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SMART CARDSMART CARDGLOBAL RESEARCH UPDATEGLOBAL RESEARCH UPDATE

Including 2010 Production PlanIncluding 2010 Production Plan

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• Research Scope: The new Smart Card Ecosystem

• Global Research Plan – 2010 Smart Cards

• Available Research Reports, 2009-2010

• Consulting Capabilities for Smart Card

• Business Case

• The Smart Card Team and extended Research capabilities

Agenda

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Research Scope: The new Smart Card Ecosystem

eHealthcare

Smartcard Readers

Home Automation

eID (Government ID, Smart Security)

Financial services

Network Operators

Transportation

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Telecom Applications

Approximately two-thirds of smart card business comes from the subscriber identity module (SIM) cards market. The smart card industry is struggling with commoditisation of many of its front runner applications.

Smart card manufacturers are desperately trying to generate revenues using SIM applications (example machine to machine M2M), Trust Service Management (TSM), Near Field Communication (NFC), Over-The Air-Platform (OTA), as well as looking at alternative applications to provide a resurgence in their fortunes.

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Financial services Applications

New applications are emerging and are expected to provide much needed unit and revenue growth throughout 2010, as well as in the long term.

Other established segments, such as payment cards, will continue to provide the market with steady growth, despite the initial slowdown experience by some smart card manufacturers with the completion of the United Kingdom’s Europay, MasterCard Worldwide, and Visa (EMV) migration program.

1,200

1,000

800

600

400

200

2006

World Banking and Loyalty Market – Sample Revenue Forecast

1,400

1,600

1,800

2007 2008 2009 2010 2011

Revenue in

Millions

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Government and eHealthcare Applications

The necessity of identification (ID) in the form of e-passports, national ID, as well as healthcare and welfare cards have erupted over the last 12 to 18 months.

While the initial growth in the national ID market was not as rapid as expected, a steady progress is likely in the medium to long term. Some countries around the world are adopting smart cards for a national ID and this can easily provide a surge in growth.

Security Access eID eHealth

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Global Research Plan – 2010 Smart Cards

Q1Q1

• World Transportation Study

• Smart Cards Industry M&A

• South Korea Smart Cards• APAC Contactless

Convergence• APAC SC IC: Different

Form Factors• Opportunity in Crisis: The

Smart Cards Market 2010 and Beyond (APAC)

• World Transportation Study

• Smart Cards Industry M&A

• South Korea Smart Cards• APAC Contactless

Convergence• APAC SC IC: Different

Form Factors• Opportunity in Crisis: The

Smart Cards Market 2010 and Beyond (APAC)

Q2Q2

• World Cards and IC's Quantitative Forecasts and Market Shares

• Smart Cards Readers & Chipsets

• Smart Cards in M2M

• World Cards and IC's Quantitative Forecasts and Market Shares

• Smart Cards Readers & Chipsets

• Smart Cards in M2M

Q3Q3

• Chip ‘n PIN: Identifying the Next Wave of Growth Opportunities (Analysis of US, E Europe and APAC)

• Near Field Communications

• The Changing Role of SIM and it Impact on Industry Players

• BRIC: What can the Smart Cards Industry Expect?

• Chip ‘n PIN: Identifying the Next Wave of Growth Opportunities (Analysis of US, E Europe and APAC)

• Near Field Communications

• The Changing Role of SIM and it Impact on Industry Players

• BRIC: What can the Smart Cards Industry Expect?

Globa

lGloba

l

Q4Q4

• Trusted Service Manager: The Evolving Role of Smart Cards

• Multi-mode Cards: Vertical Industry Opportunities

• Realizing Growth in Sub-Saharan Africa

• Smart Cards Opportunities and Trends in various Application Areas

• Trusted Service Manager: The Evolving Role of Smart Cards

• Multi-mode Cards: Vertical Industry Opportunities

• Realizing Growth in Sub-Saharan Africa

• Smart Cards Opportunities and Trends in various Application Areas

The following plans are not legally binding, simply an insight into Frost & Sullivan’s planned topics and publishing dates. Titles, timing and scope are subject to change

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Available Research Reports, 2009-2010

CodeRegio

n Existing DeliverablesPosting

Date

N7B7-33 NA World Smart Card Readers and Chipsets Market juin-10

P284-33 SE South Korea Smart Cards Market mai-10

  SE APAC Best Practices for Contactless Convergence mai-10

  SE Opportunity in Crisis - The Smart Cards Market in Asia Pacific 2010 and Beyond avr-10

  NA World Banking and Payment Smart Card Markets - Private MI janv-10

  SE NFC Environment Scan déc-09

N6B1-33 WD Smart Card Management Systems oct-09

N625-33 WD Quantitative Analysis of World Smart Cards Markets sept-09

N62A-33 WD World Smart Card IC Markets juil-09

  NA World Smart Cards Markets - Qualitative Analysis mai-09

N546-33 WD World Smart Card Readers and Chipsets Markets mai-09

N545-33 WD World Corporate Security Smart Card Markets avr-09

P188-33 SE APAC Smart Card Management Systems mars-09

P189-33 SE Profiles of Local Companies in the Smart Card Value Chain in Select Asian Countries févr-09

N544-33 WD World Government Smart Card Markets févr-09

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Frost & Sullivan Consulting Capabilities for Smart Card

Analytical Scope

Business process improvement &

Outsourcing

Marketing Promotion Support

Competitive Intelligence

Distribution & Market Entry strategy

Launch of new technologies

Cost Optimisation programs

Partner search: Tech Transfer Distribution

Commercialisation Opportunity

Customer centricity programs

Portfolio diversification/ M&A

Regional Development Strategic Advice

Strategic Industry Cluster Analysis

Commercial due diligence

Punctual, limited Partner/coach for implementation Role in strategic/organisational change

Broad

Specific

Development/ launchof new products and

services

Accelerated Growth Programs

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Growth Consulting Project Business Case example

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Some of Our Clients…

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The Smart Card Team and extended Research capabilities

Jean-Noël GeorgesGlobal Program Director

ICT - Smart Card

Daniel ShepherdVice President

ICT

Mathieu BeaumontStrategic Sales Manager

ICT

Juan-Carlos EstradaResearch Analyst LATAM

ICT - Smart Card

Damien SeeResearch Analyst APAC

ICT - Smart Card

Telecom ResearchTelecom Research

Healthcare Research

Healthcare Research

TransportationResearch

TransportationResearch

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Jean-Noël GeorgesGlobal Program DirectorICT - Smart CardJean-Noel.georges@frost.comTel. +33 (0)4 93 00 61 87

The Smart Card Team

Strategic Account ManagerICT Practice, EuropeE-mail:Tel: