Annual Report 2016

As a global leader in digital security, Gemalto brings trust to an increasingly connected world.

2016 demonstrates the strength of Gemalto’s business model and ability to adapt. 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. The Company’s gross margin exceeded 40% for the first time in its history

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Financial highlights 2016

  • Revenue

    • +1% at constant exchange rates
  • Profit from operations

    • 2015: €423m
  • Cash generated from operations

    • 2015: €425m
  • Gross margin

    • 2015: 39.0%
  • Return on
    Captial Employed (ROCE)1

    • 2015: 12%
  • Net debt

    • 2015: €335m
  • Profit margin
    from operations

    • 2015: 13.5%
  • IFRS basic
    earnings per share

    • 2015: €1.56
  • Cash dividend
    per share

    • +6%
1Adjusted financial information
2016 Financial Review Download

Chairman and CEO reviews

Alex Mandl

“The diversity of our offers allows us to balance out our challenges with our successes."

Alex Mandl Chairman
Philippe Vallee

“We have adapted well to fast-changing technologies and markets."

Philippe Vallee Chief Executive Officer

What we do

We deliver technologies that both authenticate identities and protect data to a wide range of organizations, thereby bringing trust to the digital economy.


We embed secure software in devices and objects to authenticate people and things.


We run secure software on platforms to protect and encrypt data across networks.

Securing access to mobile banking and encrypting trillions of dollars of inter-bank fund transfers.

More on mobile banking

Cutting identity fraud by checking whether official ID documents are genuine or fake

More on ID verification

Protecting valuable data for enterprises so that it’s unusable in the event of a breach

More on data protection

Powering the contactless payment user experience from cards, mobile phones, wearables and more

More on contactless

Delivering the hardware and software to connect cars and turn mobile phones into keys

More on connected cars

Providing software companies with licensing and protection solutions for their Intellectual Property (IP)

More on software monetization

How our technology creates value

Our technologies are based on two essential, interlocking processes:
authenticating people and things, and protecting
data by encrypting it.


How our offer has diversified

Gemalto develops secure software. We embed it in devices or, increasingly, sell it as platforms or services. Our core technology has evolved over the years to serve new markets with better user experience.


Our strategy and objectives

Our strategy

Lead with innovation

We invest early and significantly in selected opportunities.

Retain our market neutrality

We offer and operate our solutions using a white label approach so that our clients can maintain a direct and trusted relationship with their customers.

Replicate technologies worldwide

We use core technologies in different sectors that need security, replicating our experience over industries, geographies and time.

We build our offer around a common services infrastructure.

Maintain operational flexibility

We invest in acquisitions in order to accelerate access to complementary businesses, new geographies and adjacent markets.

We maintain a robust financial structure with low debt ratios.

We reached €1bn in Platforms & Services revenue, one year ahead of the current multi-year development plan

Profit from operations

In October 2016, Gemalto announced that the 2017 profit from operations is expected to be between €500 million and €520 million. This outlook reflects a very adverse mobile environment and slower than anticipated migration of payment cards in 2017. It also takes into account plans for increased investments to capture growth beyond 2017.



Supporting the switch to digital

The payment ecosystem is undergoing a digital transformation, as new technologies, regulations and players lead to fresh customer expectations. We provide financial institutions with solutions for physical and digital payment as well as security for digital banking services.

$1 trillion

Value of remote
(mobile and online)
transactions 2021

Source: Jupiter Research

2016 success stories

How Norway’s post office is getting instant ID verification all wrapped up

How do you counter identity fraud? Norway’s national post and logistics service will soon be able to, using our ID verification technology. Specialized scanners will enable branch staff to detect if an ID document is genuine by instantly checking it against our global database. Using our secure solution Norway’s national post will become a trusted third party verifying customer identities for banks and other service providers in the country.


postal outlets

Cloud-based mobile payment supporting Apple Pay in Japan

Gemalto and Dai Nippon Printing (DNP) are providing a cloud-based payment service supporting Apple Pay. This service provides credit, debit, and prepaid card companies with a cloud-based payment solution to deploy highly secure payment with smartphones thanks to a tokenization technology which replaces a credit card number with a surrogate number. Major credit card issuers have announced their participation in Apple Pay, so they can offer their customers this convenient and private way to pay

Enterprise Security

Protecting data and software

More information than ever is being created, stored and shared across the cloud, IoT and mobile environments. Yet since 2013, there have been almost six billion data breaches. We help enterprises protect their sensitive information with encryption, strong authentication and software licensing solutions.

1 billion

Data records exposed by
breaches in 2016

Source: Breach level index

2016 success story

Helping YES BANK become a leader in India’s next-generation online payments system

YES BANK is one of India’s largest banks and a front runner in implementing the country’s new Unified Payments interface. This enables account holders to send and receive money from their smartpones without entering any bank account information. Our HSM platform (Hardware Security Module) provides the keys for digital signing with end-to-end security and encryption that make it a payment process people can trust.

Government Programs

Providing strong identities

The public sector globally is progressively migrating from a paper-based culture to an electronic one, offering citizens the convenience of accessing services online while cutting fraud and red-tape. We help governments adopt eGov services and eID schemes using secure documents and robust digital identity solutions.

3.6 billion

eDocuments in circulation
in 2021
Source: ABI Research

2.2 billion

in 2016

2016 success story

Piloting digital driver’s licenses in the US

Through a grant awarded by the U.S. National Institute of Standards and Technology (NIST), Gemalto is partnering with Colorado, Idaho, Maryland and Washington D.C. to pilot digital driver’s licenses (DDL) in these jurisdictions. Building on a common need for trusted infrastructure, the pilot responds to the growing trend towards consumer mobility and digital dependence, especially among those aged 18–29. Serving as a companion to the physical ID card, this interoperable, smartphone-based solution will address enrolment,document updates, attribute sharing and law enforcement.

Mobile Communications

Connecting individuals and things

The mobile channel has created a vast range of new opportunities – from payment to eGov services and secure cloud access for enterprises. Some 450 of the world’s mobile operators work with us to secure access to authenticate users, protect data and optimize their networks using client-server solutions.


connected eSIM devices
per customer in 2020

Source: Mücke Sturm 2016

2016 success stories

Orange teams up with Gemalto and Samsung to launch smartwatch

Now you can leave your smartphone at home. This Samsung smartwatch has a built-in eSIM that allows you to receive calls, messages and app notifications synchronized with your phone – wherever your phone may be. To launch the watch in France, Orange chose Gemalto to provide the secure solution that makes all this possible.


The first device equipped
with an eSIM

Creating a network of networks

With IoT-connected devices now in the billions, finding a solution that makes it easier to deploy innovative connected services across multiple countries would simplify design, manufacturing and deployment processes. Working with Bridge Alliance, a partnership of over 35 operators serving more than 750 million customers in Asia, the Middle East and Africa, we have developed an interoperable specification for instant connectivity that allows any IoT device to connect to any Bridge Alliance affiliate’s network.

Machine-to-Machine (Internet of Things)

Connecting, Securing and Monetizing the IoT

The Internet of Things (IoT) is a network of billions of smart objects exchanging data and transforming it into actionable intelligence. We work with enterprises, OEMs, mobile network operators and cloud service providers to bring connectivity and security to the IoT and help them get a return on their investment.

501 million

wearable devices
shipments by 2021

Source: ABI Research

2016 success stories

Connecting cars throughout their life-cycle

Gemalto is fitting PSA Group’s next generation of connected cars with its On-Demand Connectivity solution, giving the group, which includes Peugeot, Citroën and DS, complete flexibility over subscription management throughout the automotive life-cycle. The solution, which can be deployed across all models and regions, allows the automobile manufacturer to customize connectivity packages to different customer and market needs around the world, as well as manage their fleet and software updates remotely.

32.5 billion

total number of IoT
in 2026

Source: Berg insight

7 billion

in 2016

Securing China’s IoT market

Gemalto has teamed up with Alibaba to provide connectivity and security for YunOS, Alibaba’s cloud-based data and services-oriented IoT operating system which connects cars, smart homes and mobile devices all across China and other regions. Our trusted solution allows easy provisioning of security sensitive applications throughout the identity life-cycle management, creating a uniform identity framework for disparate IoT applications.


Where we do it

Our clients are based in over 180 countries – so our global presence is a vital asset. We can share our international experience locally and provide solutions adapted to specific conditions.

48 countries where we are based

112 offices worldwide

119 nationalities of our employees

43 personalization and data centres

19 production facilities

180+ countries where our clients are based

3000+ R&D engineers

30 research and software development centres