Gemalto full year 2014 results
(Thomson Reuters ONE) -
* Full year revenue of ?2.5 billion, up +5%, and profit from operations up
+10%, at ?383 million
* Platforms & Services revenue passed the ?500 million mark
* Strong demand in the United States, revenue up +32%
* For 2015, steady annual PFO expansion expected, towards the upgraded 2017
objective
To better assess past and future performance, the income statement is
presented on an adjusted basis and revenue figures above and in this document
are for ongoing operations, with variations at constant exchange rates except
where otherwise noted (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. Appendix 1
provides synthesis information for ongoing and total operations, and
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, March 5, 2015 - Gemalto (Euronext NL0000400653 - GTO), the world
leader in digital security today announces its results for the full year 2014.
Key figures of the adjusted income statement
Year-on-year variations
Ongoing Full year Full year at historical at constant
operations[1] 2014 2013 exchange rates exchange rates
(? in millions)
-------------------------------------------------------------------------------
Revenue 2,465 2,384 +3% +5%
Gross profit 952 937 +2%
Operating expenses (569) (589) (3%)
-------------------------------------------------------------------------------
Profit from 383 348 +10%
operations
Profit margin 15.5% 14.6% +0.9 ppt
-------------------------------------------------------------------------------
Olivier Piou, Chief Executive Officer, commented: "2014 laid the foundation for
our new multi-year development plan as highlighted by several key milestones
within Gemalto and its markets. Strategic investments were made at the right
time and under favorable conditions to reinforce two major growth drivers for
the duration of the plan, EMV and cyber security. Regarding our other
operations, numerous program wins increased our eGovernment backlog, we
broadened our offers to address the device manufacturers and added tokenization
capability to our various platforms. Our teams are in place to deliver
accelerated revenue and profit growth in 2015, and with the acquisition of
SafeNet we are upgrading our 2017 profit from operations objective to over ?660
million."
Basis of preparation of financial information
In this press release, the information for the full year of both 2014 and 2013
is presented for "ongoing operations" and under the 2014 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
make operating decisions over the period 2010 to 2017 is the profit from
operations (PFO).
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; (ii) the amortization of the fair value of stock options and
restricted share units granted by the Board of Directors to employees, and
other 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 interim condensed consolidated financial statements
prepared in accordance with IFRS.
In the adjusted income statement, Operating Expenses are defined as the sum of
Research and Engineering expenses, Sales and Marketing expenses, 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.
SafeNet's pro forma 2014 full year adjusted income statement presented in this
document corresponds to management estimates. Results in Euro were translated
from US dollar using monthly currency conversion rates.
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
the 2014 and 2013 reporting periods.
The adjusted income statement for ongoing operations excludes, as per the IFRS
income statement, the contribution from discontinued operations, 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 for the
year 2013. For the year 2014 there is no difference between ongoing operations
and all operations..
Appendix 1 bridges the adjusted income statement for ongoing operations to the
adjusted income statement for all operations.
Segment information
From January 1, 2014, segment information was modified to report on progress
towards the objectives set as part of the Company's new long-term development
plan covering the years 2014 to 2017, publicly announced on September 5, 2013.
The Mobile segment reports on businesses associated with mobile cellular
technologies. The former Mobile Communication and Machine-to-Machine segments
are part of Mobile. The security evaluation business for third parties, whose
contribution to Mobile Communication was minor, is now managed together with the
Patents business and is as of January 1, 2014 reported in the Patents & Others
segment.
The Payment & Identity segment reports on businesses associated with secure
personal interactions. The former Secure Transactions and Security segments are
part of Payment & Identity.
In addition to this segment information, the Company also reports as of 2014
revenue of Mobile and Payment & Identity by type of activity: Embedded software
& Products (E&P) and Platforms & Services (P&S).
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.
Adjusted financial information for all operations
The consolidated financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European
Union. To better assess its past and future performance, the Company also
prepares an adjusted income statement.
In comparison to the adjusted income statement for ongoing operations, the
adjusted income statement for all operations also includes the contribution from
assets held for sale. For the year 2014, there are no assets classified as held
for sale, and for 2013 assets held for sale were minor non-strategic assets that
were disposed during 2013. Appendix 1 bridges the adjusted income statement for
ongoing operations to the adjusted income statement for all operations. Appendix
2 provides the reconciliation between IFRS and adjusted income statements.
Full year 2014 Full year 2013
--------------------------------------------------------------------
Extract of Year-on-
the adjusted year Year-on-year
income ? in As a % of ? in As a % of variation variation at
statement for millions revenue millions revenue at constant
all historical exchange
operations exchange rates
rates
-------------------------------------------------------------------------------
Revenue 2,465.2 2,388.6 +3% +5%
Gross profit 952.2 38.6% 936.2 39.2% (0.6 ppt)
Operating (569.5) (23.1%) (588.8) (24.7%) +1.5 ppt
expenses
EBITDA 478.6 19.4% 434.8 18.2% +1.2 ppt
-------------------------------------------------------------------------------
Profit from 382.7 15.5% 347.4 14.5% +1.0 ppt
operations
-------------------------------------------------------------------------------
Net profit 315.3 12.8% 315.5 13.2% (0.4 ppt)
Basic 3.64 3.68 (1%)
Earnings per
share (?)
Diluted 3.55 3.57 (1%)
Earnings per
share (?)
-------------------------------------------------------------------------------
Total revenue came in at ?2,465 million, up by +5% at constant exchange rates
and up by +3% at historical rates, with growth coming from both main segments,
Mobile and Payment & Identity, and from both activities, Embedded software &
Products and Platforms & Services. The strong year-on-year unfavorable foreign
currency translation impact experienced in the first semester was partially
offset in the second part of the year by the strengthening of the US Dollar
against the Euro.
In Embedded software & Products, payment-related activities contributed the most
to the growth, with further expansion in revenue from EMV payment cards. Demand
for connectivity and security modules for the Internet of Things also notably
contributed to the revenue increase. In contrast, eGovernment documents revenue
reduced due to lower sales in the Middle-East. SIM sales returned to growth in
the fourth quarter, and full year revenue was lower mainly due to slower demand
in certain countries in Latin America and Eastern Europe. Overall revenue for
the Embedded software & Products activity increased by +4% on 2013.
Platforms & Services grew by +10%, with expansion in both segments. Issuance and
personalization services represented the largest part of the growth. Revenue
increase also came from mobile subscriber management services as well as from
mobile payment services though the year was marked by project delays linked to
discussions around new technical specifications.
Gross profit was up by ?16 million, to ?952 million, representing a gross margin
of 39%. In Mobile, gross margin reduced by 1.3 percentage points due to the
lower sales of SIMs. In Payment & Identity, gross margin was higher by 0.5
percentage points due to the scale effects of the ongoing EMV migration.
Operating expenses represented ?569 million, down 3% on the previous year. The
contraction came primarily from the lower cost of performance incentives, that
were conditional in part on revenue objectives, and from tighter control of
external costs implemented in the second part of the year.
Hedging absorbed a part of the adverse effect on the profit from operations
coming from currency fluctuations against the Euro. When excluding the impact of
hedge and currency variations, the year-on-year increase in profit from
operations was ?54 million, higher by ?19 million than the ?35 million increase
in profit from operations actually reported.
As a result, full year 2014 profit from operations came in at ?383 million, up
by +10% compared to 2013. Profit from operations margin reached 15.5% of
revenue, up by +1.0 percentage point compared to 2013. Both figures represent
new record performances for the Company.
Gemalto financial income was (?12) million compared to (?7) million in 2013.
Interest expenses increased due to the
?2 million interest charge incurred on the ?400 million bond issued during the
third quarter of 2014.
Share of profit in associates was (?1.0) million for the full year 2014. In
2013, there was an exceptional ?20 million non-recurring profit relating to
associates generated by the recognition of a gain linked to capital
restructuring and IPO of an associate. As a result, adjusted profit before
income tax came in at ?370 million, compared to ?358 million the previous year.
Adjusted income tax expense increased to (?54) million compared to (?43) million
the previous year, and consequently, the adjusted net profit for all the
operations of the Company was ?315 million, stable when compared to last year's
figure.
Adjusted basic earnings per share for all operations came in at ?3.64, and
adjusted diluted earnings per share for all operations at ?3.55, compared to
2013 adjusted basic earnings per share for all operations of ?3.68 and adjusted
diluted earnings per share for all operations of ?3.57.
