11425 zetes annual report 2013 en business activities light

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Being fast is great. But it’s nothing without being clever. _ZETESCHRONOS : FULL VISIBILITY ON DELIVERY PROCESSES

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ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING IN TODAY ZETES ANNUAL REPORT CONNECTING WHAT MATTERS


VIDEO 'Zetes' activities. Goods ID and People ID '

ACTIVITIES From bar codes to today's supply chain and government solutions, Zetes' success has always lain in its ability to innovate and evolve. Via its public and private customers, ordinary citizens and consumers are the ultimate beneficiaries of our progress. Zetes' activities began in 1984 with the introduction of barcodes, a technology that has enabled many companies to increase their productivity and efficiency. Since then, the company has maintained a constant lookout for the most effective technological solutions to the challenges facing its customers. It has frequently pioneered the implementation of these technologies, investing heavily in research and development over the years. In parallel with this, Zetes has made major efforts to understand its customers' needs and processes, so as to be able to advise on the most appropriate optimization technologies. Zetes' many investments over the decades have given it a unique positioning in both the supply chain and people authentication markets. Not only has it developed unique knowledge and know-how in each individual sector, it has also created convergences by constantly building bridges between the different aspects of its activities. Our customers' investment decisions generally originate from a concern to provide a better service to consumers and citizens. They are the ultimate beneficiaries of Zetes’ solutions.


ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING TODAY

GOODS ID

In 2013, Zetes adapted its Goods ID offering to accelerate growth and meet the expectations of customers facing a fastchanging environment dominated by the need for traceability and visibility.

3 decades of investment in supply chain automation Based on its long experience of supply chains and to meet current business needs, Zetes introduced a suite of solutions in 2013 that target the problems specific to each stakeholder in the chain. These improve performance, make them more competitive in terms of productivity and also help them comply with recent legislation on traceability and counterfeiting. This suite of solutions for a collaborative supply chain has its roots in the history of the company and the technological investments made during 30 years in business. • 1984: Formation of Zetes Belgium, pioneering the use of barcodes in retail. • 1991: Introduction of Europe's first proof of delivery solution in Spain. • 2000: First investment in print & apply for identifying goods in production. • 2000: Investment in voice, to improve warehouse picking performance. • 2009: Investments in vision technology (or ImageID), to improve and speed up shipping processes.

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"Zetes' collaborative supply chain has its roots in the history of the company and the technology investments it has made during its 30 years of existence."

Symbiosis between the collaborative supply chain and advancements in traceability, improving services to consumers. In a symbiotic way, each technology has spawned new applications. This accumulation of expert knowledge of customers' operating sectors, a thorough understanding of their processes and of automatic data capture technology, has enabled Zetes to develop the current offering of its Goods ID division. Today the division approaches its markets with standard software solutions based on the above technologies. In this way, each link in the supply chain finds an answer to its particular needs. The creation of a centralized database also makes it possible to interconnect all players in the chain. A need to exchange data on the movement of goods is particularly acute in sectors such as pharmaceuticals, luxury goods and food, which are confronted with counterfeiting, consumer health concerns and other issues.


100,000 warehouse operators

INNOVATION

work with Zetes, voice recognition solutions

ZetesMedea – Morrisons – UK

A suite of standardized solutions In addition to its own technology R&D, Zetes has made numerous acquisitions to expand its geographical coverage, generally targeting companies whose employees possess detailed market knowledge. These new subsidiaries have adopted the Group's technology solutions, while usually retaining their own solutions in order to capitalize on the expertise of employees and their investments in research and development. In this way the Zetes collaborative supply chain encapsulates the experience of different experts in different territories. The current standardization meets a need for simplification, cost rationalization and globalization. Companies with subsidiaries in several countries are increasingly looking for a pragmatic and rational approach to supply chain management. Standardized solutions enable a consistent approach, implemented by local expert teams. Management of applications in the cloud In recent years, the concept of the cloud has appeared on the corporate scene and is becoming increasingly popular, given the ease of management applications that the system offers and reduced investment outlays required. This model is, however, difficult to replicate in a

supply chain environment. Unlike an office environment, there is no guarantee that all operators are working with mobile devices and have internet connectivity. A tool adapted to the needs of these players but offering the same benefits was required and this is exactly what the MCL Mobility Platform does. This is marketed with several Zetes' solutions, enabling customers to reduce their IT infrastructures and simplify applications management. The main benefits the MCL Mobility Platform offers are: • The ability to manage applications in several locations without local IT departments.

