Thinfilm — Update 2 June 2016

Thinfilm — Update 2 June 2016

Thinfilm

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Thinfilm

New CFO appointed

New CFO

Tech hardware & equipment

June 2, 2016

Price

$6.88

Market cap

$465m

ADR/Ord conversion ratio 1:10

Net debt/cash ($m) as at end-Q116

49.1

ADRs in issue

67.6m

ADR Code

TFECY

ADR exchange

OTCQX

Underlying exchange

Oslo

Depository

BNY Mellon

Share price performance

Business description

Thin Film Electronics (Thinfilm) commercializes printed electronics and owns key patents for printing rewritable, non-volatile memory and printable NFC circuits. It also licenses technology from others to develop complete printed systems.

Analysts

Anna Bossong

+44 (0)20 3077 5737

Katherine Thompson

+44 (0)20 3077 5730

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

Thinfilm has announced the appointment of a new CFO. Ole Ronny Thorsnes will join the company later this year and was headhunted from Nordic FMCG leader, Orkla, where he was VP of mergers and acquisitions. Previous experience at McKinsey focused on strategy, finance and operational topics. Ole Ronny Thorsnes’s background is similar to that of the outgoing CFO John Afzelius-Jenevall, who has been instrumental in Thinfilm’s rapid development and is leaving the company to return to his native Sweden for family reasons relating to his children’s education. The transition is to be smoothed by a period of overlapping consultancy from John Afzelius-Jenevall.

ADR research

Year end

Revenue ($m)

PTP*
($m)

EPADR
($)

DPADR
($)

EV/sales (x)

EV/EBITDA
(x)

Gross Yield
(%)

12/14

4.5

(24.2)

(48.9)

0.0

91.0

N/A

N/A

12/15

4.4

(28.3)

(52.9)

0.0

92.3

N/A

N/A

12/16e

12.0

(32.5)

(52.7)

0.0

33.9

N/A

N/A

12/17e

48.3

(28.7)

(42.5)

0.0

8.4

N/A

N/A

12/18e

196.2

14.6

21.6

0.0

2.1

19.4

N/A

*Note: Dividend yield excludes withholding tax. Investors should consult their tax advisor regarding the application of any domestic and foreign tax laws.

We see the news as neutral for the share price as we expect the transition to the new CFO to be managed well and we also see the background of the incoming CFO as highly suitable for the challenges ahead.

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

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London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Thinfilm — Update 2 June 2016

Thinfilm

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