GEMALTO N.V.

GEMALTO N.V.

Previous company name
AXALTO HOLDING N.V.
Name change date
6/2/2006
Company Overview
Gemalto N.V is a Dutch-based company engaged in the provision of secure portable forms of software, such as microprocessor smart cards, e-passports, wireless communications Subscriber Identity Module (SIM) cards, readers, tokens and dongles. It also provides associated software, consultation and training, smart card interfaces and readers and point-of-sale terminals. Gemalto was created in June 2006 through the merger of Axalto Holding N.V. and Gemplus International S.A.
Gemalto is a world leader in digital security. The company is involved in a number of nation-wide mobile TV deployments across the world and has already shipped more than 1 million advanced technology cards in this promising market. More than one billion people worldwide use its products and services for telecommunications, financial services, e-Government, identity management, multimedia content, digital rights management, IT security, mass transit and many other applications. Gemalto has 21 production facilities, nine research and development centers and 120 sales and marketing facilities.
Gemalto’s industry-leading research and development programs enable its clients to deliver innovative, revenue-enhancing services to their customers. Recognized as leading experts in digital security, its research engineers published several dozen articles in scientific journals in 2006. In addition they served on 30 scientific conference program committees.
Gemalto has operations in Europe, the Middle East, Africa, North and South America, Asia, and the Pacific.
Business Summary
The Company is a world leader in digital security. The group offers ingetrated solutions from software application development to digital security device design and production (microchip cards, SIM cards, electronic passports, etc.) as well as deployment and management of services for its customers. Net sales by product family break down as follows:
– chip cards (97.7%): microprocessor cards (No. 1 worldwide), scratch cards, magnetic stripe and memory cards. The group also offers card-related software and services (consulting, personalization, training, etc.). Net sales by sector are from the mobile phone sector (57.7%), financial services and pay television (27%), identity and security (13.2%), and public telephone service (2.1%);
– payment terminals (2.3%).
At the end of 2008, the group had 30 personalization sites and 17 production sites in the world.
Net sales are distributed geographically as follows: Europe/Middle-East/Africa (56%), Americas (24.5%) and Asia (19.5%).
Description and history
In the fourth quarter of 2002, Schlumberger Limited announced its intention to divest various businesses, including certain of its Products Group. On March 19, 2004, Schlumberger and Axalto entered into a Master Separation Agreement under which Schlumberger agreed to transfer to the Company the assets and liabilities associated with the businesses of Smart Cards (Cards) and Point-of-Sales Terminals (POS), which belonged to the Schlumberger Products Group, in connection with the listing of Axalto’s shares on the Euronext Paris. Cards includes microprocessor, magnetic stripe, memory and other cards and related services for mobile communications, financial cards, public sector and access applications including licensing of intellectual property rights, and prepaid phone cards. POS includes point of sales terminals, systems and related services. Axalto was first listed on the Euronext Paris on May 18, 2004. Schlumberger sold 87.5% of the stock of the Company through the Initial Public Offering, and divested its remaining 12.5% stake on September 17, 2004.

The Company is the leading provider of microprocessor cards in the world in terms of units sold, with a global presence and expertise in all major areas of microprocessor card applications. It was the leading supplier of microprocessor cards in the world in 2003 with market share of 25.4%, compared with 21.9% for its nearest competitor.
The Company has two main business lines:
– Cards, which includes chip card products, software and services sold for the mobile
communications, finance, Public Sector, Network Access and other applications and
prepaid (memory chip) phone cards;
– Point-of-sale terminals.
The Company is a leader in technology development and, during the past 25 years, has been at the
forefront of most significant development in microprocessor card technology. The Company
developed the first Java microprocessor card in 1996, which has now become the industry
standard, and has sold more than 200 million Java Cards to date. According to Frost &
Sullivan, The Company is the world’s leading supplier of Java Cards. Other major technological
developments include the introduction of the first public key cryptographic card in 1996, the
first chip-based operating systems with memory capacity of 32KB in 2000 (which it was able to
expand to 512KB within 24 months) and the first microprocessor card with a built-in
USB interface in 2001. In 2002, Axalto launched the first multi-application card compatible
with Microsoft’s .NET technology, which enables the creation of XML-based applications and
processes. As of December 31, 2004, The Company held approximately 2,150 patent rights (which
include both patents granted and patent applications). The Company is also continuing to
pursue the development of the new generation of microprocessor cards across existing and
emerging applications, especially in what it considers to be future growth areas, such as mobile
communications, finance and public sector and network access.
The Company has a global presence with 11 production facilities (four in Asia, four in Europe and
three in the Americas), nine technology centers and approximately 50 sales facilities around the
world as of December 31, 2004. By standardizing its production processes globally around a
‘virtual factory’ concept, the Company is able to allocate its production across its facilities to optimize capacity utilization and reduce time to market for its customers. The Company has
operations in 35 countries, and its workforce of approximately 4,500 employees as of December 31, 2004 is drawn from approximately 65 nationalities. In 2004, 87% of its revenues were generated outside France.

Created through the merger of Axalto Holding N.V. And Gemplus International S.A

Business Line
Engaged in the provision of secure portable forms of software, such as microprocessor smart cards, e-passports, wireless communications Subscriber Identity Module (SIM) cards, readers, tokens and dongles
Subsidiary
AB SVENSKA PASS
Advisor
PRICEWATERHOUSECOOPERS ACCOUNTANTS N.V.
IPO date
5/17/2004
US SIC Code
3679
Company Address
Barbara Strozzilaan 382

City province or state postal code
1083, AMSTERDAM
Phone: +31 20 562 06 80
Fax: +31 20 562 06 86
Country address: NETHERLANDS
Website url: www.gemalto.com