• Readiness for future technological developments (both in terminals and operating systems) as the platform allows customers to adapt to new situations without a need for major investment in software development.

"The MCL Mobility Platform enables customers to reduce their IT infrastructures and simplify mobile applications management."

• Downloading of new applications from a centralized location. • Automatic updating of terminals and applications. • Scalability, with easy deployment in new locations and easy addition of new users during peak periods. Computing capacity responds elastically to customer needs, without the need to invest in additional infrastructure to handle production peaks. • No additional costs for IT infrastructure and administration.

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ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING TODAY

ZETESATLAS - PRODUCT IDENTIFICATION AND TRACEABILITY ON PACKAGING LINES

ZetesAtlas is a packaging execution system (PES), which manages, secures and enhances the product identification process at the packaging stage.

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VIDEO ‘Datamatrix identification at Bristol-Myers Squibb’

Counterfeiting and Consumer Safety

Total control of the packaging line

Traceability is definitely the key concern for many production companies. It is necessary in order to combat counterfeiting and to ensure that a quality product is delivered to the end consumer. Recent scandals, mainly in the food sector, as well as consumers' increasing concerns about the environmental impact of the products they buy, have bred a growing number of regulations and companies need to find a way to comply. Where problems persist, it is imperative to organize the quick and efficient return of goods in question. The opportunities for ZetesAtlas are many, since a significant number of companies are still looking for a solution to comply with this reality, which is barely a decade old.

The ZetesAtlas solution interfaces with a company's ERP system to manage the tools that mark the products leaving production lines. This approach, which greatly reduces manual intervention, can considerably reduce the number of errors. With a single operator, ZetesAtlas can configure all the printers, labelling robots and control cameras which permit the identification of individual products and their aggregation: which products are in which box, which boxes are on which palette, etc. Aggregation of data from one level of packaging to another is critical for efficient traceability. ZetesAtlas is also able to support serialization, i.e. the identification of products by unit rather than by batch.

Moreover, 90% of companies in the production sector are not yet aware of the benefits of an integrated packaging line identification solution.

Combined with ZetesOlympus, which links the company's partners (customers and suppliers), ZetesAtlas provides optimum visibility of product movements.

Potentially interested in this type of solution are the pharmaceutical, luxury goods and food sectors. Other sectors have also expressed interest.


ACTIVITIES

ZETESMEDEA - PROCESS OPTIMIZATION IN THE WAREHOUSE

A highly competitive industry Subject to strong economic pressures, a company’s main objective is to secure high levels of productivity while minimizing costs. Achieving this requires high levels of automation to speed up processes and minimize the number of errors. Accurate, rapid deliveries are a decisive factor in the choice of supplier. The spread of e-commerce also presents growth opportunities for ZetesMedea. The organization of a dedicated e-commerce warehouse is very different from that of a traditional goods distribution warehouse. Serving a larger number of customers with smaller quantities of products, it has its own specific needs. In July 2013, Zetes acquired the French company L4 Epsilon, specializing in the e-commerce sector. Currently, the L4 Epsilon proposition is being integrated into ZetesMedea.

ZetesMedea is a logistics execution system that improves the efficiency of warehouse processes. It helps reduce costs, permits error-free execution of operations and provides real-time visibility of warehouse events by integrating advanced technologies like voice and ImageID.

This solution is of primary interest to the retail and food sectors, both in traditional business and e-commerce.

