Gemalto Full Year 2012 Results

Wed Mar 13, 2013 9:00pm EDT

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* Record revenue at over € 2.2 billion, up +9%, and double-digit growth
anticipated in 2013
* Profit from ongoing operations up +26%, surpassing the €300 million objective
a year in advance
* Platforms & Services revenue up +26%, with double-digit growth in all
segments

To better assess past and future performance, the income statement is presented
on an adjusted basis (see page 2 "Basis of preparation of financial
information"). Non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable IFRS measures and should be read
only in conjunction with the consolidated financial statements. The
reconciliation with the IFRS income statement is presented in Appendix 2. The
statement of financial position is prepared in accordance with IFRS, and the
cash position variation schedule is derived from the IFRS cash flow statement.


AMSTERDAM--(Business Wire)--
Regulatory News: 

Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security
today announces its results for the full year 2012.

                                                                                                                                  
 Key figures of the adjusted income statement                                                                                     
                                                                                                                                  
                                                                           Year-on-year variations                                
 Ongoing operations1           Full year 2012        Full year 2011        at historical                         at constant      
 (€ in millions)                                                           exchange rates                        exchange rates   
 Revenue                       2236                  1984                  +13%                                  +9%              
 Gross profit                  862                   745                   +16%                                                   
 Operating expenses            (557)                 (503)                 +11%                                                   
 Profit from operations        305                   241                   +26%                                                   
 Profit margin                 13.6%                 12.2%                 +1.5 ppt                                               
                                                                                                                                  


Olivier Piou, Chief Executive Officer, commented: "Gemalto achieved a milestone
year, posting record results and delivering faster than planned on what we set
out to do: over the past three years we grew our revenue and profit by close to
40% and 80% respectively, and kept a strong net cash position. In 2012, we also
secured a large number of long-term contracts in the mobile payment and
government sectors, which will bolster our profitable expansion into the future.
With the growth opportunities that we see in front of us, we have reinforced the
investments in our businesses, preparing to fulfill the ambitions of our next
long-term development plan."

1 See basis of preparation on page 2, and appendix 1 of this document for more
information on ongoing operations. 

Basis of preparation of financial information

In this press release, the information for the full year of both 2012 and 2011
is presented for "ongoing operations" and under the 2012 format of segment
reporting unless otherwise specified 

Adjusted income statement and profit from operation (PFO) non-GAAP measure

The consolidated financial statements are prepared in accordance with the
International Financial Reporting Standards (IFRS). 

To better assess its past and future performance, the Company also prepares an
adjusted income statement where the key metric used to evaluate the business and
take operating decisions over the period 2010 to 2013 is the profit from
operations. 

Profit from operations (PFO) is a non-GAAP measure defined as the IFRS operating
result adjusted for the amortization and depreciation of intangibles resulting
from acquisitions, for share-based compensation charges, and for restructuring
and acquisition-related expenses. These items are further explained as follows:

* Amortization and depreciation of intangibles resulting from acquisitions are
defined as the amortization and depreciation expenses related to the intangibles
recognized as part of the allocation of the excess purchase consideration over
the share of net assets acquired. 
* Share-based compensation charges are defined as (i) the discount granted to
employees acquiring Gemalto shares under Gemalto Employee Stock Purchase plans;
and (ii) the amortization of the fair value of stock options and restricted
share units granted by the Board of Directors to employees, and the related
costs. 
* Restructuring and acquisitions-related expenses are defined as (i)
restructuring expenses which are the costs incurred in connection with a
restructuring as defined in accordance with the provisions of IAS 37 (e.g. sale
or termination of a business, closure of a plant,…), and consequent costs; (ii)
reorganization expenses defined as the costs incurred in connection with
headcount reductions, consolidation of manufacturing and offices sites, as well
as the rationalization and harmonization of the product and service portfolio,
and the integration of IT systems, consequent to a business combination; and
(iii) transaction costs (such as fees paid as part of the acquisition process).

These non-GAAP financial measures are not meant to be considered in isolation or
as a substitute for comparable IFRS measures and should be read only in
conjunction with our consolidated financial statements prepared in accordance
with IFRS. 

In the adjusted income statement, Operating Expenses are defined as the sum of
Research and Engineering, Sales and Marketing, General and Administrative
expenses, and Other income (expense) net. 

EBITDA is defined as PFO plus depreciation and amortization expenses, excluding
the above amortization and depreciation of intangibles resulting from
acquisitions. 

The Appendix 2 bridges the adjusted income statement to the IFRS income
statement. 

Ongoing operations

For a better understanding of the current and future year-on-year evolution of
the business, the Company provides an adjusted income statement from "ongoing
operations" for both 2012 and 2011 reporting periods. 

The adjusted income statement for ongoing operations excludes, as per the IFRS
income statement, the contribution from discontinued operations to the income
statement, and also the contribution from assets classified as held for sale and
from other items not related to ongoing operations. 

For the year 2012, reported figures for ongoing operations only differ from
figures for all operations by the contribution from assets held for sale and the
gain on sale of a subsidiary to an associate. 

Compared to figures reported on the full year of 2011, figures for ongoing
operations for the full year 2011 reported in this publication were re-presented
to also exclude the contribution from assets classified as held for sale in
2012. 

Appendix 1 bridges the adjusted income statement for ongoing operations to the
adjusted income statement for all operations. 

Historical exchange rates and constant currency figures

Revenue variations are at constant exchange rates, except where otherwise noted.


All other figures in this press release are at historical exchange rates, except
where otherwise noted. 

The Company sells its products and services in a very large number of countries
and is commonly remunerated in other currencies than the Euro. Fluctuations in
these other currencies exchange rates against the Euro have in particular a
translation impact on the reported Euro value of the Company revenues.
Comparisons at constant exchange rates aim at eliminating the effect of
currencies translation movements on the analysis of the Group revenue by
translating prior-year revenues at the same average exchange rate as applied in
the current year. 

IFRS results

The consolidated financial statements are prepared in accordance with the
International Financial Reporting Standards (IFRS). 

The IFRS consolidated income statement for the full year 2012 shows an operating
result of €239 million for the Company, up by +30% year on year. It was €183
million for the full year 2011. 

Restructuring and acquisition-related expenses were reduced to €8 million,
versus €15 million for 2011. Amortization and depreciation of intangibles
resulting from acquisitions also reduced to €21 million versus €25 million for
2011. Equity-based compensation charges, including a new long-term incentive
plan put in place for all employees worldwide and the impact of Gemalto`s share
price increase, were €39 million versus €32 million for 2011. 

Net profit for the full year 2012 was €201 million, up by 25% on the net profit
of €161 million for the full year 2011. 

Consequently, basic earnings per share were €2.41 for the reported period
growing by +25% compared to €1.93 for the full year 2011. Diluted earnings per
share were €2.31 increasing by +23% in comparison to €1.88 for the full year of
2011. 

