Shaping the Future ofSmart PackagingUsing Printed Electronics to Bridge the Gap Between the Physical and Digital Worlds

John Afzelius-JenevallCFO

Q4 2015February

2016

Davor SutijaCEO

2

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 2015 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://www.thinfilm.no/investor-relations/reports-presentations/

Safe Harbor Statement

3

A Leader in Printed Electronics

Low-cost, high-volume electronics manufactured by printing

NFC OpenSense™

• Publicly listed OSE / OTCQX

• 100+ employees

• 270 patents and patents-pending in printed electronics & NFC

• Oslo, Silicon Valley, Sweden, Hong Kong, and Singapore

• Broad & diverse partner ecosystem

4

The “Internet of Everything” Opportunity

Source: Gartner; IDC, MobiHealth; Bluetooth SIG;; IMF; HIS; The Semiconductor Industry Association; BI Intelligence OICA; IC Insights; MarketLine; Apparel Market; Planet Forward; Companies & Markets

Inte

rne

t o

f E

very

thin

g(2

01

5)

2.7 billion computing devices

21 billion microcontrollers

80 billion apparel items

5-10+ trillion consumables

Inte

rne

t o

f T

hin

gs

(20

14

)

8.0 billion RFID chips

534 million Bluetooth accessories

46 million wearables

Global Semiconductor Capacity Limit

Thinfilm Existing Markets

Adding 1% toretail value

=$100 billion

market opportunity

5

Thinfilm Product Overview

(NYSE:XRX)

NFC OpenSense™ - Feb 2015 launch, Q3 Ramp• Partnered with largest global spirits manufacturer• Signed agreements with leading companies in

spirits, tobacco, pharma, and Consumer Packaged Goods

• Multiple 50-100M+ unit brand opportunities

Thinfilm Memory™• Smart consumables, brand protection• Scale-up with Xerox Corporation

• 1.3B unit plant• Launching Xerox® Printed Memory and

Xerox® Printed Memory with Cryptographic Security

PRODUCTS IN MARKET 2015 PRODUCT INTRODUCTIONS

(AMS: NEDAP)

(NYSE:DEO)

(Private: Water Street) (Private: Keiretsu Forum)

Electronic Article Surveillance (EAS)• Global rollout with leading fast-fashion retailer• EAS tags in retail stores as of Sept. 2015• 11.2M of 13M unit order delivered in 2015• 100M potential aggregated demand

Smart Sensor Labels• $1.4B temperature monitoring market • Partnered with leaders in pharma, food

Increasing ASP

PENDING PRODUCT LAUNCHES

6

NFC Adoption on the Rise

“Apple joins NFC Forum as patron sponsor”

“Electronic retailer to install 10M NFC shelf

labels in 14 countries”

“NXP launches NFC pill boxes for medical tracking”

“London transport: more than 180M contactless journeys in first year of NFC ticketing”

“Contactless payments across Europe set to rise

nine-fold by 2020”

“Nearly 800 US banks support Apple Pay”

Apple Pay Samsung Pay Android Pay Union Pay (China)

Major NFC Payment Platforms

7

Go-to-Market Channels Established

Digital Activation

Manufacturing Scale-Up

(via licensing)

Preferred Converter ProgramPharmaceuticals & Medical Devices

“NFC OpenSense is a game changer.”- Nick Jones, EVP Innovation & Growth

Arc Worldwide (Leo Burnett)

Retail Solutions

Wine & Spirits

8

Digital Activation

• Arc Worldwide is Leo Burnett’sdigital activation group

• Leo Burnett part of Publicis, the 3rd largest agency in the world

• Clients include McDonald’s, P&G, Kellogg’s, Alcon, Purina,Coca-Cola, Miller-Coors

• Signed exclusive agreement with Thinfilm to deliverNFC OpenSense to clients

• Davor Sutija and Nick Jones on panel at Mobile World Congress 2016

“The opportunity we saw was for sending pre- and post-purchase messaging to smartphones. If you know the moment when a package has been opened it’s a game-changer for marketers.”