IFRS results
Restructuring and acquisition-related expenses were ?30 million vs ?3 million
for 2013 due mainly to the re-balancing of certain industrial and engineering
capabilities across worldwide sites to optimize future productivity already
reported in the first semester 2014. Amortization and depreciation of
intangibles resulting from acquisitions amounted to ?27 million, as in 2013. The
equity-based compensation charge accounted for ?55 million, vs ?35 million in
2013, as the Company introduced a new long-term incentive plan that is aligned
with its 2014-2017 multi-year development plan objectives and conditional on a
set of cumulative progress indicators over the plan period.
The IFRS income tax rate came in at 14% for the year. As a result, Gemalto
recorded an IFRS operating profit (EBIT) of ?270 million for 2014 (?282 million
in 2013) and IFRS net profit of ?221 million for 2014 (?258 million in 2013).
IFRS basic earnings per share and diluted earnings per share were ?2.55 and
?2.49 respectively in 2014, compared to ?3.01 and ?2.92 respectively in 2013.
Statement of financial position and cash position variation schedule
For the full year 2014, Gemalto operating activities generated a cash flow of
?394 million before changes in working capital, compared to the ?332 million
generated in 2013. Changes in working capital reduced cash flow by (?81) million
compared to (?76) million in 2013 with trade receivables up year-on-year mainly
from increasing sales and revenue growth in the fourth quarter stronger than in
2013, particularly near the end of the year, and slightly reduced trade and
other payables resulting from the tight management of operating costs.
Capital expenditure and acquisition of intangibles amounted to ?125 million,
i.e. 5.1% of revenue. Purchase of Property, Plant, and Equipment represented ?81
million, versus ?62 million in 2013, as investments were made in personalization
centers and other facilities to support growth in the Payment & Identity
segment. Capitalization of development expenses represented ?37 million, i.e.
1.5% of revenue (?27 million, 1.1% in 2013) and total expenditure incurred for
intangible assets amounted to ?44 million, i.e. 1.8% of revenue (?41 million,
1.7% in 2013).
Free cash flow from operations was up +23% compared to 2013 at ?189 million
before restructuring actions, and up +11% at ?169 million when including the ?20
million cash outflow for restructuring actions.
Net cash flow from financial income elements was a gain of ?2 million,
corresponding to interest received net.
Cash outflow related to acquisitions, net of cash acquired, was ?84 million in
2014, up from ?30 million in 2013. The main activity of the businesses acquired
is to provide personalization and issuance services in the banking and
government sectors in the United States.
Gemalto's share buy-back program used ?17 million in cash in 2014, for the
purchase of 222,286 shares, net of the liquidity program. As at December
31, 2014, the Company held 1,202,927 of its own shares in treasury, representing
1.37% of its issued and paid-up share capital. The total number of shares issued
and paid-up remained unchanged during 2014 at 88,015,844 shares. Net of the
1,202,927 shares held in treasury, 86,812,917 shares were outstanding as at
December 31, 2014. The average acquisition price of the shares repurchased on
the market as part of the Company's buy-back program and held in treasury as at
December 31, 2014 was ?46.12.
On May 24, 2014, Gemalto paid a cash dividend of ?0.38 per share in respect of
the fiscal year 2013, up 12% on the dividend paid in 2013. This distribution
used ?33 million in cash.
As part of the acquisition of SafeNet, which was expected to close at the end of
2014, a seven-year bond was issued at the rate of 2(1/8)% and existing credit
lines were partially drawn, for a total amount of ?555 million. Other financing
activities generated ?9 million in cash, including ?14 million of proceeds
received by the Company from the exercise of stock options by employees and (?4)
million used for repayment of borrowings.
The actual closing of the SafeNet acquisition occurred in early January 2015,
and consequently, Gemalto's cash and cash equivalents as at December 31, 2014
were ?1,057 million. With current and non-current borrowings, excluding bank
overdrafts, at ?564 million, the net cash position at year end was ?493 million.
At the year end 2014, the net book value of plant, property and equipment assets
was ?280 million, compared to ?237 million at the end of 2013. Total assets grew
to ?3,782 million as at December 31, 2014, compared to ?2,919 million as at
December 31, 2013, due to the increase of current assets, balanced between trade
receivables and cash in relation to the Company's increased business activities
and provisions for the acquisition of SafeNet.