Adjusted financial information for all operations

In this section, the financial information is presented for all operations. In
comparison to the adjusted income statement for ongoing operations, the adjusted
income statement for all operations also includes:

* for 2011, the gain recognized further to the change in shareholding structure
of a joint venture held for sale and the contribution from other items not
related to ongoing operations. 
* for 2011 and 2012, the contribution from assets held for sale, comprising
those that were contributed to the joint venture announced on April 3, 2012 and
created on November 30, 2012, as well as other non-strategic assets currently
being disposed.

                                Full year 2012                                 Full year 2011                                                
                                € in millions                 As a % of        € in millions                 As a % of        Year-on-year   
                                                              revenue                                        revenue          variation at   
                                                                                                                              historical     
                                                                                                                              exchange       
                                                                                                                              rates          
 Revenue                        2245.5                                         2015.4                                         +11%           
 Gross profit                   864.4                         38.5%            751.5                         37.3%            +1.2 ppt       
 Operating expenses             (558.1)                       (24.9%)          (515.1)                       (25.6%)          +0.7 ppt       
 JV deconsolidation gain        0.0                                            19.2                          1.0%                            
 EBITDA                         381.3                         17.0%            319.8                         15.9%            +19%           
 Profit from operations         306.3                         13.6%            255.6                         12.7%            +20%           
 ongoing operations             305.0                                          241.4                                                         
 other operations               1.2                                            14.3                                                          
 Net profit                     261.6                         11.7%            227.7                         11.3%            +15%           
 Earnings per share (€)                                                                                                                      
 Basic                          3.14                                           2.73                                           +15%           
 Diluted                        3.00                                           2.65                                           +13%           
                                                                                                                                             


Revenue of the Company for all its operations reached €2.25 billion. The largest
part of the growth was provided by the Mobile Communication and Security
segments which generated additional revenue of €204 million. Secure Transactions
and Machine-to-Machine also contributed positively to revenue growth. 

Across all segments, Platforms & Services activities grew by +26%, to account
for €392 million2 in 2012, generating 40% of the total Company growth and
further increasing their share of the Company`s revenue. In the mobile payment
and the government sectors substantial long-term contracts were signed and their
deployments initiated. 

Gross profit for the Company was up +15%, or €113 million, to €864 million. This
represents a gross margin of 38.5%, higher by +1.2 percentage point on 2011.
This gross profit improvement was driven by gross margin increases in the Mobile
Communication and Secure Transactions segments as well as by revenue growth in
Security. Globally, additional revenue came in at higher gross margin due to the
greater proportion of Platforms & Services revenue and to an improved product
mix, particularly in the Mobile Communication segment. 

Operating expenses increased by 8% to €558 million, representing an essentially
stable ratio to revenue of 25%. Expenses in operating resources grew in all
segments, especially in research and development, to support project deployments
and future growth opportunities. This resulted in a sequential increase in
operating expenses, with €298 million for the second semester when excluding
Other income. 

Full year profit from all operations came in at €306 million, up a remarkable
+20% on the previous year`s performance that benefited from the one-time
positive contribution from a gain on the re-measurement to fair value of
Gemalto`s investment in a Chinese JV. Driven by the positive developments in all
main segments, the year-on-year positive variation in profit from ongoing
operations reached +26%, settling at €305 million despite a €9 million decrease
in profit from operations recorded in the Patents segment, related to ongoing
litigation the Company initiated in the United States. Continuing deployments of
fourth generation mobile networks, acceleration in the deployment of
infrastructures enabling mobile payment services and increasing adoption of
electronic identity programs supported the improvement. Platforms & Services
activities contributed markedly to the profit increase through strong revenue
growth and better absorption of operating costs, which had increased
substantially in these activities since the beginning of the current long-term
strategic plan in preparation for the strong involvement of Gemalto in mobile
payment service deployments. 

Financial income was a charge of €11 million for the year, lower by €1 million
on 2011. Net interest income was a charge of €1 million and the foreign exchange
transactions and hedging instruments re-evaluation at year-end generated a
charge of €5 million. The remaining charges were mainly related to reassessment
at fair value of financial liabilities. Share of profit of associates was
lowered by €4 million to €2 million, as Gemalto consolidated an acquired company
in which it previously had a share of interest. 

Consequently, adjusted profit before income tax was €297 million, +19% higher
than the €249 million recorded in 2011. 

Income tax expense was €35 million, up from a €20 million charge in 2011,
reflecting the anticipated increase in the effective tax rate related to the
recognition of fewer deferred tax assets. 

In 2012, the Company recorded no charge from discontinued operations, which
accounted for a €1.6 million charge in 2011, in relation to the disposal of the
Point-of-Sale activity at the end of 2010. 

As a result, adjusted net profit of the Company for all operations was €262
million in 2012, a +15% increase when compared to €228 million in 2011, and
adjusted net profit margin increased to 11.7%. 

Basic adjusted earnings per share for all operations came in at €3.14, up 15%,
and fully diluted adjusted earnings per share for all operations settled at
€3.00, up 13%. 

2 See appendix 5 

Statement of financial position and cash position variation schedule

For the full year 2012, operating activities generated a cash flow of €285
million, increasing by +35% over the €211 million generated in 2011. The
increase in cash used by working capital requirements amounted to €18 million,
in line with the larger volume of activity. Cash used in restructuring actions
and for acquisition-related expenses was €8 million, stable on the previous
year. Capital expenditure and acquisition of intangibles (net) amounted to €125
million compared to €93 million in 2011, of which €68 million was incurred for
Property, Plant and Equipment versus €52 million in 2011 in relation to data
centers set-up and capacity increase. Capital expenditures in 2012 also included
essentially stable capitalized development costs of €36 million (€34 million in
2011) and an expenditure of €12 million for the acquisition of intangible assets
for long-term usage (license) reported during the first semester. 

Net impact from investing activities related to acquisitions was €73 million in
2012 after a non-material amount in 2011. This consideration relates to cash
payments made for business combinations completed during the year. 

Gemalto`s share buy-back program used €45 million in cash in 2012 for the
purchase of 868,137 shares, net of the liquidity program. As at December 31,
2012, the Company owned 3,930,523 shares, i.e. 4.47%, of its own shares in
treasury. The total number of Gemalto shares issued remained unchanged, at
88,015,844 shares. Net of the shares held in treasury, 84,085,321 shares were
outstanding as at December 31, 2012. The average acquisition price of the shares
repurchased on the market by the Company as part of its buy-back program and
held in treasury as at December 31, 2012 was €38.61. 

On May 31, 2012, Gemalto paid a cash dividend of €0.31 per share in respect of
the fiscal year 2011. This distribution used €26 million in cash. Other
financing activities generated €14 million in cash, including €33 million of
proceeds received by the Company from the exercise of stock options by employees
and €16 million remitted for the repayment of borrowings. 

