NFC – INTELLIGENCE

EVERYWHERE

Q2 2018Corporate Presentation

August 17th, 2018

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 2018 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://thinfilm.no/investors-reports-and-presentations/

Safe Harbor Statement

2

▪ Publicly listed

• Oslo Stock Exchange (THIN)

• OTCQX Marketplace (TFECY)

▪ The only global pure-play NFC solution provider

▪ Over 30 in-market deployments with leading brands

across a range of industries

▪ Unique scalable, cost-effective and environmentally friendly

manufacturer of NFC devices

▪ 302 total patents & patent applications

o 195 registered patents

o 107 patent applications

▪ Silicon Valley fab for ultra scale, roll-based manufacturing

of printed electronic devices

▪ 175 employees worldwide as of June 30, 2018

▪ Sales offices in San Francisco, London, Hamburg, Singapore,

and Shanghai

3

Thin Film Electronics ASA

Roll-to-Roll Manufacturing Update

4

▪ R2R production commenced at the end of May

• Processed EAS dies through 75% of standard process steps

• Initial lot produced new parameter and functional data that

established commercial viability of the R2R line

▪ Completion of first fully roll-processed EAS lot pushed to

September because of equipment downtime

▪ Two of six additional process tools necessary for NFC

production have completed factory-acceptance testing

▪ NFC R2R partial production start is expected to begin on-

schedule at end-Q3, but delays of a critical tool will require

additional time for lot completion

El Jimador Tequila (Brown-Forman) NFC world cup campaign

5

▪ Leading tequila brand of Brown-Forman, one of

the largest American-owned companies in the

wine and spirits industry

▪ Six-figure unit, in-market deployment was a key

component of omni-channel “Soccer Moments”

campaign during FIFA World Cup

▪ When tapped with a smartphone, customers can

instantly submit their favorite soccer story to

participate in a sweepstakes

▪ Campaign featured connected bottles and

coasters in stores, bars and restaurants across

the US

YUNI Beauty launches on-product NFC solution

6

▪ First Thinfilm customer in the Beauty & Personal Care

market

▪ Award-winning provider of all-natural, sustainable

products

▪ Using Thinfilm’s NFC mobile marketing solution to

deliver custom digital experiences to consumers, and

drive in-store conversions at the point of sale

▪ Digital experience includes details on YUNI’s unique

brand story and custom how-to videos, ensuring post-

purchase engagement

▪ “Smart” products available in Nordstrom,

Anthropologie, Sephora.com, Amazon.com

Kilchoman builds brand loyalty with interactive bottles

7

NFC showed 6.5 % engagement rates which are higher than traditional digital marketing channels such as display, email, search, and social

▪ 6.5% engagement rate – substantially higher that traditional

channels

▪ Consumer tapping activity across 13 countries in Europe

▪ “Sharing” element to the consumer experience, with one-

third of the bottles tapped by more than one unique user

▪ NFC provided key supply chain insights

• 7-week average “ship to shelf” time through tapping data

• Per-bottle geographic distribution of their product

▪ 22% of total engagement on iOS through a custom Kilchoman-

branded app, indicating high adoption among iPhone users

Find this pic

Thinfilm and Clause Launch “Smart” Contracts Solution

8

▪ NFC facilitates pairing of

physical objects to digital contracts

▪ Allows people to initiate

smart contracts on the Clause platform through

the tap of a phone

▪ Contract creation/management, supply chain

administration, invoice/payment automation

▪ Thinfilm’s CNECT™ Blockchain Services

offered as an optional security feature

Thinfilm will integrate Clause’s connected contracting solution with the CNECT™ Cloud Platform

Digitize

contracts

Initiation

touchpoints

Automated

execution

Secure

transfer of

goods

Update on NFC Forum Activity

9

▪ Thinfilm – along with consortium of co-

sponsors – submitted the “Unidirectional

Protocol” used by its PDPS tags for

standardization

▪ Thinfilm’s Cosmin Pascu elected vice-chair of

the NFC Forum Compliance Committee

▪ Thinfilm presented at the NFC Forum

Innovation Day event in London

ISO 9001:2015 Re-Certification

10

ISO certification is an industry standard that verifies the integrity of an organization’s Quality Management System (QMS) and recognizes its ability to meet customers’ quality requirements while continually improving operational processes.

Thinfilm Q2 2018 Financials▪ Thinfilm saw a slight increase in sales of EAS and NFC in first

half of 2018 compared to 2017

– The rate of increase in demand for Thinfilm NFC

solutions during the quarter was more modest than

previously anticipated

– The continued reticence of brands to deploy NFC tags on-

package likely will delay Thinfilm’s ramp and progress to

cash-break-even until 2020

▪ Operational expenses saw a decrease of 5% in the first half of

2018 compared to the similar period in 2017

– Positive contributors: Improved cost control, primarily in

sheet based manufacturing

– Offsetting contributors: Increased FTEs, primarily in the

US subsidiary

▪ R2R CAPEX program on target compared to previously

communicated investment plan

– Received R2R equipment for USD 9.0 million in the first

six months of the year

– Prepayments made to equipment vendors per 30 June

2018 equal USD 9.7 million

▪ Cash balance of USD 66 million per end Q2 2018

▪ Operating cost reduction program initiated in response to

delays in qualification of R2R NFC production line and slower

than expected commercial ramp

▪ It is currently envisaged that any funding requirements will

be met by seeking a strategic equity partner.

* excludes other income related to January 2014 recognition of badwill

860

698

811 829 808

1,750

750

2,500

2,500

500

0

1,250

3,500

250

4,000

1,000

1,500

4,500

2,000

2,250

1,500

0

500

6,000

5,000

3,000

1,000

2,000

5,500

1,077

1,310

1,186

Q3 2016

1,115

Q2

2014

Q3

2014

1,280

Q4

2014

Q2 2015

Q4

2017

Q3 2015

Q4 2016

Q4 2015

Q1 2016

Q2 2016

Q1 2015

Q1 2017

Q2

2017

Q3

2017

Q1

2018

1,177

1,039

1,599

1,019

2,300

1,182

Q2

2018

1,188

LTM revenue & other income* [kUSD, RHS]

Revenue & other income* [kUSD, LHS]