Thin Film Electronics ASA Imagine Memory Everywhere

Thin Film Electronics

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Thin Film Electronics ASA

Presentation October 24, 2006

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eTalk outline

Introduction

Technology Background

Current State of Technology

Near term & Future opportunities

Printed memory applications

Printed Electronics Market

Organisation

Summary

Financials

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eMilestones

1994 Opticom ASA, established

1997 Thin Film Electronics AB established

1999 Intel agreement signed

Thin Film Electronics ASA established

2002 Intel productization agreement signed

2005 Intel reduces its effort on hybrid polymer memory

FAST acquires Opticom

2006 Thin Film Newco ASA established, took over the business

Today Launching a new organizational structure and operational

plan

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eRecent events

New Board elected with shareholder majority support

Board and management review current situation and propose new operational plan

A technical team retained in SwedenStrongly focused management

- Clearly defined and achievable milestones- Open information policy

New Board appoints new managing director

New operational plan to be presented today

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Technology Background

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eTOWARDS MEMORIES OF THE 21ST CENTURY

Anno 1998

We were not part of the development in phases 1, 2 & 3

Thinfilm/OPC developed Optical memory and ROM 1994-1999

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Anno 1999

TFE and Intel jointly developed Hybrid Polymer Memory Chip at Intel and in TFE’s cleanroom during the Silicon chip phase, 4

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October 20069


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eHybrid Memory Chip -Status

TFE together with Intel has shown that the Hybrid Polymer Memory Chip works. Intel has retained (and paid for) their license but has decreased their activities within the Hybrid Polymer Memory Chip development.High capacity memory is desirable and the market will want 10 GB cards as the digital cameras are exceeding 10 Megapixels already today. TFE will seek partners who can develop the polymer further, to fulfill all requirements.

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Anno 2006

Today we are here!

Printed electronics have matured enough that memory can be operated

Most electronics companies are engaged in developing printed electronics

Most large paper companies are getting involved as they see new business opportunities in printed electronics.

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Current Stateof Technology

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eFrom Polymer Memory Chip to Printed Electronics

From “expensive fabs” to “Garage” environmentFrom “smallest geometries (sub-um)” to >50 µmFrom “computer speed” to “functional speed (Hz-

MHz)”From “one-wafer production” to “Production

speeds of 30 m2/min”

Printed electronics will enable everyday products mass manufactured

Memory will be everywhere

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ePrinted memories roadmap

UnpatternedFilm

Dot Film

PassiveMatrixFilm

Simple slow TFT’s

TFT + RF Interface

TFT + Display interface

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Contact less memory interface

No active circuitry on substrate Transistor circuitry on substrate

Contact interface memory (separate reader)

Now Now Now 2007 2009 2010

TFE Film TFE Film TFE Film TFE Film TFE Film TFE Film

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eImpressive Results

Ink-jet printed passive memory array in collaboration with XaarJet AB in SwedenLine width in test matrix ~210µm minimum line width with current print head ~70µm. Less then 24V drive voltageMore then 100 000 read and write cycles endurance

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Future Opportunities

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eImagine Memory Everywhere

”Track and trace” your kids at e.g., amusement parks

Make sure your kids go on the right rides

No more long lines at the check-out counter

Ensure that your groceries are fresh and have been shipped properly

Interactive packages help the kids make ”healthy”decisions.

Animated commercials for amusement and brand enhancement

Find your goods fast and communicate with your shopping list at home

Make sure that the goods you buy are genuine

Get the right price at the right time of day

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eApplication Roadmap

TFE’s technology is suitable for a wide range of applications and discussions have been and will be held with potential partners for all

For early revenue from royalties or products, the development effort will focus on applications that are closer to market due to lower complexity or greater maturity of peripheral technology

time

com

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time to m

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RFIDDisplays

Smart PackagingLogistics/ID

Counterfeit/fraud

Toys and Games

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eExample of application ”Controller-consumable”

Several products and companies could benefit from an anti-counterfeit solution

Razor - razorbladeToothbrush

e.g. Braun Oral-B

Car - Spare partsTool - Tool partsElectronics - PartsOther

Inkjet cartridges, rechargeable batteries, etc

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eGame card example

The central unit is a game consol like Game boy or similar which contain the game as well as the properties of players/teams in an internal memory. Via a wireless connection two or more players may play against each other.