As a result of these elements, Gemalto`s cash and cash equivalents as at
December 31, 2012 were €363 million. Current and non-current borrowings were
reduced to €10 million from €21 million in 2011, and Gemalto`s net cash position
as at December 31, 2012 was €353 million, an increase of €44 million when
compared with December 31, 2011. 

For the year 2012, total assets grew by +12% or €293 million to €2.71 billion as
at December 31, 2012, compared to €2.42 billion as at December 31, 2011, due to
a balanced growth in current and non-current assets in relation to the Company`s
increased business activities and longer-term investments. Shareholders' equity
increased by +12%, or €205 million, to €1.92 billion as at December 31, 2012
compared to €1.72 billion as at December 31, 2011. The increase was mainly the
result of the positive net profit generation, which was partly offset by the
2011 dividend distribution. 

Segment information

In this section, for a better understanding of Gemalto`s business evolution,
comments and comparisons refer to ongoing operations. Revenue variations are
expressed at constant currency exchange rates unless otherwise noted. 

The segments financial information for 2011 is presented pro-forma on the 2012
basis of preparation.

 Segment contribution                  Mobile                Machine-to-        Secure               Security        Patents  
 to full year 2012 results             Communication         Machine            Transactions                                  
 (ongoing operations)                                                                                                         
 As a percentage of revenue            49%                   9%                 25%                  17%             0%       
 As a percentage of ongoing PFO        63%                   5%                 20%                  15%             -3%      


Revenue of the Security, Secure Transactions and Machine-to-Machine segments
together represented 51% of the total Company revenue, a stable proportion when
compared to 2011. The share of profit from ongoing operations generated by those
segments was slightly lower at 40% of the Company`s profit from ongoing
operation (42% in 2011) due to the strong improvement in Mobile Communication.
Patents had a negative contribution to profit from ongoing operations in 2012
due to the litigation the Company initiated in the United States.

                                                                                                                                                             
 Year-on-year                  Mobile                Machine-to-        Secure               Security        Total four        Patents        Total ongoing  
 variations and                Communication         Machine            Transactions                         main                             operations     
 currencies impact                                                                                           segments                                        
 (€ in millions)                                                                                                                                             
 Fourth Quarter                                                                                                                                              
 Revenue                       330                   54                 155                  106             645               1              646            
 at constant rates             +9%                   +11%               +7%                  +15%            +9%               (88%)          +8%            
 at historical rates           +12%                  +14%               +10%                 +19%            +13%              (88%)          +12%           
 Second Semester                                                                                                                                             
 Revenue                       613                   101                301                  204             1219              1              1220           
 at constant rates             +12%                  +7%                +3%                  +18%            +10%              (83%)          +10%           
 at historical rates           +17%                  +12%               +7%                  +25%            +15%              (83%)          +15%           
 Profit from operations        124                   9                  36                   26              195               (5)            190            
 at historical rates           +15%                  +18%               +14%                 +41%            +18%              n.m.           +13%           
 Full Year                                                                                                                                                   
 Revenue                       1 090                 192                568                  384             2234              2              2236           
 at constant rates             +10%                  +6%                +3%                  +19%            +9%               (76%)          +9%            
 at historical rates           +14%                  +10%               +7%                  +24%            +13%              (76%)          +13%           
 Profit from operations        193                   14                 62                   45              315               (10)           305            
 at historical rates           +37%                  +2%                +8%                  +52%            +30%              n.m.           +26%           


During the fourth quarter of 2012, all four main segments posted strong
year-on-year revenue growth. As in the earlier quarters of 2012, the evolution
of foreign currency translation in Euro had a favorable impact on revenue
growth. 

For the second semester of 2012, Gemalto`s revenue growth from ongoing
operations was +15% at historical rates and +10% at constant rates, another
improvement on the already solid first semester performance. 

In the second semester of 2012, profit from ongoing operations grew at a
double-digit rate in each of the four main segments, which together recorded a
+18% increase. When including the adverse impact to profit from ongoing
operations of the Patents segment, the Company`s profit from ongoing operations
grew by +13%. Profit from ongoing operations, although consistently hedged, also
benefited from a favorable impact related to foreign currency translations in
Euro during the year. 

Mobile Communication

                               Full year 2012                                 Full year 20113                                   Year-on-year variation                               
                               € in millions                 As a % of        € in millions                    As a % of        at historical                       at constant      
                                                             revenue                                           revenue          exchange                            exchange rates   
                                                                                                                                rates                                                
 Revenue                       1089.6                                         960.0                                             +14%                                +10%             
 Gross profit                  471.0                         43.2%            390.6                            40.7%            +2.5 ppt                                             
 Operating expenses            (277.7)                       (25.5%)          (250.0)                          (26.0%)          +0.6 ppt                                             
 Profit from operations        193.3                         17.7%            140.6                            14.6%            +3.1 ppt                                             


Mobile Communication recorded annual revenue of €1.09 billion, up +10% at
constant rates. The double-digit increase results from strong performance in all
geographical regions, in both the Embedded Software & Products and the Platforms
& Services activities. 

Embedded Software & Products pursued its shift to a more favorable mix of
higher-end offerings and posted a +6% increase in revenue year-over-year. While
the expansion of LTE coverage drove a large part of the improvement, 2012 was
also marked by an increase in demand for products to support the imminent
commercial launches of mobile payments services around the world. 

Platforms & Services posted another excellent year with revenue up +27%, at €210
million compared to €161 million the previous year. Today, Gemalto is at a key
first phase in the ramp-up of its mobile financial services business with
customers actively deploying the infrastructure required to commercialize their
offer. In 2012, the number of contracts covering Trusted Service Management
services and Gemalto Mobile Payment Platforms continued to increase markedly and
Gemalto teams dedicated significant resources to the timely and efficient
delivery of integration services for the initial contracts signed in 2011 and
early 2012. 

The +2.5 percentage point increase in gross margin to 43% reflects the same
improving trend in revenue mix observed since the second semester of 2011. It
was achieved in spite of the expenses engaged to deploy mobile financial
solutions. Both activities contributed to the gross margin improvement,
benefiting from the deployment of new generations of products, scale effects and
improved resource allocation. 

Operating expenses were down slightly to 25.5% of revenue although investment
expensed in the Platforms & Services activity grew steadily as a percentage of
revenue as the year progressed. 

Revenue growth and mix improvement drove profit margin from operations to rise
considerably from 15% to 18% of segment revenue, to €193 million, illustrating
the Company`s ability to generate value with its strategy of early investment in
promising adjacent opportunities. 

3In 2011, assets contributed to the joint venture announced on April 3, 2012 and
created on November 30, 2012 as well as other non-strategic assets being
disposed were included in reported Mobile Communication figures. See appendix 1
for more details and reconciliation. 

Machine-to-Machine

                               Full year 2012                                 Full year 2011                                 Year-on-year variation                               
                               € in millions                 As a % of        € in millions                 As a % of        at historical                       at constant      
                                                             revenue                                        revenue          exchange                            exchange rates   
                                                                                                                             rates                                                
 Revenue                       192.2                                          174.3                                          +10%                                +6%              
 Gross profit                  63.8                          33.2%            60.4                          34.7%            (1.5 ppt)                                            
 Operating expenses            (49.8)                        (25.9%)          (46.7)                        (26.8%)          +0.9 ppt                                             
 Profit from operations        14.0                          7.3%             13.7                          7.9%             (0.6 ppt)                                            


Machine-to-Machine posted revenue of €192 million, an increase of +6%, driven by
semester-on-semester improvement, and a remarkable performance as our industrial
customers faced significant macroeconomic headwinds. 

A number of new module design-in wins booked throughout the year reinforced
Gemalto`s position as a strategic partner to industrial customers at the
forefront of connected device communication. Gemalto`s expertise in a variety of
connectivity technologies will continue to benefit the segment`s future
prospects as customers address the challenges posed by operator roadmaps aimed
at repurposing legacy network capacity. Gemalto`s portfolio, which spans the
full range of technologies from 2G to LTE, provides its customers with a key
asset to manage these future technology migrations. 

The segment`s gross profit was also up by +6% to €64 million, though gross
margin fell slightly by 1.5 percentage points when compared to the previous
year. 

Operating expenses rose to €50 million essentially due to the consolidation of
SensorLogic and other investments made to develop the Platforms & Services
offering in this segment. 

As a result, profit from operations was 2% higher than in the previous year, at
€14 million. 

Secure Transactions

                               Full year 2012                                 Full year 2011                                 Year-on-year variation                               
                               € in millions                 As a % of        € in millions                 As a % of        at historical                       at constant      
                                                             revenue                                        revenue          exchange                            exchange rates   
                                                                                                                             rates                                                
 Revenue                       568.0                                          531.4                                          +7%                                 +3%              
 Gross profit                  183.2                         32.3%            168.2                         31.7%            +0.6 ppt                                             
 Operating expenses            (120.9)                       (21.3%)          (110.5)                       (20.8%)          (0.5 ppt)                                            
 Profit from operations        62.4                          11.0%            57.7                          10.9%            +0.1 ppt                                             


Secure Transactions posted revenue of €568 million in 2012, increasing by +3% on
top of the strong gains recorded in 2011 (+17%). The main drivers of growth
continue to be increasing demand from developing regions, the growing success of
Gemalto`s dual-interface OptelioTM products in markets with high EMV penetration
and the rolling out of contactless payment technology. More country migrations
began to benefit the segment`s financial performance towards the end of the year
with revenue re-accelerating, at +7%, in the fourth quarter. 

The Platforms & Services activities in this segment grew by +13%, to €115
million, driven by expansion in personalization services and the first
deployments of Trusted Service Manager (TSM) infrastructures by financial
institutions that aim to launch mobile payment services in the near future. 

Gross profit increased by €15 million to €183 million representing a gross
margin of 32%, up by 60 basis points year-on-year, as the favorable effects of
technology upgrades were coupled with growing demand in developing regions. 

Operating expenses increased by €10 million, or +9% year-on-year, due to
investment in certain regions in preparation of future EMV migrations and to
support the global mobile payment opportunity. 

As a result, profit from operations increased by +8% versus previous year to €62
million. 

Security

                               Full year 2012                                 Full year 2011                                 Year-on-year variation                               
                               € in millions                 As a % of        € in millions                 As a % of        at historical                       at constant      
                                                             revenue                                        revenue          exchange                            exchange rates   
                                                                                                                             rates                                                
 Revenue                       384.0                                          309.9                                          +24%                                +19%             
 Gross profit                  142.4                         37.1%            118.0                         38.1%            (1.0 ppt)                                            
 Operating expenses            (97.2)                        (25.3%)          (88.2)                        (28.5%)          +3.1 ppt                                             
 Profit from operations        45.2                          11.8%            29.8                          9.6%             +2.2 ppt                                             


Security delivered another strong year with continued double-digit growth, up
+19% to €384 million. Excellent project execution contributed significantly to
the segment`s performance and new and more comprehensive contract wins
reinforced the strong backlog. 

Platforms & Services revenue grew even faster, posting a +59% increase, in line
with Gemalto`s established strategy of addressing market demands through
comprehensive solutions. It stood at €66 million in 2012.4

In Government Programs, 2012 further reinforced the pervasiveness of electronic
identity solutions. Key projects such as the digitalization of voting
procedures, the modernization of national identity programs, and deployments of
electronic healthcare documents were implemented in various countries. In
Identity and Access Management, growing demand for Gemalto`s EzioTM online
banking security solutions also contributed to the segment`s revenue increase. 

Gross profit increased by +21%, or €24 million, to €142 million. Operating
expenses grew at half that rate of increase, i.e. +10%, or €9 million to €97
million creating further operating leverage. Investments were essentially
focused on developing online banking and ProtivaTM cloud security access offers
and providing additional resources to deliver on the strong growth in demand in
Government Programs. 

As a result, profit from operations rose to €45 million, an excellent +52%
increase over the same period last year, to now represent 12% of segment
revenue. 

4 See appendix 5 

Patents

                               Full year 2012                                 Full year 2011                                 Year-on-year variation                               
                               € in millions                 As a % of        € in millions                 As a % of        at historical                       at constant      
                                                             revenue                                        revenue          exchange                            exchange rates   
                                                                                                                             rates                                                
 Revenue                       2.1                                            8.8                                            (76%)                               (76%)            
 Gross profit                  1.8                           85.7%            7.5                           85.3%            +0.4 ppt                                             
 Operating expenses            (11.6)                        n.m.             (8.0)                         n.m.             n.m.                                                 
 Profit from operations        (9.8)                         n.m.             (0.5)                         n.m.             n.m.                                                 


Patent revenue settled at €2 million, as Gemalto and potential licensees
continued to postpone the signing of new agreements due to the litigation
Gemalto initiated in the United States. 

This lower revenue again translated into reduced gross profit as segments` costs
are essentially fixed. Operating expenses grew due to the increase in legal fees
associated with the litigation underway. 

As a result, Patents recorded a loss of €9.8 million in profit from operations
compared to a loss of €0.5 million the previous year. 

Additional information

* Gemalto accelerated its penetration in mobile payments with multi-year
large-scale contract wins. Its enlarged offering for the banking and electronic
payment sector generated a revenue of €632 million for the full year 2012, of
which €167 millions in Platforms & Services, and is composed of:

* Mobile payment and electronic wallet platforms
Offer for payment service providers and retailers willing to leverage the
convenient and enriched experience brought to payments by mobile technologies,
in banked and under-banked economies. Gemalto`s end-to-end, highly-scalable,
banking-grade full wallet solutions enable the following: online and proximity
payments, person-to-person, domestic and international money transfers, cash in
and out, mobile operator billing and airtime top-up, mobile applications for
smartphones and entry-range devices. These solutions are available as
stand-alone, white-labeled payment service or as an extension service to
existing payment infrastructures.

* Major new contracts announced
Sept 25, 2012, Gemalto Expands Mobile Payment Software Solution with Western
Union's International Remittance Service
Sept 18, 2012, Gemalto Enables MoneyGram to Offer International Money Transfers
on Mobile Devices
Apr 23, 2012, Gemalto selected by América Móvil, Banamex and Banco Inbursa as
the technology provider for Transfer mobile payment service in Mexico 
* In 2012, Gemalto also reinforced its position in payment platforms with direct
billing to mobile network operators, with the acquisition of Internet Payment
Exchange ("IPX"), acquired from Ericsson and announced on October 1st.

* Trusted Service Management
Primarily used to extend EMV payment schemes to mobile devices, Gemalto TSM is
already certified by Visa, Mastercard, and American Express. This range of
solutions focuses on secure management and issuance services for mobile and
in-device payment solutions. They allow payment issuers to deploy and manage
security credentials used to authenticate electronic devices and users on
payment networks as well as sign payment transactions made from mobile and
electronic devices. Gemalto`s TSM solutions also allow OEMs and mobile network
operators to configure mobile devices and SIM cards for hosting and running
payment applications from multiple issuers.

* Major new contracts announced
Nov 27, 2012, Gemalto's Solution for Mobile Financial Services deployed by
Telecom Italia
Oct 31, 2012, T-Mobile Selects Gemalto's Trusted Service Manager for First
pan-European NFC Launch; Goes Live in Poland
Oct 29, 2012, Vodafone selects Gemalto to setup and manage global NFC Mobile
Payment Services
Oct 9, 2012, Rogers Communications Selects Gemalto to Secure Mobile NFC Payment
Solutions
Mar 29, 2012, Gemalto selected by KDDI for Japan`s first mobile NFC launchFeb
27, 2012, Chase Selects Gemalto for Trusted Service Management

* Certified electronic payment cards and software for enabling in-device payment
functionality
Gemalto has developed a full range of certified EMV payment software pre-loaded
and personalized in electronic payment cards or packaged for in-device secure
elements and ready for Trusted Service Management personalization. 
* Mobile and internet banking
Gemalto`s offer revolves around authentication server, mobile applications and
secure tokens for convenient and secure online banking service access.

Proposed dividend

The Board of Gemalto has decided to propose to the 2013 Annual General Meeting
of Shareholders the payment of a cash dividend of €0.34 per share in 2013 in
relation with the 2012 financial year, a 10% increase compared to the cash
dividend of €0.31 per share paid in 2012 in relation with the 2011 financial
year. If approved, the time schedule related to the dividend payment will be as
follows:

 May 27, 2013        Ex-dividend date                                            
                     
(the date as of which shares are traded without the right  
                     to the dividend)                                            
                                                                                 
 May 29, 2013        Dividend record date                                        
                     
(the date on which the positions of the shareholders       
                     need to be recorded as per close of business in order to    
                     be entitled to the distribution)                            
                                                                                 
 May 30, 2013        Payment date of dividend                                    


Gemalto shares will trade ex-dividend as from the beginning of the trading
session on May 27, 2013. Holders of Gemalto shares on May 27, 2013 who would not
have previously sold their shares will be able to freely trade their shares on
the stock exchange as from such date and will not need to block their shares
until the payment date of the dividend to benefit from such dividend. 

Outlook

For the full year 2013 Gemalto anticipates double digit revenue expansion at
constant exchange rates. Increased investment in operations to drive business
development beyond 2013 should lead to a more pronounced seasonality in profit
from operations between the two semesters. Gemalto`s next long-term development
plan and objectives will be announced in the second part of the year. 

Live Audio Webcast and Conference call

Gemalto full year 2012 results presentation will be webcast in English today at
3pm Paris time (2pm London time and 10am New York time). 

This listen-only live audio webcast of the presentation and the Q&A session will
be accessible from our Investor Relations web site: 

www.gemalto.com/investors

Questions will be taken by way of conference call. Investors and financial
analysts wishing to ask questions should join the presentation by dialing:

 (UK) +44 203 367 9458        or        (US) +1 866 907 5924        or        (FR) +33 1 7077 0937  


The accompanying presentation slide set is also available for download on our
Investor Relations web site. 

Replays of the presentation and Q&A session will be available in webcast format
on our Investor Relations web site approximately 3 hours after the conclusion of
the presentation. Replays will be available for one year. 

Reporting calendar

The annual report, including the condensed consolidated financial statements as
of December 31, 2012, is available on our Investor web site
(www.gemalto.com/investors). 

Financial reporting for the three first quarters of 2013 will be made before the
opening of Euronext Paris on the following dates:

 April 25, 2013          Publication of 2013 first quarter revenue   
 August 29, 2013         Publication of 2013 first semester results  
 October 24, 2013        Publication of 2013 third quarter revenue   


Gemalto N.V. will hold its 2013 Annual General Meeting of Shareholders (AGM) on
Thursday, May 23, 2013. The persons, who on April 25, 2013 (record date) hold
shares in the Company and are registered as such in a register designated
thereto by the Board for the AGM, will be entitled to participate and vote at
that meeting. 

Stock Exchange Listing

Gemalto N.V. (Euronext NL 0000400653) is listed on NYSE Euronext Paris in the
compartment A (Large Caps).

 Mnemonic: GTO                  
 Exchange: NYSE Euronext Paris  
 ISIN Code: NL0000400653        
 Reuters: GTO.PA                
 Bloomberg: GTO:FP              


Gemalto has also established a sponsored Level I American Depository Receipt
(ADR) Program in the United States since November 2009. Each Gemalto ordinary
share is represented by two ADRs. Gemalto`s ADRs trade in U.S. dollar and give
access to the voting rights and to the dividends attached to the underlying
Gemalto shares. The dividends are paid to investors in U.S. dollar, after being
converted into U.S. dollar by the depository bank at the prevailing rate.

 Structure: Sponsored Level I ADR  
 Exchange: OTC                     
 Ratio (ORD:DR): 1:2               
 DR ISIN: US36863N2080             
 DR CUSIP: 36863N 208              


Gemalto N.V. is interested in expanding its investor base and is considering a
dual-listing of its shares in addition to its current listing on NYSE Euronext
in Paris. If Gemalto decides to pursue this dual-listing, it intends to apply
for listing on NYSE Euronext Amsterdam, aiming for a listing date in April 2013.
Subject to the dual-listing in Amsterdam taking place, Gemalto would change its
market of reference from NYSE Euronext Paris to NYSE Euronext Amsterdam. 

About Gemalto

Gemalto (Euronext NL0000400653 GTO) is the world leader in digital security with
2012 annual revenues of €2.2 billion and more than 10,000 employees operating
out of 83 offices and 13 Research & Development centers, located in 43
countries. 

We are at the heart of the rapidly evolving digital society. Billions of people
worldwide increasingly want the freedom to communicate, travel, shop, bank,
entertain and work - anytime, everywhere - in ways that are enjoyable and safe.
Gemalto delivers on their expanding needs for personal mobile services, payment
security, authenticated cloud access, identity and privacy protection,
eHealthcare and eGovernment efficiency, convenient ticketing and dependable
machine-to-machine (M2M) applications. 

Gemalto develops secure embedded software and secure products which we design
and personalize. Our platforms and services manage these secure products, the
confidential data they contain and the trusted end-user services they enable.
Our innovations enable our clients to offer trusted and convenient digital
services to billions of individuals. 

Gemalto thrives with the growing number of people using its solutions to
interact with the digital and wireless world. 

For more information visit
www.gemalto.com, www.justaskgemalto.com, blog.gemalto.com, or follow @gemalto on
Twitter. 

This communication does not constitute an offer to purchase or exchange or the
solicitation of an offer to sell or exchange any securities of Gemalto.

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, statements regarding plans, objectives and
expectations with respect to future operations, events, products and services
and future performance. Forward-looking statements are generally identified by
the words "expects", "anticipates", "believes", "intends", "estimates" and
similar expressions. These and other information and statements contained in
this communication constitute forward-looking statements for purposes of
applicable securities laws. Although management of the Company believes that the
expectations reflected in the forward-looking statements are reasonable,
investors and security holders are cautioned that forward-looking information
and statements are subject to various risks and uncertainties, many of which are
difficult to predict and generally beyond the control of the Company, that could
cause actual results and developments to differ materially from those expressed
in, or implied or projected by the forward-looking information and statements,
and the Company cannot guarantee future results, levels of activity, performance
or achievements. Factors that could cause actual results to differ materially
from those estimated by the forward-looking statements contained in this
communication include, but are not limited to: trends in wireless communication
and mobile commerce markets; the Company's ability to develop new technology and
the effects of competing technologies developed; effects of the intense
competition in the Company's main markets; challenges to or loss of intellectual
property rights; ability to establish and maintain strategic relationships in
its major businesses; ability to develop and take advantage of new software,
platforms and services; profitability of the expansion strategy; effects of
acquisitions and investments; ability of the Company's to integrate acquired
businesses, activities and companies according to expectations; ability of the
Company to achieve the expected synergies from acquisitions; and changes in
global, political, economic, business, competitive, market and regulatory
forces. Moreover, neither the Company nor any other person assumes
responsibility for the accuracy and completeness of such forward-looking
statements. The forward-looking statements contained in this communication speak
only as of the date of this communication and the Company or its representatives
are under no duty, and do not undertake, to update any of the forward-looking
statements after this date to conform such statements to actual results, to
reflect the occurrence of anticipated results or otherwise except as required by
applicable law or regulations. 

Appendix 1

 Adjusted income statement by business segment                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                 
                                   Ongoing operations                                                                                                                                                                                                                                            
 Full year 2012                    Mobile                                  M2M                                     Secure                           Security                         Patents                     Total                      Asset held for        Total                          
 Adjusted income statement         Communication                                                                   Transactions                                                                                                             sales                 Gemalto                        
 (€ in millions)                                                                                                                                                                                                                                                                                 
 Revenue                           1089.6                                  192.2                                   568.0                            384.0                            2.1                         2235.9                     9.6                   2245.5                         
 Gross profit                      471.0                                   63.8                                    183.2                            142.4                            1.8                         862.3                      2.1                   864.4                          
 Operating expenses                (277.7)                                 (49.8)                                  (120.9)                          (97.2)                           (11.6)                      (557.2)                    (0.9)                 (558.1)                        
 Profit from operations            193.3                                   14.0                                    62.4                             45.2                             (9.8)                       305.0                      1.2                   306.3                          
                                                                                                                                                                                                                                                                                                 
                                   Ongoing operations                                                                                                                                                                                                                                            
 Full year 2011                    Mobile                                  M2M                                     Secure                           Security                         Patents                     Total                      Asset held for        Total                          
 Adjusted income statement         Communication                                                                   Transactions                                                                                                             sale                  Gemalto                        
 (€ in millions)                                                                                                                                                                                                                                                                                 
 Revenue                           960.0                                   174.3                                   531.4                            309.9                            8.8                         1984.3                     31.1                  2015.4                         
 Gross profit                      390.6                                   60.4                                    168.2                            118.0                            7.5                         744.8                      6.8                   751.5                          
 Operating expenses                (250.0)                                 (46.7)                                  (110.5)                          (88.2)                           (8.0)                       (503.4)                    7.5                   (495.9)                        
 Profit from operations            140.6                                   13.7                                    57.7                             29.8                             (0.5)                       241.4                      14.3                  255.6                          
                                                                                                                                                                                                                                                                                                 
                                                                           Contribution of assets now held for sale and not held for sale at full year 2011                                                                                                                                      
 Full year 2011                    As reported in full year 2012           Mobile Communication                    M2M                              Secure                           Security                    Patents                    Total                 As reported in full year 2011  
 Ongoing operations                                                                                                                                 Transactions                                                                                                                                 
 Adjusted income statement                                                                                                                                                                                                                                                                       
 ( € in millions)                                                                                                                                                                                                                                                                                
 Revenue                           1984.3                                  16.0                                                                                                                                                             16.0                  2000.3                         
 Gross profit                      744.8                                   2.4                                                                                                                                                              2.4                   747.2                          
 Operating expenses                (503.4)                                 (5.2)                                                                                                                                                            (5.2)                 (508.6)                        
 Profit from operations            241.4                                   (2.8)                                                                                                                                                            (2.8)                 238.6                          
                                                                                                                                                                                                                                                                                                 


