© DataCard Corporation. All rights reserved. TRENDS IN eGOVERNMENT Drivers, applications and technologies

© Entrust Datacard Corporation. All rights reserved. MARKET DEFINITIONS- GOVERNMENT FINANCIAL CONSTRAINTS CREATING STRUGGLES TO HANDLE GLOBAL MEGA TRENDS 2 Government resources are becoming increasingly strained due to these mega trends Mega trends disproportionally impacting Government security & efficiency needs Governments cannot afford to continue to operate as they have Globalization Urbanization Digitization Are all asymmetrically impacting Governments worldwide TOO MUCH PAPER POINT PRODUCT LIMITATIONSDRIVE TO MOBILECYBERSECURITY Paper-based or manual processes are expensive, error-prone and highly vulnerable to fraud Point products approach increase number of vendors, often cause vendor clash issues, require re- investment for expansion or enhancement Governments deployed old ID systems that are difficult to upgradeable to handle new mobile requirements Secure credentials and systems are needed to ensure security postures are not reduced by adopting digital services

© Entrust Datacard Corporation. All rights reserved. MARKET DEFINITIONS- MEGA TRENDS HIGHLIGHT NEED FOR TRUSTED DIGITAL SOLUTIONS 3 What Operational Problems Are They Trying to Solve? Transaction Costs Entitlement Costs Citizen Service Levels Digital transactions cost 20% less than phone 30% less than post 50% less than in-person Estimated 10% of benefits spending consumed by fraud $800B annual problem worldwide Elevated expectations Citizens no longer accepting 9-5 access

© Entrust Datacard Corporation. All rights reserved. What Security Problems Are They Trying to Solve? MARKET DEFINITIONS— CUSTOMER SECURITY PROBLEMS 4 Lost & Stolen Passports 40M in circulation Passing Through Borders $320B in drug trafficking $32B in human trafficking $320M in firearms Increase in Terrorism 43% in 2014 Improving Security

© Entrust Datacard Corporation. All rights reserved. MARKET DEFINITIONS — GOVERNMENT ENVIRONMENT 5 Global government spending on IT is still rising $431B $476B Digital WorkplaceMulti-Channel Citizen Engagement Citizen e-IDE-Gov PlatformsInternet of Things FOCUSING ON PHYSICAL AND DIGITAL SECURITY WHILE INCREASING CONVENIENCE AND PRODUCTIVITY Hybrid Cloud

© Entrust Datacard Corporation. All rights reserved. CREDENTIALING Key markets will see growth in the adoption of Gen 2 & Gen 3 ePassports - Requires new chips and more advanced issuance infrastructure & PKI - Higher security documents will require HW replacement - eVisa and stamps present opportunity International travel increase driving need for faster and more accurate passenger clearance Significant events are requiring action -Publicity of recent security lapses accelerating the adoption of Interpol Lost/Stolen database -Terrorism and criminal activity driving demand for traveler auth -Schengen European Border situation at crisis level Increase in adoption of ICAO PKD will see more countries validating documents at the border -All border validation requires the deployment of country side PKI infrastructure -Existing PKIs will need an upgrade path for Gen 2 & Gen 3 ePassports MARKET DEFINITIONS- KEY TRENDS BORDER CONTROL AND PASSPORTS Key markets will see growth in the adoption of Gen 2 & Gen 3 ePassports International travel increase driving need for faster and more accurate passenger clearance Increase in adoption of ICAO PKD will see more countries validating documents at the border

© Entrust Datacard Corporation. All rights reserved. MARKET DEFINITIONS- KEY TRENDS IN HIGH ASSURANCE ID 7 HIGH ASSURANCE ID Escalation/globalization of nation state attacks against governments is significant Data breaches exposing sensitive employee information Mobile employees need credentials for access to corporate systems

© Entrust Datacard Corporation. All rights reserved. MARKET DEFINITIONS- KEY TRENDS IN HEALTHCARE 8 HEALTHCARE Data breaches have occurred and exposed citizens’ most sensitive information; Healthcare breaches average ~$350 per record to remediate Cost and error reductions driven by digital health record initiatives will require trusted interoperable ID Client experience improvement to manage billing

© Entrust Datacard Corporation. All rights reserved. SMART CARDS IN GOVERNMENT APPLICATIONS Government IDs are leveraged and used to help penetrate the unbanked paired with a banking application. Use of internationally recognized standards, such as EMV and ICAO, to bring additional functionality to credentials outside of passports and banking cards. Partnerships and joint vendors to combine resources and expertise to enable and help governments better understand how best to implement secure e- government services (Secure Identity Alliance, Veridos) Leveraging credentials to enable secure access to e-government services. 9

© Entrust Datacard Corporation. All rights reserved. SMART CARDS IN LATIN AMERICA The Smart Card market in Latin America in the Government sector was valued at US$100.4 million in 2014 and is expected to reach US$193.9 million by 2019, growing at a CAGR of 14.1 percent. 10

© DataCard Corporation. All rights reserved. NID ID1 ISSUANCE GROWTH 12%CAGR 11 NID ID1 Personalisation Technology By Annual Issuance Volume

© DataCard Corporation. All rights reserved. DL ID1 ISSUANCE GROWTH 5%CAGR 12 DL ID1 Personalisation Technology By Annual Issuance Volume *Note: Excludes China & Japan

© DataCard Corporation. All rights reserved. PASSPORT BOOK ISSUANCE GROWTH 5%CAGR 13 Passport Personalisation Technology By Annual Issuance Volume