INTERIM RESULTS 2000/2001

1. INTERIM RESULTS 2000/2001 abc “Cash to Secure Transactions”

2. Highlights for the Period • Operating profit from continuing operations* up 8% • Further improvement in trading position of Cash Systems • Continue to invest in Global Services • Headline earnings per share* up 13% • Strong operating cashflow * before reorganisation costs

3. PAUL HOLLINGWORTH Group Finance Director abc

4. Financial Highlights * Before exceptional items/re-organisation costs

5. Cash Systems • Sales down because of slow sales of larger sorters within Cash Processing and withdrawal from unprofitable account in OEM business • Margins well up at 4.8% as benefits of re-organisation continue to come through • Strong order books going into second half underpins expected upturn in sales • Orders for Ascom Twinsafe II of 700 units received to date and losses should move to profits in second half

6. Additional Cash Systems KPIs 1st half 2000/01 1st half 1999/00 New product sales as a % of total product salesProduct development expenditure (£m) (% of product sales) Sales: product (£m) service/software (£m) 26 7.4 9.6 77.3 42.9 120.2 20 7.8 9.3 83.5 41.0 124.5 • On track to exit the final quarter 2000/2001 at 10%operating margin

7. Security Paper & Print • Comparatives restated to exclude Global Services • Margins improved in banknote business, increased usage of added value security features • Paper volumes down 15% which has impacted profits • India overstocked and unlikely to order paper next year (15% of Portals volumes) • Sales and profits up at DLR Tapes on back of strong banknote demand • Good performance in a tight market

8. Security Paper & Print KPIs 1st half 2000/01 1st half 1999/00 Average banknote price (since year end) Value per banknote (order book) Banknote volumes Base/overspill split Paper volumes +3.7% +0.7% 0.0% 78 / 22 -20.5% +6.7% +4.0% +9.4% 79 / 21 -14.7%

9. Global Services • Reported on separately for the first time • Change in nature of Microsoft contract depressed salesbut not profitability • Excluding Microsoft, sales up 10.2% and order book at half year up 20% • Decrease in profits is as a result of planned revenue investment which was forecast last year at a net £5m for the year • Medium term focus is on profitable sales growth

10. Associates • Camelot has increased sales • Licence has been extended to November 2001 - still await outcome of re-bid • Giori order book remains depressed • Actions taken to stimulate sales • Arbitration is ongoing

11. Earnings per Share

12. Cashflow / Borrowings / Interest

13. IAN MUCH Chief Executive abc

14. Cash Systems • Excluding Ascom, first half margins were 4.8% • Second half orderbook well up on comparable period last year • New product sales have risen to 26% • Ascom progressing well with 700 orders on Twinsafe II - exceeding expectations

15. Cash Systems • TCR8000c - first orders received • Service accounts for 30% of divisional sales and are up 6% compared to first half last year • Well placed to see significant sales pick up in second half and confident of exiting year at 10% margins

16. Currency • Sustaining high margins • Selling more high value security features • Second paper making machine converted to wide thread • Involved in euro production (JV) • Sales force now fully integrated • Continue to drive sales through differentiated customer and technology strategy

17. Security Products • Jon Marx appointed MD in February 2000 and making significant operational improvements • New factory for DLR Tapes almost completed • Changing focus away from more traditional markets to newer areas such as e-commerce and solution sales • Going into second half with good order book, particularly for passports

18. Global Services • Strategy is centred around protection of payment, identity and brand • Global Services well positioned in growth markets utilising shared capabilities of the Group • Orderbook going into the second half is 20% up on comparable period, excluding Microsoft

19. Global Services • Transaction Services making good progress in mobile phone top-up market • Brand Protection has secured new customers • Holographics has euro accreditation and secured first orders • IDS has won new contracts, Mexico, Macao • InterClear fully operational by first quarter of 2001

20. Cross Divisional Initiatives • Greater degree of collaboration on number of initiatives around the Group • Group R&D • Regional Sales Directors • Group Procurement

21. Outlook • Strong orderbook going into second half, underpins expected pick up in sales • Cash Systems on track to achieve 10% exit margins • Some improvement in Giori trading expected in second half but still likely to incur loss

22. Summary • Global Services up and running • Continue to make progress in Currency, Security Products and Cash Systems • Clearly committed to a growth strategy

23. INTERIM RESULTS 2000/2001 abc “Cash to Secure Transactions”