The game card contains a small memory that points to e.g. a player or team with specific properties.

As the game moves along the various properties of a player may change. The player becomes stronger or weaker, faster or slower, more or less technical, injured and so on.

A 15 bit memory gives 32768 different player or team properties are available. These could e.g. be allocated to 320 different teams with 100 different properties.

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eOther Applications

Smart/enhanced packagingUses

Brand enhancementProduct informationIntegration with sensors

MemorySimple games may work without more than hard-wired conductive patternsMassive improvement potential with active circuit components and programmable non-volatile memory

Anti-fraud/-counterfeitingIdentify genuine branded products, passports etc.Simple solutions possible but better if hard to copyMemory a key componentContact reading >> RF

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eAnimated displays or sound on packaging

Display that can change language on packages

Packages that contain a short sound clip or an animation either forinformation purposes or for marketing.

Brand EnhancementImprove sales because of market recognition and added appeal

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eMore importantly –Save lives

“80 million food borne infections yearly. 5,000 deaths. Cost to US healthcare system is up to $6 billion yearly.” CDC Atlanta, USA

“Medication non-compliance costs the US alone approximately $100 billion and 125,000 deaths yearly”US National Pharmaceutical Council

“Up to 20% of foods are discarded due to spoilage through the supply chain.” Food and Drug Administration

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Printed Electronics

Market

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eThe future of printed electronics

”The pace is accelerating as the printed electronics market wings its way to being a $300 billion business in twenty years from now. It is far more important than the silicon chip because it embraces lighting and other forms of electrical and combined electrical-electronic device, not just electronics. Things thought impossible only two years ago such as the printed RFID circuit working at the newly favourite frequency of UHF are now being planned for mass production. That increase in frequency capability makes us realise that the disposable cell phone and much more besides will be possible after all. The Cinderella technology starts to get clever and that includes a whole range of sophisticated printed sensors, batteries and other power sources, photodiodes - the list goes on and on.”

Source: IDTechEx Jul, 4th 2006

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eShortage of memory technologies

“The biggest opportunities for printed electronics include displays, printed transistor circuits, RFID and sensor networks. Of course, these overlap. Some RFID tags include sensors and some have displays, many displays need transistor circuits to drive them. So this forms a tight pack of technologies all marching in step,with investment and invention nicely coordinated to tackle the fabulous market opportunities ahead? Not so. One thing is missing as we seek to print all of them and it is non volatile, preferably large memory. There may be hundred companies developing OLEDs and thirty developing thin film transistor circuits yet compatible printed memory - needed for almost everything we have mentioned - is being tackled only by a handful of organisations, most of them at the university - write a scientific paper -stage and with no chance of being ready on time. The result is that the first printed RFID tags will appear within the next two years with only a few bits of memory, making them virtually unsaleable.”

Source: IDTechEx Apr 18, 2005

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ePrinted Electronics – Total Market

Printed electronics Market is growing – 16 Bn$ in 2011. Source: NanoMarkets

Printed electronics Market in 2025 – 300 Bn$. Source: IDTechExMarket value is dominated by Logic, Memory and Display

Market data from the latest market report on printed electronics. Numbers do not include toys, ID, anti-counterfeit and e-paper, applications considered large by TFE.

