Powering the Internet of EverythingUsing Printed Electronics to Create a Truly Connected World

John Afzelius-JenevallCFOJennifer ErnstEVP, Sales and Business Development

CLSA INNOVATION SUMMITNEW YORK, DECEMBER 2014

Low-cost electronics made by printing

1OSE: THIN.OL - MKT CAP $316 Million – 83 Employees - 270+ Patents and Patents Pending

REDEFINING THE INTERNET OF THINGS

83 million cars

2.3 billion computing devices

19 billion microcontrollers

80 billion apparel items

5-10 trillion disposables

Internet of Things(2014)

Internet of Everything

(2020)

2Source: IDC; Gartner; World Bank; IMF; HIS; The Semiconductor Industry Association; OICA; IC Insights; MarketLine; Apparel Market; Planet Forward; Companies & Markets

6.0 billion RFID chips

Adding 1% to retail value

= $100B market

opportunity

Expanded IoE with printed electronics

FreshFoods

Medical

Authentication

TraditionalIoT

Internet/ Cloud

Pharma

Consumer Goods

SupplyChain

Print /Publishing

THE NEW INTERNET OF EVERYTHING

“FORGET ‘THE CLOUD’… ‘THE FOG’ IS TECH’S FUTURE.”

-- CHRISTOPHER MIMS, WALL STREET JOURNAL (MAY 2014)

NFC+SENSORS+CLOUD= INTERNET OF EVERYTHING @ TRILLION SCALE

Real-timepersonalized

offers

Product info,reviews,

comparisons

Expert tips,recipes

Authenticitycheck

Recallcheck

SUPPLY CHAINPROTECT THE BRAND

POINT OF PURCHASESELL THE BRAND

POINT OF USEBUILD BRAND LOYALTY

Tap forinstantreorder

CloudNFC

SensorData

Real-timesensing

THE OPTIMAL WAY TO CONNECT THE EDGE

5

Mobile Networkis Ubiquitous

“Mobile First” Attitude is Pervasive

NFC on All Mobile Platforms

Connectable Items are Everywhere

Mobile Networks are Data Networks

Source: IDC; Ericsson Mobility Report June 2014; OICA; ExactTarget 2014 Mobile Behavior Report; IBM; Cisco; ABI 2013

NFC the only connectivity solution with IoE

scalability

PRINTED ELECTRONICS IN REALITY

THINFILM’S PRODUCT WAVES

Thinfilm Memory & EASIn Production – retail products in market

Smart LabelsSampling – pre-orders received

NFC Smart Labels Demonstrated May 2014

LUXURY GOODSFMCGS

TOYS & GAMES

• Smart consumables• Brand protection• Collectible cards• Anti-theft labels

• Sensors• Timers

• Wireless capture of uniqueID plus sensor data

• Broad industry compatibility,including Google, Samsung, NXP, Qualcomm, Broadcom

7

(Visitor management)

(Pharma) (Fresh food)

(Smart packaging)

RETAIL STOCK PROTECTIONSUCCESSFUL FIRST MILLION-UNIT VOLUME DELIVERY IN Q3

• Global rollout in progress with leadingfashion retailer

• 60M-unit annual capacity installed, withpotential to double capacity at same site

• Consolidated demand in shoe categorymay 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

8

SMART LABELSSMART 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-the-home, consumer goods, logistics

9

FMCG

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+

10

PARTNERING TO BUILD THE FUTURE

“These smart labels areabout 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

11

1st commercialorder for BPS

received from FMCG(OCT)

Demo of 1st

stand-alone printed organic sensor label

(OCT)

Milestones of Progress

1st commercial orders delivered to luxury goods manufacturer

(DEC)

Thinfilm receives CTIA eTech Award

(SEP)

1st demo ofNFC smart label

(MAY)

1st productionorder for RF

(MAY)

Flextronics partnership

(SEP)

Temptimepartnership

(MAR)

PakSensepartnership

(APR)

EVRYTHNGpartnership

(JULY)

Nedappartnership

(MAY)

Bradypartnership

(JAN)

Bemispartnership

(DEC)

Delivery oftemp sensor label

commercial samples(OCT)

Acquistion of Kovio IP/assets

(JAN)

PARC (Xerox) increases stake in

Thinfilm(DEC)

Thinfilm acceptedto 2015 MWC

(OCT)

2013 2014

Growing revenue & transition to product sales

• Revenue growing rapidly

• YoY growth >100%

• Product sales emerging

• 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.

