Upload
truongcong
View
218
Download
0
Embed Size (px)
Citation preview
Shaping the Future ofSmart PackagingUsing Printed Electronics to Bridge the Gap Between the Physical and Digital Worlds
John Afzelius-JenevallCFO
Q1 2016Presentation
(Published: May 10, 2016)
Davor SutijaCEO
2
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 2015 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://www.thinfilm.no/investor-relations/reports-presentations/
Safe Harbor Statement
3
A Leader in Printed Electronics
Low-cost, high-volume electronics manufactured by printing
NFC OpenSense™
• Publicly listed OSE / OTCQX
• 104 full-time employees
• Over 290 patents and patents-pending in printed electronics & NFC
• Oslo, Silicon Valley, Sweden, Hong Kong, and Singapore
• Broad & diverse partner ecosystem
4
The “Internet of Everything” Opportunity
Source: Gartner; IDC, MobiHealth; Bluetooth SIG;; IMF; HIS; The Semiconductor Industry Association; BI Intelligence OICA; IC Insights; MarketLine; Apparel Market; Planet Forward; Companies & Markets
Inte
rne
t o
f E
very
thin
g
2.7 billion computing devices
21 billion microcontrollers
80 billion apparel items
5-10+ trillion consumables
Inte
rne
t o
f T
hin
gs
8.0 billion RFID chips
534 million Bluetooth accessories
46 million wearables
Global Semiconductor Capacity Limit
Thinfilm Existing Markets
Adding 1% toretail value
=$100 billion
market opportunity
5
Thinfilm Product Overview
(NYSE:XRX)
NFC OpenSense™ & NFC SpeedTap™• Multiple 50-100M+ unit brand opportunities• Signed agreements with leading companies in
spirits, tobacco, pharma, and Consumer Packaged Goods
• Preparing to launch medical device with OS in 2017
Thinfilm Memory™• Smart consumables, brand protection• Scale-up with Xerox Corporation
• Xerox introduced two new products: Xerox® Printed Memory and Xerox® Printed Memory with Cryptographic Security
PRODUCTS IN MARKET 2015 PRODUCT INTRODUCTIONS
(AMS: NEDAP)
(NYSE:DEO)
(Private: Water Street) (Private: Keiretsu Forum)
Electronic Article Surveillance (EAS)• Global rollout with leading fast-fashion retailer• EAS tags in retail stores as of Sept. 2015• 11.2M of 13M unit order delivered in 2015• New delivery format agreed with Nedap• 100M potential aggregated demand
Smart Sensor Labels• $1.4B temperature monitoring market • Partnered with leaders in pharma, food
Increasing ASP
PENDING PRODUCT LAUNCHES
6
NFC Adoption on the Rise
“Apple joins NFC Forum as patron sponsor”
“Electronic retailer to install 10M NFC shelf
labels in 14 countries”
“NXP launches NFC pill boxes for medical tracking”
Non-payment NFC applications under development by multiple parties
“Contactless payments across Europe set to rise
nine-fold by 2020”
“Nearly 800 US banks support Apple Pay”
Apple Pay Samsung Pay Android Pay Union Pay (China)
Major NFC Payment Platforms
7
Go-to-Market Channels Established
Digital Activation
Manufacturing Scale-Up
(via licensing)
Preferred Converter ProgramPharmaceuticals & Medical Devices
“NFC OpenSense is a game changer.”- Nick Jones, EVP Innovation & Growth
Arc Worldwide (Leo Burnett)
Retail Solutions
Wine & Spirits
8
Digital Activation
• Arc Worldwide is Leo Burnett’sdigital activation group
• Leo Burnett part of Publicis, the 3rd largest agency in the world
• Clients include McDonald’s, P&G, Kellogg’s, Alcon, Purina,Coca-Cola, Miller-Coors
• Signed exclusive agreement with Thinfilm to deliverNFC OpenSense™ to clients
• Davor Sutija and Nick Jones on panel at Mobile World Congress 2016
“The opportunity we saw was for sending pre- and post-purchase messaging to smartphones. If you know the moment when a package has been opened it’s a game-changer for marketers.”