Printed electronics Market

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2000

4000

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18000

2005 2006 2007 2008 2009 2010 2011

Year

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($M

)Printed Memory Market

Printed Electronics MarketPrinted Display Market

NanoMarkets

Memory 30-40% of the market

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eTFE will address these markets

Protect, defend and expand TFE’s patent portfolio

Increased marketingTFE to become more visible in the market through;

Active participation at conferences & trade showsPublishing of white papers and articles

Long-term engagement and work with multiple external partners

Technology development partnersManufacturing partners

License technology to customers and partners

Revenue based on added value or security to customer or end user

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Organisation

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eA key-competence team

TFE will retain a strong R&D team in Sweden where all key competences are represented in the areas of

DesignProcessingPolymer materialsCharacterization & TestSales

Managing DirectorJohan Carlsson

Board of DirectorsMorten OpstadRolf ÅbergJohan Carlsson

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eTechnology Advisory Board

Dr. Donald Way LupoAn independent technology consultant, is a

recognised expert in the fields of novel displays and organic electronics, with 15 years of industrial experience in OLEDs, paper-like displays, photovoltaics and printed electronics within the chemical, electronic and paper industries.

He is the author of numerous scientific and technical papers and inventor on over 40 patents and patent applications in functional materials, displays and electronics.

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eTechnology Advisory Board

Professor Michael O. ThompsonThe leading expert in the use of transient laser

thermal processing in the modification of semiconductor materials, as applied to both VLSI applications and ultralow temperature thin-film transistor fabrication.

His works spans from fundamental understanding of crystal growth and electronic properties development, to the fabrication of novel device structures by non-traditional methods.

His expertise also includes defect characterization in polymer ferroelectrics and the modification of transparent conducting oxides.

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Printed Polymer Memory has a HUGE market potential

Printed Electronics will become a reality and part of everyday life

TFE has the technology and the people

TFE will take the lead to develop and explore this market

Summary

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Printed Memory focus vs one specific applicationLower risk and higher market potential

Technical team retained in SwedenSupport sales & long term developmentSecuring Intellectual Property Rights & Know How

Strongly focused managementClearly defined and achievable milestonesOpen information policy

Internationally recognized experts engaged as technology advisors

Access to leading developers & customers

Independent operation vs a proposed mergerSecuring shareholders valueLower risk and higher market potential

A new route forward

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Financials

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ePro-formaP&L September 30 - YTD

Profit and Loss statement Q3 2006Year-to-date

30.9.2006

Net Sales 174 461 Operating cost (8 603) (20 338) Depreciation (123) (1 697) Write-down on investment - (35 736) Result from operations (8 552) (57 310) Net financial items 80 (115) Result before tax (8 472) (57 425) Tax - - Net result for the period (8 472) (57 425)

Time-weighted number of shares class A 16 157 609 16 157 609 Notional number of shares class B 694 500 694 500 Period net result per share class A (kr,øre) (NOK 0,52) (NOK 3,55)

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ePro-formaBalance Sheet September 30

Balance Sheet 30.9.2006

ASSETSFixed assetsTangible fixed assets 3 592

Total fixed assets 3 592 Current assetsInventory - Debtors, receivables 620 Bank deposits, cash, etc 25 840

Total current assets 26 460 TOTAL ASSETS 30 052

EQUITY AND LIABILITIESEquityPaid-in capital in the parent company 83 108 Retained earnings, other equity (56 474)

Total equity 26 635 LiabilitiesAccounts payable, accrued expenses, etc 3 418

Total liabilities 3 418 TOTAL EQUITY AND LIABILITIES 30 052

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eCash Outlook

NOK 1 000 Thin Film Electronics Group

Cash available for spendingCash 25 840 Net payables, receivables (3 418)

Available cash for spending 22 422

Cash outflowYear to date = 7.5 months ex work capital (19 938) = per month (2 658)

Cash reserve in months 8

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Thank you for Your Attention!

Contacts: Johan Carlsson, [email protected] Åberg, [email protected]

Documents

Thin Film Electronics ASA Imagine Memory Everywhere