De La Rue PLC Interim Results 26 Nov 2002 Overview

1. De La Rue plc Interim Results 26 November 2002

2. De La Rue plc Ian Much Chief Executive

3. De La Rue plc David Finnett Group Financial Controller

4. Trading Summary • Results down, as expected • Operating profits from continuing operations* £14.5m down from £31.0m • Profit before tax* £19.6m down from £35.6m • Cash Systems sales down • Currency profits down as predicted (new designs) • Action being taken to rationalise Security Products’ manufacturing operations • But fundamentals have not changed • Better second half outlook supported by improving prospects in Cash Systems and strong order book in Currency • Strong, balance sheet with low gearing (just 8%) despite £17.0m net expenditure on acquisitions/disposals and £32.4m on share buy-back in first half • Dividend increased by 4.8% to 4.4p per share * Before reorganisation costs and goodwill amortisation charged to operating profits

5. Financial Summary

6. Cash Systems • Sales from continuing operations down 16.9% and operating profits down £10.1m to £4.3m. Lower margins in first half as a result • Delays in ordering in eurozone has been primary factor • Currency Systems (CSI) also experiencing delays in ordering decisions for several major projects by US casinos and commercial banks • OEM, Service, Retail businesses, however, all in line with expectations • Acquisitions - Serbatech - Papelaco

7. Security Paper and Print • New designs in banknote order book affected first half performance in Currency • Banknote paper profits and margins down, as expected • Security Products’ weak. Action being taken to rationalise manufacturing base and reduce overheads • Reorganisation charge taken in first half, of £17.7m, £11.6m of which is cash

8. Global Services • Sales disappointing, down 7.3% to £17.9m and division incurred a loss of £2.5m • Action taken to reduce overheads • Identity Systems - timing delays on major projects affected first half • Holographics’ revenues affected by reduced demand in banknote sector • Acquired Sequoia Voting Systems in May, performance in line with expectations

9. Associates • Profits down in first half as expected • Last year’s result affected by one-off costs (bid and new licence) • Main associate now Camelot plc, UK national lottery operator • New licence period; • Shareholding decreased to 20% • Contribution per 100p down from 1.0p to 0.5p

10. Earnings per Share

11. Cashflow / Net Debt

12. Share buy back • To date De La Rue has acquired for cancellation 11 million shares (5.65%). Cost £32.4m • Currently have authority from shareholders (July AGM) to acquire up to 10% of issued capital • Further authority being sought from shareholders to approve an extension to De La Rue’s existing authority • Upper limit raised from 10% to 14.99% • Extraordinary General Meeting • Circular to shareholders shortly

13. De La Rue plc Ian Much Chief Executive

14. Cash Systems • Service business continues to perform strongly • Since half year Financial Institutions order book in eurozone largely recovering, except Germany and Spain • Situation partly offset by strong trading in USA and Switzerland • USA now largest market for equipment • Papelaco acquisition; • Integration completed in first half • Launching self service range in several key European markets (most developed first) • Recently secured first banking self service outsourcing contract (hardware and software) for large European commercial bank • Currency Systems (CSI) – commercial environment, as outlined in September, remains unchanged

15. Cash Systems • Retail Payment Solutions • Focusing on large retailers initially in USA and UK markets • Trials underway with several key retail customers in these regions • Chinese Joint Venture agreement with Nantian Electronics signed in September 2002 • Long standing trading relationship • 51% shareholding De La Rue • Operations to commence early 2003 (subject to regulatory approval from Chinese authorities) • Customised product range in development • Continue to see underlying expansion opportunities through; • Service (e.g., Serbatech) - approximately 30% of total sales • Expanding and improving product range (organically and by acquisition) • New geographic and marketing opportunities

16. Currency • Banknote business remains strong • New designs issue resolved in first half • Good order book and visibility of earnings underpins second half result • Focus now on fulfilment • Closure of Singapore banknote factory on track • Savings in 2003/2004 • Reorganisation of four worldwide printing factories nearing completion • Volumes unaffected • Improving situation for banknote paper next year • Expect return to historical ordering patterns next year • Knock on effect for Currency components businesses (particularly Tapes)

17. Security Products • Management of Security Products and Global Services • Interim arrangements • Future focus on sales and marketing • Reorganisation of manufacturing operations on track • Capacity reduced through closure of High Wycombe. - Agreement over closure now reached with union and employee groups • Acquisition of House of Questa gives separate focus for gravure printing going forward • Further progress in reducing divisional overheads • Total factory and overhead savings of £7m (indicated £5m in September) • Some benefits in second half of this year • De La Rue Tapes outlook improving

18. Global Services • Action taken in first half to restructure central overheads (in conjunction with Security Products’) • Identity Systems • Substantial base of long term government contracts • Significant interest in large scale national identity, passport and drivers’ licence projects • Size and complexity of projects increasing • Longer decision cycles as a result • Holographics affected by decrease in demand for currency components arising from Currency and general eurozone situation. Second half outlook better

19. Sequoia Acquisition – May 2002 • Increasing levels of activity in US markets • Secured 4 counties in Florida for November 2002 congressional elections • Also involved in California and Washington • Help America Vote Act 2002 • US$3.9bn over 4 years in Federal funding (plus matching State funds) • UK opportunities

20. Outlook • In line with trading update in September; • Strong order book in Currency, particularly banknotes • Expect market for banknote paper to return to historical ordering patterns and volumes • Improving situation continues in Cash Systems’ Financial Institutions in most of the eurozone • Strong market in USA for Cash Systems • Continuing strong performance in Cash Systems’ service business • Action to reduce cost base in Security Products and Global Services – some second half benefit

21. De La Rue plc