complete Product

APPENDIX

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