Gemalto full year 2016 results
(Thomson Reuters ONE) -
* Full year revenue of ?3.13 billion with an acceleration in fourth quarter
revenue growth
* Platforms & Services revenue exceeded ?1 billion, a year ahead of the
current multi-year development plan
* Company gross margin increased by +155 basis points, to 40.5%
* Profit from operations grew to ?453 million with strong free cash flow of
?318 million, leading to net debt of ?67 million
To better assess past and future performance, the income statement is presented
on an adjusted basis and variations in revenue figures above and in this
document are 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. Reconciliation with the IFRS income statement is presented
in Appendix 1. 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. All figures in this press release are unaudited.
Amsterdam, March 3, 2017 at 12:00am - Gemalto (Euronext NL0000400653 - GTO), the
world leader in digital security today announces its results for the full year
2016.
Key figures of the adjusted income statement
Year-on-year variations
at historical at constant
(? in millions) exchange exchange
Full year 2016 Full year 2015 rates rates
-------------------------------------------------------------------------------
Revenue 3,127 3,122 = +1%
Gross profit 1,266 1,216 +4%
Operating expenses (814) (793) +3%
-------------------------------------------------------------------------------
Profit from operations 453 423 +7%
Profit margin 14.5% 13.5% +94 bp
-------------------------------------------------------------------------------
Philippe Vallée, Chief Executive Officer, commented: "Gemalto's performance in
2016 demonstrates the strength of its business model and ability to adapt in a
very adverse Mobile environment. The Payment activity grew slightly, Machine-to-
Machine and Enterprise posted double-digit growth rates, and Government Programs
recorded another strong performance. The structural transformation of the
Company continued with Platforms & Services surpassing its annual revenue
objective of ?1 billion a year ahead of the current multi-year development plan.
Optimization efforts paid off in the Mobile and Payment & Identity segments
resulting in the Company's gross margin exceeding 40% for the first time in its
history and leading to an improvement in both profitability and cash generation.
In 2017, Gemalto will focus its efforts on growing sales through an increase in
cross-selling between businesses. Gemalto is currently working on its new multi-
year development plan that will be presented towards the end of the year."
Basis of preparation of financial information
Segment information
The Mobile segment reports on businesses associated with mobile cellular
technologies including Machine-to-Machine, mobile secure elements (SIM, embedded
secure element) and mobile Platforms & Services. The Payment & Identity segment
reports on businesses associated with secure personal interactions including
Payment, Government Programs and Enterprise. The SafeNet acquisition in 2015 is
part of the Enterprise business.
In addition to this segment information the Company also reports revenues 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
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. Revenue variations are at constant exchange rates and include
the impact of currencies variation hedging program, except where otherwise
noted. All other figures in this press release are at historical exchange rates,
except where otherwise noted.
Adjusted income statement and profit from operations (PFO) non-GAAP measure
The consolidated financial statements are prepared in accordance with the
International Financial Reporting Standards (IFRS) and with section 2:362(9) of
the Netherlands Civil Code.
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 IFRS operating profit adjusted for (i) the
amortization and depreciation of intangibles resulting from acquisitions, (ii)
restructuring and acquisition-related expenses, (iii) all equity-based
compensation charges and associated costs; and (iv) fair value adjustments upon
business acquisitions. 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.
* 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).
* Equity-based compensation charges are defined as (i) the discount granted to
employees acquiring Gemalto shares under Gemalto Employee Share Purchase
plans; (ii) the amortization of the fair value of share options and
restricted share units granted by the Board of Directors to employees, and
the related costs.
* Fair value adjustments over net assets acquired are defined as the reversal,
in the income statement, of the fair value adjustments recognized as a
result of a business combination, as prescribed by IFRS3R. Those adjustments
are mainly associated with (i) the amortization expense related to the step-
up of the acquired work-in-progress and finished goods assumed at their
realizable value and (ii) the amortization of the cancelled commercial
margin related to deferred revenue balance acquired.
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 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.
Net debt and net cash
Net debt is a non IFRS measure defined as total borrowings net of cash and cash
equivalents. Net cash is a non IFRS measure defined as cash and cash equivalents
net of total borrowings.
Adjusted financial information
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.
Full year 2016 Full year 2015
-------------------------------------------------------------------------------
Year-on-year variations
Extract of the ? in As a % of ? in As a %
adjusted income millions revenue millions of at historical at constant
statement revenue exchange exchange
rates rates
-------------------------------------------------------------------------------
Revenue 3,126.5 3,121.6 = +1.2%
Gross profit 1,266.2 40.5% 1,215.9 39.0% +155 bp
Operating (813.5) (26.0%) (793.3) (25.4%) (61 bp)
expenses
EBITDA 593.5 19.0% 546.9 17.5% +146 bp
-------------------------------------------------------------------------------
Profit from 452.7 14.5% 422.6 13.5% +94 bp
operations
-------------------------------------------------------------------------------
Net profit 266.9 8.5% 303.5 9.7% (119 bp)
Basic Earnings 3.00 3.45 (13%)
per share (?)
Diluted Earnings 2.97 3.41 (13%)
per share(?)
-------------------------------------------------------------------------------
Total revenue for 2016 came in at ?3,127 million, up +1.2% at constant exchange
rates and stable at historical exchange rates.
In 2016, currency translation effects generated a (1) percentage point effect on
revenue generation. The hedging program which aims at partially neutralizing the
impact of currency variations on the Company's profit from operations, produced
a 0.3 percentage point difference in revenue in comparison to last year.
Gross profit was up by ?50 million, to ?1,266 million, representing a gross
margin of 40.5%, up +155 basis points year-on-year. The two main segments
recorded gross margin improvement that more than offset the decrease in the
Patents & Others segment.
Operating expenses were up by 61 basis points to 26% of revenue, at (?814)
million. This increase came mainly from the investments made in the Enterprise
business as mentioned in the first semester.
As a result, profit from operations was ?453 million, up ?30 million year-on-
year. Profit margin from operations increased +94 basis points to 14.5% compared
to 13.5% in 2015.
Gemalto's financial income was (?34) million compared to (?38) million for
2015. Interest expense and amortized costs on the public bond, private
placements and credit lines facilities were (?0.2) million lower, at (?12)
million in 2016 while foreign exchange transactions and other financial items
amounted to (?20) million versus (?24) million a year ago, mainly due to
currency variation impacts.
Share of profit in associates was ?2 million for the full year 2016, stable
compared to 2015. Net impairment of associates recorded (?21) million in 2016,
versus nil in 2015, mainly due to the change in market capitalization of an
associate.
As a result, adjusted profit before income tax and net impairment of associates
came in at ?420 million compared to ?387 million the previous year, an increase
of +9%.
Adjusted income tax expense increased to (?133) million, compared to (?83)
million the previous year. This (?49) million expense increase mainly reflects
the estimated non-cash deferred tax asset reduction following Gemalto's 2017
profit from operations outlook.
Excluding this non-recurring impact, the effective tax rate for the Company
would have been 20% this year. This 2016 exceptional charge has no impact on the
expected normative effective tax rate going forward.
As a result, the 2016 adjusted net profit for the Company was ?267 million,
leading to adjusted basic earnings per share of ?3.00, and adjusted diluted
earnings per share of ?2.97 compared to adjusted basic earnings per share of
?3.45, and adjusted diluted earnings per share of ?3.41 in 2015.
IFRS results
Amortization and depreciation of intangibles resulting from acquisitions came in
at (?58) million versus (?61) million in 2015. Restructuring and acquisition-
related expenses decreased by ?13 million to (?36) million, and came mainly from
IT and facilities integration costs, implementation of a new information system
(ERP) to harmonize finance and reporting systems, and optimization of data
centers. The Gemalto equity-based compensation charge was markedly lower to
(?9) million versus (?39) million for the same period of last year. This
reflects mainly the lower estimated number of restricted share units to be
delivered upon vesting based on the expectation of 2017 profit from operations.
Fair value adjustments related mainly to the non-cash amortization of the IFRS
revaluation of SafeNet's pre-acquisition deferred revenue accounted for (?3)
million in 2016 compared to (?71) million in 2015.
As a result, Gemalto recorded an increase of ?144 million in its IFRS operating
profit (EBIT), at ?347 million in 2016 compared to ?203 million a year ago. This
performance mainly reflects the increase in operating profitability, the
marginal effect of the non-cash IFRS fair-value adjustments related to SafeNet's
pre-acquisition deferred revenue in 2016 and the decrease in restructuring &
acquisition-related expenses.
The income tax charge increased to (?107) million compared to (?31) million the
previous year. This increase in expense mainly reflects the estimated non-cash
deferred tax asset reduction following Gemalto's 2017 profit from operations
outlook.
Consequently, IFRS net profit increased by +36% at ?186 million for 2016 versus
?137 million in 2015.
Overall, IFRS basic earnings per share and diluted earnings per share came in at
?2.09, up +34% and ?2.07, up +34% in 2016, compared to ?1.56 and ?1.54
respectively in 2015.
Statement of financial position and cash position variation schedule
For the full year 2016, operating activities generated a cash flow of ?468
million before changes in working capital, up +6%, compared to the ?443 million
generated in 2015. Change in working capital reduced the cash flow generation by
(?23) million in 2016 compared to a positive ?65 million impact in 2015. Net
trade and other payables reduced due to advance payments received from customers
in 2015. Net trade receivables increased towards the end of the year with the
growth in Government Programs, Machine-to-Machine and Enterprise.
Capital expenditure and acquisition of intangibles amounted to (?140) million,
i.e. 4.5% of revenue compared to 5.9% in 2015. Property, Plant, and Equipment
accounted for (?63) million in 2016, lower by (?35) million compared to the high
level of 2015 that was related to initial investments made to support the strong
start in payment business in the United States. Acquisition and capitalization
of development expenses represented (?77) million, with capitalization of
development expenses representing 2.0% of revenue in 2016.
As a result, in 2016 Gemalto generated strong free cash flow of ?318 million
increasing by +87% compared to ?170 million in 2015.
Acquisitions used (?3) million in 2016 versus (?897) million in 2015 which had
seen the closing of both the SafeNet and Trüb acquisitions.
Gemalto's share buy-back and liquidity programs generated a ?1 million net cash
inflow in 2016. As at December 31, 2016, the Company held 717,835 shares i.e.
0.8% of its own shares in treasury. The total number of shares issued increased
by +920,930 in 2016 to 89,928,639 and, net of the 717,835 shares held in
treasury, 89,210,804 shares were outstanding as at December 31, 2016. The
average acquisition price of the shares repurchased on the market by the Company
and held in treasury as at December 31, 2016 was ?40.46.
On May 26, 2016, Gemalto paid a cash dividend of ?0.47 per share in respect of
the fiscal year 2015, up +12% on the dividend paid in 2015. This distribution
used ?42 million in cash.
Net proceeds from financing activities generated a (?14) million cash outflow,
mainly coming from commercial paper repayment.
Cash in hand, net of bank overdrafts amounted to ?663 million versus ?405
million at the end of 2015.
Considering the ?730 million total amount of borrowings as at December
31, 2016, Gemalto's net debt position was reduced to ?67 million compared to a
net debt position of ?335 million at the end of 2015. This significant (?268)
million variation is due to the strong free cash flow generated by the Company
over the last twelve months. The Company net debt currently represents 0.1 times
its EBITDA.
Segment information
Revenue variations are expressed at constant currency exchange rates unless
otherwise noted.
Year-on-year variations
and currencies impac Payment Total Patents &
& Mobile two main Others Total
Identity segments
(? in millions)
-----------------------------------------------------------------------------
Fourth quarter
Revenue 544 332 876 2 878
At constant rates +8% (2%) +4% (74%) +3%
At historical rates +7% (2%) +3% (74%) +3%
-----------------------------------------------------------------------------
During the fourth quarter, revenue expanded by +3% at constant exchange rates
and historical exchange rates. The Payment & Identity segment grew by +8% in the
fourth quarter. The strong performance of Enterprise and Government Programs
during the fourth quarter more than offset lower sales in Payment. Mobile
segment revenue was lower by (2%) in the fourth quarter compared to 2015. In
that segment, the sales trend improved compared to the first nine months of
2016, with a slower decrease in SIM sales and +13% expansion in the Machine-to-
Machine business as well as in the Mobile Platforms & Services activity.
Year-on-year variations Payment & Total two main Patents &
and currencies impact Identity Mobile segments Others Total
(? in millions)
-------------------------------------------------------------------------
Full year
Revenue 1,948 1,174 3,123 4 3,127
At constant rates +9% (8%) +2% (85%) +1%
At historical rates +7% (8%) +1% (85%) =
-------------------------------------------------------------------------
As a percentage of total 62% 38% 100% 0% 100%
revenue
-------------------------------------------------------------------------
Overall, the diversification of the Company has again been reinforced in 2016
with Payment & Identity now accounting for 62% of the Company revenue, compared
to 58% last year.
Embedded Platforms & Total two Patents &
Full year 2016 software & Services main Others Total
Products activities
------------------------------------------------------------------------------
Revenue 2,104 1,019 3,123 4 3,127
Year-on-Year revenue growth (3%) +15% +2% (85%) +1%
As a percentage of total 67% 33% 100% 0% 100%
revenue
------------------------------------------------------------------------------
In 2016, Embedded software & Products revenue decreased by (3%) mainly due to
lower SIM sales to mobile network operators and payment cards revenue in China.
Platforms & Services exceeded the ?1 billion mark one year ahead of the current
multi-year development plan, to represent 33% of total Gemalto revenue in 2016.
The expansion in the Platforms & Services activity has been supported by a
double-digit growth in each of the Payment & Identity segment's businesses while
the Mobile Platforms & Services activity grew by +3% over the year.
Total Payment &
Profit from operations (including Patents & Identity Mobile
(? in millions) Others)
---------------------------------------------------------------------
Second semester 281 172 113
As a percentage of the
full year profit from 62% 59% 66%
operations
Year-on-year variation +7% +7% +11%
---------------------------------------------------------------------
Full year 453 290 171
Year-on-year variation +7% +22% (1%)
---------------------------------------------------------------------
Full year profit from operations increased by +7% year-on-year. In 2016, the
Payment & Identity segment recorded a +22% increase in profit from operations
and the Mobile segment profit from operations was lower by ?1 million compared
to 2015. This performance was driven by the gross margin improvement in the two
main segments which largely offset the operating loss from the Patents & Others
segment.
Payment & Identity
Full year 2016 Full year 2015 Year-on-year variations
-------------------------------------------------------------------------------
at at constant
? in As a % of ? in As a % of historical exchange
millions revenue millions revenue exchange rates
rates
-------------------------------------------------------------------------------
Revenue 1,948.3 1,818.4 +7% +9%
Gross profit 793.5 40.7% 698.3 38.4% +2.3 ppt
Operating (503.3) (25.8%) (459.6) (25.3%) (0.6 ppt)
expenses
Profit from 290.2 14.9% 238.7 13.1% +1.8 ppt
operations
-------------------------------------------------------------------------------
Payment & Identity's full year revenue came in at ?1,948 million, increasing by
+9% at constant exchange rates compared to 2015. The segment's Embedded software
& Products sales were up by +3% at ?1,180 million and its Platforms & Services
sales were up by +19% to ?768 million.
The Payment business came in at ?998 million, up by +2% in 2016 versus 2015 with
moderate revenue growth in both the Americas and the Europe, Middle East &
Africa regions. The lower sales in China were fully offset by an increase in
revenue from the rest of Asia. In 2016, performance was contrasted between the
semesters with second semester revenue lower year-on-year due to the high
comparison basis in the United States related to the 2015 EMV liability shift
deadline. Payment Embedded software & Products sales were lower by (4%) and
Payment Platforms & Services revenue expanded by +24% compared to 2015.
Revenue from the Enterprise business came in at ?462 million in 2016, up +10%
when compared to 2015. The trend in revenue mix within the authentication
business line continues to move towards a higher proportion of software and
services. The Enterprise business increased its sales coverage expanding
Gemalto's network of technology partners. It also accelerated investment in its
R&D in order to strengthen the Company's offering to meet increasing market
demand for cybersecurity solutions.
Revenue from the Government Programs business came in at ?488 million, up +26%
at constant exchange rates compared to 2015. Government Programs posted an
outstanding fourth quarter revenue performance with the completion of a large
scale project and increased deliveries from the finalized transformation of a
production site. Government Programs Embedded software & Products revenue was up
+21% and Government Programs Platforms & Services sales were up +39% in 2016
compared to 2015.
The Payment & Identity segment's gross margin improved to 40.7%, up +2.3
percentage points compared to 2015, with the optimization of the Payment
business and the expansion of the Enterprise business.
Operating expenses grew to (?503) million in 2016, in large part due to
investments made in the Enterprise business as well as the shift of internal
resources to this segment in order to capture the market growth of Government
Programs.
As a result, profit from operations in Payment & Identity came in at ?290
million, up +22% from the ?239 million recorded in 2015, leading to a 14.9%
profit margin from operations, up +1.8 percentage points.
Mobile
Full year 2016 Full year 2015 Year-on-year variations
-------------------------------------------------------------------------------
at at constant
? in As a % of ? in As a % of historical exchange
millions revenue millions revenue exchange rates
rates
-------------------------------------------------------------------------------
Revenue 1,174.4 1,278.5 (8%) (8%)
Gross profit 471.2 40.1% 494.5 38.7% +1.4 ppt
Operating (299.7) (25.5%) (322.2) (25.2%) (0.3 ppt)
expenses
Profit from 171.5 14.6% 172.4 13.5% +1.1 ppt
operations
-------------------------------------------------------------------------------
The Mobile segment recorded annual revenue of ?1,174 million, (8%) lower year-
on-year at constant exchange rates and historical exchange rates.
Embedded software & Products revenue for the segment came in at ?924 million,
(11%) lower compared to 2015 at constant exchange rates. SIM sales decreased by
(19%) at ?605 million for 2016. This was mainly due to the tail-end effect of
the closure of a mobile payment venture in the United States, coupled with lower
demand in Latin America and Africa. Conversely, the Machine-to-Machine business
continued to grow, by +11% year-on-year, at ?319 million on the back of
expanding global demand of connected devices and embedded secure elements for
the Internet of Things (IoT).
Platforms & Services revenue for the segment came in at ?251 million, up by
+3%. In 2016, Gemalto's Mobile Subscriber Services business reached important
milestones with more than 20 references on embedded SIMs remote activation and
management. Gemalto is deeply involved in setting up the ecosystem, as device
manufacturers and mobile network operators adopt the GSMA specifications for the
consumer device market published in the fourth quarter of 2016.
Gross margin for the Mobile segment was 40.1% in 2016, up by +1.4 percentage
points compared to 2015. Operating expenses decreased to (?300) million from
(?322) million in line with the trend observed in the first semester of 2016 due
to the shift of part of the segment's resources to the growing Payment &
Identity segment.
As a result, profit from operations came in at ?171 million, i.e. a 14.6% profit
margin from operations, up +1.1 percentage points on 2015.
Patents & Others
Full year 2016 Full year 2015 Year-on-year variations
-------------------------------------------------------------------------------
at at constant
? in As a % of ? in As a % of historical exchange
millions revenue millions revenue exchange rates
rates
-------------------------------------------------------------------------------
Revenue 3.8 24.6 (85%) (85%)
Gross profit 1.5 40.6% 23.1 93.6% (53.0 ppt)
Operating (10.6) n.a. (11.5) (46.8%) n.a.
expenses
Profit from (9.0) n.a. 11.5 46.8% n.a.
operations
-------------------------------------------------------------------------------
The Patents & Others segment generated ?4 million of revenue for the full year
2016 versus ?25 million in 2015. Operating expenses were lower by (?0.9)
million, and the segment posted an operating loss of (?9) million in 2016.
Additional information
Below is a highlight of new contracts and achievements published by the Company
in 2016
Payment & Identity
January, 19 2016 Finland selects Gemalto for its new secure electronic
passport and eID
February, 24 2016 Peru selects the Imprimerie Nationale Group and Gemalto
for end-to-end ePassport program
April, 7 2016 Gemalto eBanking solution increases online security for
BBVA Bancomer in Mexico
May, 10 2016 JETCO selects Gemalto to roll out secure Peer-to-Peer
mobile payments in Hong Kong
May, 16 2016 Colorado partners with Gemalto for secure polycarbonate
identity credentials
June, 7 2016 Colombia selects Gemalto's secure ePassport solution
July 13, 2016 Maryland unveils a new secure driver's license
leveraging Gemalto's polycarbonate technology
September 1, 2016 Posten Norge selects Gemalto ID Verification to
strengthen fraud protection for Norway
September 6, 2016 Gemalto significantly expands big data security
offerings
September 20, 2016 Gemalto releases findings of first half 2016 Breach
Level Index
October 11, 2016 Norway chooses Gemalto's fully integrated solution for
eID and ePassport
November 14, 2016 Gemalto Wins U.S. Government Grant for Digital Driver's
License Pilot in Four Jurisdictions
November 30, 2016 Paris Aéroport selects Gemalto to ease and secure
passenger flow at border control
December 1, 2016 Le Groupement des Cartes Bancaires CB" selects Gemalto
PURE technology to launch mobile payment
December 9, 2016 Gemalto to acquire 3M's Identity Management Business
Mobile
February 8, 2016 Verizon certifies Gemalto's first Cat. 1 LTE M2M
Solution for IoT
February 23, 2016 Gemalto and Jasper Partner to Simplify the Global
Deployment of IoT Devices
May 3, 2016 Verizon selects Gemalto to migrate to Advanced OTA
technology for 4G LTE services
June 30, 2016 KDDI in Japan selects Gemalto's Connected cars and IoT
solution
August 29, 2016 TIM and Samsung launch the first smartwatch in Italy
with integrated eSIM, in collaboration with Gemalto
September 12, 2016 Carrefour payment cards go digital thanks to Gemalto's
proven Trusted Service Hub
September 21, 2016 Gemalto and Valeo partner to turn your smartphone into a
secure car key
September 27, 2016 Norwegian national payment scheme BankAxept trusts
Gemalto to enable mobile financial services for banks
October 17, 2016 Alibaba and Gemalto work hand-in-hand to secure China's
IoT market
October 18, 2016 PSA Group to equip millions of connected cars with
Gemalto M2M solution
November 3, 2016 Gemalto pioneers SIM Reactivation solution to help
operators reconnect with lapsed prepaid subscribers
November 21, 2016 Gemalto extends remote provisioning to all consumer
devices with GSMA compliant solution
December 13, 2016 China Mobile enters the connected car market with
Gemalto's remote subscription management solution
Industry Recognitions
January 6, 2016 Gemalto Cat 1 LTE connectivity solution wins Most
Innovative Application Award
March 15, 2016 Gemalto Wins "Best Identity Management Platform" in GSN
2015 Homeland Security Awards
May 25, 2016 Gemalto Wins 2016 Cybersecurity Excellence Award for
Best Multi-Factor Authentication Solution
October 4, 2016 Juniper Research recognizes Gemalto as an established
leader in fast-growing IoT market
October 6, 2016 Gemalto wins innovation award at the Boursorama 2016
Investor Awards
Proposed dividend
The Board of Gemalto has decided to propose to the 2017 Annual General Meeting
of Shareholders the payment of a cash dividend of ?0.50 per share in 2017 in
relation with the 2016 financial year, a +6% increase compared to the cash
dividend of ?0.47 per share paid in 2016 in relation with the 2015 financial
year. If approved, the time schedule related to the dividend payment will be as
follows:
May 22, 2017 Ex-dividend date
(the date as of which shares are traded without the right to the
2016 dividend)
May 23, 2017 Dividend record date
(the date on which shareholder positions are recorded as per
close of business in order to be entitled to the 2016 dividend
distribution)
May 24, 2017 Payment date of dividend
Gemalto shares will trade ex-dividend as from the beginning of the trading
session on May 22, 2017. Holders of Gemalto shares on May 22, 2017 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 2017, Gemalto expects its profit from operations to be between ?500 million
and ?520 million supported by positive trends in Government Programs, Machine-
to-Machine, Enterprise and taking into account the adverse mobile environment
and slower migration of payment cards in the United States.
The Company expects to finalize the acquisition of 3M Identity Management
business in the first semester of 2017 and will update its 2017 outlook after
the closing.
Live Audio Webcast and Conference call
Gemalto full year 2016 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) +44 203 367 9454 or (US) +1 855 402 7763 or (FR)
+33 1 7077 0940
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, 2016,
is available on our Investor web site.
Reporting calendar
Financial reporting for the first three quarters of 2017 will be made before the
opening of Euronext Amsterdam on the following dates:
April 28, 2017 Publication of 2017 first quarter revenue
September 1, 2017 Publication of 2017 first semester results
October 27, 2017 Publication of 2017 third quarter revenue
Gemalto N.V. will hold its 2017 Annual General Meeting of Shareholders (AGM) on
Thursday, May 18, 2017. 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 Euronext stock exchange on April 20, 2017 (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 agenda of the AGM is scheduled to be published on March 16, 2017 on the
Gemalto website. This agenda includes the proposed nomination of Ms. Jill D.
Smith as independent, non-executive member of the Gemalto board for a term of
four years.
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 Euronext Amsterdam and Paris, in the compartment
A (Large Caps).
Mnemonic: GTO
Exchange Dual listing on Euronext Amsterdam and Paris
Market of reference 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
| | |
| | |
| | |
| | |
| | |
|Winston Yeo |Isabelle Marand |Suzanne Bakker
| | |
|M.: +33 6 2947 0814 |M.: +33 6 1489 1817 |M. : +31 6 1136 8659
| | |
|winston.yeo(at)gemalto.com |isabelle.marand(at)gemalto.com|suzanne.bakker(at)citigateff.nl
| | |
|
|
|Sébastien Liagre
|
|M.: +33 6 1751 4467
|
|sebastien.liagre(at)gemalto.com
|
This press release contains inside information as referred to in article 7
paragraph 1 of Regulation (EU) 596/2014 (Market Abuse Regulation).
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security,
with 2016 annual revenues of ?3.1 billion and customers in over 180 countries.
We bring trust to an increasingly connected world.
Our technologies and services enable businesses and governments to authenticate
identities and protect data so they stay safe and enable services in personal
devices, connected objects, the cloud and in between.
Gemalto's solutions are at the heart of modern life, from payment to enterprise
security and the internet of things. We authenticate people, transactions and
objects, encrypt data and create value for software - enabling our clients to
deliver secure digital services for billions of individuals and things.
Our 15,000+ employees operate out of 112 offices, 43 personalization and data
centers, and 30 research and software development centers located in 48
countries.
For more information visit
www.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
Reconciliation from IFRS to Adjusted financial information
|
Full year 2016 |
(? in millions) | Basic Diluted
---------------------------------------+---------------------------------------
Weighted average number of shares | 88,703 89,649
outstanding (in thousands) |
|
|
|
| Excluding
IFRS financial information | non-controlling
| interest Basic EPS Diluted EPS
---------------------------------------+---------------------------------------
Operating profit 346,946|
|
Financial income (34,268)|
|
Profit from 2,059|
Associates |
|
Impairment of (21,042)|
associates, net |
|
Income tax (107,497)|
|
IFRS Net profit for the 186,198| 185,726 2.09 2.07
period |
|
|
|
Reconciliation to adjusted |
financial information |
---------------------------------------+---------------------------------------
Share-based |
compensation 9,238|
expense and |
associated costs |
|
Fair value |
adjustment upon 3,242|
business |
acquisition |
|
Restructuring and |
acquisition-related 35,656|
expenses |
|
Amortization and |
depreciation of |
intangibles 57,576|
resulting from |
acquisitions |
|
Income tax (25,028)|
|
Adjusted Net profit for the 266,882| 266,410 3.00 2.97
period |
---------------------------------------+---------------------------------------
The full year 2016 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, 2016, i.e. 88,702,517 shares. The full year
2016 adjusted diluted earnings per share is determined by using 89,648,074
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 (1,784,347 instruments)
and the proceeds received from the instruments exercised (?47,109,867) were used
to buy-back shares at the average share price of the full year 2016 (838,790)
shares at ?56.16.
