engaging consumers 1:1 at the point of purchase & beyond · engaging consumers 1:1 at the point...
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Davor SutijaCEO
Engaging Consumers 1:1 at the Point of Purchase &
Beyond
NFC Mobile Marketing Solutionsin a Mobile-First Era
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
Thinfilm at-a-glance• Thinfilm enables the Internet-of-Everything
• One-Stop-Shop for NFC mobile marketing
- Hardware (printed and conventional NFC tags) and
CNECT™ Software
• Printed & Roll-based manufacturing
- Ultrascalable - billions of tags capacity
- Silicon Valley based production facility
• Flexible & durable tags
- On-Package or Loosely coupled
- High volume bottling production lines
• Over 300 patents and patent applications
• 170 employees in Oslo, San Jose, Linkoping, San
Francisco, London, Singapore, Hamburg and Shanghai
• Listed on Oslo Stock Exchange (THIN) and OTCQX
(TFECY)
Thinfilm’s NFC solutions transform physical objects into digital marketing channels …
… and turn smartphones into direct brand-to-consumer gateways.
End-to-End Mobile Marketing Solutions
Hardware Smartphone Software
NFC touchpoints turn physical products into
digital marketing channels
Smartphone tap triggersdynamic and uniquemobile experiences
Powerful cloud platform for real-time campaign management, analytics,
and reporting
Global ecosystem for label conversion and tag integration services
Brands Can Take Control of the User Experience
COMPETITORBRAND #1
COMPETITORBRAND #2
YOURBRAND
SEARCH
Direct 1:1 connection On-brand messaging
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CNECT™ Software PlatformBridging the gap between the physical and digital worlds
• Cloud based• Real time data• Uncover consumer behavior
- Find Insights not available anywhere else- Optimize campaigns on the fly- Use data to enhance other marketing efforts
• Deliver content based on:- Tap sequence- Time of day- Day of week- Geography
• Remotely manage destination URLs• Add tag ID, device ID, and UTM marketing
parameters to the destination URLsCNECT™ 2.0 launching April 2018
Snapshot – Recent Announcements7
Campari ‘smart’ refrigerator magnets fuel ecommerce
Mundipharma uses NFC to promote new product
‘Connected’ tequila bottles deliver custom content
Kilchoman ‘smart’ whisky bottles educate consumers
PengWine uses NFC for consumer gamification
SFS uses SpeedTap™ to provide product instructions
Unseong uses NFC to engage with Millennials
Iovate pumps up active nutrition brands with NFC
Novel Use Cases
“On Carton” NFC tags for Dunhill cigarettes deliver
exclusive, interactive content.
Apple-supported NFC refrigerator magnets
from Campari that enable instant order/re-order via a leading
alcohol delivery platform.
NFC enabled welcome packs from a leading
nutrition-focused marketer deliver
product information based on time of day.
NFC Provides New Source of Insights: Product Distribution & Consumer Behavior
Supply chain transparency
Identify where batches are distributed
geographically
40% of tapped coasters were
tapped by multiple people
Determine when direct mail pieces are being received based on Postal Service
bulk mail delivery
Consumer Behavior
Secondary taps imply that wine is consumed just as much for lunch
as for dinner
Diet shake consumers eat later than average, and
do not consume dinner shakes on weekends
People most likely to smoke / consume tobacco
messaging b/w 2-5pm; do not smoke at meal times
Product flow Mail Distribution
Virality Consumption habits
Associated habits
Information consumption
Specialty Gin On Label
Craft Beer Coasters
Chewing Tobacco Direct Mail
Wine Bottle Neck Hangers
Nutrition Supplements Welcome Package
Tobacco Direct Mail
Rep Performance – Field Marketing
No Taps
20 Reps
Initiative• Company launched a new beer and had
field reps onsite at bars to promote it. Coasters with Thinfilm tags were produced to promote the beer and provide interesting facts
Insights• 12% of reps accounted for 50% of the tap
activity• Top 30% delivered 75% of the activity.• 20% of their reps had no engagement
whatsoever
Actions• Client could clearly see which reps were
most engaged• Allows for accountability and auditing with
field reps• Can adjust training materials and process to
increase field rep participation• Can terminate reps that aren’t working
2581 Junction Avenue, San Jose, California
Scaling to Billion-Unit Volumes for EAS, SpeedTap™ and OpenSense™ in New Facility Using R2R Manufacturing
Partially roll-processed quads of EAS front-end die
Thinfilm unique feature: Laser Encoded Read-Only Memory
Top view of ablated (“0”) and intact (“1”) fuse links
Cross section of ablated and unablated fuses
Ablated fuses (“0”)
Dielectric
Readout of “0” and “1” bits
Laser Encoding is key to a factory-programmed, unalterable NFC 128 bit code
Fuse material
Unablated fuses (“1”)
Cost-down roadmap – Roll-to-roll Backend
Attach
Conversion
Test
Thinfilm Q4 2017 Financials ▪ Record annual revenue of USD 5.9 million
– Q4 Revenue and Other Income of USD 1.2 million
– Product revenues affected by seasonality in EAS shipments
– Other revenues increased as a result of higher activity on R2R projects eligible for government funding
▪ OPEX averaging USD 15.3 million per quarter since move to new manufacturing site in Q2
– Installation of R2R equipment on site and CNECT development led to higher Services related costs
– One-time accruals related to changes in activity level in Linkoping led to USD 0.5 million in accrued cost in the quarter
▪ Depreciation, amortization and impairment in the quarter of USD 4.4 million
– Write-down of equipment in the Swedish subsidiary (USD 1.3 million)
– Impairment of IP related to battery program (USD 1.2 million)
– Increased depreciation as consequence of higher total asset base
▪ Cash balance of USD 98 million per end December 2017
* excludes other income related to January 2014 recognition of badwill
829811
698
860
681
500
1,000
2,250
1,750
2,000
250
0
2,500
1,500
1,250
1,000
750
500
0
5,000
4,000
3,500
3,000
6,000
4,500
5,500
2,500
1,500
2,000
Q4 2016
1,077
Q3 2015
1,039
Q2 2015
Q1 2015
Q4 2014
1,1151,188
1,019
Q3 2016
Q2 2016
1,186
Q1 2016
Q3 2014
1,599
1,280
Q2 2014
Q1 2014
Q4 2017
Q4 2015
Q3 2017
1,310
Q2 2017
2,300
Q1 2017
1,182
LTM revenue & other income* [kUSD, RHS]
Revenue & other income* [kUSD, LHS]
