Thin Film Electronics


Thin Film Electronics is a Norwegian business that specialises in printed electronics. This is a new technology that uses near-field communications (NFC) to allow brands to connect directly with consumers and deliver unique digital experiences.

Its OpenSense and SpeedTap products allow brands to digitally engage with consumers in an innovative way, and offer product authentication benefits, with numerous applications in the ‘internet of everything’. The company is now moving through the early stages of product commercialisation, with a huge range of potential commercial applications.

Investment case summary

We have known Thin Film for many years, during which time it has successfully developed its technology offering, invested in scaled production facilities, expanded its geographical footprint and built a growing network of partners that are interested in its technology.

All of this progress has been greeted with broad indifference by a stock market that has, in our view, consistently undervalued the company’s future growth prospects. In August 2018, Thin Film announced delays to its new production facilities and slower-than-expected adoption of its technology, which led to a further share price decline. Thin Film is working hard to resolve these issues and we are confident that the long-term potential for its products remains substantial.

Ask a question about our investment in Thin Film Electronics

Fund exposure
Income Focus Fund 0.10%
Equity Income Fund 0.35%
Patient Capital Trust 0.37%

As at 30 November 2018

Geography Norway
Industry Industrials
Themes Disruptive technology

Source: Woodford


Back on track

We’ve received some good news from Thin Film this morning – at Apple’s annual developers conference yesterday, it was revealed that the latest iPhones (XS, XS Max and XR) will, for the first time, support native NFC tag functionality. This means that these users will be able to scan tags without having to download a specific application. As we wrote in the previous commentary, in August, Thin Film experienced slower-than-expected market adoption of the its NFC technology, with brands being reluctant to commit to scaled volumes in the absence of cross-platform support. This announcement represents the first step in bringing the path to commercialisation back on track.

Most notably, this announcement sets out Apple’s approach to NFC, which until this point had been out of Thin Film’s control. Secondly, it marks the start of a potential path for existing in-market devices to be enabled for native NFC scanning through future iOS software releases. This represents a positive development and a faster resolution to this issue than we had anticipated. The next important step for Thin Film is to receive approval for its NFC protocol from the NFC Forum, which is currently expected in 2019.

Harry Raikes
13 September 2018

Disappointing half-year results

Last week the company announced its half-year results, highlighting a few short-term setbacks. The first was a delay in the establishment of its roll-to-roll (R2R) production facility. Albeit disappointing, such delays are not uncommon for industrial companies executing large capital intensive projects. The second set-back was a slower-than-expected market adoption of the company’s NFC technology, with some brands reluctant to commit to large volumes in the absence of cross platform support (NFC scanning is native in Android smartphones but not yet fully incorporated in Apple’s iOS). The solution to this issue depends on Thin Film’s tag protocol being accepted by Apple and included in a future iOS software release, so Apple users can scan the tags without having to download a specific application. Some analysts have suggested that this can happen over the course of next year.

Following the results, we met the company’s management. We believe that the team is doing what it can to resolve the delays and remain confident that the long-term potential of its proprietary technology is substantial.

Harry Raikes
21 August 2018

Major contract win

Thin Film Electronics has today announced a new customer in the form of British American Tobacco Global Travel Retail, which is launching a ‘connected’ edition of its Dunhill brand products using Thin Film’s NFC SpeedTap tags. These will sit on the Dunhill package cartons and integrate with Thin Film’s cloud-based platform to convert each physical product into a digital channel that facilitates direct brand-to-consumer connections.

The partnership will enable the brand to use Thin Film’s innovative technology to engage with its consumers in a unique way, delivering a digital experience through the tap of a smartphone. The company is able to measure the return on investment of these campaigns, and is demonstrating significantly improved returns over traditional interactions.

This is a major contract for Thin Film and, although financial details have not been disclosed, the agreement represents a significant validation of the company’s technology and should act as a catalyst for other brands to adopt.

Paul Lamacraft
6 February 2018

Woodford Investment Management Ltd is authorised and regulated by the Financial Conduct Authority (firm reference number 745433). Incorporated in England and Wales, company number 10118169. Registered address 9400 Garsington Road, Oxford OX4 2HN.

Woodford Patient Capital Trust plc is incorporated in England and Wales, company number 09405653. Registered as an investment company under section 833 of the Companies Act 2006. Registered address Beaufort House, 51 New North Road, Exeter, EX4 4EP.

The Woodford Funds (Ireland) ICAV (the “Fund”) has appointed as Swiss Representative Oligo Swiss Fund Services SA, Av. Villamont 17, 1005 Lausanne, Switzerland. The Fund’s Swiss paying agent is Neue Helvetische Bank AG. All fund documentation including, Prospectus, Key Investor Information Documents, Instrument of Incorporation and financial reports may be obtained free of charge from the Swiss Representative in Lausanne. The place of performance and jurisdiction for all shares distributed in or from Switzerland is at the registered office of the Swiss Representative. Fund prices can be found at

© 2019 Woodford Investment Management Ltd.
All rights reserved.

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