Imagine Memory Everywhere™

Thin Film Electronics ASA (“Thinfilm”):

Commercialization of Printed Memories and Integrated SystemsMarch, 2012

Imagine Memory Everywhere™

Thinfilm Product ProgressionM

em

ory

Me

mo

ry Standalone memory for toys and games

Standalone memory for toys and games

Me

mo

ry +

Lo

gic

Me

mo

ry +

Lo

gic Addressable

memory for integration

Addressable memory for integration

Inte

gra

ted

Syste

ms

Inte

gra

ted

Syste

ms Sensor tags

Display tags

RFID & NFC

Sensor tags

Display tags

RFID & NFC

2

Imagine Memory Everywhere™

Thinfilm’s history and achievements

► R2R production of unique memory technology• Based on ferroelectric polymer• Excellent rewritability and archival retention• Current production capability of ~10 million memories per month • Sustainable cost advantage for low capacity data storage

► Launching consumer products• Prototyping design services to the world’s leading toy &

games manufacturers• Toys & Games a proving ground market• Demonstrate volume, cost, safety, disposability

► Enabling integrated systems & smart tags• Announced 21 October 2011 working prototype of world’s

first scalable printed CMOS memory• Will enable low-cost, printed integrated systems & smart tags

for the “Internet of Things”

Memory(2008 ->)

Products(2010 ->)

Logic(2011 ->)

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Imagine Memory Everywhere™

The “building blocks” of printed integrated systems Example of tag types (integrated systems)

Sensor tag

(temperature)

Dynamic price display

RFID tag(contactless rewritable tag)

Battery

Display

• Co-development agreement with PST Sensors

Antenna

• Thinfilm proprietary

Logic

• Co-development and exclusive license

Memory

Sensor

• Licensed leading low-cost display

• Secured privileged access to custom battery

• Internal development and numerous external options

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Imagine Memory Everywhere™

Progressively unlock new markets

Timing

Thinfilm’s value proposition

Me

diu

mH

igh

Un

iqu

e

Promotional cards

2011 20132012

Toys & Games

Anti-counterfeit/ Secure archiving

Logistics(RFID)

Monitoring of perishable

goods

Vending machines

Interactivepackaging

2014

Anti-theft/self-checkouts

Personal health care

Market size ($ bn)

Dynamic pricedisplays

NFC&

“Internet of Things”($10 bn+)

Ticketing

Info-kiosks/education

1-2

0.1

1-4

5-10

2-5

~1

0.1

~1.5

~2

• Total addressable market for Thinfilmestimated to $25-35bn

• Key market trigger: Cost per functionality (e.g., bringing electronics to disposable products)

• Rewritable memory will be critical to meet functionality requirements from customers

5

Imagine Memory Everywhere™

1000250.40.080

400

3,000

6,000

Volume Units sold, 2010; millions

Price$ per unit, 2010

0

5

Source: Frost & Sullivan; BCC Research; Freedonia; Sensitech; Omega Engineering; Honeywell; ATI; Vitsab International; 2DI; ABB

ILLUSTRATIVE

“Labels”

• Price: $0.005-0.08• Volume: 3-6bn

“Time labels”

• Price: $0.1-0.4• Volume: 0.5-1bn

“Alarm tags”

• Price: $15-25• Volume: ~15mn

“Wireless & Integrated devices”

• Price: $250-1000• Volume: ~1mn

Share of market

10% 5% 25% 60%

Revenue potential driven by cost/functionality

($140mn) ($0.4bn) ($0.9bn)($70mn)

Example: Monitoring of perishable goods/drugs (Temperature Sensor/TTI market)

Total market of ~$1.4bn

(2010) Thinfilm TTI market size projections

Product/tagfunctionality

2013 2016 2020

Cost/tag

Addressablemarket, $bn

E.g., max/ min temp.(counter)

