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Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
0 / CMD’11 / DECEMBER 13, 2011 /
Part III - Security
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
1 / CMD’11 / DECEMBER 13, 2011 /
Video clipMorpho today
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
2 / CMD’11 / DECEMBER 13, 2011 /Q3 REVENUE 2011 / OCTOBER 21, 2011 /
Building trustPh.Petitcolin - President Defence / Security
/ December 13, 2011 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
3 / CMD’11 / DECEMBER 13, 2011 /
Reasons to develop a Security business
Security is a 2-digit revenue growth business with 2-digit margins
è Security shares Safran’s aerospace DNA§ High and sustainable technological barriers to entry§ Long term and trustworthy customer relationship§ High service content alongside OEM
è Economic cycles are different compared to aerospace§ 2-digit market growth rate since 9/11§ Quicker returns on capital employed
è Market under consolidation§ Inherited a business from Sagem that needed refocus§ Safran now part of worldwide top 3 thru targeted acquisitions
è New emerging requirements§ From detection to identification of threats and new threats to cope with§ Growing ID use needs (increasing mobility, authentication on internet, etc...)
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
4 / CMD’11 / DECEMBER 13, 2011 /
Accelerated refocusing since 2007
81%
20072008
Acq
uisi
tions
Div
estm
ents
2009
Contribution of Sagem Monetel to Ingenico
2011
Morpho now top 3 global player - €1.7bn cash outlay since 2008
2010
HLP
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
5 / CMD’11 / DECEMBER 13, 2011 /
Business model delivering results ( 2010E proforma incl. L-1 ID)
Identification - €800m
Smart cards - €250m
Detection - €220m
Others - €120m
57%
8%
16%
19%
33%
MAIN PRODUCTS & SOLUTIONS§ Civil and Forensic ID solutions§ Biometric Identification Systems§ Biometric ID documents (Passports, § , ID,driving licences …)§ Biometrics terminalsSERVICES§ Enrolment and document issuance§ Background check§ Upgrades and maintenance
MAIN PRODUCTS§ SIM for Telcos§ Banking cards
SERVICES§ Personalization
MAIN PRODUCTS§ Checked baggage screening§ Trace detection§ Checkpoint solutions§ CBRN for 1st responders
SERVICES§ Upgrades and maintenance§ Multiplexing solutions
MAIN PRODUCTS§ Vehicle speed control and identification§ Lottery terminals
SERVICES§ Upgrades and maintenance
Revenue: €1.4bn
72% Government (Federal,local, agencies, authorities)
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
6 / CMD’11 / DECEMBER 13, 2011 /
A global presence reinforced with L-1 ID
R&DProductionSales
AMERICAS4Employees: 2,8004Revenue: c.€0.7bn
EMEA4Employees: 3,0004Revenue: c.€0.55bn
ASIA / PACIFIC4Employees: 1,4004Revenue: c.€0.15bn
è 2010E proforma (incl. L-1 ID)
§ Employees: 7,200§ Revenue: €1.4bn
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
7 / CMD’11 / DECEMBER 13, 2011 /
Mastering critical technologies
Pattern recognitionData & image processingBiometricsVehicle recognition
Secure embedded softwareCryptography
Advanced system architecture
X-ray, X-Ray DiffractionComputed tomography (CT) ITMS (Ion Trap Mobility Spectrometer)
Secured printing
High technological content - around 8% of revenue invested in R&D
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
8 / CMD’11 / DECEMBER 13, 2011 /
Addressable markets in identification
€6.7bn
€4.3bn
c.12%
3M, NEC, Gemalto
2014
Market size
10-14 CAGR (%)
Safran’s ranking
Key competitors
2010
Identification market by applications
Criminal Identification
OthersIdentity Management
(incl. Border Control and ID documents)
Source: Safran, IBG-2009, IMS-2010
§ Background Check§ Surveillance§Consumer ID and Device
System Access, etc
§ Background Check§ Surveillance§Consumer ID and Device
System Access, etc
Biometric Terminals
#1 ww
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
9 / CMD’11 / DECEMBER 13, 2011 /
Addressable markets in smart cards
€3.9bn
€3.0bn
c.7%
GemaltoGiesecke & Devrient
Oberthur
2014
Market size
10-14 CAGR (%)
Safran’s ranking
Key competitors
2010
Note: Smart cards for Government & healthcare are included in the Identification segmentSource: Safran, ABI-2011
Smart cards market by applications
Telecommunications
Payments
#4 ww