Shareholders' equity increased by +11%, or +?243 million, to ?2,396 million as
at December 31, 2014, compared to ?2,153 million as at December 31, 2013. The
increase was mainly the result of the positive net profit generation, partly
offset by the dividend distribution. Following the issuance of the
aforementioned bond and the partial drawdown of existing credit lines to fund
the planned acquisition of SafeNet, current and non-current borrowings increased
to ?566 million compared to ?7 million in 2013. Total liabilities grew to ?1,386
million as at December 31, 2014 compared to ?766 million as at December
31, 2013 due mainly to the increase in borrowings.
Segment information
In this section, for a better understanding of Gemalto's business evolution,
comments and comparisons refer to ongoing operations.
Revenue Mobile Payment & Total Patents & Total
(? in millions) Identity two main segments Others
-----------------------------------------------------------------------
Fourth quarter 373 332 705 1 707
At constant rates +2% +6% +4% n.m. +4%
At historical rates +6% +9% +7% n.m. +7%
-----------------------------------------------------------------------
Second semester 704 622 1,325 7 1,332
At constant rates +1% +9% +4% n.m. +5%
At historical rates +2% +10% +6% n.m. +6%
-----------------------------------------------------------------------
Full year 1,290 1,158 2,448 17 2,465
At constant rates +2% +9% +5% (7%) +5%
At historical rates +0% +8% +3% (7%) +3%
-----------------------------------------------------------------------
During the fourth quarter, revenue expanded by +4% at constant rates and +7% at
historical exchange rates. Year-on-year growth improved in Mobile in the fourth
quarter, driven by increasing sales of SIMs. Growth in Payment & Identity was
+6% at constant exchange rates and +9% at historical exchange rates, slightly
slower than previous quarters due to lower sales of payment cards in Europe. The
significant adverse effects of currency translation movements experienced during
the first part of the year turned favorable in the fourth quarter due to the
strengthening of the US dollar against the Euro. For the full year of 2014,
Gemalto's revenue growth was +5% at constant rates and +3% at historical rates.
Profit from operations Total Mobile Payment &
(? in millions) (including Patents & Others) Identity
-------------------------------------------------------------------------------
Second semester 263 173 89
As a percentage of the
full year profit from 69% 73% 63%
operations
Year-on-year variation +21% +17% +24%
-------------------------------------------------------------------------------
Full year 383 237 142
Year-on-year variation +10% +4% +21%
-------------------------------------------------------------------------------
Full year profit from operations increased by +10% year-on-year, with an
acceleration at +21% in the second semester. The second part of the year saw
profit from operations increasing rapidly in both main segments, including a
notable performance in the Payment & Identity segment, up +24% compared to
2013, due to the strong acceleration of the EMV migration in the United States
that leverages investments made during previous semesters.
Acquisition of SafeNet
From January 2015, the Company's financial reporting will include the
contribution from SafeNet.
SafeNet's business is now combined with Gemalto's existing Identity & Access
Management business, and like Gemalto's existing Identity & Access Management
business will be reported as part of the Payment & Identity segment. Most of the
combined business relates to Platforms & Services activities.
For information purposes, the non-consolidated 2014 pro forma contribution of
SafeNet, under the 2015 reporting format as estimated by the Company's
management, is presented in the table below:
Full year 2014 - pro forma Total Platforms Embedded software & Products
SafeNet (estimates, ? in & Services
millions)
-------------------------------------------------------------------------------
Revenue 292 271 21
Gross profit 201
Profit from operations 44
----------------------------------------
For a better understanding of Gemalto's future reporting, the following table
presents the estimated Gemalto segment and activity pro forma results as if
SafeNet had been consolidated for the full year 2014 period.
Full year 2014 - By segment By activity
pro forma Gemalto ------------------- -------------------------
Gemalto including Total
SafeNet pro forma including Embedded
full year Payment Mobile Patents software Platforms
contribution & Identity & Others & Products & Services
(estimates, ? in
millions)
-------------------------------------------------------------------------------
Revenue 1,451 1,290 2,757 1,968 773
As a percentage of 53% 47% 100% 71% 28%
total revenue
Gross profit 587 550 1,153
Profit from 186 237 427
operations
-----------------------------------------------------
Mobile
Full year 2014 Full year 2013 Year-on-year variation
-------------------------------------------------------------------------------
at at
? in As a % of ? in As a % of historical constant
millions revenue millions revenue exchange exchange
rates rates
-------------------------------------------------------------------------------
Revenue 1,289.6 1,289.5 = +2%
Gross profit 550.2 42.7% 566.5 43.9% (1.3 ppt)
Operating (313.3) (24.3%) (339.0) (26.3%) +2.0 ppt
expenses
Profit from 236.9 18.4% 227.5 17.6% +0.7 ppt
operations
-------------------------------------------------------------------------------
The Mobile segment recorded annual revenue of ?1,290 million, up +2% year-on-
year at constant exchange rates, and stable at historical exchange rates. In the
fourth quarter, revenue grew by +2% at constant rates and +6% at historical
rates. Revenue from Embedded software & Products was stable and Platforms &
Services grew by +7% on top of the +21% revenue growth recorded for the full
year 2013.