– Nick Jones, EVP Innovation & GrowthArc Wordlwide (Leo Burnett)
9
Retail Solutions
• TCS is the leading IT services, consulting, and business solutions firm
• Parent company, Tata, is world’s 10th
largest IT provider• Recognized by Brand Finance as one of
the Big 4 Global IT Services Brands• Partnership with Thinfilm to create the
“Next Experience in Retail”• Thinfilm demonstrated technology in Tata
booth at National Retail Federation 2016
10
Preferred Converter Program
• Engaging pharmaceutical industry to integrate NFC OpenSense™ into Rx/OTC packaging
• Delivered prototypes and engineering samples to global pharma companies
• Establishing key manufacturing processes for high-speed/high-volume production lines, including use of ferrite shields
• Jones placed 6-figure unit order for NFC OpenSense tags w/ ferrite shields in Q4
"Thinfilm’s unique printed NFC solution addresses multiple needs within the pharmaceutical channel,
particularly around product integrity and patient safety."
– Chris Jones Harris, Principal, Strategic Initiatives & Alliances,
Jones Packaging
• Leading manufacturer of flexible packaging and labels
• Engaging beverages industry to integrate NFC OpenSense in labelsand packaging
• Thinfilm received a 6-figure unit order from Constantia for NFC OpenSense
11
• New facility allows for roll-to-roll production by end of 2017
• EAS production anticipated first, NFC products in 2018
• Equipment purchases expected to commence Q3, subject to completion of vendor selection and volume demand
Thinfilm to Lease Expanded Fabrication Facility
Photos above are representative of R2R equipment. Actual equipment has not yet been ordered.
Photos courtesy of Northfield Automation Systems.
12
Thinfilm Snapshot: Q1 2016
Thinfilm Receives NFC SpeedTap™ Order from Global FMCG Leader
Leo Burnett / Arc and ThinfilmPartner on Mobile Marketing Solutions for Leading Brands
Thinfilm and Constantia Flexibles Partner to Deliver Smart Packaging Solutions to the Beverages Market
Thinfilm Delivers First Shipment ofNFC OpenSense™ Tags to Jones Packaging
Thinfilm and Tata Consultancy Services to Create New NFC Retail Experience
Leading Spanish Winery Launches NFC OpenSense-Enabled Product
Thinfilm Partners with SmartSign in Vietnam
to Combat Counterfeiting
Woodford Investment Management Invests USD 42 Million in Thinfilm
Transfer of Thinfilm Memory™ Technologyto Xerox Completed
13
Balance Sheet Significantly Strengthened
58
811
159
698681
885
285275
582
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1,750
1,500
1,250
1,000
750
500
250
0
5,000
Q4 2015
1,599
Q3 2015
1,039
Q2 2015
1,077
Q1 2015
Q4 2014
1,188
Q3 2014
1,280
Q2 2014
860
Q1 2014
Q4 2013
Q1 2016
Q2 2013
512
Q1 2013
Q4 2012
Q3 2013
Q2 2012
Q1 2012
48
Q3 2012
Revenue & other income* [kUSD, LHS]
LTM revenue & other income* [kUSD, RHS]
THIN revenue & other income*
[k$]
* excludes other income related to January 2014 recognition of badwill
Woodford Investment Management invests USD 42 million
• 120 million shares @ NOK 3.00
• 40 million warrants @ NOK 4.50
• Strengthens balance sheet significantly
• USD 49 million cash (end-Q1)
• No debt
14
Partnering to Build the Future
Leading electronics manufacturing and global supply chain company
Global business services, digital printing, and document mgmt company
Developer/supplier of innovative solutions for the retail market
World’s largest spiritsmanufacturer
Solutions provider for temperaturemonitoring of sensitive medical goods
Largest professional packaging andlabel converter in Greater China
Technology company pioneering ultrathin, flexible batteries
Leading provider of injectiondevices for self-medication
Global leader in flexible packaging
Cloud-based IoT Smart Products Platform Company
International organization overseeing customs trade between countries
Technology consultant and pioneer in printed electronics
NFC ECOSYSTEM SUPPORT
Global technology company specializingin transparency and accountability solutions
Leading global IT, consulting, and technology solutions firm
Packaging solutions leader forpharma and healthcare
Digital activation divisionof Leo Burnett
Leading manufacturer offlexible packaging & labels
15
Management Team
Davor SutijaChief Executive Officer
Christer Karlsson, Chief Technology Officer2005. Prior: Deputy Research Director, National Defence Research Establishment, Sweden. Ph.D. Linköping University.
