The Smarter Way to Build
the Internet of Everything
Thinfilm Q3 Presentation 2014
THINFILM HIGHLIGHTS: Q3 2014
Smart Label
demonstrators
delivered to Temptime
and other strategic
customers
Thinfilm CEO,
Davor Sutija, to keynote
2015 Mobile World
Congress
Ferd AS to invest
$23 million in Thinfilm
Thinfilm launches
wireless EAS product,
ships 7-figure unit order
Thinfilm receives
prestigious CTIA
Emerging Technology
Award
1
FINANCIAL HIGHLIGHTS
THIN revenue* [$k]
1,500
4,000
LTM revenue [kUSD, RHS]
Revenue* [kUSD, LHS]
1,293
1,250
3,500
3,000
1,000
876
871
750
631
278
250
1,500
516
500
285
159
48
1,000
500
58
0
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014
• Revenue growing rapidly
• YoY growth >100%
• Product sales emerging
2,500
2,000
582
Growing revenue & transition to product sales
• Strong balance sheet:
• $20M cash (end-Q3)
• Not including $23M investment from Ferd in Q4
• No debt
• Legacy investment in predecessor companies
exceeds $200M
• 270+ patents and patents pending
• Unique IP position in printed rewritable
memory, printed logic, silicon inks.
* excludes Other Income
Note: all amounts in US Dollars
2
RETAIL STOCK PROTECTION
SUCCESSFUL FIRST MILLION-UNIT VOLUME DELIVERY IN Q3
• Global rollout in progress with leading
fashion retailer
• 60M-unit annual capacity installed, with
potential to double capacity at same site
• Consolidated demand in shoe category
may exceed 100M by 2016
• Additional 10x opportunity in jeans, jackets
• EAS Label ASP: $0.06 – 0.10
• Core technology in Nedap Retail !Fast solution,
leading Europe-based EAS systems integrator
• Tags compatible with installed systems
3
SMART LABELS
SMART LABEL DEMONSTRATORS DELIVERED TO TEMPTIME AND OTHER STRATEGIC
CUSTOMERS
• $1B+ market for temperature sensing labels
• 500M color-changing temperature sensor
labels annually; smart labels provide
technology roadmap for industry
• Pre-orders received from lead customers,
qualification & production target in 2015
• 15M-unit annual in-house capacity installed,
expandable to 40M at same site
• Smart Label ASP: $0.50 – 1.00
• Additional sensor integration in evaluation;
market opportunities in healthcare-to-thehome, consumer goods, logistics
FMCG
4
BRAND ENHANCEMENT
CONTINUED NEGOTIATIONS WITH POTENTIAL 1.3 BILLION UNIT SCALE-UP PARTNER
• Deployed by luxury goods manufacturer as
alternative to holograms ($5 billion market)
• Trials with FMCGs, toys & games manufacturers
for use on consumables
• Memory label ASP: $0.04 – 0.10
• 200M unit annual Thinfilm-owned capacity in EU
• Qualified manufacturing capacity at partner facility
in Asia
• Thinfilm revenue from complete solution—
labels, readers, ASICs
5
FERD AS TO INVEST $23 MILLION IN THINFILM
Transaction fully funds current product roadmap
• Ferd AS to acquire 37.5M shares @ NOK 4.00 kr
• 150 NOKm (23 USDm)
• 7.3% of shares in the Company
• Ferd to receive 31.25M warrants @ NOK 4.80 kr
• 150 NOKm (23 USDm) if exercised
•
•
•
•
Family-owned Norwegian industrial and financial group
Active and long-term owner of strong companies with
international potential
Carries out financial activities through investments in a
broad range of asset classes
Equity of 24 NOKbn (4.0 USDbn) as per 31 December
2013
• Exercisable after 12 month holding period
• Warrants expire after 3 years
• Transaction subject to EGM approval
• 14 November 2014 EGM has been called for
6
THINFILM SELECTED TO PARTICIPATE IN
MOBILE WORLD CONGRESS 2015
• Thinfilm CEO, Davor Sutija, chosen as keynote speaker
• Other keynote program members include CEOs of
Visa, Sprint, Renault-Nissan, Telenor Group and
Huawei
•
•
•
•
•
More than 85,000 attendees
More than 46,000 C-Level leaders
More than 4,500 CEOs
More than 1,800 exhibitors
Nearly 4,000 press members representing 1,700 media
outlets from 84 countries
“The 2015 GSMA Mobile World Congress will
convene industry leaders, visionaries and
innovators to explore the trends that will
shape mobile in the years ahead.”
7
REDEFINING THE INTERNET OF THINGS
83 million cars
2.3 billion computing devices
6.0 billion RFID chips
19 billion microcontrollers
80 billion
apparel items
5-10 trillion
disposables
Adding 1% to
retail value
=
$100B market
opportunity
Internet of
Things
(2014)
Internet of
Everything
(2020)
Source: IDC; Gartner; World Bank; IMF; HIS; The Semiconductor Industry Association;
OICA; IC Insights; MarketLine; Apparel Market; Planet Forward; Companies & Markets
8
THE NEW INTERNET OF EVERYTHING
Expanded IoE with printed electronics
Traditional
IoT
Fresh
Foods
Pharma
Consumer
Goods
Internet
/ Cloud
Supply
Chain
Print /
Publishing
Medical
Authentication
“FORGET ‘THE CLOUD’… ‘THE FOG’ IS TECH’S FUTURE.”