– Nick Jones, EVP Innovation & GrowthArc Wordlwide (Leo Burnett)

9

Retail Solutions

• TCS is the leading IT services, consulting, and business solutions firm

• Parent company, Tata, is world’s 10th

largest IT provider• recognized by Brand Finance as one of

the Big 4 Global IT Services Brands• Partnership with Thinfilm to create the

“Next Experience in Retail”• Invited Thinfilm to demo products in Tata

booth at National Retail Federation 2016

10

Pharma / Medical Devices

• Publicly listed on theSIX Swiss Exchange

• Global leader in injectionsystems for self-medication

• Sells to major pharmaceutical brands• Launched 50 CHFm program in next-gen

injection/infusion systems• Demonstrated prototypes

at flagship Vienna event "Ypsomed has identified a need amongst its customers for injection devices that in the long run support the administration of medicine

with intelligent functions realised by electronics and software."

– Ypsomed Semiannual Report 2015/16

11

Preferred Converter Program

• Engaging pharmaceutical industry to integrate NFC OpenSense™ into Rx/OTC packaging

• Delivered prototypes and engineering samples to global pharma companies

• Establishing key manufacturing processes for high-speed/high-volume production lines, including use of ferrite shields

• Jones placed 6-figure unit order for NFC OpenSense tags w/ ferrite shields in Q4

"Thinfilm’s unique printed NFC solution addresses multiple needs within the pharmaceutical channel,

particularly around product integrity and patient safety."

– Chris Jones Harris, Principal, Strategic Initiatives & Alliances,

Jones Packaging

• Leading manufacturer of flexible packagingand labels

• Engaging beverages industry to integrate NFC OpenSense™ into labelsand packaging

• Thinfilm received a 6-figure unit order from Constantia for NFC OpenSense

12

Xerox – Security Printing• Manufacturing scale-up partner• Global leader in business services,

digital printing & document management • Launched two products featuring

Thinfilm Memory™ in Sept. 2016• 1.3B unit capacity in NY plant• Technology transfer largely completed

by Q4 2015, test equipment delivered• Substantial traction with customs

agencies and governments re:tax-stamp solutions

Scale-up and licensing of Memory

13

Wireless Capacity Expansion Roadmap

• EAS, NFC OpenSense™ and Smart Labels share capacity

• Sheet-based: 28M unit annual throughput

• $4.2M capex spent on first step in expansion plan (40M+), completion expected Q2 2016

• Additional expansion will be staged linked to customer ramp

• Preliminary engineering design completed

• Facility selection started

• Vendor selection in process

• 1B NFC OpenSense™ annual capacity per line ($250M potential)

• Is expected to require $20-$25M CAPEX per line

Existing Capacity:Sheet-Based Processing

Scale-Up Program:Roll-to-Roll Processing

14

Thinfilm Snapshot: Q4 2015

Thinfilm Receives NFC SpeedTap™ Order from Global FMCG Leader

Leo Burnett / Arc and ThinfilmPartner on Mobile Marketing Solutions for Leading Brands

Thinfilm and Constantia Flexibles Partner to Deliver Smart Packaging Solutions to the Beverages Market

Jones and Thinfilm Create ‘Smart Packaging’ Solution

for Big Pharma

Thinfilm and Tata Consultancy Services to Create New NFC Retail Experience

Thinfilm Begins Delivery of NFC OpenSense™ Pilot-Orders

to Key Customers

Leading Spanish Winery Launches NFC OpenSense-Enabled Product

Thinfilm Partners with SmartSign in Vietnam

to Combat Counterfeiting

Woodford Investment Management Invests USD 42 Million in Thinfilm

15

Revenue shift from project to product

698681

885

285

582

860

275

48

0

2,500

4,5001,750

3,500

3,000

1,500

2,000

1,250

1,000

4,0001,500

500250

500

0

750

1,000

Q2 2012

Q3 2013

Q3 2012

Q2 2013

159

Q1 2014

Q4 2012

512

Q1 2013

1,280

Q2 2015

1,039

Q1 2012

Q4 2015

Q4 2014

1,599

1,077

58

Q2 2014

Q3 2015

Q3 2014

1,188

Q4 2013

Q1 2015

LTM revenue & other income* [kUSD, RHS]

Revenue & other income* [kUSD, LHS]

THIN revenue & other income*

[k$]

* excludes other income related to January 2014 recognition of badwill

THIN sales revenue split

[% of total]

Q4 2014

Q2 2015

Q2 2014

Q3 2014

Q1 2014

Q1 2015

Q4 2015

Q3 2015

100%

Tech Transfer

Product dev.

