Dual Interface Technology Update EuroForum 2014 Munich Agenda 1/ - PowerPoint PPT Presentation

Dual Interface Technology Update EuroForum 2014 Munich

Agenda 1/ Dual Interface Technologies 2/ Cards Market: Dual Interface Banking 3/ Conclusions

Agenda 1/ Dual Interface Technologies

SOME HISTORICAL FACTS • First developments of Dual Interface Cards took place in the mid 90 th First patents were filed in the late 90 th • • But, the market was not ready for DI cards at that time • Some companies expected a pure sublimation from contact cards to contactless cards and stopped their dual interface activities BUT NOW THE MARKET IS HERE But let’s talk about the technologies first . . .

POLYMER BUMP Throughput: approx.: 2.000 cards /h (source: Mühlbauer)

AFC Throughput: approx.: 1.200 cards /h

Conductive Glue Throughput: approx.: 1.500 cards /h (source: Ruhlamat)

Direct Soldering Card Body Lamination Antenna + tin Inlay Cavity Milling Throughput: approx.: 1.200 cards /h Hot Melt lamination & (source: Smartrac) Module Embedding & Module Pre Solder Module connection & test

Inductive Coupling Card Body Antenna Inlay Lamination Cavity Milling & Double Side Module Module Embedding &test Throughput: approx.: 4.000 cards /h

INDUCTIVE COUPLING ADVANTAGES

Investment Level for Dual Interface Technologies Ind. Coupling If you are already equipped with an embedding machine the level of investment for Inductive Coupling is 0€! Ind. Coupling

Cost Calculation per Card Inductive Coupling Detailed calculation is available under NDA for discussion

Reliability Inductive Coupling: No connection of modules and antenna => No Achilles Heel Processability Inductive Coupling: Common lamination and implanting process Cost effectiveness Inductive Coupling: No investment necessary Highest throughput per hour

SPS TECHNOLOGY ADVANTAGES Identity Banking & Transport Solution independent from Chip & OS • Lowest Card cost • Lowest Card Cost • PC & PET compliant with same • No Investment Inlay • High Reliability • One industrial line for • Mature and Worldwide used Contact/Dual/Hybrid/Contactless technology • Large choice of PC cards • 5 lines embossing structure

Agenda 2/ Cards Market: Dual Interface Banking

Banking Smart Card Annual Shipment 1,000 900 800 700 SPS Source ContactLess 600 Contact 500 Dual 400 300 200 100 0 2010 2011 2012 2013 2014 2015 2016 2017 Banking Cards installed 2,000 1,500 Plastic Card 1,000 installed 500 Smart Card 0

Banking smart card - Annual Volumes 60 50 40 SPS Source ContactLess Contact 30 Dual 20 10 0 2010 2011 2012 2013 2014 2015 2016 2017 Banking Cards in circulation 250 200 150 Plastic Card installed 100 Smart Card installed 50 0 2010 2011 2012 2013 2014 2015 2016 2017

Brasil Banking Smart Card Annual Shipment 200 180 SPS Source 160 140 120 ContactLess Contact 100 Dual 80 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 Bank cards in circulation 1,000 500 Plastic Card installed Smart Card installed 0 2010 2011 2012 2013 2014 2015 2016 2017

China Banking Smart Card Annual Shipment 1,400 1,200 1,000 SPS Source ContactLess 800 Contact 600 Dual 400 200 0 2010 2011 2012 2013 2014 2015 2016 2017 5,000 4,000 3,000 Plastic Card installed 2,000 Smart Card installed 1,000 0 2010 2011 2012 2013 2014 2015 2016 2017

Banking smart card - Annual Volumes SPS Source 60 50 40 ContactLess Contact 30 Dual 20 10 0 2010 2011 2012 2013 2014 2015 2016 2017 Bank cards in circulation 180 170 160 Plastic Card installed 150 Smart Card installed 140 130

Worldwide Figures Cards in Circulation : 10.200 Mu A high penetration of EMV Smart Card is expected in the World (49% to date - 73% in 2017) Banking cards in circulation 14,000 12,000 10,000 8,000 Plastic Card installed Smart Card installed 6,000 4,000 2,000 SPS Source 0 2010 2011 2012 2013 2014 2015 2016 2017

Worldwide Figures Strong growth in Dual Interface Cards (2 ½ billion and 66% in 2017) Banking Smart Card Annual Shipment 4000 3500 SPS Source 3000 2500 ContactLess Contact 2000 Dual 1500 1000 500 0 2010 2011 2012 2013 2014 2015 2016 2017

FURTHER MARKETS Governmental Cards: • ID Cards • Driver License • Military Cards • Resident Permit Health Cards: • Health Card and Health Professional Card Public Transport Access: • PKI • Time & Attendance

Agenda 3/ Conclusions

CONCLUSIONS • The Dual Interface Market is one of the fastest growing markets at this time • The requirements on reliability of DI cards will continue to increase • We will face continuous selling price erosion of 5% to 15% per card The Inductive Coupling Technology from S-P-S helps you to master this challenges

Thanks for your time and attention For further questions, please contact: Bernhard F. Wernberger Managing Director ARE CON GmbH & Co. KG Stau 144, 26122 Oldenburg, Germany Mobile: +49 160 907 13 587 wernberger@are-con.com