Gemalto Third Quarter 2013 Revenue

  Gemalto Third Quarter 2013 Revenue

  *Double-digit revenue expansion, with growth in all main segments and all
    regions.
  *Platforms & Services revenue up +37%, representing more than half of total
    revenue growth.
  *Secure Transactions up +18%, driven by large digital payment deployments.

Revenue figures above and in this document are for ongoing operations^1 and
variations are at constant exchange rates except where otherwise noted.
Revenue figures including contribution of assets held for sale and variations
at historical rates are provided in the appendices of this document. All
figures presented in this press release are unaudited.

Business Wire

AMSTERDAM -- October 23, 2013

RegulatoryNews:

Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security
today announces its revenue for the third quarter of 2013.

Third
quarter 2013                                                                                             Total         Total
Ongoing         Mobile           Machine-to-    Secure          Security    Patents    third      third
operations         Communication       Machine           Transactions                                    quarter       quarter
(€ in                                                                                                    2013          2012
millions)
Revenue         287              49             162             98          0          596        575
Year-on-year
variations
at              +9%              +9%            +18%            +5%         n.m.       +10%       
constant
exchange
rates
                                                                                                                       

Olivier Piou, Chief Executive Officer, commented: “Gemalto’s diversified
businesses and geographic footprint led to another quarter of strong revenue
growth. A key component of our new multi-year plan is the development of our
Platforms & Services activity, and its performance, expanding nearly +30%
since the beginning of the year, evidences the trust our customers place in
us. Our Embedded software & Products activity also develops rapidly, as
expected, with +8% in year-to-date revenue growth. With this progress and
despite the adverse currency environment we are on track to deliver on our
outlook for 2013, which remains unchanged.”

^1 See basis of preparation on page 2, and appendix 3 of this document for
more information on ongoing operations.

                Basis of preparation of financial information

Ongoing operations

For a better understanding of the current and future year-on-year evolution of
the business, the Company provides revenue from “ongoing operations” for both
2013 and 2012 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.

In this publication reported figures for ongoing operations only differ from
figures for all operations by the contribution from assets held for sale.

Appendix 3 bridges the revenue for ongoing operations to the revenue for all
operations.

Historical exchange rates and constant exchange rates figures

Revenue variations are at constant 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 currencies other than the Euro.
Fluctuations in exchange rates of these other currencies against the Euro have
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.

                             General information

Third quarter 2013                                                   Total
Revenue contributions by        Mobile        Payment       four main
sector (€ in millions)                              & Identity       segments
Ongoing operations
Revenue                         336           260           596
Year-on-year variations            9%               13%              10%
at constant exchange rates
As a percentage of total
revenue growth                  48%           52%           100%
at constant exchange rates


Third quarter 2013                 Embedded                          Total
Revenue contributions by        software      Platforms     four main
activity (€ in millions)           & Products       & Services       segments
Ongoing operations
Revenue                            483              113              596
Year-on-year variations            5%               37%              10%
at constant exchange rates
As a percentage of total
revenue growth                  45%           55%           100%
at constant exchange rates
                                                                     

For the period, revenue for ongoing operations was up by +10% year-on-year at
constant exchange rates to €596 million, growing in all regions and in all
main segments. The Mobile sector grew by +9%, with an identical increase in
both Mobile Communication and Machine-to-Machine segments. The Payment &
Identity sector grew by +13%, on the back of an excellent performance in
Secure Transactions (+18%) and a lower increase (+5%) recorded in Security
this quarter.

Platforms & Services activities posted €113 million in revenue, an increase of
+37% compared to the third quarter of 2012. All segments contributed to this
remarkable expansion, which accounted for 55% of the total Company revenue
increase of the quarter. In Embedded software and Products activities, revenue
reached €483 million, up +5%, with solid developments in all main segments.

