2. ImagineMemoryEverywhereâą
âș hasnât this market gap been addressed?
âą Cost & lack of scalability for silicon
electronics
âą Device aggregators (e.g., smart phones)
only recently becoming widespread
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]
âș Bringing intelligence to everything,
including disposable products, would enable
a for consumers
Why
smarter everyday
âș This emerging world, where practically every
item has intelligence, is supported by a
megatrend â often referred to as the
Internet of Things (IoT)
3. ImagineMemoryEverywhereâą
Thinfilm Uniquely Positioned For The
$100bn Market Opportunity
Printed Electronics
only way of enabling
ubiquitous electronics:
âą Ultra-scalable
manufacturing process
and low CAPEX
âą Compatibility with
silicon electronics
(enabling all objects
to communicate
with each other)
âŠcombined withâŠ
âą Unparalleled product progression & technical achievements:
âą Strong IP position in unique and critical memory technology
âą Secured other technology components for integrated systems:
âą Disruptive technology with unique cost/functionality trade-offs
Memory + LogicIntegrated systems
- Sensor tags
- Display tags
- RFID & NFC
sensor battery displaylogic
Commercial
target 2014:
30-50â”
Lowest cost
alternative:
$5-$15
Memory
Current pricing 5â”
Lowest cost alternative 6.5â”
4. ImagineMemoryEverywhereâą
Commercialization Success Factors
already demonstrated by Thinfilm
1. Significant customer pull with go-to-market partners secured
2. Proven
mass
production
process;
complete
value chain
established
3. Strong ecosystem of manufacturing and technology partners
[Placeholder Video]
5. ImagineMemoryEverywhereâą
Disruptive Technology With Unique
Cost/Functionality trade-offs
High
âș Higher system performance
than color changing labels
(quantitative vs qualitative
information)
âș Significant lower cost than
silicon electronics
Positioning of Thinfilm vs existing products
Low
Costperfunction
System performance
HighLow
Thinfilm
Sweet-
spot
Data loggers
Alarm
tags
EXAMPLE
Color
changing
labels
6. ImagineMemoryEverywhereâą
Thinfilm Tags
Devices
Software
Cloud
Addressable Market of $20-25bn
SERVICELAYERS
~40k
<1mm
~2bn
Trillions
Application
5-10
1-1.5
Personal
health care
Dynamic
price display
Interactive
packaging
2-5
Monitoring of
perishable goods
1-2
Market size ($ bn)
2-5
Anti-theft/
brand protection
2
Logistics
(RFID)
NFC & "Internet
of Things"
10+
7. ImagineMemoryEverywhereâą
Attractive
pricing &
licensing
terms
Thinfilm Key Revenue Drivers
Scalable
business
model
Massive
market
potential
3
2
1
âșStrong customer interest across industries
âș$40-50bn market; new & existing applications
âșRapid market adoption expected due to unique
cost-functionality trade-offs of technology
Blended price/fee per tag
2014-2020; $ cents (Âą)
44
2
PE market forecast1
2011-2021; $ billions
âșIncreasing market price (per tag) due to change in
product mix and more functionality added to tags
âșStrong IP position protects licensing fee level over
time
âșOwn/JV manufacturing capacity initially to accelerate
time to market (know-how transfer to partners etc.)
âșAttractive licensing model for partners: Low CAPEX
and manufacturing complexity
Share of volumes sold
from licensing partners
2014-2020; Per cent
2011 2021
1 IDTechEx; YĂłle Development
2014
100
50
0
2016 2018 2020
2014
30
20
0
2016 2018 2020
10
Market price
Licensing fee
8. ImagineMemoryEverywhereâą
Contactless tags
Dynamic display tags
Key product categories:
# tags sold
(millions)
30 2,600 20,800
âą Change in product mix
âą Increased price as more
functionality is added
âą Shift to licensing model
<0.1
2020
~1,500
2016
~300
2014
9
2012A
0.7
Sensor tags
NFC & âInternet of thingsâ
(smart tags)
Application (examples) Market estimates (global) Thinfilm mkt. share
âą ~$12bn in 2019 (source:
IDTechEx: Printed/chipless tags)
âą ~8% (2019)
âą ~$500 in 2010, ~$2.5bn in 2020
(source: ODIN, VDC Research)
âą Limited use tickets issued: ~9bn
in 2009 (source: Innovision R&T)
âą ~5% (2020)
âą ~7% volume share
(2020)1
RFID tags (retail/logistics,
limited use ticketing etc.)
âą ~$10bn in 2020 (Thinfilm
estimates)
âą ~3% (2020)Dynamic price displays
(retail)
âą ~$5bn in 2020 (Thinfilm
estimates)
âą ~2% (2020)Interactive packaging
(FMCG/retail)
1 Assuming no growth in number of LU tickets issued worldwide from 2009 to 2020
2 Time-Temperature Indicators (used in transportation/packaging, i.e., excluding other industries, e.g., automotive, HVAC/refrigeration etc.)
Monitoring of perishable
goods/drugs (temperature
sensor)
âą TTI market2: ~$1.4bn in 2010,
~$3.2bn in 2020 (source: Frost &
Sullivan, Freedonia, BCC+)
âą ~4% (2020)
Revenue Target of $1.5bn By 2020
Thinfilm revenue projections, 2012-2020; USD millions
9. ImagineMemoryEverywhereâą
Commercial Agreements with
Fortune 600 Companies
âą Global leader in flexible
packaging
âą 78 manufacturing facilities
worldwide
âą ~200 billion packages per
year
âą 2011 net sales of $5.3
billion, mkt. cap. of $3.1
billion (Fortune 500
company)
âOur agreement with
Thin Film Electronics
ASA is an investment
in technology that
could eventually make
printed electronics a
component of every
package we
manufacture.â
Henry Theisen,
CEO, Bemis
Bemis Company, Inc. Hasbro, Inc.
âą Worldâs 2nd largest toy and
game company
âą Known for household
brands such as Monopoly,
Transformer, Scrabble,
Trivial Pursuit and Mr.
Potato Head
âą 2011 net sales of $4.3
billion (5 800 employees)
10. ImagineMemoryEverywhereâą
Award Winning Technology Portfolio
âș2012 Wall Street Journal Innovation Awards
âș2012 World Technology Award, sponsored by
CNN, Time, Science, and Technology Review
âș2012 IDTechEx Product Development (#1
consulting firm in Printed Electronics)
âș2012 FlexTech Innovation Award (US National
Consortium on Printed and Flexible Electronics)
âș2010 Frost & Sullivan Product Development
âș2009 IDTechEx Manufacturing Award
11. ImagineMemoryEverywhereâą
Thinfilm Recognized As One of The
Worldâs Most Innovative Companies
18 September, 2012
âThese are the companies that are
changing or could potentially
change the mobile landscape in the
most profound waysâ
12. ImagineMemoryEverywhereâą
Printed Smart Tags â Why Now?
The âInternet of Thingsâ: a Megatrend
ââŠ.there has been an acceleration in the number and types of things
that are being connected and in the technologies for identifying,
sensing and communicating. These technologies are reaching critical
mass and an economic tipping point over the next few yearsâ
October, 2011
Identifies Top 10 Strategic Technologies
âMore objects are becoming embedded with sensors and gaining the
ability to communicate. The resulting information networks promise
to create new business models, improve business processes, and
reduce costs and risksâ McKinsey Quarterly, 2010
The Internet of Things
âThe evolution of embedded systems from fixed function and
disconnected systems to intelligent systems continues to gain
momentum and puts intelligent systems on track to bring the
Internet of Things to realityâ September, 2011
Intelligent Systems: The Next Big Opportunity
2010
0.9
1.1
2011 2015
+19%
2.0
20142013
1.8
2012
1.5
1.3
CAGR, 2011-2015
Market size projections1
Intelligent system & Internet of Things, USD trillions
1 Based on numbers from IDC (Intelligent Systems) , September 2011 12
14. ImagineMemoryEverywhereâą
Pure-play product company focused on printed electronics
Tokyo
(Business
Dev.)
Thin Film Electronics ASA
US
San Francisco
(Business
Dev.)
Public company (THIN.OL) with global reach
âș HQ in Oslo, Norway with
engineering and product
development in Linköping,
Sweden, and commercial
offices in San Francisco
and Tokyo
âș ~30 full-time and
consulting staff, facilities
include a 1000m2 high-
definition class 100
printing facility
âș Listed on the Oslo Stock
Exchange Axess Market
(THIN.OL.). Key share
figures at 31/12-2012:
âą Mkt. cap 682 MNOK
(1.93 NOK/share)
âą 353.8 million shares
and over 2100
shareholders
Norway
Sweden
Oslo
(HQ)
Linköping
(R&D)
Korea
Pyoungtaek
(production at
InkTec)
Japan
Experienced management team
âș PhD UC Berkeley;
Management &
Technology,
Wharton
âș Founding CEO at
SiNOR AS
âș SVP at FAST, a
Microsoft subsidiary
CEO: Dr.
Davor
Sutija
US:
Jennifer
Ernst
âș 20 Years Business
Development and
Marketing at PARC,
a Xerox company
âș 9 Years in printed
electronics
âș MBA from Santa
Clara University
CTO: Dr.
Christer
Karlsson
âș PhD from Linköping
University
âș Deputy Director at
the National
Defense Research
Establishment
âș Joined Thinfilm in
2000
âș 6+ years in
McKinsey &
Company,
managing corporate
finance related
projects
âș Joined Thinfilm in
2011
CFO:
Torgrim
Takle
Japan:
Dr. Jiro
Kasahara
âș PhD from Waseda
University, Tokyo
âș Established Sony
Fusion Domain
Laboratory where he
led the development
of molecular and
organic electronics
Appendix: