Presentation

Décembre 2014

Technology for e.ID & Contactless Solutions

132 million cards delivered

since 2001

50 million passports delivered

since 2006

103 CITIES IN 27 COUNTRIES

The Technology Inside Secured Documents for

Identity and Mass Transit

Algiers Florence Monterrey San Diego

Atlanta Helsinki Naples San Francisco

Bogota Lisbon Nice Singapore

Brisbane London Orlando Sydney

Cancun Los Angeles Oslo Tel Aviv

Caracas Marseille Panama City Turin

Casablanca Medellin Paris Valencia

Chicago Mexico City Porto …

Denver Miami Pretoria

Dubai Minneapolis Riga

13 COUNTRIES

United KingdomUSA France Israel

Belgium

Greece

Philippines

Ivory Coast Gabon

Lesotho Mozambique

Uzbekistan Sierra Leone

2

TRADITIONAL TECHNOLOGY

ASK Technology: an Innovative Answer to Security

and Reliability Issues

3

Copper wire Antenna

ASK TECHNOLOGY

Unique process: direct connection of the chip to a

silver ink printed antenna

Reliability

Adaptability

Security

Efficient Industrialization

CONTACTLESS CARDS

Products & Solutions Tailored For Each Market

4

Governments Mass Transit Operators

E-COVERS AND INLAYS

Integrators(Gemalto, De La Rue, Giesecke & Devrient,

Oberthur, Morpho/Safran)

5

The Electronic Identity Document Market (e.ID)

DRIVERS

Increased security requirements: domestic as

well as on borders (biometry, cryptography,

data protection)

Seamless controls

Reliability and durability of the documents

International standardization (ICAO standards)

and modernization of administrations

TRENDS

Among the 193 UN members, 95 countries

deliver electronic passports

Extension of ‘‘contactless’’ to other identity

documents (ID, driving licences, residence

permits, etc.)

ID Cards

Driving Licences

Sources : Frost & Sullivan Contactless e.ID Market, ASK

e.ID INLAY MARKET

(in million units)

Passports

+ 22% / year+ 10% for passports

€129m in 2013 Passeports : €91m

192

253

331

420

500528

2013 2014 2015 2016 2017 2018

In 7 Years, ASK Has Become a Worldwide Reference

6

2006

ASK wins the contract to supply e-covers

for Greek ePassports

4.2 million units delivered in 2007 and

2008

Partner: Toppan

2009

ASK starts delivering French ePassports

>15 million units delivered from 2009 to

2013

Partners: Gemalto / Safran-Morpho

2010

ASK wins the RFP for the supply of

British ePassports

10 million units delivered over the

period 2010-2013

Partner: DeLaRue

2012-2013

ASK selected as a supplier of e-covers for

US passports

1.5 million units produced in the US

facility (Burlington, VT) in H2 2013

Partner: Infineon

Customer relationship

Validation phase (product /

interoperability)

Multi-year contracts with 2-3 suppliers

Ordering from contracted suppliers

Partners

Gemalto, De La Rue, Giesecke &

Devrient, Oberthur Technologies,

Morpho/Safran

7

ASK Selected for the US ePassport

Start of mass production: June 2013

1.5 million e-covers

delivered in H2 2013(1)

(1) Sales invoiced by ASK IntTag

CONTEXT

Largest program of electronic passport in the world

≈10 million ePassports issued per year

First discussions in 2004

ISSUES & CHALLENGES

High level of security

Performance requirements: resistance, durability (10 years)

« Chinese wall » between the different steps: Chip, OS,

Antenna, Booklet (GPO)

ASK SOLUTION

ASK technology (silver-ink based e-covers) shortlisted for

the first time in December 2004

End of 2008: launch of the Burlington factory (formerly IBM

premises) where chips for ePassports are produced

2010: partnership with Infineon (chip SLE78), specific tests

2012 : Infineon-ASK et Gemalto-SMARTRAC selected for a

5-year contract (3 million units / year for ASK)

8

Contactless Cards Market

DRIVERS

Unified solutions: multi-modality

Solutions for frequent and occasional

passengers

Seamless controls & secured transactions

Costs / maintenance of infrastructures

Reliability

TRENDS

> 500 cities with over 1 million citizens

worldwide urban population: 6 billion in 2050

Development of mass transit infrastructure

Growing adoption of ‘contactless’ (cards &

tickets)

Mass transit / banking convergence

Banking Cards

Other (Access, Loyalty, Gaming, etc.)

1 276

1 761

2 270

2 830

3 414

3 859

2013 2014 2015 2016 2017 2018

CONTACTLESS SOLUTIONS MARKET

(in million units)

Sources : ABI Research, ASK

Mass Transit Cards

+ 25% / year+ 11% for mass transit

€1,500m in 2013 Mass transit: €500m

2005-2008

2001-2005

A Clear Leadership in Mass Transit

9

1997 - 2000

ASK creates the dual-card technology in

collaboration with RATP and SNCF to

develop the Navigo card and C.ticket

Top cities: Nice and Amiens

Cards: 10 million units per year

Atlanta, Mexico, Velib’, Singapore e-purse

Tickets: 20 million units per year

Hong Kong, Chicago, Florence, etc.

Olympic Games in Beijing

2013Cards: 26 million units per year

4th contract RATP/SNCF (50% market share)

50 cities in France

London, Dubaï, Oslo, Helsinki, Sydney,

Jerusalem, Miami, Denver, Houston, San

Diego, Bogota, etc.

Cards: 4 million units per year

Paris Navigo Card, Lisbon, San Francisco

Tickets: 6 million units per year

Lisbon, Porto

Partners:

Transdev, Keolis, Xerox-ACS, Thales,

Cubic, Novabase, Peajes, etc.

Customer relationship

Validation phase (product /

interoperability)

Multi-year contracts with 2-3 suppliers

Order from contracted suppliers

10

4 million cards delivered

in 2013

ASK: An Answer to Mexico’s Urbanization Challenge

CONTEXT

Mexico City: 8th city in the world - 21 million

citizens

Reorganization of the public mass transit network

in 2005

2 ticketing systems (bus and subway)

simultaneously implemented

ISSUES & CHALLENGES

Find a solution for subscribers / occasional

passengers

Same card frequently recharged (low purchasing

power)

Improve security and speed

ASK SOLUTION

Calypso standard (RATP) selected

for subscribers

2005: Launch of Metrobus, ‘‘contactless’’

rechargeable card

2012: Interoperability of Metrobus, which can be

used as a city card on the Federal District network

EUROPE

Sophia Antipolis (France)

Head office + R&D

115 employees

ASIA

Beijing (China)

300 employees

Production: a global organisation

11

Production capacity:

6 M e-Covers (passports)

Production capacity:

35 M Cards

6 M e-covers (passports)

Production capacity:

30 M inlays (cards)

15 M e-covers (passports)

38 M tickets

UNITED STATES

Burlington (Vermont)

Joint venture

46 employees

Workforce 2014:

461 permanent

staff

388 Prod

26 R&D

20 Sales & Marketing

27 Admin

Industrial transformation in progress

12

REMINDER OF AIMS

Increase gross margin to a level close to industry standards

Increase production capacity to support the development plan

Achievements 2014 YTD :

Transfer of the entire production capacity of Indian site to China in the new Beijing ASK

Smart site. Closure of Indian site effective since 20 September, 2014: €0.8 M savings in a

full year

Increase in production capacity at a more rapid pace than initially planned: more than

700,000 inlays (passports) produced in September

Beginning of the massification of elementary operations (antenna printing in China)

Turnover in the first nine months: +11%

(excluding discontinued or refocused activities)

13

Group turnover per business line 9M 2014 9M 2013 Variation

Passport Inlays 13.5 11.1 +22%

Dual Interface Cards 5.9 4.2 +38%

Contactless Cards 8.4 9.6 -13%

Contactless Tickets 2.6 2.5 +4%

Group turnover excluding discontinued or refocused activities 30.4 27.4 +11%

In M€ - (unaudited data) 9M 2014 9M 2013 Variation

Consolidated turnover 28.4 27.8 +2%

Joint venture turnover(1) 5.1 4.4 +15%

Eliminations (2.1) (1.6)

Group turnover(2) 31.4 30.6 +3%

Group turnover excluding discontinued or refocused activities(3) 30.4 27.4 +11%

(1) ASK IntTag, American joint venture, of which it holds 50.01%, ASK TongFang, Chinese joint venture, of which it holds 50.01%

(2) ASK product sales achieved by ASK and joint ventures net of transactions between related parties

(3) Discontinuation of Low-Cost Inlays activity and refocusing of Terminals activity

Drive for our customers the

necessary "technology migration"

(toward dual cards from magnetic

tickets to banking cards and

phone)

Banking/transport convergence

and rise of mobile

Become THE LEADING

SECURITY REFERENCE in

contactless eID technology

Be innovative in terms of both

technology and services (people &

objects)

ASK: on track for €100 M revenue

15

Contactless SolutionseID Technologies

SecurityConvergence Banking/Transport

Smart Cities

ServicesTechnologies & Systems

Innovation / R&D

Marketing efforts

License / Technology Transfer

Vertical integration

Convergence: Occasional = Banking app

Services: Perso, Data ,Web, Logistics

€19

M

€35

M

€30

M

€70

M

Confirmation of our strategic ambition

15

GROUP TURNOVER

PROGRESSION(ASK + joint ventures) - in €M

€100 M in 2017

2009 2013

22.6

43.9

x2

STRATEGIC PLAN

Identity: Passports to 2/3 new countries per year

+ electronic driving license in the USA

Transport : 3 major cities per year + replication of French

deployment model (50 cities) in the target countries (Portugal,

Mexico, Colombia, UK, Italy, etc.)

Transport industry: customisation - (move up the value

chain)

Transport industry: increase deployment of Contactless

Tickets

Hybrid Cards - Transport / Banking (payment)

Transport Applications for Smartphones

Contactless Payment Cards (innovations, protection against

fraud)

2260 route des Crêtes

06560 Valbonne

France

www.ask-contactless.com

STOCK MARKET DATASHAREHOLDINGS (7,545,221 shares)

12%

21%

7%

26%

34%

Annex - Shareholding

ISIN FR0011980077

Ticker ASK

Reuters ASK.PA

Bloomberg ASK:FP

Stock prices (08/12/ 2014): €5,00

Market capitalisation: €37.7 M

Average daily volume: €76 K

Analytical data:

17

BUSINESSINNOVATIVE

Founders

Innovation

Capital

Management

Other financial

investors

Floating

18

Board

Philippe GEYRES,

ChairmanFormer CEO of Oberthur Card Systems

Former EVP of STMicroelectronics (consumer

& telecom)

Terrence ANNAMUNTHODOPermanent Representative of Equimax

Investments

Investment Advisor of the « Securities and

Futures » Commission in Hong Kong

Léon SEYNAVEPermanent Representative of Troismer

Director at De Persgroep NV

Michel DESBARDPermanent Representative of BlueSky

Capital

Founder of BlueSky Capital

Former Chairman & CEO at Matra

Semiconducteurs

Bruno MOREAUPermanent Representative of Cosette International

Ltd.

Co-Founder of ASK in 1997

Former Head of Development at Innovatron

Valéry HUOTInnovation Capital Permanent

Representative

Former Manager of a CDC secondary fund

Former Head of the ‘‘Bureau de

financement des PME au Trésor’’

18

GOVERNANCE

As of the date of admission of its shares on the regulated market of Euronext Paris, the Company will comply with the recommendations of Middlenext Code, except for the

recommendation to appoint two independent members to its management board. The Company intends to appoint two independent directors: a first independent member will

be appointed within the twelve months following the listing of its shares, and a second independent member no later than 24 months after the listing of its shares.