Total Company revenue expansion was +10% at constant exchange rates and +4% at
historical exchange rates. During the third quarter, effects of currency
movements were significant due to the cumulative negative effect of
fluctuations in exchange rates against the Euro of most currencies used by the
Company in its activities, such as the American dollar (-6%), Brazilian real
(-16%), British pound (-7%), Japanese yen (-25%) or South African rand
(-22%).^4

Revenue variations by segment and by region, at constant and historical
exchange rates, are presented in appendix 1 and 2. Average exchange rates
between the Euro and the US Dollar are presented in appendix 5.

^2 “Mobile” includes the Mobile Communication and Machine-to-Machine segments
^3 “Payment & Identity” includes the Secure Transactions and Security segments
^4 Year-on-year variation in the average of monthly closing rates against the
Euro for the third quarter – source: Bloomberg.

                             Segment information

Mobile Communication

€ in millions                             Third quarter    Third quarter
                                             2013                2012
Revenue                                   286.5            283.4
Year-on-year variation at constant        +9%              
exchange rates
                                                                 

The Mobile Communication segment posted revenue of €287 million for the
quarter, growing by +9% at constant exchange rates compared to the third
quarter of 2012.

Revenue from Platforms & Services grew by +25%, reaching €53 million. This
growth came mainly from core subscriber services with LTE subscription
management and other remote management services as well as operator billing
services, which complemented the solid momentum in mobile payment activities.

Embedded software & Products grew by 5% as deployments of LTE programs
continue and demand for multi-tenant SIM cards increases, driving further mix
improvement.

Machine-to-Machine

€ in millions                             Third quarter    Third quarter
                                             2013                2012
Revenue                                   49.2             47.7
Year-on-year variation at constant        +9%              
exchange rates
                                                                 

The Machine-to-Machine segment posted revenue of €49 million, an increase of
+9% at constant exchange rates. The increase in activity was driven by
improving demand in the Americas and Europe. The demand for Cinterion modules
and data management services stems from industrial sectors that are
integrating mobile connectivity into their product offerings to reduce costs,
improve data collection and deliver higher levels of service. The automotive
and track & trace sectors as well as the developments in Platforms & Services
initiated in the first semester, which represent an encouraging albeit, as
yet, limited contribution, all posted positive dynamics during the quarter.

Secure Transactions

€ in millions                             Third quarter    Third quarter
                                             2013                2012
Revenue                                   161.7            145.5
Year-on-year variation at constant        +18%             
exchange rates
                                                                 

Secure Transactions posted a +18% revenue increase at constant exchange rates
to €162 million, extending the strong growth momentum started during the first
semester of 2013.

A large part of the revenue increase this quarter came from Asian countries
that have begun their migration to EMV technology. More globally, the
deployment of contactless and dual-interface electronic payment cards
continues to grow in proportion, representing close to half of the quarter’s
deliveries.

Revenue expansion in Platforms & Services was similar to the segment growth,
driven by projects for mobile payment.

Security

€ in millions                             Third quarter    Third quarter
                                             2013                2012
Revenue                                   98.2             97.6
Year-on-year variation at constant        +5%              
exchange rates
                                                                 

Revenue in Security grew in both the Government Programs and Identity & Access
Management businesses, reaching €98 million, up +5% on top of the +22% growth
posted for the same quarter of 2012. Contracts related to voter registration
and post issuance drove a strong increase in Platforms & Services sales, and
the Embedded software & Products activity captured new ePassport contracts
that were up for renewal in Europe and Africa.

Operational performance has been restored following the start up phase of two
new facilities in the first semester, and even if quarterly oscillations in
relative growth rates may occur in this dynamic business, the government
contracts backlog remains healthy.

Patents

€ in millions                             Third quarter    Third quarter
                                             2013                2012
Revenue                                   0.1              0.3
Year-on-year variation at constant        n.m.             
exchange rates
                                                                 

The activity in Patents continues to be limited due to ongoing litigation
initiated by the Company in the United States. As anticipated, no meaningful
revenue was recognized during the third quarter.

                            Additional information

Identity for citizens - Gemalto announced several developments in the
government identity space including new wins in both Embedded software &
Products and Platforms & Services.