Appendix 2

Reconciliation from Adjusted financial information to IFRS

                                                                          12 month period ending December 31, 2012                                                                                        
                                                                          Adjusted                                                 Adjusted                                                 IFRS          
                                                                          financial                                                financial                                                financial     
                                                                          information                                              information                                              information   
                                                                          for ongoing                                              for all                                                                
                                                                          operations                                               operations                                                             
                                                                                                       Items not                                                Adjustments                 
                                                                                                       related to                                                                           
                                                                                                       ongoing                                                                              
                                                                                                       operations                                                                           
 € in thousands                                                                                                                                                                                           
 Revenue                                                                  2,235,936                    9,564                       2,245,500                                                2,245,500     
 Cost of sales                                                            (1,373,670)                  (7,419)                     (1,381,089)                  (6,510)                     (1,387,599)   
 Gross profit                                                             862,266                      2,145                       864,411                      (6,510)                     857,901       
 Operating expenses                                                                                                                                                                                       
 Research and engineering                                                 (133,926)                    (3,711)                     (137,637)                    (3,502)                     (141,139)     
 Sales and marketing                                                      (299,759)                    (2,548)                     (302,307)                    (14,144)                    (316,451)     
 General and administrative                                               (132,998)                    (266)                       (133,264)                    (14,466)                    (147,730)     
 Gain on remeasurement to fair value of an investment in associate                                                                                                                                        
 Gain on sale of a subsidiary                                                                          5,584                       5,584                                                    5,584         
 Other income (expense), net                                              9,455                        35                          9,490                                                    9,490         
 Profit from operations                                                   305,038                      1,239                       306,277                                                                
 Share-based compensation charges and associates charges                                                                                                        (38,622)                                  
 Restructuring and acquisition-related expenses                                                                                                                 (7,911)                     (7,911)       
 Amortization and depreciation of intangibles resulting from                                                                                                    (20,985)                    (20,985)      
 acquisitions                                                                                                                                                                                             
 Operating Profit                                                                                                                                               (67,518)                    238,759       
 Financial income (expense), net                                          (11,494)                     61                          (11,433)                                                 (11,433)      
 Share of profit of associates                                            2,009                        (208)                       1,801                                                    1,801         
 Profit before income tax                                                 295,553                      1,092                       296,645                      (67,518)                    229,127       
 Income tax (expense) credit                                              (34,902)                     (103)                       (35,005)                     6,799                       (28,206)      
 Profit from continuing operations                                        260,651                      989                         261,640                      (60,719)                    200,921       
 Profit (loss) from discontinued operation (net of income tax)                                                                                                                                            
 Profit for the period                                                    260,651                      989                         261,640                      (60,719)                    200,921       
                                                                                                                                                                                                          
 Attributable to                                                                                                                                                                                          
 Owners of the Company                                                    260,365                      1,270                       261,635                      (60,594)                    201,041       
 Non-controlling interests                                                286                          (281)                       5                            (125)                       (120)         
 Earnings per share (€ per share)                                                                                                                                                                         
 Basic                                                                    3.13                                                     3.14                                                     2.41          
 Diluted                                                                  2.99                                                     3.00                                                     2.31          
                                                                                                                                                                                                          


The full year 2012 adjusted basic earnings per share is determined on the basis
of the weighted average number of Gemalto shares outstanding during the
twelve-month period ended December 31, 2012, i.e. 83,310,429 shares taking into
account the effect of the share buy-back program. The full year 2012 adjusted
diluted earnings per share is determined by using 87,129,977 shares
corresponding to the IFRS treasury stock method, i.e. on the basis of the same
weighted average number of Gemalto shares outstanding and considering that all
outstanding share based instruments were exercised (5,382,234 instruments) and
the proceeds received from the instruments exercised (€89,036,102) were used to
buy-back shares at the average share price of the full year 2012 (1,562,686
shares at €56.98).

                                                                           12 month period ending December 31, 2011                                                                                        
                                                                           Adjusted                                                 Adjusted                                                 IFRS          
                                                                           financial                                                financial                                                financial     
                                                                           information                                              information                                              information   
                                                                           for ongoing                                              for all                                                                
                                                                           operations                                               operations                                                             
                                                                                                        Items not                                                Adjustments                 
                                                                                                        related to                                                                           
                                                                                                        ongoing                                                                              
                                                                                                        operations                                                                           
 € in thousands                                                                                                                                                                                            
 Revenue                                                                   1,984,262                    31,122                      2,015,384                                                2,015,384     
 Cost of sales                                                             (1,239,505)                  (24,333)                    (1,263,838)                  (2,964)                     (1,266,802)   
 Gross profit                                                              744,757                      6,789                       751,546                      (2,964)                     748,582       
 Operating expenses                                                                                                                                                                                        
 Research and engineering                                                  (113,470)                    (2,671)                     (116,141)                    (1,951)                     (118,092)     
 Sales and marketing                                                       (273,682)                    (2,849)                     (276,531)                    (12,364)                    (288,895)     
 General and administrative                                                (120,697)                    (1,805)                     (122,502)                    (14,797)                    (137,299)     
 Gain on re-measurement to fair value of an investment in associate                                     19,240                      19,240                                                   19,240        
 Gain on sale of a subsidiary                                                                                                                                                                              
 Other income (expense), net                                               4,465                        (4,432)                     33                                                       33            
 Profit from operations                                                    241,373                      14,272                      255,645                                                                
 Share-based compensation charges and associated costs                                                                                                           (32,076)                                  
 Restructuring and acquisition-related expenses                                                                                                                  (15,374)                    (15,374)      
 Amortization and depreciation of intangibles resulting from                                                                                                     (24,813)                    (24,813)      
 acquisitions                                                                                                                                                                                              
 Operating Profit                                                                                                                                                (72,263)                    183,382       
 Financial income (expense), net                                           (14,605)                     2,101                       (12,504)                                                 (12,504)      
 Share of profit of associates                                             5,714                                                    5,714                                                    5,714         
 Profit before income tax                                                  232,482                      16,373                      248,855                      (72,263)                    176,592       
 Income tax (expense)                                                      (16,122)                     (3,496)                     (19,618)                     5,948                       (13,670)      
 Profit from continuing operations                                         216,360                      12,877                      229,237                      (66,315)                    162,922       
 Profit (loss) from discontinued operation (net of income tax)                                          (1,554)                     (1,554)                                                  (1,554)       
 Profit for the period                                                     216,360                      11,323                      227,683                      (66,315)                    161,368       
                                                                                                                                                                                                           
 Attributable to                                                                                                                                                                                           
 Owners of the Company                                                     215,300                      11,130                      226,430                      (66,315)                    160,115       
 Non-controlling interests                                                 1,060                        193                         1,253                                                    1,253         
 Earnings per share (€ per share)                                                                                                                                                                          
 Basic                                                                     2.59                                                     2.73                                                     1.93          
 Diluted                                                                   2.52                                                     2.65                                                     1.88          
                                                                                                                                                                                                           


Appendix 3

 Consolidated statement of financial position                                                                             
                                                                                                                          
 (€ in thousands)                                                                                                         
                        Year ended December 31,                                               2012             2011       
 ASSETS                                                                                                                   
 Non-current assets                                                                                                       
                        Property, plant and equipment, net                                    237,444          222,892    
                        Goodwill, net                                                         852,240          812,959    
                        Intangible assets, net                                                198,660          159,223    
                        Investments in associates                                             25,697           13,783     
                        Deferred income tax assets                                            108,027          89,721     
                        Available-for-sale financial assets, net                              -                -          
                        Other non-current assets                                              48,883           44,014     
                        Derivative financial instruments                                      14,290           7,006      
                        Total non-current assets                                              1,485,241        1,349,598  
 Current assets                                                                                                           
                        Inventories, net                                                      185,535          172,667    
                        Trade and other receivables, net                                      652,752          558,757    
                        Derivative financial instruments                                      19,340           8,426      
                        Cash and cash equivalents                                             358,610          330,384    
                        Total current assets                                                  1,216,237        1,070,234  
                        Assets held for sale                                                  13,210           1,711      
                        Total assets                                                          2,714,688        2,421,543  
                                                                                                                          