Peter Fischer, Chief Operating Officer2014. Prior: Plastic Logic (CTO); Qimonda, Infineon. “Forty Innovators Building the Next-gen Electronics”, EETimes. Board, Organic Electronics Association.Ph.D., Physics, University of Magdeburg
Erwan Le Roy, SVP, Strategic Marketing / GM, Sensor Products
2015. Prior: VP, Marketing Veeco/Solid State Equipment from 2013, KLA Tencor, Credence Diagnostics Systems/SchlumbergerMBA Duke US, dual MEng from INSA Lyon and KAIST Korea
Henrik Sjöberg, SVP, Product Management2013. Prior: Micronic Mydata, ACREO.Ph.D., Physics, Royal Institute of Technology
Kai Leppänen, Chief Commercial Officer
2013. Prior: VP Sales/BD EMEA from 2013, Opera Software, Symbian, 12snap Mobile Advertising.BA, International Business, MSc, Info. Sys. Mgmt, London
2010. Prior: SVP, Product Marketing, FAST, a Microsoft subsidiary. Founding CEO, SiNOR AS (now Norwegian Crystals).Boards of Orbotech, SensoNor, Birdstep, and Owera.
Management & Technology, Wharton School; Ph.D., Chemical Engineering, UC Berkeley.Hertz Fellow
2013. Prior: VP, Corporate Development, Orkla ASA; Portfolio Manager at Catella Capital Management, Nordea.
‘Star Manager of the Year’ –Morningstar
CFA charter holder. MS, Engineering, Royal Institute of Technology. BS, Economics, Stockholm University.
John Afzelius-JenevallChief Financial Officer
16
Thank you.
Executive contact:
Davor SutijaCEO
[email protected]+47 94 84 98 86
Institutional-investor contact:
John Afzelius-JenevallCFO
[email protected]+47 95 87 96 80
18
Diageo – Spirits
• World’s largest spirits company• Collaborated with Thinfilm to
develop Johnnie Walker Blue Label® “smart bottle” prototype
• Unveiled smart bottle at 2015 Mobile World Congress in Barcelona
• Placed 5-figure unit pilot order for NFC OpenSense™ in November
"Mobile technology is changing the way we live, and as a consumer brands company we want to embrace its power to deliver amazing new consumer experiences in the future."
– Helen Michels, Global Innovation Director, Diageo
19
Ferngrove Wine Group – Wine
• Based in Western Australia
• Chinese-owned• Major supplier
to APAC region• 600k+ bottles
exported to Chinaeach year
• 50 exclusive retailoutlets in China
• Field trial scheduled for Q1 2016
20
Pharma / Medical Devices
• Publicly listed on theSIX Swiss Exchange
• Global leader in injectionsystems for self-medication
• Sells to major pharmaceutical brands• Launched CHF 50 million program in
next-gen injection/infusion systems• Demonstrated prototypes
at flagship Vienna event "Ypsomed has identified a need amongst its customers for injection devices that in the long run support the administration of medicine
with intelligent functions realised by electronics and software."