VIDEO ‘Voice picking at Système U’

Visibility from reception through to shipping Zetes pioneered the introduction of voice recognition in warehouse processing. Since then it has successfully advanced the technology and extended it to other areas such as order picking. Within ZetesMedea, voice is the solution that still presents the greatest level of opportunity. Based on the MCL Voice system, the ZetesMedea Voice solution is a powerful system with operators no longer requiring training, or having to record their voice profiles, but able to start working immediately. Moreover, unlike other voice technologies, MCL Voice offers a choice of different hardware suppliers and allows voice to be combined with other data capture technologies. Zetes has also developed a dock door control module, based on ImageID technology, which enables trucks to be loaded faster, while reducing errors. The ability to manage all warehouse processes is an important competitive advantage for Zetes, allowing the user to track a product from the point at which it enters the warehouse to when it leaves.

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ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING TODAY

ZETESCHRONOS - OVERALL VISIBILITY OF THE DELIVERY PROCESS

ZetesChronos is an advanced mobile Proof of Delivery (POD) solution. Designed to control the full range of collection and delivery processes, it offers real-time visibility of the movement of goods and related employee activities, from loading of goods to delivery, ensuring traceability at every stage of the delivery process.

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VIDEO ‘Innovative POD solution at Rangel’

Increasingly demanding customers

Next generation ePOD

Like the warehousing sector, the transportation sector is having to adapt to a changing marketplace and especially to e-commerce, which is resulting in larger numbers of smaller deliveries. This calls for an adaptation to working methods and, by extension, to the solutions that automate these processes. An increasing number of customers are also demanding same-day delivery. This requires a very high degree of flexibility which, together with rising fuel prices and fierce competition, makes process optimization a central concern for transportation and logistics companies.

The majority of parcel and courier delivery companies have already made the transition from paper processes to automatic data capture solutions, but the ePOD solutions they use tend to focus on digitizing collection and delivery processes and therefore on improving the performance of individual drivers. Zetes proposes a next-generation solution that improves both the performance of company employees as well as the image of the business itself. This is made possible by integrating tools that link the back office and business intelligence.

Proof of delivery solutions are of particular interest to postal services, parcel and courier delivery services, the retail sector and logistics service providers.

Many opportunities also remain in the retail sector, where the use of paper remains widespread for proof of delivery. The real differentiator for Zetes is, however, the MCL Mobility Platform, which can manage all the terminals and applications in the cloud.


ACTIVITIES

ZETESARES - DIRECT STORE DELIVERY FOR IMPROVING SALES

ZetesAres is a complete Direct Store Delivery solution designed to increase sales through better customer management. Embracing orders, sales, delivery, asset management and maintenance, it transforms salespersons into highly efficient and reliable advisers, selling the right product at the right place and at the right time.

Selling more and better

Ergonomics and ease of use

Marketing is one of the main factors that leads companies to opt for direct instore sales solutions, with a professional presentation of products to enhance their brand image. In addition, they are keen to provide a better service to customers in order to be more competitive and increase sales.

ZetesAres operates on tablets, allowing easy access to information about products and a pleasant and ergonomic design. With all applications combined on a single device, a salesperson can close a sale faster and quickly calculate the amount of stock still available in the van.

In the cosmetics sector, a direct in-store sales solution helps combat grey markets by gaining better control of distribution channels. It is also of interest to niche food businesses, which face strong competition and a need to differentiate themselves.

Like ZetesChronos, ZetesAres uses the MCL Mobility Platform, but its appeal lies in its comprehensive functionality. In addition, being part of the "collaborative supply chain" portfolio means it can be connected to other links in the supply chain including ZetesAtlas, for effectively combating counterfeiting.

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ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING TODAY

ZETESATHENA - SMART IN-STORE MANAGEMENT

Shop

ZetesAthena is a complete solution for the creation, storage and deployment of in-store management applications in the cloud. From reception to stock-taking, from repricing to replenishment, from access to product information to click & collect, data management is centralized and simple, with no requirement for heavy investment.

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Difficulties faced by multinationals in managing applications

Reduced investment and ease of management

Here too, new buying habits are strongly influencing companies' technology decisions. Increasingly, well-informed customers are using a growing number of channels to check the price and availability of products and then make purchases. This implies first, that store chains need to offer multiple distribution channels and, secondly, that they require full inventory visibility, both at the branch consulted and others (to redirect the customer if necessary), product information, etc. Addressing the loss of potential sales due to ‘out of stocks’ is a primary challenge.

Solutions to improve store processes are widespread and generally offer very similar functionality. Zetes has an important differentiator with the MCL Mobility Platform. This is advantageous for retailers with a large number of stores to manage, particularly in the clothing and luxury goods sectors, as well as airport shops and concessions. Using the platform minimizes their IT investments at each point of sale.

The multiplication of distribution channels calls for very accurate inventory management as well as shipping and returns. Many stores go out of business daily because they lack processes adapted to this new reality. Here too, fierce competition and the economic environment are pushing companies to find ways to reduce their investment.

ZetesAthena customers have an advantage in terms of time spent by their employees dealing directly with customers rather than on administrative and technical tasks. The solution also allows a more fluid exchange of information between different branches of the same chain, including stock availability data. In combination with ZetesMedea and ZetesChronos, ZetesAthena offers a perfect solution to manage processes affected by the multiplication of distribution channels.


ACTIVITIES

ZETESOLYMPUS - END TO END TRACEABILITY FROM PRODUCTION TO CONSUMER

Shop

ZetesOlympus is the central component of the Zetes Collaborative Supply Chain. It acts as a unified database and can interface with information sources, both internal and external to the company, to know at any time, what has taken place, when, where, and involving whom.

Protecting brand image

Total visibility

Opportunities for ZetesOlympus are strongly linked to those of ZetesAtlas, insofar as the main purpose of ZetesOlympus is to ensure better product traceability by sharing data between the various links of the supply chain. All partners have access to information, with the production company acting as the initiator and biggest beneficiary. Whether the issue is one of product quality or counterfeiting, it is the brand’s image that is in danger. Branded goods manufacturers are keen for this type of database, to be able to track goods from the time of manufacture until sale to the consumer.

In the supply chain field, Zetes is the only company to offer a range of solutions that simultaneously improve the processes of each individual link and pass up product information instantly to a central database. The visibility obtained on the movement of products throughout the supply chain is particularly useful for the pharmaceutical, luxury goods and food sectors, which face more pressing issues of counterfeiting or traceability regulations.

ZetesOlympus can also be used to track containers. Each year, companies lose large sums of money due to the loss of pallets, carts, plastic containers, etc. ZetesOlympus can locate these assets within the company itself, or with a customer or supplier, saving the customer money and also reducing its environmental impact.

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ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING TODAY

Zetes’ Collaborative

N° 20202020 Lot 202 2020/20/02

Product Identification Serialisation

N° 20202020 Lot 202 2020/20/02

N° 20202020 Lot 202 2020/20/02

N° 20202020 Lot 202 2020/20/02

N° 20202020 Lot 202 2020/20/02

N° 20202020 Lot 202 2020/20/02

N° 20202020 Lot 202 2020/20/02

Data Aggregation

Box Labelling

Pallet Control

Pallet Labelling

N°217 Mr Johan Schmitz

1 N°217 Mr Johan Schmitz

Proof of Delivery

Store

Proof of Delivery

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Put Away


VIDEO ‘The collaborative supply chain’

e Supply Chain Solutions Product X Quantity Y

Go to location XY, pick 1

Put Away Replenishment

Inventory

XY, 1 OK

Order Picking

Kitting

Dock Door Control

Shop express

12x

Shop �pres�

Direct Store Delivery

Location X Quantity Y

Location X Quantity Y

N°217 Mr John Smith

go to AB, put 6

COLLECT

AB, 6 OK

N°217 Mr John Smith

Replenishment

Price & Promotion Management

Inventory

Sales Escorting

Click & Collect

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ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING TODAY