The high-end products range growth was offset by lower sales of mid-range
products in Latin America and Eastern Europe. Machine-to-Machine growth
accelerated to +10% for the full year, due to the ongoing deployment of
connected devices and embedded secure elements (eSE) for the Internet of Things.
Mobile Financial Services (MFS) grew +51%. In 2014, Gemalto enriched its Trusted
Services Hub with tokenization capabilities to comprehensively serve the market.
Mobile Subscriber Services (MSS) posted +8% growth compared to the full year
2013 and Netsize resumed growth in the fourth quarter after having adjusted to
new regulatory directives issued in the first part of the year.
Gross margin was 43%, lower by 1.3 percentage points compared to 2013 mainly due
to the lower revenue generated in the mid-range card business.
Operating expenses decreased by ?26 million, i.e. 8%, due to lower variable cost
of performance incentives conditional in part to revenue objectives and the
effect of tighter control over external operating costs. Some resources were
transferred to the Payment & Identity segment as operating needs significantly
increased there, and investments in new Platforms & Services offers and new
product offerings were maintained.
Profit from operations hence was ?237 million, thus the segment posted an 18%
profit margin from operations, up +70 basis points.
Payment & Identity
Full year 2014 Full year 2013 Year-on-year variation
-------------------------------------------------------------------------------
at at
? in As a % of ? in As a % of historical constant
millions revenue millions revenue exchange exchange
rates rates
-------------------------------------------------------------------------------
Revenue 1,158.3 1,076.0 +8% +9%
Gross profit 386.2 33.3% 353.8 32.9% +0.5 ppt
Operating (244.2) (21.1%) (236.3) (22.0%) +0.9 ppt
expenses
Profit from 142.0 12.3% 117.5 10.9% +1.3 ppt
operations
-------------------------------------------------------------------------------
Payment & Identity's full year revenue came in at ?1,158 million, increasing by
+9% compared to 2013. Sales were up by +8% in Embedded software & Products, and
by +14% in Platforms & Services.
Commercial momentum for EMV continues to be strong around the world with all
regions contributing to the +16% revenue expansion recorded in the payment
business. Migration in China continued, adding regional financial institutions
to the Tier-1 issuers that started their deployments in 2013, and the
progressive ramp-up of EMV in the United States led to the +38% revenue growth
recorded in the payment business for the entire Americas region. During the
year, Gemalto reinforced its personalization services capacity to serve US
financial institutions, and secured a large outsourcing contract with a leading
US bank.
Revenue from the eGovernment business was lower by (2%) for the full year 2014,
with improving performance in the second semester. In this business, revenue
from the Middle-East, significantly lower than previous year, was the principal
reason for the limited expansion of this activity. Europe and Africa continued
to grow. Significant new contract awards recorded in 2014 will support the
acceleration in revenue growth expected in 2015. During the second semester,
Gemalto also invested in the United States to accelerate the distribution of its
advanced technologies in the driving license market.
In the Identity & Access Management (IAM) business, market demand for
cybersecurity solutions was stimulated by the large-scale security breaches that
occurred during the course of the recent semesters. In order to expand its IAM
offer and more comprehensively serve this demand, Gemalto entered into an
exclusive agreement to acquire SafeNet in the third quarter and the closing of
the transaction occurred on January 7, 2015. SafeNet and Gemalto's Identity &
Access Management now operate as a single business unit, part of the Payment &
Identity segment. If the acquisition of SafeNet had occurred on January
1, 2014, the business' combined 2014 pro forma revenue would have been ?403
million.
The segment's gross profit increased by +9%, to ?386 million, with gross margin
improving by +50 basis points, to 33%. The largest part of the year-on-year
improvement came from the payment business in the US, as operational resources
and facilities to support the growth were largely already deployed and in place
in 2013.
Operating expenses were kept under tight control, leveraging the sales resources
deployed in the previous semesters in preparation for the EMV migration. As a
percentage of revenue, the operating expense ratio reduced, to now represent
21% of the segment revenue.
As a result, profit from operations in Payment & Identity came in at ?142
million, up by a notable +21% compared to the ?117 million recorded in 2013.
Patents & Others
Full year 2014 Full year 2013 Year-on-year variation
-------------------------------------------------------------------------------
at at
? in As a % of ? in As a % of historical constant
millions revenue millions revenue exchange exchange
rates rates
-------------------------------------------------------------------------------
Revenue 17.2 18.5 (7%) (7%)
Gross profit 15.8 91.5% 16.8 90.8% +0.7 ppt
Operating (12.0) (69.9%) (13.7) (74.3%) +4.3 ppt
expenses
Profit from 3.7 21.6% 3.1 16.5% +5.1 ppt
operations
-------------------------------------------------------------------------------
The Patents & Others segment generated ?17 million revenue for the full year
2014 in relation to cross-licensing agreement renewals. Compared to the full
year of 2013, operating expenses decreased by ?2 million to ?12 million due to
lower legal fees. As a result, profit from operations came in at ?4 million for
the year.
Additional information
Below is a highlight of new contracts and achievements published by the Company
in 2014
Mobile
April 29, 2014 Gemalto powers secure access for SFR's "OTP cloud" services
June 9, 2014 Flaircomm selects Gemalto to provide secure M2M solution
for car manufacturers in China
June 10, 2014 China Telecom selects Gemalto for its commercial launch of
NFC services
August 26, 2014 Gemalto selected by NTT DOCOMO for its NFC Services
September 17, 2014 Gemalto's Cinterion M2M technology leverages the Sprint
network
September 25, 2014 China Mobile and Gemalto deploy NFC transport in Beijing
October 29, 2014 Gemalto dramatically simplifies global rollout for Swiss
connected watch
December 16, 2014 Gemalto enables KDDI to offer secure high-definition audio
services over LTE network
Payment & Identity
February 05, 2014 Gemalto and United Nations Federal Credit Union Advance
Payments Security with Faster EMV Global Payment Card
Issuance
March 11, 2014 Gemalto hosted TSM service strengthens mobile payment
ecosystem in HK
May 05, 2014 BankID deploys Gemalto's Valimo Mobile ID solution
nationwide in Norway
May 22, 2014 Gemalto selected for Algerian ePassport
June 05, 2014 Gemalto's strong authentication solution expands HP's
Helion offer for Cloud Service Providers
October 1, 2014 Total company AS24 and Gemalto deploy EMV fuel payment
cards
October 9, 2014 CaixaBank gears up for wearables with Gemalto NFC payment
technology in Spain
October 28, 2014 The Netherlands selects Gemalto to introduce new electronic
driving license
October 31, 2014 Shazam chooses Gemalto's EMV consulting services to advance
U.S. migration
December 01, 2014 Norway goes with Gemalto Trusted Service for mobile NFC
payment commercial rollout
December 10, 2014 Québec selects Gemalto's end-to-end solution for its secure
driver's license program
December 08, 2014 27 banks in Taiwan launch NFC services with Gemalto TSM Hub
Industry Recognitions
January 14, 2014 Gemalto wins Pan-European Award of Excellence for
enabling NFC Smart Cities
February 25, 2014 Gemalto powered "Audi connect" LTE infotainment system
wins 2014 Connected World Award
May 15, 2014 Gemalto Receives Frost & Sullivan 2014 Award for Border
Control and Biometrics
July 24,2014 Gemalto named market leader in Government and Healthcare
by ABI research
December 18,2014 Gartner's Magic Quadrant positions Gemalto as a leader
in user authentication
Proposed dividend
The Board of Gemalto has decided to propose to the 2015 Annual General Meeting
of Shareholders the payment of a cash dividend of ?0.42 per share in 2015 in
relation with the 2014 financial year, a +11% increase compared to the cash
dividend of ?0.38 per share paid in 2014 in relation with the 2013 financial
year. If approved, the time schedule related to the dividend payment will be as
follows:
May 26, 2015 Ex-dividend date
(the date as of which shares are traded without the right to the
2015 dividend)
May 27, 2015 Dividend record date
(the date on which shareholder positions are recorded as per
close of business in order to be entitled to the 2015 dividend
distribution)
May 28, 2015 Payment date of dividend
Gemalto shares will trade ex-dividend as from the beginning of the trading
session on May 26, 2015. Holders of Gemalto shares on May 26, 2015 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 2015, Gemalto anticipates a steady expansion in annual profit from
operations towards its upgraded 2017 objective of over ?660 million.
Live Audio Webcast and Conference call
Gemalto full year 2014 results presentation will be webcast in English today at
3pm Amsterdam and Paris time (2pm London time and 9am New York time).
This listen-only live audio webcast of the presentation and the Q&A session will
be accessible from our Investor 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) +44 207 107 1613 or (US) +1 866 907 5928 or (FR)
+33 1 7077 0946
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.
The annual report, including the financial statements as of December 31, 2014,
is available on our Investor web site.
Reporting calendar
Financial reporting for the first three quarters of 2015 will be made before the
opening of Euronext Amsterdam on the following dates:
April 30, 2015 Publication of 2015 first quarter revenue
August 27, 2015 Publication of 2015 first semester results
October 29, 2015 Publication of 2015 third quarter revenue
Gemalto N.V. will hold its 2015 Annual General Meeting of Shareholders (AGM) on
Thursday, May 21, 2015. The persons entitled to attend and cast votes at the AGM
will be those who are recorded as having such rights after the close of trading
on the relevant NYSE Euronext stock exchange on April 23, 2015 (the "Record
Date") in Gemalto's shareholders register, or in a register of a financial
institution affiliated to Euroclear France S.A., regardless of whether they are
shareholders at the time of the AGM.
The Annual General Meeting of Shareholders will be held at the Sheraton
Amsterdam Airport Hotel & Conference Center, Schiphol Boulevard 101, 1118 BG
Schiphol Airport, the Netherlands at 2:00 p.m. CET.
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
|Investor Relations |Corporate Communication |Media Relations Agency
| | |
|Gabriel Rangoni |Isabelle Marand |Suzanne Bakker
| | |
|M.: +33 6 1426 6956 |M.: +33 6 1489 1817 |M. : +31 6 1136 8659
| | |
|gabriel.rangoni(at)gemalto.com|isabelle.marand(at)gemalto.com |suzanne.bakker(at)citigateff.nl
| | |
| |
|Winston Yeo |Edi Cohen
|M.: +33 6 2947 0814 |M. : +31 6 2151 7820
|winston.yeo(at)gemalto.com |edi.cohen(at)citigateff.nl
| |
|
|John Lineberger
|M.: +1 512 940 0023
|john.lineberger(at)gemalto.com
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the world leader in digital security with
2014 annual revenues of ?2.5 billion and more than 14,000 employees operating
out of 99 offices and 34 research and software development centers, located in
46 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 enables companies and administrations to offer trusted and convenient
digital services to these individuals. We secure in particular mobile services,
the financial transactions, the internet and private clouds, eHealthcare
systems, access to eGovernment services, the internet-of-things, and transport
ticketing systems. Our unique technology portfolio from cryptographic software
embedded in a variety of familiar objects to high-volume high-availability
authentication, encryption and rights management platforms and world class
service delivery teams are valued by our blue-chip customers in more than 180
countries around the world.
Gemalto helps people to trust one another in an increasingly connected digital
world.
For more information visit
www.gemalto.com, www.justaskgemalto.com, blog.gemalto.com, or follow (at)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 and contribution from assets held
for sale
Reported figures for ongoing operations only differ from figures for all
operations by the contribution from assets held for sale for the year 2013, and
disposed of in 2013, there is no difference for the year 2014.
Ongoing operations
--------------------------------
Full year
2014
Adjusted
income
statement Assets
(? in Payment & Patents & Total ongoing held for Total
millions) Mobile Identity Others operations sale Gemalto
-------------------------------------------------------------------------------
Revenue 1,289.6 1,158.3 17.2 2,465.2 0.0 2,465.2
Gross profit 550.2 386.2 15.8 952.2 0.0 952.2
Operating (313.3) (244.2) (12.0) (569.5) 0.0 (569.5)
expenses
Profit from 236.9 142.0 3.7 382.7 0.0 382.7
operations
-------------------------------------------------------------------------------
Ongoing operations
--------------------------------
Full year
2013
Adjusted
income
statement Assets
(? in Payment & Patents & Total ongoing held for Total
millions) Mobile Identity Others operations sale Gemalto
-------------------------------------------------------------------------------
Revenue 1,289.5 1,076.0 18.5 2,383.9 4.7 2,388.6
Gross profit 566.5 353.8 16.8 937.1 (0.8) 936.2
Operating (339.0) (236.3) (13.7) (589.1) 0.3 (588.8)
expenses
Profit from 227.5 117.5 3.1 348.0 (0.6) 347.4
operations
-------------------------------------------------------------------------------
Appendix 2
Reconciliation from Adjusted financial information to IFRS
|
Full year 2014 | Excluding
(? in millions) |non-controlling
| interest Basic EPS Diluted EPS
-----------------------------------------+-------------------------------------
Weighted average number of |
shares outstanding (in | 86,490 88,716
thousands) |
|
|
|
IFRS financial information |
-----------------------------------------+-------------------------------------
Operating profit 270,159|
|
Financial income (12,421)|
|
Share of profit (628)|
of associates |
|
Income tax (35,862)|
|
IFRS Profit for the 221,248| 220,651 2.55 2.49
period |
|
|
|
Reconciliation to adjusted |
financial information |
-----------------------------------------+-------------------------------------
Share-based |
compensation 55,423|
expense and |
associated costs |
|
Fair value |
adjustment upon -|
business |
acquisition |
|
Restructuring and |
acquisition- 29,830|
related expenses |
|
Amortization and |
depreciation of |
intangibles 27,267|
resulting from |
acquisitions |
|
Income tax (18,449)|
|
Adjusted Profit for the 315,319| 314,722 3.64 3.55
period |
|
|
|
Reconciliation to adjusted |
financial information for |
ongoing operations |
-----------------------------------------+-------------------------------------
Assets held for -| -
sale |
|
Adjusted, Profit for the 315,319| 314,722 3.64 3.55
ongoing period |
-----------------------------------------+-------------------------------------
The full year 2014 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, 2014, i.e. 86,489,925 shares taking into account
the effect of the share buy-back program. The full year 2014 adjusted diluted
earnings per share is determined by using 88,715,577 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 (2,531,603 instruments) and the proceeds
received from the instruments exercised (?23,115,748) were used to buy-back
shares at the average share price of the full year 2014 (305,951) shares at
?75.55.
|
Full year 2013 | Excluding
(? in millions) |non-controlling
| interest Basic EPS Diluted EPS
-----------------------------------------+-------------------------------------
Weighted average number of |
shares outstanding (in | 85,590 88,311
thousands) |
|
|
|
IFRS financial information |
-----------------------------------------+-------------------------------------
Operating profit 282,499|
|
Financial income (6,732)|
|
Share of profit 17,664|
of associates |
|
Income tax (35,230)|
|
IFRS Profit for the 258,201| 257,896 3.01 2.92
period |
|
|
|
Reconciliation to adjusted |
financial information |
-----------------------------------------+-------------------------------------
Share-based |
compensation 34,552|
expense and |
associated costs |
|
Fair value |
adjustment upon -|
business |
acquisition |
|
Restructuring and |
acquisition- 3,469|
related expenses |
|
Amortization and |
depreciation of |
intangibles 26,912|
resulting from |
acquisitions |
|
Income tax (7,662)|
(expense) |
|
Adjusted Profit for the 315,472| 315,017 3.68 3.57
period |
|
|
|
Reconciliation to adjusted |
financial information for |
ongoing operations |
-----------------------------------------+-------------------------------------
Assets held for (931)| (723)
sale |
|
Adjusted, Profit for the 314,541| 314,294 3.67 3.56
ongoing period |
-----------------------------------------+-------------------------------------
Appendix 3
Interim consolidated statement of financial position
(? in millions) December 31, December 31,
2014 2013
-------------------------------------------------------------------------------
Assets
Non-current assets
Property, plant and equipment, net 279,741 237,320
Goodwill, net
Unternehmensinformation / Kurzprofil:
Datum: 05.03.2015 - 00:11 Uhr
Sprache: Deutsch
News-ID 376335
Anzahl Zeichen: 65588
contact information:
Town:
Meudon
Kategorie:
Business News
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