  *Gemalto is delivering its Sealys electronic driving license to Imprimerie
    Nationale, the French public printing office, as part of a multi-year
    contract as well as its Coesys Issuance solution so that the new
    e-Document can be personalized in-house.
  *Gemalto will supply Belgium with its ePassport, due to be introduced in
    May 2014. Under the five-year contract, Gemalto will supply the Belgian
    ePassport program with its Sealys range of highly secure and durable
    ePassport booklets, and its latest ICAO secure embedded software
  *The Norwegian National Police Directorate selected Gemalto’s Coesys
    eBorder solution, a self-service border control system leveraging
    electronic secure travel documents, to automate border management at
    Oslo’s Gardermoen Airport. Based on sophisticated automatic passport
    verification and facial recognition technology, the solution offers
    Norwegian citizens traveling from non-Schengen countries a faster journey
    through Norway’s busiest airport.

Machine-to-Machine - Several developments in the space reinforce Gemalto
leadership in that market as well as its ability to partner within the
ecosystem to facilitate the expansion of the internet of things.

  *Gemalto is again simplifying Machine-to-Machine (M2M) technology and
    expanding the Internet of Things (IoT) with the launch of the Cinterion®
    Concept Board for developers. Leveraging Oracle Java ME Embedded,
    Gemalto’s unique Cinterion Concept Board will address over nine million
    Java developers worldwide, providing an easy and cost-efficient method to
    engage in the M2M marketplace.
  *Gemalto is working with Oracle and V2COM, a leading developer of Smart
    Grid systems, in delivering a flexible smart energy solution to help
    modernize electrical power delivery throughout Latin America.
  *Gemalto joined forces with KORE Telematics to offer global M2M application
    enablement services as a
    cloud-based Software as a Service (SaaS) platform that transforms
    real-time data from equipment and device sensors into actionable
    intelligence that improves operational efficiency and optimizes costs.
  *Gemalto, in partnership with Jazz Wireless Data, has won a gold 2013
    Connected World Magazine Value Chain Award for a solution that enables
    high-speed connectivity and GPS data transmission for TrackPoint's
    innovative solar powered wireless asset management product, which was used
    in Hurricane Sandy relief efforts to remotely monitor fuel levels in
    tanker trucks and fleet vehicles working to speed recovery and restore
    power.

Related press releases:

October 1, 2013: Gemalto selected for Belgian ePassport
September 24, 2013: Gemalto, Oracle and V2COM Collaborate to Deliver M2M
Technology for Smart Grid Solutions in Latin America
September 23, 2013: Gemalto’s new M2M development kit boosts innovation in the
Internet of Things
September 16, 2013: Imprimerie Nationale selects Gemalto for the French
electronic driving license
September 3, 2013: Gemalto automatic border management solution live at Oslo
Airport
August 1, 2013: Gemalto and KORE enable global connectivity and M2M
applications with cloud-based service platform
July 18, 2013: Gemalto Honored with Connected World 2013 Gold Value Chain
Award for Facilitating Innovative M2M Technology

                                   Outlook

For the full year 2013 Gemalto anticipates double-digit expansion in both
profit from operations and revenue 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.

                    Live Audio Webcast and Conference call

Gemalto third quarter 2013 revenue presentation will be webcast in English
today at 3pm Amsterdam and Paris time (2pm London time and 9amNew 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        or    (US) +1 866    or    (FR) +33 1  
9458                                907 5923                   7077 0936

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 3hours after the
conclusion of the presentation. Replays will be available for one year.

                              Reporting calendar

The full year 2013 results will be reported on Thursday March 6, 2014, before
the opening of Euronext Amsterdam.

                            Stock Exchange Listing

Gemalto N.V. is dual listed on NYSE Euronext Amsterdam and Paris, in the
compartment A (Large Caps).

