thinfilm electronics corporate presentation smarter everyday
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Thinfilm Electronics Corporate Presentation Smarter EverydayTRANSCRIPT
Imagine Memory Everywhere™
Thin Film Electronics ASA (“Thinfilm”):
A Smarter Everyday Powered
by Printed Electronics Bringing Intelligence To Everything
Davor Sutija, CEO
January, 2013
Imagine Memory Everywhere™
► hasn’t this market gap been addressed?
• Cost & lack of scalability for silicon
electronics
• Device aggregators (e.g., smart phones)
only recently becoming widespread
The $100bn Market Gap
60 million [# cars sold in 2012]
1 Global semiconductor market (2012)
Source: IDC; Gartner; World Bank; IMF; The Semiconductor Industry Association ; OICA; IC Insight; MarketLine; Apparel Market; Planet Forward
2.3 billion [# computing /mobile
devices sold in 2012]
15 billion [# microcontrollers
sold in 2012]
80 billion [# apparel items
sold in 2012]
5-10 trillion [# disposable items
sold in 2012]
Value of embedded
electronic intelligence1:
$315bn [~21% of retail value]
Penetration of electronic intelligence in physical objects
Existing market
The market gap
Value potential of
adding intelligence:
$100bn [~1% of retail value]
► Bringing intelligence to everything,
including disposable products, would enable
a for consumers
Why
smarter everyday
► This emerging world, where practically every
item has intelligence, is supported by a
megatrend – often referred to as the
Internet of Things (IoT)
Imagine Memory Everywhere™
Thinfilm Uniquely Positioned For The
$100bn Market Opportunity
Printed Electronics
only way of enabling
ubiquitous electronics:
• Ultra-scalable
manufacturing process
and low CAPEX
• Compatibility with
silicon electronics
(enabling all objects
to communicate
with each other)
…combined with…
• Unparalleled product progression & technical achievements:
• Strong IP position in unique and critical memory technology
• Secured other technology components for integrated systems:
• Disruptive technology with unique cost/functionality trade-offs
Memory + Logic
Integrated systems
- Sensor tags
- Display tags
- RFID & NFC
sensor battery display logic
Commercial
target 2014:
30-50₵
Lowest cost
alternative:
$5-$15
Memory
Current pricing 5₵
Lowest cost alternative 6.5₵
Imagine Memory Everywhere™
Commercialization Success Factors
already demonstrated by Thinfilm
1. Significant customer pull with go-to-market partners secured
2. Proven mass
production process;
complete
value chain established
3. Strong ecosystem of manufacturing and technology partners
[Placeholder Video]
Imagine Memory Everywhere™
Disruptive Technology With Unique
Cost/Functionality trade-offs
High
► Higher system performance
than color changing labels
(quantitative vs qualitative
information)
► Significant lower cost than
silicon electronics
Positioning of Thinfilm vs existing products
Low
Co
st
per
fun
cti
on
System performance
Hig
h
Lo
w
Thinfilm
Sweet-
spot
Data loggers
Alarm tags
EXAMPLE
Color changing labels
Imagine Memory Everywhere™
Thinfilm Tags
Devices
Software
Cloud
Addressable Market of $20-25bn S
E R
V I
C E
L
A Y
E R
S
~40k
<1mm
~2bn
Trillions
Application
5-10
1-1.5 Personal
health care
Dynamic
price display
Interactive
packaging 2-5
Monitoring of
perishable goods 1-2
Market size ($ bn)
2-5
Anti-theft/
brand protection 2
Logistics
(RFID)
NFC & "Internet
of Things" 10+
Imagine Memory Everywhere™
Attractive
pricing &
licensing
terms
Thinfilm Key Revenue Drivers
Scalable
business
model
Massive
market
potential
3
2
1
►Strong customer interest across industries
►$40-50bn market; new & existing applications
►Rapid market adoption expected due to unique
cost-functionality trade-offs of technology
Blended price/fee per tag 2014-2020; $ cents (¢)
44
2
PE market forecast1 2011-2021; $ billions
►Increasing market price (per tag) due to change in
product mix and more functionality added to tags
►Strong IP position protects licensing fee level over
time
►Own/JV manufacturing capacity initially to accelerate
time to market (know-how transfer to partners etc.)
►Attractive licensing model for partners: Low CAPEX
and manufacturing complexity
Share of volumes sold from licensing partners 2014-2020; Per cent
2011 2021
1 IDTechEx; Yóle Development
2014
100
50
0
2016 2018 2020
2014
30
20
0
2016 2018 2020
10
Market price
Licensing fee
Imagine Memory Everywhere™
Contactless tags
Dynamic display tags
Key product categories:
# tags sold
(millions) 30 2,600 20,800
• Change in product mix
• Increased price as more
functionality is added
• Shift to licensing model
<0.1
2020
~1,500
2016
~300
2014
9
2012A
0.7
Sensor tags
NFC & “Internet of things” (smart tags)
Application (examples) Market estimates (global) Thinfilm mkt. share
• ~$12bn in 2019 (source: IDTechEx: Printed/chipless tags)
• ~8% (2019)
• ~$500 in 2010, ~$2.5bn in 2020 (source: ODIN, VDC Research)
• Limited use tickets issued: ~9bn in 2009 (source: Innovision R&T)
• ~5% (2020)
• ~7% volume share (2020)1
RFID tags (retail/logistics, limited use ticketing etc.)
• ~$10bn in 2020 (Thinfilm estimates)
• ~3% (2020) Dynamic price displays (retail)
• ~$5bn in 2020 (Thinfilm estimates)
• ~2% (2020) Interactive packaging (FMCG/retail)
1 Assuming no growth in number of LU tickets issued worldwide from 2009 to 2020
2 Time-Temperature Indicators (used in transportation/packaging, i.e., excluding other industries, e.g., automotive, HVAC/refrigeration etc.)
Monitoring of perishable goods/drugs (temperature sensor)
• TTI market2: ~$1.4bn in 2010, ~$3.2bn in 2020 (source: Frost & Sullivan, Freedonia, BCC+)
• ~4% (2020)
Revenue Target of $1.5bn By 2020 Thinfilm revenue projections, 2012-2020; USD millions
Imagine Memory Everywhere™
Commercial Agreements with
Fortune 600 Companies
• Global leader in flexible
packaging
• 78 manufacturing facilities
worldwide
• ~200 billion packages per
year
• 2011 net sales of $5.3
billion, mkt. cap. of $3.1
billion (Fortune 500
company)
“Our agreement with
Thin Film Electronics
ASA is an investment
in technology that
could eventually make
printed electronics a
component of every
package we
manufacture.”
Henry Theisen,
CEO, Bemis
Bemis Company, Inc. Hasbro, Inc.
• World’s 2nd largest toy and
game company
• Known for household
brands such as Monopoly,
Transformer, Scrabble,
Trivial Pursuit and Mr.
Potato Head
• 2011 net sales of $4.3
billion (5 800 employees)
Imagine Memory Everywhere™
Award Winning Technology Portfolio
►2012 Wall Street Journal Innovation Awards
►2012 World Technology Award, sponsored by
CNN, Time, Science, and Technology Review
►2012 IDTechEx Product Development (#1
consulting firm in Printed Electronics)
►2012 FlexTech Innovation Award (US National
Consortium on Printed and Flexible Electronics)
►2010 Frost & Sullivan Product Development
►2009 IDTechEx Manufacturing Award
Imagine Memory Everywhere™
Thinfilm Recognized As One of The
World’s Most Innovative Companies
18 September, 2012
“These are the companies that are
changing or could potentially
change the mobile landscape in the
most profound ways”
Imagine Memory Everywhere™
Printed Smart Tags – Why Now? The “Internet of Things”: a Megatrend
“….there has been an acceleration in the number and types of things that are being connected and in the technologies for identifying, sensing and communicating. These technologies are reaching critical mass and an economic tipping point over the next few years” October, 2011
Identifies Top 10 Strategic Technologies
“More objects are becoming embedded with sensors and gaining the ability to communicate. The resulting information networks promise to create new business models, improve business processes, and reduce costs and risks” McKinsey Quarterly, 2010
The Internet of Things
“The evolution of embedded systems from fixed function and disconnected systems to intelligent systems continues to gain momentum and puts intelligent systems on track to bring the Internet of Things to reality” September, 2011
Intelligent Systems: The Next Big Opportunity
2010
0.9
1.1
2011 2015
+19%
2.0
2014 2013
1.8
2012
1.5
1.3
CAGR, 2011-2015
Market size projections1
Intelligent system & Internet of Things, USD trillions
1 Based on numbers from IDC (Intelligent Systems) , September 2011 12
Imagine Memory Everywhere™
Pure-play product company focused on printed electronics
Tokyo
(Business
Dev.)
Thin Film Electronics ASA
US
San Francisco
(Business
Dev.)
Public company (THIN.OL) with global reach
► HQ in Oslo, Norway with
engineering and product
development in Linköping,
Sweden, and commercial
offices in San Francisco
and Tokyo
► ~30 full-time and
consulting staff, facilities
include a 1000m2 high-
definition class 100
printing facility
► Listed on the Oslo Stock
Exchange Axess Market
(THIN.OL.). Key share
figures at 31/12-2012:
• Mkt. cap 682 MNOK
(1.93 NOK/share)
• 353.8 million shares
and over 2100
shareholders
Norway
Sweden
Oslo
(HQ)
Linköping
(R&D)
Korea
Pyoungtaek
(production at
InkTec)
Japan
Experienced management team
► PhD UC Berkeley;
Management &
Technology,
Wharton
► Founding CEO at
SiNOR AS
► SVP at FAST, a
Microsoft subsidiary
CEO: Dr.
Davor
Sutija
US:
Jennifer
Ernst
► 20 Years Business
Development and
Marketing at PARC,
a Xerox company
► 9 Years in printed
electronics
► MBA from Santa
Clara University
CTO: Dr.
Christer
Karlsson
► PhD from Linköping
University
► Deputy Director at
the National
Defense Research
Establishment
► Joined Thinfilm in
2000
► 6+ years in
McKinsey &
Company,
managing corporate
finance related
projects
► Joined Thinfilm in
2011
CFO:
Torgrim
Takle
Japan:
Dr. Jiro Kasahara
► PhD from Waseda
University, Tokyo
► Established Sony
Fusion Domain
Laboratory where he
led the development
of molecular and
organic electronics
Appendix: