BringingthePowerofDigitalMarketingtothePhysicalWorldDynamicConsumerEngagementwithNFCOpenSense™MobileMarketing

PattyBrittonThinFilmElectronicsVPofSales&BusinessDevelopment,NorthAmerica

May

2016

Presentedby:

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ØManufacturerslow-cost,high-volume electronicsmadebyprinting.ØMakessmartlabelsandsensors thatpowerthe“InternetofThings”Ø HeadquartersinOslo,Norway,manufacturing inSwedenandtheSiliconValley.Ø OSE:THIN.OL/OTCQX:TFECYØ 110employeesØ 277patents&patents-pendingØ Onlycompanyintheworldabletoprintandcommercializere-writeablememoryandtransistors,thecoreelementsofanelectronicintegratedcircuit.

ThinfilmElectronicsAt-a-Glance

“These smart labels areabout to become a big part of‘the internet of things’”

“Thinfilm’s approach uses smart labels and tags to make the Internet of Things possible’”

“The explosion of connected things offers opportunities for … Qualcomm and Thin Film Electronics.”

1%oftheworld’sitems

areconnected

Lessthan Connected

Unconnected

50BILLION

10+TRILLION

CONNECTED OBJECTS BY 2020

TO

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Ø ExtendsIoT beyondM2MdeviceswithIPaddresses

Ø Bringssensorcapabilityandtrackingtoconsumablesthroughmobile

Ø Smartconnectedthingsprovidevaluableinsightsandcriticalinformationto:

o Helpbusinessesandconsumersmakebetterdecisions

o Inform,entertain,protectcustomerso Manageaprocess

RedefiningtheInternetofThings(toEverything)

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NFC:IdealfortheIoT andHeretoStay

Source:IDC;IHSFeb2014;EricssonMobilityReportJune2014;OICA;ExactTarget2014MobileBehaviorReport;IBM;Cisco;ABI 2013

MobileCoverageisUbiquitous95%oftheworld’spopulationiscoveredbymobilenetworks

“MobileFirst”AttitudeisPervasive85%ofpeoplesaythatmobiledevicesareacentralpartofeverydaylife

NFCNowonAllMobilePlatforms1billionNFCphonesinuse

byYE2015

ConnectableItemsareEverywhere1trillionconnectedby2020;

adding1%toretailvalue=$100B

SmartphoneUseHasExploded7.6billionmobilesubscriptionsinQ32015,9.2billionbyYE2019

NFCWireless

Communication

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TheConvergenceofDigitalandMobile

$66billionBy2019,72%ofUSdigitaladspendwill

focusonmobile2

84%ofagenciessaytheirclientswillincreasedigitalmarketingbudgetsoverthenextyear1

1Econsultancy,MarketingBudgets2015Report 2eMarketer,March24,2015

Smartphone >> thecenterofthedigitallifestyle

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U.S.mobilecommerceisgrowingfasterthanoveralle-commerce

RapidGrowthRateofU.S.MobileCommerce

(source:www.internetretailer.com,“MobileCommerceisNow30%ofAllU.S.E-Commerce”Aug.18,2015)

Mobile Non-Mobile

7%

2011

Mobile Non-Mobile

30%

2015

$13.7B$100B+

2017

Mobilecommerceestimatedat$113.5B+

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MobileistheCenterofOmni-ChannelRetail

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However…Brick&MortarStillInfluencesaLargeProportionofRetailSales

source:www.internetretailer.com,“75%ofMobileShoppersUseTheirMobileDevicesIn-Store”,Apr.9,2015

22%Comparison

Shop

25%PurchaseonMobileDevice

14%ShareDeals

19%UseCoupons

• 90%ofcustomersusetheirmobilephonesin-store

• 53%ofshoppersprefertoresearchproductsin-store

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• Contextualcommercewillincreaseamongbeautymerchantsinparticular*• Whilein-store,shoppersusetheirphones to:

• Viewbeautyvloggerrecommendations• Usesocialmedia• Researchproducts;comparisonshop

Ø Connectsmerchantsandconsumers inbothphysical&digitalspaces

Ø Presentspurchaseoptionsattheverymomentofdiscovery

ContextualMobileCommerceinCosmetics

*Source:CosmeticsDesignUSA,“Mobilepurchasesarerisingfastanddrivingcosmeticssales,saysPayPal”,Oct6,2015

Therefore,thebiggestchallengeforabrandis:

Howtomergethephysical&digitalworldsintoONEunifiedconsumerexperience

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TheProductasaMediaChannel

Anindividualmediachannelcapableofreachingtoday’sdigitalandmobileconsumersontheirterms

Aubiquitous engagementtoolthatprotectsproductintegrityandisinthehandofvirtuallyeveryconsumer

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NFCOpenSense™- OneLabel,TwoOpportunities

• Targetedconsumerengagementpre- andpost-purchase

• Connects offlinewithonline• Enables“marketofone”

• Counterfeiting&paralleltradeprotection

• Mass-marketsecurity• Unique factory-encodedIDs• Cannotbecloned

ConsumerEngagementProductIntegrity

1 2

Cloud-BasedPlatform

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• Whereandwhenconsumersengagewithproducts

• Whattheyconsider• Whattheypurchase• Whatproductstheyre-engagewithafterpurchasing

• Howfrequentlytheyengage

First-partydataonhighlyengagedconsumers

SampleDataSetJune,Customerengagedtwiceathomew/CognacVSOP

August,Customerengagedinstore,consideredVSOPandXOPurchasedXOandenjoyedpurchasetwodayslater

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CaseStudies&UseCases

Targetedconsumerengagementviamobile

Uniqueexperiencespre- and

post-purchase

Connectofflineprospectswithonlineidentities

Createseedprofilesfrommosthighlyengagedprospects

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OPENSENSE™SMART BOTTLES

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Pharma/MedicalDevices

• Publicly listedontheSIXSwissExchange

• Globalleaderininjectionsystemsforself-medication

• Sellstomajorpharmaceuticalbrands

• Launched50CHFm programinnext-geninjection/infusion systems

• DemonstratedprototypesatflagshipViennaevent

“Ypsomed hasidentified aneedamongstitscustomersforinjectiondevicesthatinthelongrunsupporttheadministrationofmedicinewithintelligentfunctions realised byelectronicsandsoftware.”

– Ypsomed SemiannualReport2015/16

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Questions?