Mnemonic:              GTO
Exchange                  Dual listing on NYSE Euronext Amsterdam and Paris
Market of reference       NYSE Euronext Amsterdam
ISIN Code                 NL0000400653
Reuters                   GTO.AS
Bloomberg                 GTO:NA

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

                                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. We develop secure embedded
software and secure products which we design and personalize. Our platforms
and services manage these products, the confidential data they contain and the
trusted end-user services made possible.

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.

                                  Appendices

All variations in these appendices are comparing the revenue of the third
quarter 2013 to the revenue of the third quarter 2012. For a better
understanding of Gemalto’s year-on-year business evolution, the revenue
figures have been calculated for ongoing operations, as described in the basis
of preparation of this document, unless otherwise mentioned.

                                  Appendix 1

         Revenue variations at constant and historical exchange rates

                                                                                                 
Ongoing                                                                                                  Total         Total
operations      Mobile           Machine-to-    Secure          Security    Patents    third      third
(€ in              Communication       Machine           Transactions                                    quarter       quarter
millions)                                                                                                2013          2012
Revenue            287                 49                162                98             0             596           575
Year-on-year
variation at
constant           +9%                 +9%               +18%               +5%            n.m.          +10%
exchange
rates
Year-on-year
variation at
historical      +1%              +3%            +11%            +1%         n.m.       +4%
exchange
rates
                                                                                                                       

                                  Appendix 2

                  Revenue from ongoing operations, by region

                                                     
Ongoing                                      Year-on-year         Year-on-year
operations       Third         Third         variation at         variation at
(€ in         quarter    quarter    constant          historical
millions)        2013          2012          exchange rates       exchange
                                                                  rates
EMEA             282           282           +2%                  +0%
North &
South            204           174           +27%                 +17%
America
Asia          109        119        +5%               (8%)
Total         596        575        +10%              +4%
revenue
                                                                  

                                  Appendix 3

              Revenue from ongoing operations and all operations

                                                                                                                       
                Ongoing operations
Revenue                                                                                               Total            Assets
(€ in        Mobile           Machine-to-    Secure          Security    Patents    Ongoing       held      Total
millions)       Communication       Machine           Transactions                                    operations       for          Gemalto
                                                                                                                       sale
Third
quarter         287              49             162             98          0             596              0            596
2013
Third
quarter      283              48             146             98          0          575           3         578
2012
                                                                                                                                    

                                  Appendix 4

 Year-to-date revenue and year-on-year variations at constant exchange rates

                                                                                 
Ongoing
operations

Year-to-date       Mobile              Machine-to-       Secure
revenue at      Communication    Machine        Transactions    Security    Patents    Total
the end of
Q3 2013
(€ in
millions)
Year-to-date    792              146            472             300         16         1725
revenue
Year-on-year
variations
at constant     +8%              +8%            +18%            +10%        n.m.       +12%
exchange
rates

Ongoing operations
                                   Embedded         Platforms        Total
Year-to-date revenue at the     software      & Services    four main
end of Q3 2013                     & Products                        segments
(€ in millions)
Revenue                         1388          321           1709
Year-on-year variations         +8%           +29%          +11%
at constant exchange rates
                                                                     

                                  Appendix 5

          Average exchange rates between the Euro and the US dollar

                         
EUR/USD           2013    2012
First quarter        1.33       1.32
Second quarter    1.29    1.30
First half        1.31    1.31
Third quarter        1.32       1.24
Fourth quarter           1.29
Second half              1.26
Full year                1.29

Contact:

Gemalto
Investor Relations
Gabriel Rangoni, +33 6 1426 6956
gabriel.rangoni@gemalto.com
or
John Lineberger, +33 6 1243 6304
john.lineberger@gemalto.com
or
Corporate Communication
Isabelle Marand, +33 6 1489 1817
isabelle.marand@gemalto.com
or
Citigate FF
Media Relations Agency
Suzanne Bakker, +31 6 1136 8659
suzanne.bakker@citigateff.nl
or
Edi Cohen, +31 6 2151 7820
edi.cohen@citigateff.nl
 
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