|
Full year 2015 |
(? in millions) | Basic Diluted
---------------------------------------+---------------------------------------
Weighted average number of shares | 87,812 89,077
outstanding (in thousands) |
|
|
|
| Excluding
IFRS financial information | non-controlling
| interest Basic EPS Diluted EPS
---------------------------------------+---------------------------------------
Operating profit 203,347|
|
Financial income (37,963)|
|
Share of profit of 2,058|
associates |
|
Impairment of 0|
associates, net |
|
Income tax (30,571)|
|
IFRS Net profit for the 136,871| 136,769 1.56 1.54
period |
|
|
|
Reconciliation to adjusted |
financial information |
---------------------------------------+---------------------------------------
Share-based |
compensation expense 38,638|
and |
associated costs |
|
Fair value |
adjustment upon 70,722|
business acquisition |
|
Restructuring and |
acquisition-related 49,079|
expenses |
|
Amortization and |
depreciation of |
intangibles 60,843|
resulting from |
acquisitions |
|
Income tax (52,665)|
|
Adjusted Net profit for the 303,488| 303,386 3.45 3.41
period |
---------------------------------------+---------------------------------------
Appendix 2
Consolidated statement of financial position
(? in millions) December 31, December 31,
2016 2015
-------------------------------------------------------------------------------
Assets
Non-current assets
Property, plant and equipment, net 329,448 347,994
Goodwill, net 1,561,666 1,524,933
Intangible assets, net 564,588 592,597
Investments in associates 48,011 64,897
Deferred income tax assets 111,467 197,212
Other non-current assets 64,554 45,585
Derivative financial instruments - 276
--------------------------
Total non-current assets 2,679,734 2,773,494
Current assets
Inventories, net 244,962 273,564
Trade and other receivables, net 1,027,215 949,690
Derivative financial instruments 11,404 18,048
Cash and cash equivalents 663,517 407,659
--------------------------
Total current assets 1,947,098 1,648,961
--------------------------
Total assets 4,626,832 4,422,455
-------------------------------------------------------------------------------
Equity
Share capital 89,929 89,008
Share premium 1,291,795 1,240,241
Treasury shares (29,042) (36,329)
Fair value and other reserves (59,872) (8,135)
Cumulative translation adjustments 74,265 39,505
Retained earnings 1,303,176 1,158,525
--------------------------
Capital and reserves attributable to the 2,670,251 2,482,815
owners of the Company
--------------------------
Non-controlling interests 5,196 6,716
--------------------------
Total equity 2,675,447 2,489,531
Liabilities
Non-current liabilities
Borrowings 557,518 549,758
Deferred income tax liabilities 120,109 122,817
Employee benefit obligations 133,136 121,958
Provisions and other liabilities 121,480 145,335
Derivative financial instruments 12,604 5,966
--------------------------
Total non-current liabilities 944,847 945,834
--------------------------
Current liabilities
Borrowings 173,088 192,579
Trade and other payables 715,767 718,585
Current income tax liabilities 31,383 33,799
Provisions and other liabilities 17,332 19,366
Derivative financial instruments 68,968 22,761
--------------------------
Total current liabilities 1,006,538 987,090
--------------------------
Total liabilities 1,951,385 1,932,924
--------------------------
Total equity and liabilities 4,626,832 4,422,455
-------------------------------------------------------------------------------
Appendix 3
Cash position variation schedule
Year ended
December 31
-------------------------------------------------------------------------------
? in millions 2016 2015
-------------------------------------------------------------------------------
------------------------------------------------------------------- -----------
Cash and bank overdrafts, beginning of period 405 1,057
------------------------------------------------------------------- -----------
Cash generated by operating activities, before changes in 468 443
working capital
Net change in working capital (23) 65
Cash used in restructuring actions and acquisition related (36) (29)
expenses
------------------------------------------------------------------- -----------
Net cash generated by operating activities before Time de- 409 479
correlated hedging effect/(Prepaid derivatives)
------------------------------------------------------------------- -----------
Time-decorrelated hedging effect/(Prepaid derivatives) 49 (124)
------------------------------------------------------------------- -----------
Net cash generated by operating activities 458 355
------------------------------------------------------------------- -----------
Capital expenditure and acquisitions of intangibles (140) (185)
------------------------------------------------------------------- -----------
Free cash flow 318 170
------------------------------------------------------------------- -----------
Interest received 3 3
Cash used by acquisitions (3) (897)
Other cash provided by investing activities 4 0
Currency translation adjustments 3 5
------------------------------------------------------------------- -----------
Cash generated (used) by operating and investing activities 325 (719)
------
Unternehmensinformation / Kurzprofil:
Datum: 03.03.2017 - 00:01 Uhr
Sprache: Deutsch
News-ID 527901
Anzahl Zeichen: 65589
contact information:
Town:
Meudon
Kategorie:
Business News
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"Gemalto full year 2016 results"
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