 EQUITY                                                                                                                   
                        Share capital                                                         88,016           88,016     
                        Share premium                                                         1,207,195        1,209,216  
                        Treasury shares                                                       (151,753)        (156,531)  
                        Fair value and other reserves                                         123,388          87,006     
                        Cumulative translation adjustments                                    81               8,102      
                        Retained earnings                                                     654,795          480,702    
                        Capital and reserves attributable to the owners of the Company        1,921,722        1,716,511  
                        Non-controlling interests                                             10,590           4,225      
                        Total equity                                                          1,932,312        1,720,736  
 LIABILITIES                                                                                                              
 Non-current liabilities                                                                                                  
                        Borrowings                                                            3,674            5,762      
                        Deferred income tax liabilities                                       31,994           23,805     
                        Employee benefit obligations                                          80,039           51,470     
                        Provisions and other liabilities                                      84,439           76,228     
                        Derivative financial instruments                                      277              9,704      
                        Total non-current liabilities                                         200,423          166,969    
                                                                                                                          
 Current liabilities                                                                                                      
                        Borrowings                                                            6,564            15,261     
                        Trade and other payables                                              539,401          467,215    
                        Current income tax liabilities                                        23,218           22,331     
                        Provisions and other liabilities                                      6,990            10,083     
                        Derivative financial instruments                                      4,803            18,948     
                        Total current liabilities                                             580,976          533,838    
                        Liabilities associated with assets held for sale                      977              -          
                        Total liabilities                                                     782,376          700,807    
                        Total equity and liabilities                                          2,714,688        2,421,543  
                                                                                                                          


Appendix 4

 Cash position variation schedule                                                                                                 
                                                                                                                                  
 € in millions                                                                                        Full year        Full year  
                                                                                                      2012             2011       
                                                                                                                                  
 Cash & cash equivalent, beginning of period                                                          330              275        
                                                                                                                                  
                                                                                                                                  
 Cash generated by operating activities, before cash outflows related to restructuring                293              220        
 actions                                                                                                                          
 Including cash provided (used) by working capital decrease (increase)                                (18)             (3)        
                                                                                                                                  
 Cash used in restructuring actions                                                                   (8)              (8)        
                                                                                                                                  
                                                                                                                                  
 Cash generated by operating activities                                                               285              211        
                                                                                                                                  
                                                                                                                                  
 Capital expenditure and acquisitions of intangibles                                                  (125)            (93)       
                                                                                                                                  
                                                                                                                                  
 Free cash flow                                                                                       160              118        
                                                                                                                                  
                                                                                                                                  
 Interest received, net                                                                               2                2          
                                                                                                                                  
 Cash used by acquisitions                                                                            (73)             (0)        
                                                                                                                                  
 Other cash provided by investing activities                                                          5                10         
                                                                                                                                  
 Currency translation adjustments                                                                     (4)              2          
                                                                                                                                  
                                                                                                                                  
 Cash generated (used) by operating and investing activities                                          89               131        
                                                                                                                                  
                                                                                                                                  
 Cash used by the share buy-back program                                                              (45)             (61)       
                                                                                                                                  
 Dividend paid to Gemalto shareholders                                                                (26)             (23)       
                                                                                                                                  
 Other cash provided (used) by financing activities                                                   14               28         
                                                                                                                                  
 Change in cash and cash equivalent due to change in consolidation method                             0                (19)       
                                                                                                                                  
                                                                                                                                  
 Cash and cash equivalents, end of period                                                             363              330        
                                                                                                                                  
                                                                                                                                  
 Current and non-current borrowings including finance lease and bank overdrafts, end of period        (10)             (21)       
                                                                                                                                  
                                                                                                                                  
 Net cash, end of period                                                                              353              309        
                                                                                                                                  


Appendix 5

 Platforms & Services                                                                                                      
                                                                                                                           
 Revenue from ongoing                    2012        2011        Year-on-year                   Year-on-year               
 operations in                                                   variations at constant         variations at historical   
 Platforms & Services activities                                 exchange rates                 exchange rates             
 (€ in millions)                                                                                                           
 Mobile Communication                    210         161         +27%                           +31%                       
 Secure Transactions                     115         99          +13%                           +16%                       
 Security                                66          40          +59%                           +65%                       
 Total                                   392         301         +26%                           +30%                       
                                                                                                                           


In the Mobile Communication segment, growth from Platforms & Services activities
was +21% at historical rates when excluding the contribution of activities
acquired and deconsolidated during the year. 

From 2012, revenue from Platforms & Services in the Security segment follows the
same definition as in the other segments, i.e. not only includes personalization
services but also server platforms, application software and services, and the
same definition was applied to the above figures for the year 2011. The total
2011 revenue made in Platforms & Services by the Company as reported in the
previous year was €273 million, of which €12 million was generated by the
Security segment. 

Appendix 6

 Revenue from ongoing operations, by region                                                                                                
                                                                                                                                           
 Full year 2012               Full year 2012          Full year 2011          Year-on-year variation at        Year-on-year variation at   
 € in millions                                                                constant exchange rates          historical exchange rates   
 EMEA                         1 126                   1 029                   8%                               9%                          
 North & South America        678                     587                     10%                              15%                         
 Asia                         432                     368                     9%                               17%                         
 Total revenue                2 236                   1 984                   9%                               13%                         
                                                                                                                                           
 Second half 2012             Second half 2012        Second half 2011        Year-on-year variation at        Year-on-year variation at   
 € in millions                                                                constant exchange rates          historical exchange rates   
 EMEA                         610                     535                     12%                              14%                         
 North & South America        366                     332                     4%                               11%                         
 Asia                         244                     197                     14%                              23%                         
 Total revenue                1 220                   1 064                   10%                              15%                         
                                                                                                                                           


Appendix 7

Average exchange rates between the Euro and the US dollar

 EUR/USD               2012        2011  
 First quarter         1.32        1.36  
 Second quarter        1.30        1.44  
 First half            1.31        1.40  
 Third quarter         1.24        1.44  
 Fourth quarter        1.29        1.37  
 Second half           1.26        1.41  
 Full year             1.29        1.40  


Gemalto
Investor Relations
Gabriel Rangoni, +33(0) 6 1426 6956
gabriel.rangoni@gemalto.com
or
John Lineberger, +33(0) 6 1243 6304
john.lineberger@gemalto.com
or
Corporate Communication
Isabelle Marand, +33(0) 6 1489 1817
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