Gemalto NV — H1 2007 Earnings Presentation
19 slides from Gemalto NV's earnings presentation, Jul 26, 2007
Slide 1: Q2 and H1 2007 revenue
Security to be free Q2 and H1 2007 revenue July 26, 2007 Olivier Piou Chief Executive Officer Charles Desmartis Chief Financial Officer
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This communication contains certain statements that are neither reported financial results nor other historical information and other statements concerning Gemalto. These statements include financial projections and estimates and their underlying assumptions,
Slide 3: Agenda
Agenda Introduction Q2 & H1 2007 revenue Recent successes and strategy 3
Slide 4: Q2 2007 Highlights
Q2 2007 Highlights Second quarter revenue at € 398 m, down 6% at constant exchange rates Improved performance in Mobile Communication: Average Selling Price up 7%* sequentially New commercial successes in digital security Active adaptation of cost structure Share buy back program: 5.7 mill
Slide 5: Active adaptation of cost structure
Active adaptation of cost structure Main evolutions of the global footprint Q1 ’07: facility specialization and rationalization in Mexico, Russia and South Africa completed Q2 ’07: closure of Owing Mills (U.S.) facility completed Q3 ’07: closure of Havant (U.K.) and Hong Kong facilities Q4
Slide 6: Q2 / H1 2007 Market highlights
Q2 / H1 2007 Market highlights Mobile Secure Identity & Communication Transactions Security Strong demand EMV* migration Large scale worldwide for products progressing e-passport programs and services ramping up in Europe Contactless Improved market payment card Widespread adoption
Slide 7: Agenda
Agenda Introduction Q2 & H1 2007 revenue Recent successes and strategy 7
Slide 8: Q2 '07 revenue: €398 million
Q2 ‘07 revenue: € 398 million Segment contribution Area contribution Europe, Middle Mobile Secure East, Africa Communication Transactions Asia €224m 56% 24% €97m €87m 22% 55% €219m Identity & Americas Security 13% €51m €91m 23% POS Terminals 4% €14m Public Telephony 3% €12m Segment contribution
Slide 9: Mobile Communication
Mobile Communication € in millions Q2 ‘07 revenue lower by 10%*, leading to H1 ‘07 Quarterly revenue revenue lower by 11%*, in line with the Company 260.8 expectations 223.7 Gemalto’s pricing discipline reflected in encouraging -10%* Average Selling Price evolution : 7%* increase vs. Q1 ‘07
Slide 10: Secure Transactions
Secure Transactions € in millions Quarterly revenue Q2 ‘07 revenue stable at constant exchange rates, 99.9 97.2 H1’07 up 4%* 0%* Microprocessor card and module volumes up 10% vs. Q2 ‘06 with 58 million units delivered Q2 '06 Q2 '07 proforma Ongoing deployment and renewal of EMV cards in Europe
Slide 11: Identity & Security
Identity & Security € in millions Quarterly revenue Q2 ‘07 revenue stable at constant exchange rates, leading to H1 ‘07 lower by 5%* 53.4 50.8 12 electronic passport programs in deployment -1%* Strong activity in e-Identity in Belgium and Portugal Lower revenue in e-Healthcare Q2 '06 Q2 '07
Slide 12: Public Telephony and Point of Sales Terminals
Public Telephony € in millions Q2 ‘06 Q2 ‘07 % H1 ‘06 H1 ‘07 % pro forma change* pro forma change* Revenue 15.0 11.6 -18% 32.9 22.0 -29% Continuing decline of the memory card market as mobile telephony spreads worldwide Point of Sales Terminals € in millions Q2 ‘06 Q1 ‘07 % H1 ‘06 H1 ‘07 % pro for
Slide 13: Outlook
Outlook In the first half of 2007, demand in Mobile Communication was mainly driven by emerging countries and Gemalto’s revenue profile therefore consists primarily of entry and mid-range products. Furthermore, in the first half of 2007, Gemalto’s operating margin (1) will not benefit from the unu
Slide 14: Agenda
Agenda Introduction Q2 & H1 2007 revenue Recent successes and strategy 14
Slide 15: Recent successes
recent successes… Over-the-Air rebranding solution MasterCard ® and selected by Orange Visa CAP 2007 in Africa Citibank Taiwan certification for EMV turnkey Gemalto’s two-factor solution Large-scale authentication device Electronic healthcare program in Germany Morocco’s Nationwide Over-the-Air Medi
Slide 16: Major win: electronic health card program in Germany
Major win: electronic health card program in Germany 35 million highly secure health cards to be deployed by health insurance company AOK (Allgemeine Ortskrankenkasse) Advanced digital healthcare solution provided to improve efficiency of health services, reducing fraud and enhancing privacy A
Slide 17: e-Identity programs won
e-Identity programs won: 12 passports,10 identity cards and driver licenses, 7 e-healthcare Electronic passports Electronic identity cards (ID) Electronic healthcare Europe and driver licenses (DL) Europe Czech Republic Europe France Denmark Belgium ID Germany Estonia Finland ID
Slide 18: Strategic route for growth and profitability
Strategic route for growth and profitability Preparation Integration Strategic Positioning Leadership Obtained regulatory Completed post-merger Reinforce Operational >10% EBIT in 2009 merger approvals integration Excellence € 85m net synergy Prepared scenarios Completed consolidation
Slide 19: World leader in digital security
World leader in digital security Markets in strong development Strengthened management team Unique technology portfolio Blue chip customers Mid cap with large free float and robust financials 19