Gemalto Announces ADR - Begins Trading in the OTC Today

Today Gemalto announced a sponsored Level 1 American Depositary Receipt (ADR) program in the United States that will begin trading today in the over-the-counter (OTC) market.  In addition, they announced the 2010-2013 Development Plan.  Both news releases are below.  

At an investor conference, the executive team presented more details of the plan in the telecom, banking and identity management/e-government security sectors.  The webcast from today's investor meeting will be posted at www.gemalto.com/investors.

Gemalto Establishes a Sponsored ADR Program

Amsterdam, November 19, 2009 - Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security, today announced that the Company has established a sponsored Level 1 American Depositary Receipt (ADR) program in the United States.

Gemalto’s ADRs will trade in the United States beginning today in the over-the-counter (OTC) market. Under the program, each Gemalto ordinary share is represented by two ADRs.  Deutsche Bank is acting as the depositary bank for this program.

The ADR security identification numbers are:

ISIN: US36863N2080

CUSIP: 36863N 208

Olivier Piou, Chief Executive Officer of Gemalto commented: “American investors show great interest in Gemalto.  A reasonable proportion of our shares are already held by US investors. We are putting in place this program to offer even more US investors the opportunity to participate in the future of our Company.”

Gemalto 2010-2013 Development Plan

• Target €300 million of Profit from operations in 2013, more than 50% increase over 2009

• Plan combines revenue growth and margin expansion, with all segments increasing their profit

• Company will propose initiating a dividend distribution to shareholders

• Live audio webcast of Company presentation starting today at 4pm Central European Time

Amsterdam, November 19, 2009 - Gemalto, the world leader in digital security today announced its Development Plan for the period 2010 to 2013.

Through revenue growth and margin expansion the Company sets for itself an objective of expanding by more than 50% its Profit from operations(1), to  €300 million in 2013.

Gemalto also announced intention to initiate a dividend distribution to complement its existing

share buy-back program.  The Company plans to propose a dividend of between €0.20 and €0.25 related to fiscal year 2009 at the next annual general meeting of shareholders to be held in May 2010.

Gemalto will be holding a presentation of its 2010-2013 Development Plan beginning at 4pm CET and this conference will be accessible live via audio webcast at www.gemalto.com/investors.

Highlights of the 2010-2013 Development Plan:

• The Company’s €300 million Profit from operations objective for 2013 is based on both revenue growth and expansion of the Profit margin from operations. Organic growth anticipated in all business segments will be accelerated by bolt-on acquisitions.

• Each business segment - Mobile Communication, Secure Transactions and Security - is expected to expand its Profit from operations. Secure Transactions and Security are expected to contribute significantly to the company’s profit expansion throughout the period, and to deliver high single digit Profit margin from operations in 2011.

• The Company will continue to generate strong levels of operating cash flows, which will be re-invested to fuel organic growth, fund bolt-on acquisitions, as well as provide return to shareholders via a combination of share buy-back and a newly initiated dividend distribution.

• Gemalto will continue to tightly manage capital employed, and the Company ambitions to further increase its return on capital employed (ROCE) ratio.

Olivier Piou, Chief Executive Officer of Gemalto commented: “Gemalto plays at the heart of important megatrends. Our digital security solutions opportunities expand with the global rise in digital and wireless usage. Gemalto is in a unique position with its trusted customer relationships, its large installed base of connected smart objects and its ability to serve operators’ needs with software and services. We will leverage our core assets to expand both revenue and margin, from a well-established global base that has strong operating leverage and demonstrated ability to generate high levels of cash.  We are particularly energized by this ambitious plan, and are confident that it will create solid value for our stakeholders.”

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(1) See Appendix 1 in the complete version for definition of the non-GAAP “Profit from operations” and “Profit margin from operations” measures.

Download the complete version (PDF, 95 KB)

About Gemalto

Gemalto (Euronext NL 0000400653 GTO) is the world leader in digital security with 2008 annual revenues of €1.68 billion, and 10,000 employees operating out of 75 offices, research and service centers in 40 countries.

Gemalto is at the heart of our evolving digital society. The freedom to communicate, travel, shop, bank, entertain, and work—anytime, anywhere—has become an integral part of what people want and expect, in ways that are convenient, enjoyable and secure.

Gemalto delivers on the growing demands of billions of people worldwide for mobile connectivity, identity and data protection, credit card safety, health and transportation services, e-government and national security. We do this by supplying to governments, wireless operators, banks and enterprises a wide range of secure personal devices, such as subscriber identification modules (SIM), Universal Integrated Circuit Card (UICC) in mobile phones, smart banking cards, smart card access badges, electronic passports, and USB tokens for online identity protection. To complete the solution we also provide software, systems and services to help our customers achieve their goals.

As the use of Gemalto's software and secure devices increases with the number of people interacting in the digital and wireless world, the company is poised to thrive over the coming years.

For more information please visit www.gemalto.com.