631

871

285278

582

48

876

4,000

3,5001,250

0

1,500

3,000

500

1,000

1,500

2,000

2,500

0

1,000

750

500

250

1,293

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

516

Q1 2013

Q4 2012

Q3 2012

159

Q2 2012

58

Q1 2012

Q3 2014

Revenue* [kUSD, LHS]

LTM revenue [kUSD, RHS]

THIN revenue* [$k]

Note: all amounts in US Dollars

* excludes Other Income

FINANCIAL HIGHLIGHTS

12

Share Details(Dec 8 2014)

Share price: NOK 4.40 | $0.61Market cap: NOK 2,268M | $316M

Key Dates 1995 – Founded as Opticom subsidiary2005 – Restructured2008 – IPO (Oslo Axess Exchange)2010 – Management change & strategy shift

Locations Oslo, Norway (HQ); Silicon Valley (San Jose),Linköping, Sweden; Dresden, Germany;Tokyo, Japan

Employees 83 FTEs (26 PhDs)

DavorSutija, PhDCEO

FAST (Microsoft),SINOR AS

ChristerKarlsson, PhDCTO

National DefenceResearch Establishment

PeterFischer, PhDCPO

Plastic Logic, Qimonda, Infineon

John Afzelius-Jenevall, CFACFO

Orkla, Catella Capital Management, Nordea

JenniferErnst, MBAEVP, Sales/BusDev

PARC (Xerox),FlexTech Alliance

HenrikSjöberg, PhDSVP, Prod Mgmt

Acreo, Micronic Mydata

THINFILM SNAPSHOT

Apr-14 Jul-14Oct-13Jul-13 Oct-14

4.0

3.0

5.0

6.0

7.0

2.0

1.0

Jan-14

THIN share price 18 months [NOK]

13

THINFILM SELECTED TO PARTICIPATE INMOBILE WORLD CONGRESS 2015

14

• Thinfilm CEO, Davor Sutija, chosen as keynote speaker• Other keynote program members include CEOs of

Visa, Sprint, Renault-Nissan, Telenor Group and Huawei

“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.”

• 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

Q&AThank you for your attention

15

THINFILM HIGHLIGHTS: Q3 2014

16

Smart Label demonstrators

delivered to Temptimeand other strategic

customers

Thinfilm launches wireless EAS product,ships 7-figure unit orderFerd AS to invest

$23 million in Thinfilm

Thinfilm receives prestigious CTIA Emerging Technology Award

Thinfilm CEO, Davor Sutija, to keynote

2015 Mobile World Congress

BRAND ENHANCEMENTCONTINUED NEGOTIATIONS WITH POTENTIAL 1.3 BILLION UNIT SCALE-UP PARTNER

17

• 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

18

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

• Exercisable after 12 month holding period

• Warrants expire after 3 years

• Transaction subject to EGM approval• 14 November 2014 EGM has been called for

• 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

•24% of food calories produced for human consumption are wasted

•40% of food losses in developing countries due to poor storage/monitoring

•30%+ shorter shelf life in fresh foods following a brief high-temp event

•$8 Billion logistics market for temp-sensitive pharmaceuticals

•40% of vaccines in UK kept at incorrect temperatures

•$20M in ruined vaccines annually in US Federal Vaccines for Children Program

EXAMPLE: THE NEED FOR COST-EFFECTIVE SENSING

Mobile deviceis preferred in

ALL cases

THE RAPIDLY EVOLVING CONSUMER

Source: Deloitte Digital, 2013

CloudDatabases

& Algorithms

NFC

SensorData

INTERACTIVE FOOD & DIGITAL PHARMA

NFC+SENSORS+CLOUD= INTERNET OF EVERYTHING @ TRILLION SCALE

Real-timepersonalized

offers

Product info,reviews,

comparisons

Expert tips,recipes

Authenticitycheck

Recallcheck

SUPPLY CHAINPROTECT THE BRAND

POINT OF PURCHASESELL THE BRAND

POINT OF USEBUILD BRAND LOYALTY

Tap forinstantreorder

CloudNFC

SensorData

Real-timesensing

Printed Electronics Conventional Silicon

• Additive print processes,based on inks

• Highly scalable• CapEx orders of magnitude below

conventional silicon• Quick turnaround• Continous roll or high-efficiency

sheetfed processes• Large area sensor compatible

• Subtractive process,based on photolithography

• Gradual capacity scaling not possible due to ‘megafab’ economics

• New factories $5-10B+• Hundreds of production steps• 8-12 week standard process time• Relies on old/obsolete factories;

70 closed 2009-2013, 9 more in 2014

MANUFACTURING THE INTERNET OF EVERYTHING

“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. 2012WSJ Technology

Innovation Award,

Runner Up – Oct. 2012

GigaOM Mobile 15

Award – Sept. 2012

RECOGNIZED WORLDWIDE FOR AWARD-WINNING INNOVATION

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t h i n f i l m . n o

Institutional investor contact:John Afzelius-JenevallCFOjohn.afzelius-jenevall@thinfilm.noPhone +47 95 87 96 80

THANK YOU