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
10 / CMD’11 / DECEMBER 13, 2011 /
Addressable markets in detection systems
€3.7bn
€2.6bn
c.8%
SmithsL3, Nuctech,
Rapiscan (OSI Systems)
2014
Market size
10-14 CAGR (%)
Safran’s ranking
Key competitors
2010
Source: Safran, IMS-2010
Detection systems market by applications
Explosive Detection / Aviation
Chemical, Radiological,
Biological, and Nuclear
Explosive Detection / Non-Aviation A leader in
aviation detection
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11 / CMD’11 / DECEMBER 13, 2011 /
Synergies from acquisitions
è Achieved synergies at end of 2011E§ Sdu acquisition contributed growth synergies
§ Additional business in other Morpho divisions enabled by acquisitionsú €40M additional revenue in 2011 in IDú €80M+ additional revenue in 2012E in ID
è Synergies brought by L-1 ID acquisition§ $30M annual run rate confirmed and to be fully realized within 18-24 months (2013)
Acquisitions are synergetic to Morpho
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
12 / CMD’11 / DECEMBER 13, 2011 /
Selected breakthrough security solutions roadmap
2012 2013 2014 +
3D & Colour Photo on Polycarbonate cards
XRD based checkpoint baggage screening systems
Fast DNA for forensic applications
Fore
nsic
& m
ilita
ry
solu
tions
Civ
il ID
so
lutio
nsB
orde
r con
trol
& C
heck
poin
tso
lutio
ns
ID, T
elco
&
ban
king
se
cure
d so
lutio
ns
Post issuance card personalisation
Iris at a distance
Morpho e-documents Morpho DetectionMorpho Identification
Compact checked luggage CT screening systems
Multi-biometric forensic AFIS systems
Integrated checkpoint solutions
Mass spectrometry based explosive trace detection Air cargo
screening solutionsC
heck
edlu
ggag
e&
car
goso
lutio
ns
Kiosks and stations (driver licence renewal, boarding pass scanning, …)
NFC optimized chips and additional security features
Finger on the Fly
Shoe scanning systems
Multi-biometric e-gates
Digital identity service platforms
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
13 / CMD’11 / DECEMBER 13, 2011 /
Longstanding trust
è FBI § MorphoTrak subcontractor to Lockheed
Martin since 2010 for the Next Generation Identification (NGI) program
§ Supply of best of breed AFIS technology delivering increased speed, accuracy and capacity
è TSA§ Supply of state of the art of EDS (Explosive
Detection Systems) and ETD (Explosive Trace Detection) equipments
è Netherlands§ Supply of third generation e-passport with
state of the art security features
The Netherlands21 years
New York State23 years
Denmark21 years
Germany19 years
Norway26 years
FBI37 years
France26 years
Switzerland28 years
United Arab Emirates, 19 years
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
14 / CMD’11 / DECEMBER 13, 2011 /
Conclusion
è Enhanced security is likely to be well accepted if:§ Efficient§ Contributing thru technology to lean government
è Security enables and enhances government savings in the provision of security to citizens§ Automation, fluidity, reliability
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
15 / CMD’11 / DECEMBER 13, 2011 /Q3 REVENUE 2011 / OCTOBER 21, 2011 /
Morpho in IndiaS.Shriya - Managing Director, Smart Chip Limited
/ December 13, 2011 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
16 / CMD’11 / DECEMBER 13, 2011 /
Morpho smart cards - Indian presence
è Leverage the business opportunities of the Indian smart card market§ Telco: Maintain our leadership position§ ID: Driving license, enrolment and other UID « related » businesses§ Banking: Be ready to take leadership position when market picks up
è Worldwide industrial hub for Morpho§ Noida Industrial Eco-System (NIES)§ Supply chain competence centre§ Low cost card production for Telco, Banking & ID cards
è Worldwide smart card R&D centre§ Worldwide products Telco R&D centre§ Local products HID R&D centre
Unmatched presence, 3 strategic objectives
UID: Unique Identification HID: Health & Identification
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17 / CMD’11 / DECEMBER 13, 2011 /
SECURE CREDENTIALS CENTRE
CARD BODY CENTRE MOBILE CREDENTIALSCENTRE
Three global centres of manufacturing excellence
Typical applications§ Mobile§ Low Cost ID§ Pay TV§ Fax§ Banking (Visa & MC “classic” cards) § Contactless cards (Transport, Banking)§ Etc.
Capacity: 200M units/yr
Capacity: 120M units/yrCapacityMobile: 230M units/yrID/Banking: 120M units/yr
1 million units per day today and growing
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18 / CMD’11 / DECEMBER 13, 2011 /
Global unified R&D
§Telco 2G products, CDMA§ Regional ID products§ Off card tool§ Apps / applet development§ TC back office
§WIB and S@T browser§Browser Applications§ SIMPeria
§Advanced Telco products§ Java Banking products§ 3G, NFC, Connect SIM§ ID, Banking and IAM Products
§Customization centre
(20 staff)
(200 staff)
(20 staff)(150 staff)
Global, multi-team, multi-location projects
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19 / CMD’11 / DECEMBER 13, 2011 /
Aadhaar program - Biometric industry transformation
Aadhaar program is laying solid foundation of large scale biometrics deployment in India
Aadhaar mandate§ Collect basic demographic and
biometric information of residents
§ Provide unique identity numbers of residents of India
§ Guarantee non-duplication through biometrics
§ Offer online authentication services that can be used across India
Impact on Biometrics industry§ Largest Identification program
ever undertaken globallyOpens Several Biometric Opportunities across the Aadhaar program
§ Establishes biometrics as a enabler of social inclusion rather than criminal detection onlyTipping point for the industry for widespread biometric application; generating enduring Authentication / Aadhaar Linked Services business
§ Establishes India the new biometric nucleus of the world
Aadhaar Program - Transforming global biometrics industry
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20 / CMD’11 / DECEMBER 13, 2011 /
Aadhaar - The current status
§ On 29 September 2010, Ranjna Sadashiv Sonwane, a tribal woman from Tembhalivillage in Nandurbar, Maharashtra, became the first recipient of the Aadhaar number
§ More than 85M Aadhaar numbers generated so far into the project
§ UIDAI has an install capacity to generate more than 1M Aadhaar numbers/day
§ Initial pilots of Aadhaar authenticated service delivery in critical government programs such as § Financial Inclusion§ Employment Guarantee Schemes§ Various Subsidy Disbursement
Over 85 million Aadhaars issued till date; estimated 150 million enrolments completed in field
UIDAI: Unique Identification Authority of India
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21 / CMD’11 / DECEMBER 13, 2011 /
Aadhaar - A multi-step approach
TodayTrial phase
TomorrowProduction phase
200 million ID numbersValue of $500M
1.2 billion ID numbersPotential value of $1,200M
Backend biometric engines
Authentication enabled services
Morpho/L-1 currently have leadership positions on trial phase; contracts yet to be awarded for production phase
Suppliers yet to be selected
Safran is the only contractor across the 3 markets
Suppliers yet to be selected
After tomorrowServices phase
Potential value > $1,300M
Field enrolment services
Biometric devices
Backend biometric engines
Field enrolment services
Biometric devices
Authentication transaction terminals
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22 / CMD’11 / DECEMBER 13, 2011 /
Aadhaar - Morpho’s current positioning
Strong presence in current opportunities. Strategically positioned for enduring Aadhaar Leveraged “Authentication” business
Leadership position across all program
segments