A solid partner

Geographical proximity

Companies are looking for partners with the technical and human resources to support them in projects that are of crucial importance for their organizations. In a market that remains highly fragmented, Zetes has:

Zetes' Goods ID activity requires geographic proximity to customers: knowledge of local cultures and the ability to respond quickly. The Group is therefore seeking to expand its presence, through acquisitions or by organic growth and be present where companies are developing their activities. As the European leader in automatic identification, it intends to further strengthen its position in the coming years. The unique network developed in this way also enables it to respond to the needs of multinationals seeking solutions and equipment uniformity.

• The critical size required for deploying large-scale projects; • A solid financial base, enabling it to make significant investments, particularly in infrastructure; • A network of offices across 15 EMEA countries, for supporting our customers' international projects.

Direct Presence

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Countries Served

"Zetes' geographical coverage enables the Group to be close to customers, to correctly define their needs and intervene rapidly on the ground."


ACTIVITIES

Growth opportunities

Safety legislation and brand protection are leading companies to

invest in traceability

Europe Europe is Zetes' historical continent, on which the company has developed a large network of subsidiaries. This geographical coverage enables the Group to be close to customers, correctly define their needs and intervene rapidly on the ground. Despite the uncertain macroeconomic situation in Europe, there are still growth opportunities for Zetes as follows: • Geographically: There are still many opportunities for Zetes to be present and strengthen its leadership position. • In terms of business needs: Identification and traceability needs are changing, particularly in terms of security, legislation, brand protection and multiplication of sales channels. These changes reflect a growing desire to protect and satisfy consumers, who are increasingly discerning about the origin and quality of the products they buy. • Technologically: with its size and financial solidity, Zetes can dedicate international teams to develop solutions in line with market needs and thus stay a step ahead of the competition. Africa In South Africa, Zetes has five sites in four cities: two in Johannesburg, and one each in Cape Town, Durban and Port Elizabeth. The African continent offers great development potential with an acute need for traceability and supply chain solutions. The most promising sectors there involve capitalising on the continent's many

ZetesAtlas – Brystol-Myers Squibb – France

natural resources, and manufacturing, which is booming. In addition, South Africa is an ideal access point to the entire subSaharan region. Two continents, one supplier Zetes' presence in both Europe and Africa offers a big advantage to companies that operate on both continents. The Group is able to offer the same level of service everywhere. As supply chains go global, multinational companies are starting to look for so-called "glocal" solutions: a global approach but with local services and support.

"As supply chains go global, multinational companies are starting to look for so-called 'glocal' solutions."

In the highly fragmented automatic identification market, Zetes is the only company able to provide this level of service. Our approach has won Zetes several major contracts and this trend is expected to continue in the years to come.

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ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING TODAY VIDEO ‘E-voting solution’

PEOPLE ID

In 2013 Zetes signed several long-term contracts (Belgian passport, biometric visa in Senegal, Gambian passport, and others). These will begin to generate revenue during the course of 2014.

10 years at the top of the security market For the past decade, Zetes has been one of the most influential players in the identity and travel documents sector. With its contracts for social identity cards, biometric passports and visas, driving licences and electronic identity cards, Zetes' portfolio of customer references has expanded on both European and African continents. New initiatives such as the "Your eID, making life simpler" campaign by the Belgian authorities, serve to highlight the many applications of electronic identity. Zetes is very much at the forefront here, with, in particular, the launch of the Zetes eaZySign platform. This enables the legally binding electronic signature of documents and their subsequent storage in a secure environment. The potential market for applications such as these is huge, with many countries still having to move into the electronic age or adopt high-accuracy biometric authentication.

"Many countries still have to move into the electronic age or adopt high-accuracy biometric authentication."

Zetes has developed a full product range spanning live citizen enrolment to the issuance of identity documents. In recent years it has also added a fixed biometric enrolment station and an e-gate for automated border control. It has also updated its mobile enrolment kit, as used in electoral census operations. The main advantages of its new model are ergonomics (or ease of use) and a high degree of autonomy.

Innovation and references as growth factors Zetes has chalked up a number of innovative achievements, including: • First large-scale deployment of the electronic ID card in Belgium in 2005; • World première with the biometric enrolment of over 25 million Congolese voters in 2006; • Ivorian biometric passport, a ‘nec plus ultra’ document incorporating live biographical and biometric recording, in 2008; • Gambian passport with simultaneous integration of biometric information (iris) and fingerprints in 2013.

Secur-eVote

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States need visibility of populations residing in or passing through their territories

Enrolment site - Banjul - Gambia

The electronic voting solution is also being improved constantly. Faster, more efficient and more reliable than paper voting processes, electronic voting helps ensure voting confidentiality, offers immediate and reliable counting with guaranteed integrity and control tools, and reduces paper-related errors by eliminating manual reading and counting. All solutions offered to customers, whether software, hardware or a combination of the two, require great robustness and guarantees of security. Zetes has therefore sought certification of the highest standards, such as ISO27001, for IT security. The successful project completions in Belgium have allowed Zetes to expand elsewhere in EMEA. The reasons for focusing on this region are many. Investment in business development is sizable, plus sales cycles are long and require sustained effort. The choice of Africa as a target market is easily justified: many states there want to strengthen their national registries. The identification and localization of populations are critical tools for policy development. African leaders have clearly understood the value of biometrics to ensure accurate citizen authentication.

"Most calls for tenders for identity and travel documents require certifications and extensive references." Apart from the countries already mentioned, Zetes has also deployed its solutions in Togo, Burundi, Gabon, Cape Verde, Benin,

Chad, Israel, Sierra Leone and Portugal. The company's good reputation is closely tied to the success of these projects. This accumulation of customer references is essential and guarantees the growth of Zetes’ People ID business. Most invitations to tenders (RFT) for identity and travel documents require certifications and extensive references. Zetes is therefore well positioned to continue its growth.

Personalizing the Belgian passport From 2014, the Zetes Group will be responsible for the personalization and distribution of electronic passports for Belgian citizens. The Group will rely on processes that have already been widely tested in similar projects and on a secure computing infrastructure. Nearly 400,000 passports will be personalized each year. Zetes will also take in hand the distribution of passports to authorities. By integrating this last link, Zetes reinforces the watertight nature of the entire process and further reduces the risk of theft or fraud. Particular emphasis is also placed on the quality of the photo in the new passport. In 80% of cases, this is the parameter on which counterfeiters operate. This photo is therefore reproduced in multiple places in the document.

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ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING TODAY VIDEO ‘Election preparations in the DRC’

"The comprehensiveness of Zetes' offering enables a country's authorities to entrust a single supplier with the implementation of what for it are highly complex projects"

Control of the entire production chain Over the years and using the most innovative technologies, Zetes has developed a portfolio of solutions covering the entire value chain leading to the production and control of secure identity and travel documents. These include: • Concurrent biometric and biographic enrolment • Secure data transfer • Centralization and creation of population databases or registers

• Data reading and identity control (administration, border control, elections, etc.). The reason for the Group's success lies partly in the comprehensiveness of its offer, enabling a country's authorities to entrust a single supplier with the implementation of what it regards to be highly complex projects. Citizen identification: a challenge for each state

• Document production

People identification solutions are intended for states and governments, for whom a good view of the populations residing on or passing through their territories is essential, including and in particular for:

• Document personalization

• organizing democratic elections

• Information control and elimination of duplicates

• Secure transportation of documents

• controlling migration flows

Personalization of the Gambian passport and delivery of e-gate station In October 2013, Zetes won the contract for the personalization of Gambian passports. This 15-year contract is an excellent showcase of Zetes’ full range of skills, which include responsibility for: • Establishing a secure site, benefiting from the expertise of its Belgian site, achieving ISO 27001 certification • The enrolment of passport applicants, using fixed stations, developed and produced by Zetes • Creation of a centralized database combining two types of biographic and biometric data (iris and fingerprint) • Secure data management • AFIS deduplication • Personalization of the passport • Secure delivery of the document • Automated border control through an e-gate developed and produced by Zetes.