– Ypsomed Semiannual Report 2015/16
21
Barbadillo – Spirits
• Leading Spanish winery founded in 1821
• Owns the ‘Vega Real’ winery in D.O. Ribera del Duero and Bodega Pirineosin D.O. Somontano
• Partnered with Thinfilm to incorporateNFC OpenSense into an exclusive bottling of rare sherry for productauthentication
“Given the rarity of this release and its significance to the Barbadillo family, we feel compelled to protect it. Thinfilm’s technology delivers that protection, for our business and our valued consumers.”
– Manuel Barbadillo, Chairman - Barbadillo
22
Xerox – Security Printing• Manufacturing scale-up partner• Global leader in business services,
digital printing & document management • Launched two products featuring
Thinfilm Memory™ in Sept. 2015• 1.3B unit capacity in NY plant• Technology transfer completed, test
equipment delivered• Traction with customs agencies and
governments re: tax-stamp solutions
Scale-up and licensing of Memory
23
Active Deployment of Product Authentication
Deterministic algorithms detect refilling Factory encoded globally-unique IDs Faster tag-read supports high volumes
Ferngrove battling counterfeit wine in China Only NFC solution on WCO global platformActive projects with Fortune 500 CPG firms
NFC OpenSense™
Tobacco FMCG
Wine & Spirits
MedicalDevices
24
Wireless Capacity Expansion Roadmap
• EAS, NFC OpenSense™ and Smart Labels share capacity
• Sheet-based: 28M unit annual throughput
• $4.2M capex spent on first step in expansion plan (40M+), completion expected Q2 2016
• Preliminary engineering design completed
• Due Diligence of new facility started
• Vendor selection underway
• 1B NFC OpenSense™ annual capacity per line ($250M potential)
• Is expected to require $20-$25M CAPEX per line
Existing Capacity:Sheet-Based Processing
Scale-Up Program:Roll-to-Roll Processing
25
Why Thinfilm?
A
2
3
4
5
6
1 Actively defining the future of NFC
Solutions optimized for high-volume brands
Security at price points compatible with mass market adoption
Partner network to deliver best-in-class solutions to our customers
270+ patents & patents pending in printed electronics and NFC
International firm
• Award Winning NFC Innovation Center, San Jose, CA
• Principal Member, NFC Forum; Chair, Retail Group
7 Publicly listed company on US and EUR marketplaces• Strong cash position
• $36M / no debt
• Mass production
• Scalability
• Sales and R&D in San Jose, Baltimore, Hong Kong, Tokyo, Singapore, Scandinavia
26
NFC: Ideal for the IoT and Here to Stay
Source: IDC; IHS Feb 2014; Ericsson Mobility Report August 2015; OICA; ExactTarget 2014 Mobile Behavior Report; IBM; Cisco; ABI 2013
Mobile Coverage is Ubiquitous95% of the world’s population is
covered by mobile networks
“Mobile First” Attitude is Pervasive85% of people say that mobile devices
are a central part of everyday life
NFC Now on All Mobile Platforms1 billion NFC phones in use
at YE 2015
Connectable Items are Everywhere1 trillion connected by 2020;
adding 1% to retail value = $100B
Smartphone Use Has Exploded7.6 billion mobile subscriptions
in Q3 2015, 9.2 billion by YE 2019
NFC Wireless
Communication
Apple joins NFC Forumas key sponsorAugust 2015
27
How It Works (Thinfilm NFC)
Tag AuthenticityVerified
Tag ID Verified
Cloud
1
2
App reads factory programmed, unalterable 128-bit code, verifies protocol
App cryptographically secures tag ID using SHA 256, sends to Thinfilm secure authentication service
1
1
2
3 3
3
Thinfilm authentication service returns verification
Tag ID Tested
28
Smart Sensor Label Platform
• $1.4B temperature-monitoring market
• < ½ the price of other electronic indicators
• 2x the performance of chemical alternatives
• Preparations for field trials in progress
• Opportunities in consumer, industrial, and healthcare
Low-Cost, Ubiquitous Sensing and Communication for the Internet of Things