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

John Afzelius-JenevallCFO

Q32015

TF-CorpPres-K08

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

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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

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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• 8.9M of 13M unit order delivered through Q315 • 100M potential aggregated demand

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

Increasing ASP

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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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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

by 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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Capacity Expansion Roadmap

• Sheet-based: 28M unit annual throughput

• EAS, NFC OpenSense™ and Smart Labels share capacity

28 28 28

92

16

44

120

28

Installed base

Line upgrades

• Future scale-up on roll-to-roll

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

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

• Engineering design & vendor selection expected completed in H1 2016

• Capital spending started in Q2, accelerated in Q3 towards 44M capacity as first step in expansion plan

• Completion of first step expected Q1 2016

• Additional expansion ($40M potential) will be staged linked to customer ramp

Upgrade path 2015 - 2016

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Thinfilm Snapshot: Q3 2015

First EAS tags in retail stores as of September 2015; 8.9M of 13M unit order

from Nedapdelivered through Q315

FlexTech awards $350,000 to Thinfilmto extend smart-label sensor platform

Thinfilm receives pilot order from Diageo for NFC OpenSense™

Thinfilm’s receives ISO 9001 certification following through audit of quality management systems

Xerox launches printed memory solution with cryptographic security to battle counterfeiting

Thinfilm and Ypsomed collaborate to addNFC OpenSense™technology

to medical injection devices

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Revenue shift from project to product

698681

885

285

512

582

159

58

3,500

1,000

500

0

4,500

4,000

1,500

1,250

1,000

750

500

250

2,500

2,000

1,500

3,000

0

1,280

Q2 2014

48

Q4 2014

1,188

Q3 2015

1,039

Q2 2015

1,077

Q1 2015

Q3 2014

Q3 2012

Q2 2012

Q1 2012

860

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

275

Q4 2012

Revenue & other income* [kUSD, LHS]

LTM revenue & other income* [kUSD, RHS]

THIN revenue & other income*

[k$]

* excludes other income related to January 2014 recognition of badwill

THIN sales revenue split

[% of total]

Q2 2014Q1 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

100%

Tech Transfer

Product

Project

Product dev.

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

8%

2%

29%

0%

52%

81%

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

Solutions provider for temperaturemonitoring of food perishables

Global leader in flexible packaging;200B packages/year

Cloud-based IoT Smart Products Platform Company

International organization overseeing customs regulations governing trade between countries

Technology consultant and pioneer in printed electronics

NFC ECOSYSTEM SUPPORT

Global technology company specializingin transparency and accountability solutions

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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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Why Thinfilm?

A

2

3

4

5

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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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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 Product 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

Jennifer Ernst, Chief Strategy Officer

2011. Prior: EVP, Sales/BD from 2011, Xerox PARC; Chair, US National Consortium Printed Electronics; MBA, Santa Clara University

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. BS, Economics. MS, Engineering, Royal Institute of Technology

John Afzelius-JenevallChief Financial Officer

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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

Only 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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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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Data-Driven Revenue Opportunities

• Social media platforms

• Monetize customer data

• Referral-based revenue

• In-house applications

• NFC OpenSense™ “QuickStart Kit” for developers

• Tag ID management

• Partnerships for critical backend functions

• EVRYTHNG’s real-time, rules-based data management platform

Enhance Revenue by Providing Complete Data Solution

Development of ID managementsoftware in conjunction with World Customs Organization

EVRYTHNG provides real-time, rules-based data management; backed by Cisco & Samsung

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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

• Additional opportunities in consumer, industrial, and healthcare

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