Leveraging Roll-to Roll Technology

to enable NFC Everywhere™

Facility upgrade/expansion to support global NFC OpenSense™ and SpeedTap™ rollouts

Davor SutijaCEO

Oslo Roadshow

Arctic Securities

June 2016

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

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

6)

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

4

Thinfilm Business Models

(NYSE:XRX)

NFC OpenSense™ and NFC SpeedTap™• Pilot orders delivered and planned to consumer brand

companies• Go-to-Market Partners• Packaging partner program

Thinfilm Memory™• Smart consumables, brand protection• Xerox Corporation licenses Thinfilm

Memory Label technology• 1.3B unit plant• Xerox® Printed Memory showcased at

Drupa as one of core Xerox innovations

PRODUCTS IN MARKET NFC PRODUCT PLATFORM

(AMS: NEDAP)

(NYSE:DEO)

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

Electronic Article Surveillance (EAS)• Global rollout with leading fast-fashion retailer• Exclusive agreement on EAS tags for fast retail

with the one of the largest anti-theft solution providers, Nedap

Smart Sensor Labels• Partnered with leaders in pharma, food cool chain

solution suppliers• To be launched to market in Q4 2016

Increasing ASP

PENDING PRODUCT LAUNCHES

5

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

digital printing & document management • Launched Xerox Printed Memory™ based on

Thinfilm Memory in Sept. 2015• 1.3B unit capacity in NY plant• Technology transfer completed, test

equipment delivered• Traction with customs agencies and

governments re: tax-stamp solutions• Xerox showcasing memory-based security at

Drupa in June 2016.

Scale-up and licensing of Memory

6

Wireless Product RoadmapMay 2016

7

OpenSense | Authenticator

User downloads app from Google Play;User taps on bottle when app is open

User is informed of tag state

8

SpeedTap | Tap & Launch

User taps on wine bottle

Launch various consumer engagement use cases

Mobile Commerce Winery Photo Tour

Analytics

Thin Film Dashboard

9

Connecting with consumers

Consumer scrolling Search directed Direct dialogue with Brand

Offline 2 Online (O2O)• Brands can connect directly with consumers

when they tap on their products

Consumers searching “Olive Oil” • Brands pay to be listed in “Sponsored”

sections above the fold• Traffic is determined by search provider

and influenced by SEO/SEM strategies

Consumers researching “Olive Oil” • Users looking for good deals and highly

reviewed and rated products

Mobile Marketing Today Tapping using NFC Smartphones

10

Dialogue with Consumers

Favorite RecipeDeeper Engagement & Cross Promotion

Authenticate & Freshness Mobile Commerce & Special Offers

11

• Craft Beers

• Wine & Spirits

• Tobacco

• Pharma

• Health and beauty products

• Subscription boxes

• Specialty Foods

Key Vertical Markets – Targeting Millennials

12

• Based in Switzerland• Publicly listed on the

SIX Swiss Exchange• Global leader in injection

systems for self-medication• Investing over 50 million

Swiss francs in next-gen injection/infusion systems

• Thinfilm provided OpenSense™ and software system for YpsoMate Smart

• Ypsomed and Thinfilm continue commercializing YpsoMate Smart

Smart Medical Devices: Improve Patient Outcomes

13

Latest Phones are NFC-Ready & Compatible with TF Tags

Galaxy S7

Also Galaxy 4,5,6

LG G5 M5

14

# Smartphones (million) That Can Read Thinfilm Tags

563

13711786 1914117

20

0

500

1000

1500

2000

2500

2016 2017 2018 2019

Thinfilm URL + App Thinfilm App only

15

Why Do Thinfilm Tags Have a Faster Read Speed?

Tag Response

Actual time depends on bit rate, amount of data, number of tags in the field

Tag Response

Data Send(128-bit)

<5 ms, 200 reads per secondReader

Reader

Thinfilm Tag-Talks-First

ISO 14443-3 (Unencrypted)1

Identification & Selection

Programming

Source: NTAG213 datasheet specifications

>100 ms

1Encrypted tags ~ 5x longer than unencrypted

Sending

16

Why Are Thinfilm NFC Solutions Highly Secure?SpeedTap & OpenSense

1 Permanently Etched ID using nanotechnology

2

Unique Thinfilm NFC Protocol: ISO 14443-2 TTF 4

Proprietary Authentication App & Cloud System 5

Longer ID: 128 bits vs. 56 bits 56

Non-encrypted NFC Thinfilm NFC

128

Thinfilm SpeedTap128 bits - ID

Unique Protocol FlagClone

Pro

pri

etar

y P

rin

ted

El

ect

ron

ic T

ech

no

logy

Ind

ust

ry

Pro

toco

lSo

ftw

are

3 (OpenSense only): 2 states ID

17

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)

18

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”• Thinfilm demonstrated technology in Tata

booth at National Retail Federation 2016

19

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 packaging and labels

• Engaging beverages industry to integrate NFC OpenSense in labelsand packaging

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

20

• New facility allows for roll-to-roll production by end of 2017

• EAS production anticipated first, NFC products in 2018

• Equipment purchases expected to commence Q3, subject to completion of vendor selection and volume demand

Move to Expanded Fabrication Facility

Photos above are representative of R2R equipment. Actual equipment has not yet been ordered.

Photos courtesy of Northfield Automation Systems. Confidential

21

NFC Cost-Per-Die Reduced by an Order of Magnitude

Labor cost Other cost Total costMaterial cost

S2S

R2R

• Batch size increases by 50x

• Throughput of new line increases by two orders of magnitude

• Material cost dominates per-die cost as labor and other costs are depreciated over a vastly higher number of die

• Total front-end cost per die of NFC products reduced by an order of magnitude

• Material Cost also reduced as roll is 2x thinner than sheet.

• Thinner die creates new Addressable Market

R2R production: material cost dominatesNFC cost per die

22

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