Product

Project

X% = Product + product dev. related share of sales revenue

8%

2%

29%

0%

52%

81%

34%

69%

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Partnering to Build the Future

Leading electronics manufacturing and global supply chain company

Global business services, digital printing, and document mgmt company

Developer/supplier of innovative solutions for the retail market

World’s largest spiritsmanufacturer

Solutions provider for temperaturemonitoring of sensitive medical goods

Largest professional packaging andlabel converter in Greater China

Technology company pioneering ultrathin, flexible batteries

Leading provider of injectiondevices for self-medication

Global leader in flexible packaging

Cloud-based IoT Smart Products Platform Company

International organization overseeing customs trade between countries

Technology consultant and pioneer in printed electronics

NFC ECOSYSTEM SUPPORT

Global technology company specializingin transparency and accountability solutions

Leading global IT, consulting, and technology solutions firm

Packaging solutions leader forpharma and healthcare

Digital activation divisionof Leo Burnett

Leading manufacturer offlexible packaging & labels

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Management Team

Davor SutijaChief Executive Officer

Christer Karlsson, Chief Technology Officer2005. Prior: Deputy Research Director, National Defence Research Establishment, Sweden. Ph.D. Linköping University.

Peter Fischer, Chief Operating Officer2014. Prior: Plastic Logic (CTO); Qimonda, Infineon. “Forty Innovators Building the Next-gen Electronics”, EETimes. Board, Organic Electronics Association.Ph.D., Physics, University of Magdeburg

Erwan Le Roy, SVP, Strategic Marketing / GM, Sensor Products

2015. Prior: VP, Marketing Veeco/Solid State Equipment from 2013, KLA Tencor, Credence Diagnostics Systems/SchlumbergerMBA Duke US, dual MEng from INSA Lyon and KAIST Korea

Henrik Sjöberg, SVP, Product Management2013. Prior: Micronic Mydata, ACREO.Ph.D., Physics, Royal Institute of Technology

Kai Leppänen, Chief Commercial Officer

2013. Prior: VP Sales/BD EMEA from 2013, Opera Software, Symbian, 12snap Mobile Advertising.BA, International Business, MSc, Info. Sys. Mgmt, London

2010. Prior: SVP, Product Marketing, FAST, a Microsoft subsidiary. Founding CEO, SiNOR AS (now Norwegian Crystals).Boards of Orbotech, SensoNor, Birdstep, and Owera.

Management & Technology, Wharton School; Ph.D., Chemical Engineering, UC Berkeley.Hertz Fellow

2013. Prior: VP, Corporate Development, Orkla ASA; Portfolio Manager at Catella Capital Management, Nordea.

‘Star Manager of the Year’ –Morningstar

CFA charter holder. MS, Engineering, Royal Institute of Technology. BS, Economics, Stockholm University.

John Afzelius-JenevallChief Financial Officer

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Thank you.

Executive contact:

Davor SutijaCEO

davor.sutija@thinfilm.no+47 94 84 98 86

Institutional-investor contact:

John Afzelius-JenevallCFO

john.afzelius-jenevall@thinfilm.no+47 95 87 96 80

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Appendix

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Diageo – Spirits

• World’s largest spirits company• Collaborated with Thinfilm to

develop Johnnie Walker Blue Label® “smart bottle” prototype

• Unveiled smart bottle at 2015 Mobile World Congress in Barcelona

• Placed 5-figure unit pilot order for NFC OpenSense™ in November

"Mobile technology is changing the way we live, and as a consumer brands company we want to embrace its power to deliver amazing new consumer experiences in the future."

– Helen Michels, Global Innovation Director, Diageo

21

Ferngrove Wine Group – Wine

• Based in Western Australia

• Chinese-owned• Major supplier

to APAC region• 600k+ bottles

exported to Chinaeach year

• 50 exclusive retailoutlets in China

• Field trial scheduled for Q1 2016

22

Barbadillo – Spirits

• Leading Spanish winery founded in 1821

• Owns the ‘Vega Real’ winery in D.O. Ribera del Duero and Bodega Pirineosin D.O. Somontano

• Partnered with Thinfilm to incorporateNFC OpenSense into an exclusive bottling of rare sherry for productauthentification

“Given the rarity of this release and its significance to the Barbadillo family, we feel compelled to protect it. Thinfilm’s technology delivers that protection, for our business and our valued consumers.”

