Thin Film Electronics — Continued progress on commercialisation

Ensurge Micropower (OSE: ENSU)

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NOK0.30

0.00 (0.00%)

Market capitalisation

814m

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Research: TMT

Thin Film Electronics — Continued progress on commercialisation

Following the strategic shift announced in January 2020, Thinfilm is using its proven printed technology to develop solid-state lithium microbatteries with the intention of manufacturing them in volume in its roll-to-roll (R2R) production facility. Consistent with this strategy, the company has announced material progress with regards to commercial discussions, technical validation and manufacturing validation. It remains on track to generate initial microbattery revenues in Q421.

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Written by

TMT

Thin Film Electronics

Continued progress on commercialisation

22 April 2021

Price

NOK0.84

Market cap

NOK982m

Net debt ($m) at end December 2020 (excluding $1.6m restricted cash and $12.2m financial lease liabilities)

8.8

Shares in issue

1,168.8m

Free float

60.7%

Code

THIN

Primary exchange

OSLO

Secondary exchange

OTCQB

Share price performance

Business description

Thin Film Electronics’ solid-state lithium battery technology combines advanced energy cell design with proprietary materials and manufacturing innovation to produce thin, flexible batteries that can power safer and more capable hearables and wearable devices.

Analyst

Anne Margaret Crow

+44 (0)20 3077 5700

Thin Film Electronics is a research client of Edison Investment Research Limited

Following the strategic shift announced in January 2020, Thinfilm is using its proven printed technology to develop solid-state lithium microbatteries with the intention of manufacturing them in volume in its roll-to-roll (R2R) production facility. Consistent with this strategy, the company has announced material progress with regards to commercial discussions, technical validation and manufacturing validation. It remains on track to generate initial microbattery revenues in Q421.

Commercialisation update

Tech hardware & equipment

Year end

Revenue ($m)

EBITDA
($m)

PBT*
($m)

EPS*
($)

DPS
(p)

P/E
(x)

12/17**

5.9

(50.9)

(54.5)

(0.06)

0.00

N/A

12/18**

3.4

(49.3)

(54.3)

(0.93)

0.00

N/A

12/19**

1.2

(30.6)

(35.9)

(0.61)

0.00

N/A

12/20

0.5**

(11.4)

(15.3)

(0.04)

0.00

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Discontinued business.

Following the tape-out (effectively formal completion) of the first product design in January this year, Thinfilm has been able to progress engagement with potential customers and is now in commercial agreement discussions with five OEMs in the hearables and wearable electronics markets. These discussions will define individual customer product requirements, particularly regarding specific form factors, as well as potential contractual arrangements.

Following the tape-out, Thinfilm has manufactured its first prototype cells based on this initial design. These have demonstrated the key performance parameters expected. The company is carrying out further refinements of the individual processing steps to increase energy density, ensure consistently high cycle life and enable production in high volumes. The company has also demonstrated its ability to stack cells, and continues to improve its stacking and packaging capability.

In parallel, the operations team is continuing with its programme to transfer process technology from the sheet-based production line to the much higher-volume R2R line, which was previously mothballed. Successful production of the first prototype cells has confirmed which processes are required. This has enabled the company to order the remaining tool conversions required to adapt the R2R line for microbattery production. Importantly, Thinfilm has successfully run the ultra-thin steel tools that are a key enabler of the high-energy densities achievable using its technology. The R2R factory and microbattery product platform are showcased in a new video created by the company.

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