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ACTIVITIES VIDEO ‘Using the eID on smartphone and tablet’

4,250 mobile kits

• administrative management • human resource management (e.g. civil servants, police, military personnel).

delivered in Uganda in 2014

The main challenge facing states in this area is to combat identity theft and counterfeiting. Where authentication projects emanate from governments, citizens also benefit from a secure identity, enabling them to prove that they are who they say they are and thus to exercise their rights, to access government services and to cross borders. Priority to data security of citizens People identification touches on the concepts of privacy and confidentiality. It is therefore imperative to provide maximum assurances of security both in the management of data and in the documents themselves. This translates into several measures:

Mobile enrolment kit

• "Live enrolment": based on fixed and/ or mobile kits, Zetes' solutions ensure unity of time and place when collecting biographic and biometric information.

• Holding ISO 27001 certification for the secure management of sensitive information.

• Data encryption for both transferring information and restricting access to certain data contained in a document to its owner only.

Zetes continues to invest constantly in this area, to assure authorities and citizens of the highest levels of data protection. Very good visibility for long-term People ID contracts

• The use of advanced materials and techniques in document production to ensure their non-counterfeitability.

"The Senegalese, Gambian and Belgian contracts won in 2013 will contribute to the division's results from 2014 onwards."

The business model within People ID is based on "Build & Operate" (BO) and "Build & Transfer" (BT) contracts. BO contracts involve projects for producing secure documents (e.g. Belgian and Israeli identity cards, Ivorian biometric passports). These are concessions granted by states for periods extending over several years. Such contracts require significant frontend investment, but the recurring revenue they generate over time offers considerable

visibility and predictability to the Division. The Senegalese, Gambian and Belgian contracts won in 2013 will therefore contribute to the division's results in 2014. BT type projects, most of them currently in Africa, are more limited in time frame. These are biometric enrolment projects used for elections, censuses of officials, etc. In this case, Zetes takes responsibility for developing an infrastructure that is transmitted on a turnkey basis to the client. Thereafter, Zetes offers additional support services relating to project management, technical assistance or training. In March 2014, Zetes signed a contract to deliver 4250 mobile registration kits to Uganda.

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ZETES ANNUAL REPORT 2013 | CREATING TOMORROW BY INVESTING TODAY

Enrolment

AFIS

At this initial stage, the biographical and/or biometrical data of each person to be identified are recorded with the aid of fixed or mobile identification stations.

Thanks to a high-performance information checking system (AFIS or Automated Fingerprint Identification System), Zetes searches for duplicate entries. If the system finds that identical biographical and/ or biometrical details exist more than once, an alarm is raised and the identities of the people involved are verified.

Centralisation

Database / national register

Once personal data has been recorded, it is centralised in a single, structured database. The data is transferred in an encrypted manner via satellite communication, the Internet, or digital media.

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VIDEO ‘Overview of People ID activities’

Once all the data has been verified, a reliable database is available that, if necessary, can be used to prepare a population register. A register of this sort is still currently lacking in many countries.


PASSEPORT

ACTIVITIES

Document delivery

Control

When handing over the document, a civil servant re-checks the citizen's biometric data. If the document contains encrypted data, the citizen will have previously received a PIN code which, for increased security, may be changed at the time of delivery.

The information gathered is verified against the existing database. The implementation of biometry and AFIS allow the detection of fraudulent individuals attempting to present themselves under a false identity.

B

Production / personalisation The verified data can also be used to produce and/or personalise secured documents. These documents include electronic ID cards, biometric electronic passports, visas, driving licences, voter cards and social security cards.

Online applications The electronic identity card allows remote identification on the Internet, giving access to a number of applications and secure portals. These can be private or public, such as electronic signing of documents or tax returns in Belgium.

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