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23 / CMD’11 / DECEMBER 13, 2011 /
Aadhaar - The road ahead
Market potential$300-325M
Leverage Morpho’s end-to-end biometric value chain capability to be a key biometric enabler in India
§ Lead market making and guide costumer aspirations§ Market potential of over 85M terminals§ Capture 10% market share
§ Leverage Morpho’s e2e competence for market making§ Focus is volume transaction sectors; i.e. banking,
social schemes, travel, education
Market potential$1bn
Authentication enabled services
Authentication transaction
terminals
Enduring authentication-led services built on Aadhaar foundation
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24 / CMD’11 / DECEMBER 13, 2011 /Q3 REVENUE 2011 / OCTOBER 21, 2011 /
Biometrics IDJ.Westerouen Van Meeteren - Managing Director Morpho BV
/ December 13, 2011 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
25 / CMD’11 / DECEMBER 13, 2011 /
ID Documents integrating biometrics
TechnologiesèBiometrics
èEmbedded software & Cryptography
èSecure printing
èSecurity / certification
Market driversè Increased National Security & Combat fraud
è Standards & mandates (ICAO, ISO/IEC)
è European regulations: ID1 & Polycarbonate§ Driving License (Chip/biometrics optional (2013))§ Residence Permit (2011) (Chip/biometrics mandatory)§ Vehicle registration card (Chip optional)
è Recycle 1st generation ePassports (2006)§ 2nd generation ePassports
è Growth in Latam & Asia§ Trend towards high-end products
è Multi-application solutions§ The path to convergence (border control, payment, health)
è U.S.§ Opportunities for travel documents§ Gradual acceptance of smart ID credentials
ID1: Credit card formatICAO: International Civil Aviation OrganizationISO: International Standards OrganizationIEC: International Electro technical Commission
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
26 / CMD’11 / DECEMBER 13, 2011 /
ID & ePassport management market
Source: Safran, IMS-2010
Iden
tity
man
agem
ent m
arke
t >> Market by application
ePassport
National eID
Driving License
eHealth eVoting
2010 2014E
CAGR+11%
€2.0bn
€3.0bn
>> 2-digit CAGR growth
€2.0bn
Ann
ual s
hipm
ents
(in
units
) >> National eID
>> ePassport2010 2014E
CAGR+10%
2010 2014E
CAGR+12%
Source: IMS-2010
250M
371M
66M
104M
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
27 / CMD’11 / DECEMBER 13, 2011 /
ID & ePassport management market: regional trends
è Identity projects growing in each part of the world driven by:§ The launch of new large National Identity programs: India, Germany, Russia, etc.§ New services: eGovernment Services, eHealth, Automated Border Control§ A demand for an increase security (Real ID, ePassport, eVoting) and interoperability: eVisa
Source: Safran, IMS-2010
20%
39%
15%
26%
Europe
Middle-East Africa
America
Asia Pacific
€2.0Bn
€2.0Bn
€3Bn€3Bn
2010 2014
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28 / CMD’11 / DECEMBER 13, 2011 /
Sdu acquisition strengthening the offering
TECHNOLOGY
è Vast experience in setting up and operating a production facility§ Including personalisation
è Solid experience in passport technology: Polycarbonate, secure printing, binding technology, ImagePerf, lens structures (protected by patents)
è Product Development§ 3D Photo ID§ ePersonalisation Software § Enhanced security features (matt surface, colour
personalisation, transparent window, ...)
COMMERCIAL
è Leverage customer base to secure new markets§ Renewal Dutch contract passport and ID card§ Mauritanian passport and ID card
è Leverage cross-selling ID Documents & ID Systems§ Turnkey solutions§ Concession
ú North Carolina driving licenseú Albania passport and ID card
èMilestones§ SDU acquisition in September 2008
§ Market leader of ePassports in Europe§ Business synergies c.€30M consolidated at end 2011 in Morpho bv§ Enables more than €80M per annum (2012 estimate) additional revenue for ID solutions in Morpho
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29 / CMD’11 / DECEMBER 13, 2011 /
Tactile relief
ImagePerf/TLI
Colour personalisation
3D Photo ID
Photo substitution is a key risk, and remains the number one abuse of travel documents
Security features: how to prevent photo substitution
TLI: laser technology
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30 / CMD’11 / DECEMBER 13, 2011 /
ID Document references
(e)ID Cards§ Albania§ Aruba§ Botswana§ Brazil (Bahia state)§ Columbia § Costa Rica§ Ghana§ Guatemala§ Honduras§ India§ Ivory Coast§ Kazakhstan § Kosovo§ Lebanon§ Mauritania§ Nigeria§ Philippines§ Peru§ Spain § UAE
Resident Permit/immigration/Voting§ UK (Asylum seeker)
§ Malaysia§ Mexico
§ Netherlands
ePassports§ Albania§ Croatia§ Finland§ Ireland
§ Kazakhstan§ Mauritania§ Netherlands§ Romania§ Slovakia
§ Switzerland
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31 / CMD’11 / DECEMBER 13, 2011 /Q3 REVENUE 2011 / OCTOBER 21, 2011 /
From L-1 ID to MorphoTrustLeading U.S. Identity Company
R.Eckel - President and CEO MorphoTrust USA Inc
/ December 13, 2011 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
32 / CMD’11 / DECEMBER 13, 2011 /
Former L-1 ID: A U.S. leading identity solutions provider
Secure Credentialing Enrollment ServicesBiometrics & Enterprise Access Solutions
§ Major North American provider of secure credentialing solutions for both Federal and State programs
Ø Contracts with 42 out of 50 U.S. State Department of Motor Vehicle Agencies
Ø Produce over 100 million credentials annually
§ Global supplier of multimodal biometric solutions
Ø Leading iris and facial recognition capabilities
Ø Deep relationships with US Federal Agencies
Ø Impressive portfolio of intellectual property
Ø Turnkey solutions
Passports, IDs
Kiosks
HIIDE
PIER
3D Face Reader
IBIS
26% of L1-ID 2010 revenue
§ Major North American provider of biometric based identity vetting for Federal and State programs
Ø Operates over 1,200 enrolment centresØ Across the U.S. and CanadaØ Captures 2+ million identities annually
including biometric & biographic data
30% of L1-ID 2010 revenue 44% of L1-ID 2010 revenue
è L-1ID has developed its activities as a U.S.-based end-to-end identity solutions provider with integration, deployment and ongoing support services
è Involved in mission-critical programs for the U.S. government across Federal, State and local agencies, with expertise and an installed base creating a strong barrier to entry
è Until the acquisition by Safran, L-1 ID was organized in three operational divisions, totalling $450M in revenue, > $1bn in backlog, and about 1,300 employees (2010 figures)
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33 / CMD’11 / DECEMBER 13, 2011 /
Acquisition dates and expected 2011 contribution
è The acquisition of L-1 ID activities by Safran was:§ Announced on September 20, 2010§ Completed on July 25, 2011
è L-1 ID estimated contribution to Safran 2011 accounts (5 months) is in the range of:§ $200M revenue§ $30M EBITDA§ $8M recurring EBIT
è L-1 ID integration into Morpho organization is well underway
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
34 / CMD’11 / DECEMBER 13, 2011 /
Secure credentials business environment
è L-1 ID is the leader on the U.S. Secure credentials market having developed strong positions with U.S. State and Federal government agencies§ Federal credentials (U.S. Passport & Passport card,
Border crossing card)§ Driver license solutions in the U.S. (current supplier
in 42 states)
è Estimated market CAGR 2010-2014: c.10%
è Growth drivers for 2012 and beyond§ State & Local
§ Modernization of Driver License (DL) legacy systems (Front back office)§ Increased demand for more secured, higher value DL credentials§ Consumer self-service solutions (kiosks for renewal, web)§ Citizen identity management (verified benefits enrolment)
§ Federal§ New ePassport components§ Boarding pass & document authentication at airports
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
35 / CMD’11 / DECEMBER 13, 2011 /
Enrollment Services business environment
è L-1 ID is the leader in the U.S. Enrolment services market with 1,200+ centres in 46 states§ Federal programs account for 20% of revenue (TWIC,
Hazmat, etc...)§ State and local agency applicant services programs
(banking, insurance, education, etc...) account for 70%of revenue
è L-1 ID has also developed a strong presence in Canada, where market is growing fast
è Estimated market CAGR 2010-2014: 10-15%
è Growth drivers for 2012 and beyond§ Citizen Identity Management - Universal Enrolment Services
§ Leverage extensive nationwide enrolment centres to provide a “one-stop-shop” services for all identity needs (Federal and State)§ Expanded vetting of Government and private sector employees (health/senior care, child care,
education, finance, etc...)§ TWIC and Hazmat program upgrades
§ U.S. Citizen Immigration Services Application Centres - Vetting of Green Card holdersTWIC:Transportation Worker Identification CredentialHazmat: Hazardous materials
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36 / CMD’11 / DECEMBER 13, 2011 /
Biometrics & Enterprise Access business environment
è L-1 ID biometric activities serve U.S. and non-U.S. governments as well as commercial customers
è Technologies are complementary to Morpho’s§ Multimodal biometrics platform§ Livescans and mobile terminals§ Iris, facial recognition
è 2011 revenues impacted by customer decision inertia in context of protracted ownership execution
è Estimated market CAGR 2010-2014: c.10%
è Growth drivers for 2012 and beyond§ De facto biometric solution provider to a number of U.S. Federal Agencies
§ Leverage into other State and Federal opportunities
§ Emerging democracies adopting biometrics to ensure citizen receive benefits as deserved§ Deployment of infrastructures (systems, enrolment and ID verification equipments, ...)§ Leverage on mutli-biometrics capability and broader geographical reach with Morpho
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
37 / CMD’11 / DECEMBER 13, 2011 /
Integration synergies
è $30M annual run rate synergy plan is confirmed and currently being implemented
§ L1-ID HQ closure
§ Rationalization of sites
§ Rationalization of international sales teams
§ Rationalization of R&D
§ Rationalization of other support and operations
§ Sourcing synergies
ü Completed
On-going
On-going
On-going
On-going
On-going
Full target of run rate synergies to be realized by 2013 (i.e. within 18 to 24 months from closing date)
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Secure Credentialing Enrollment Services
MorphoTrust (US Proxy Company)Other Morphocompanies (US, Int’al)
Biometrics & Enterprise Access Solutions
Former organizationas L-1 ID
New organization within Safran
c. 80% of formerL-1 ID perimeter activity
c. 20% of formerL-1 ID perimeter activity
L-1 ID / Morpho integration main principles
è All former L-1 ID U.S. government related activities are re-grouped in a Proxy Company, MorphoTrust§ Operating under a NSA (National Security Agreement)§ Designed to protect U.S. citizen Personally Identifiable information and technology critical to U.S. National Security§ MorphoTrust positioned to expand in the field of solutions and services delivered to U.S. Federal and State and local
government customers
è In order to ensure optimized level of synergies§ Other former L-1 ID U.S. activities (biometric terminals, etc.) are merged with Morpho’s existing U.S. identification business
company, MorphoTrak, to optimize synergies§ Non-U.S. former L-1 ID activities are merged with Morpho existing structure
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L-1 IdentitySolutions
§ Biometrics (hardware/software)
§ Enterprise Access Solutions
§ Secure credentials
§ Enrollment services
MorphoTrust§ US DL Issuance Solutions§ US Federal Credentials§ US Public Safety§ US Consumer Self-service§ US DMV Modernization§ US Citizen Identity Management§ US Identity Verification§ US Privatization Services
MorphoTrust
MorphoTrak and other Morpho comp.§ Enterprise Access§ Biometric hardware devices§ Non U.S.
Other Morphocomp. (non-
Proxy)
$450M rev. in 2010
Est. $400M rev. in 2012
Est. $100M+ rev. in 2012
Transition to MorphoTrust (end 2011)
Share of ex- L-1 ID revenue falling outside of MorphoTrust
Common shared components
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Conclusion
The acquisition of L-1 ID and integration into Morpho brings:
è A highly complementary combination of security technologies and products that are second to none in offering enhanced ID solutions with best-of-class biometrics and secure credential technologies
è A combination of outstanding teams sharing a strategic vision and ideally positioned to address the high growth and attractive potential of the biometric and identity management markets
è A broad geographical fit with balanced operations in 40 countries
è Deep, long term relationships with the vast majority of U.S. State and Federal Government Agencies, positioning MorphoTrust well for classified and sensitive new business opportunities according to CFIUS guidelines
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Q&A sessionSecurity