– Manuel Barbadillo, Chairman - Barbadillo

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Active Deployment of Product Authentication

Deterministic algorithms detect refilling Factory encoded globally-unique IDs Faster tag-read supports high volumes

Ferngrove battling counterfeit wine in China Only NFC solution on WCO global platformActive projects with Fortune 500 CPG firms

NFC OpenSense™

Tobacco FMCG Wine & Spirits

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The Product as a Media Channel

An individual media channel capable of reaching today’s digital and mobile consumers on their terms

A ubiquitous engagement tool that protects product integrity and is in the hand of virtually every consumer

2 Statista1 Diageo Annual Report, Aug. 2015;

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Why Thinfilm?

A

2

3

4

5

6

1 Actively defining the future of NFC

Solutions optimized for high-volume brands

Security at price points compatible with mass market adoption

Partner network to deliver best-in-class solutions to our customers

270+ patents & patents pending in printed electronics and NFC

International firm

• Award Winning NFC Innovation Center, San Jose, CA

• Principal Member, NFC Forum; Chair, Retail Group

7 Publicly listed company on US and EUR marketplaces• Strong cash position

• $36M / no debt

• Mass production

• Scalability

• Sales and R&D in San Jose, Baltimore, Hong Kong, Tokyo, Singapore, Scandinavia

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NFC OpenSense™ - One Label, Two Opportunities

• Targeted consumer engagement pre- and post-purchase

• Connects offline with online

• Enables “market of one”

• Counterfeiting & parallel trade protection

• Mass-market security

• Unique factory-encoded IDs

• Cannot be cloned

Consumer EngagementProduct Integrity

1 2

The Johnnie Walker Blue Label®“Smart Bottle”

Smart Products Platform

First NFC solution accredited by the WCO

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Case for Anti-Counterfeiting Technology

China Imports

Wine• Largest market for French exports

• 75% of Chinese buyers prefer wine protected with anti-counterfeit technology

• 44% say “not knowing wine is authentic” is a strong barrier to purchase

Baijiu (popular Chinese spirit made from grain)

• 25-50% counterfeit, often in refilled containers

Spirits• Refill of authentic bottles is #1 issue for spirit brands

Milk Powder/Formula• Severe scares from bulked-up and tampered products

Source: Counterfeiting in the Wines And Spirits Market; Wine Intelligence; VinExpo; Demeter Group; The Guardian

Sam

ple

Ad

dre

ssab

le M

arke

ts f

or

NFC

Op

enSe

nse

™

NFC OpenSense™ is the only consumer-verifiable technology

to definitively indicate a container has been opened and may

contain fake product.

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NFC: Ideal for the IoT and Here to Stay

Source: IDC; IHS Feb 2014; Ericsson Mobility Report August 2015; OICA; ExactTarget 2014 Mobile Behavior Report; IBM; Cisco; ABI 2013

Mobile Coverage is Ubiquitous95% of the world’s population is

covered by mobile networks

“Mobile First” Attitude is Pervasive85% of people say that mobile devices

are a central part of everyday life

NFC Now on All Mobile Platforms1 billion NFC phones in use

at YE 2015

Connectable Items are Everywhere1 trillion connected by 2020;

adding 1% to retail value = $100B

Smartphone Use Has Exploded7.6 billion mobile subscriptions

in Q3 2015, 9.2 billion by YE 2019

NFC Wireless

Communication

Apple joins NFC Forumas key sponsorAugust 2015

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How It Works (Thinfilm NFC)

Tag AuthenticityVerified

Tag ID Verified

Cloud

1

2

App reads factory programmed, unalterable 128-bit code, verifies protocol

App cryptographically secures tag ID using SHA 256, sends to Thinfilm secure authentication service

1

1

2

3 3

3

Thinfilm authentication service returns verification

Tag ID Tested

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Smart Sensor Label Platform

• $1.4B temperature-monitoring market

• < ½ the price of other electronic indicators

• 2x the performance of chemical alternatives

• Preparations for field trials in progress

• Opportunities in consumer, industrial, and healthcare

Low-Cost, Ubiquitous Sensing and Communication for the Internet of Things