-- CHRISTOPHER MIMS, WALL STREET JOURNAL (MAY 2014)
THE OPTIMAL TECHNOLOGY FOR CONNECTING THE IOE
Mobile Coverage is Ubiquitous
95% of the world’s population is
covered by mobile networks
Connectable Items are Everywhere
1 trillion connected by 2020;
adding 1% to retail value = $100B
Smartphone Use Has Exploded
6.8 billion mobile subscriptions
in Q1 2014, 9.2 billion by YE 2019
NFC
RF Protocol
NFC Now on All Mobile Platforms
500 million NFC phones in use
by YE 2014
“Mobile First” Attitude is Pervasive
85% of people say that mobile devices
are a central part of everyday life
Source: IDC; Ericsson Mobility Report June 2014; OICA; ExactTarget 2014 Mobile Behavior Report; IBM; Cisco; ABI 2013
10
THINFILM’S PRODUCT WAVES
Thinfilm Memory & EAS
Smart Labels
NFC Smart Labels
In Production – retail products in market
Sampling – pre-orders received
Demonstrated May 2014
•
•
•
•
Brand protection
Refill authentication
Collectible cards
Anti-theft labels
FMCGS
LUXURY GOODS
TOYS & GAMES
• Timers
• Sensors
(Pharma)
(Fresh food)
(Visitor management)
• Wireless capture of unique
ID plus sensor data
• Samsung Galaxy S5,
Google Android & others
read Thinfilm NFC “out of
the box”
• Building coalition for extendedrange NFC (NFCx)
11
NFCX (EXTENDED-RANGE NFC)
MOBILE-CENTRIC SENSOR NETWORKS BASED ON PRINTED ELECTRONICS
• Target markets include home healthcare, remote
diagnostics, next-generation retail, manufacturing
• Mobile phone at center of user experience
• 1-meter read range monitors multiple sensors on
body or in close proximity
• NFC smart sensor label demonstrated May 2014
• NFCx expected demonstration by
end of 2015
• NFC/NFCx Sensor Label ASP: $1.50+
12
RECOGNIZED WORLDWIDE FOR AWARD-WINNING INNOVATION
“The explosion of connected things
offers opportunities for technology
companies across the spectrum,
including Qualcomm, Thin Film
Electronics, … Cisco Systems, Amazon
and Salesforce.com.”
– Tiernan Ray, Barron’s
“Tech Review: The Next Industrial Revolution”
October 11, 2014
CTIA Emerging Technology
Award – Sept. 2014
Pharmaceutical
Manufacturing
All-Star Innovator
– Sept. 2014
World Technology
Award – Oct. 2012
WSJ Technology
Innovation Award,
Runner Up – Oct. 2012
GigaOM Mobile 15
Award – Sept. 2012
13
PARTNERING TO BUILD THE FUTURE
“These smart labels are
about to become a big part of
‘the internet of things’”
8 March 2014
“Thinfilm’s approach uses smart
labels and tags to make the
Internet of Things possible’”
18 February 2014
2013
2014
Milestones of Progress
1st commercial
Acquistion of
1st demo of
EVRYTHNG
PakSense
Thinfilm receives
orders delivered
Thinfilm accepted
Kovio
IP/assets
NFC
smart
label
partnership
partnership
CTIA
eTech Award
to luxury goods
to 2015 MWC
(MAY)
(JULY)
(APR)
(SEP)
(JAN)
manufacturer
(OCT)
Delivery of
(DEC)
Bemis
Brady
Temptime
Nedap
1st production
Flextronics
temp sensor label
partnership
partnership
partnership
partnership
order for RF
partnership
commercial
samples
(DEC)
(MAR)
(MAY)
(MAY)
(JAN)
(SEP)
(OCT)
1st commercial
PARC (Xerox)
order for BPS
increases stake in
Demo of 1st
received from FMCG stand-alone printed
Thinfilm
(OCT)
(DEC)
organic sensor label
(OCT)
14
THANK YOU
John Afzelius-Jenevall
CFO
[email protected]
Phone +47 95 87 96 80
thinfilm.no
THINFILM SNAPSHOT
Share Details Share price: NOK 4.70 | $0.69
(Nov 6 2014)
Market cap: NOK 2,244M | $330M
Key Dates 1995 – Founded as Opticom subsidiary
2005 – Restructured
2008 – IPO (Oslo Axess Exchange)
2010 – Management change & strategy shift
Locations Oslo, Norway (HQ); Silicon Valley (San Jose),
Linköping, Sweden; Dresden, Germany;
Tokyo, Japan
THIN share price 18 months [NOK]
7.0
6.0
5.0
4.0
3.0
2.0
1.0
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Employees 83 FTEs (26 PhDs)
Davor
Sutija, PhD
CEO
Christer
Karlsson, PhD
CTO
Peter
Fischer, PhD
CPO
John AfzeliusJenevall, CFA
CFO
Jennifer
Ernst, MBA
EVP, Sales/BusDev
Henrik
Sjöberg, PhD
SVP, Prod Mgmt
FAST (Microsoft),
SINOR AS
National Defence
Research
Establishment
Plastic Logic,
Qimonda, Infineon
Orkla, Catella Capital
Management, Nordea
PARC (Xerox),
FlexTech Alliance
Acreo, Micronic Mydata
16