E.g., time-temp. exposure

E.g., wireless alarm tags

~$0.30 ~$0.20 ~$0.10

0.1 0.4 1.2

Imagine Memory Everywhere™

Commercial break-through expectedaround 2013; ~$1.5bn in revenues by 2020Revenue scenario, 2011-2020; USD millions

Other (both contactless-and closed systems)

Interactive packaging (FMCG/retail)

Monitoring of perishable goods/drugs (temperature sensor)

Dynamic price displays(retail)

Ticketing (transportation)

RFID (retail/logistics)

NFC & “Internet of things” (smart tags)

2020

~1500

2011A

0.3

2016

~300

2013

3

Contactless tags/systems

Closed systems

Key applications:

# tags sold(millions)

~0 40 5,000 22,000

Applications Market estimates (global) Thinfilm mkt. share

• ~$12bn in 2019 (source: IDTechEx: Printed/chipless tags)

• ~8% (2020)

• ~$500 in 2010, ~$2.5bn in 2020 (source: ODIN, VDC Research)

• ~5% (2020)

• LU tickets issued: ~9bn in 2009 (source: Innovision R&T)

• ~7% volume share (2020)1

1 Assuming no growth in number of LU tickets issued worldwide from 2009 to 20202 Time-Temperature Indicators (used in transportation/packaging, i.e., excluding other industries, e.g., automotive, HVAC/refrigeration etc.)

• TTI market2: ~$1.4bn in 2010, ~$3.2bn in 2020 (source: Frost & Sullivan, Freedonia, BCC+)

• ~4% (2020)

• Other applications/products: 20-bit memory, diaper humidity sensor, anti-theft , calibration sensors etc.

• 1-9% (2020)

• ~$5bn in 2020 (Thinfilmestimates)

• ~2% (2020)

• ~$10bn in 2020 (Thinfilmestimates)

• ~3% (2020)

• Change in product mix• Increased price as more

functionality is added

Imagine Memory Everywhere™

Printed smart tags – Why now?The “Internet of Things”: a Megatrend

“….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 years” October, 2011

Identifies Top 10 Strategic Technologies

“More 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 risks” McKinsey Quarterly, 2010

The Internet of Things

“The 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 reality” September, 2011

Intelligent Systems: The Next Big Opportunity

+19%

2015

2.0

2014

1.8

2013

1.5

2012

1.3

2011

1.1

2010

0.9

CAGR, 2011-2015

Market size projections1

Intelligent system & Internet of Things, USD trillions

1 Based on numbers from IDC (Intelligent Systems) , September 2011 8

Imagine Memory Everywhere™

Printed smart tags – Why Thinfilm?

“…. Norwegian company Thinfilm has been making headlines for its unique technology…once Thinfilm’s tags are integrated with sensing technology, food can let us know when its spoiled, based on temperature and ammonia levels..”December 14, 2011

Thinfilm CEO Wants Your Stuff To Talk To You

“…. Thinfilm offers a cheap way to give almost anything a memory….working towards a world where virtually every item that we use is tagged with memory and sensors, harvesting information locally that can then be gathered at leisure” December 15 , 2011

Even Bananas Could Have Memory

“Thinfilm has joined forces with a number of partners to develop a low-cost printed electronic sensor platform that could be used to monitor the temperature of perishable goods such as food and pharmaceuticals”January 24 , 2012

Plastic memory firm signs partners for printed systems

“The smart tag, an electronics device with basic computing components printed on a strip of plastic, features Thinfilm's memory with printable transistors from research company PARC, a sensor, a battery, and display”January 24 , 2012

Smart tag lets you print electronics on plastic

October 2011:

Successful prototype of first scalable printed CMOS memoryDemonstrated that addressable memory can be combined with sensors, displays and antennas

November 2011:

Organic semiconductor inks developed for high volume printingHigh quality semiconductor inks available. Partner with Polyera to bring printed CMOS memory to market

January 2012:

Established partnerships for display, sensor and battery technologySecured remaining “building blocks” for enabling smart tags (with Acreo, PST Sensors and Imprint Energy)

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