1. Custom Fit Revenue Solutions WCO KNOWLEDGE ACADEMY 3 RD JULY 2014

2. Agenda Problem DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS Illicit Trade Compliance & Standardisation Regional Impact Challenges Solution Next Steps ProblemSolution Next Steps

3. Illicit trade is not a generic problem Smuggled. It was estimated that during 2012, smuggled cigarettes across the globe totalled 659bn pieces, equating to roughly 11.2% of global cigarette consumption. (source TMA August 2013) Counterfeit. Public health – a survey conducted in the UK by MS Intelligence on behalf of the tobacco Industry in 2011 found cigarettes containing asbestos, mould and human excrement. Tax Evasion. Evasion can be in country by hiding behind complex supply chains. So why consider an off the shelf solution? Problem All products are vulnerable Illicit trade affects many different types of products including alcohol, pharmaceuticals, software and luxury goods DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS Illicit Trade Compliance & Standardisation Regional Impact Challenges Solution Next Steps

4. Asia. Domestic illicit cigarette volumes highest in Pakistan and Philippines estimated at 25 billion Europe. The European Commission proposal for a revised Tobacco Products Directive outlined two measures: a tracking and tracing system and security features Africa. Illicit trade is estimated to account for 24% of overall retail volume sales in South Africa Middle East. In 2008, 23.6 billion cigarettes or 16.3% of all cigarettes smoked were illicit, approximately one in every six cigarettes. Mexico. Contraband cigarettes now account for 17-20% of the country’s market, which is now worth US$39 billion Be an individual DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS Problem Illicit Trade Compliance & Standardisation Regional Impact Challenges Solution Next Steps

5. Establish an international tracking and tracing regime, for all tobacco products manufactured or imported and require that “unique, secure and non-removable identification markings” are affixed to unit packets and packages within 5 years. These functions shall not be performed by the tobacco industry, but they can be asked to bear any costs associated with the project WHO Protocol to Eliminate Illicit Trade in Tobacco Products: Working together to ensure that… “…all Members of the WCO have the capability to influence, construct and manage policies which meet national requirements, regional and international obligations; and implement and sustain the appropriate operational policy, support systems and procedures to meet these obligations.” World Customs Organisation Compliance & Standardisation DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS Problem Illicit Trade Compliance & Standardisation Regional Impact Challenges Solution Next Steps

6. De La Rue. 200 year old currency printer. We’re passionate about open empowering customs, involving stakeholders and open technology. SICPA. Ink supplier, programmes in Brazil and Turkey. DCTA. Tobacco together, direct to product codes Beer. How do you even know there is a problem. Where is the data from? Many more...... Navigating the private sector DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS Problem Illicit Trade Compliance & Standardisation Regional Impact Challenges Solution Next Steps

7. There are many critical challenges to overcome: Choosing - technologies, moving to verification and traceability Designing - the ideal solution with room for future upgrades Achieving - smooth implementation and return on investment Avoiding - industry interference Challenges Who can help? Choosing an experienced partner is fundamental in overcoming the key challenges DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS Problem Illicit Trade Compliance & Standardisation Regional Impact Challenges Solution Next Steps

8. Paper stamps Highly secure features Directly applied codes Stamps & Codes Solution Problem Order Management Code Management Stamps & Codes Order Management Service & Support Mobile Authentication Code Management Award winning design Our highly experienced designers incorporate secure and innovative features Production Line Integration Next Steps Production Line Integration Mobile Authentication Service & Support DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS

9. Secure web-based system Efficient administration tool Validated authorisation of stamps & codes Order Management Stamps & Codes Solution Problem Order Management Code Management Stamps & Codes Order Management Service & Support Mobile Authentication Code Management Always in control Management and visibility of the supply chain 24/7 Production Line Integration Next Steps Production Line Integration Mobile Authentication Service & Support DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS

10. Configurable code format Secure, dynamic and unique Encrypted transmission between authorised sites Real-time data interrogation Code Management Stamps & Codes Solution Problem Order Management Code Management Stamps & Codes Order Management Service & Support Mobile Authentication Code Management Unique digital identity Each product has its own individual code that can be traced throughout its lifecycle Production Line Integration Next Steps Production Line Integration Mobile Authentication Service & Support DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS

11. Secure connections between central database and manufacturing operations Real-time monitoring of manufacturing capability & quality control Overall improved security Protecting the integrity of the end to end operation Production Line Integration Stamps & Codes Solution Problem Order Management Code Management Stamps & Codes Order Management Service & Support Production Line Integration Mobile Authentication Code Management Complete visibility Be safe in the knowledge that all aspects of your supply chain are operating as you are expecting Next Steps Production Line Integration Mobile Authentication Service & Support DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS

12. Secure connection to the central database Real-time evidence for law enforcement Remote interrogation of stamp or code Offline verification and online encrypted authentication Mobile Authentication Stamps & Codes Solution Problem Order Management Code Management Stamps & Codes Order Management Service & Support Mobile Authentication Code Management Peace of mind Providing additional evidence where needed Production Line Integration Next Steps Production Line Integration Mobile Authentication Service & Support DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS

13. Technical consultancy Commissioning & delivery Maintenance & servicing Data and business intelligence Service & Support Stamps & Codes Solution Next Steps Problem Order Management Code Management Stamps & Codes Order Management Service & Support Mobile Authentication Code Management Looking after your investment Our experts work throughout the life of the contract to ensure that your objectives are met Production Line Integration Mobile Authentication Service & Support DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS

14. What do we need to know Problem. Find out what the problem is..... Data. Understand the volumes Key players. Speak to industry Legislation. Understand national and international legislation Products.... Packaging..... Processes Personnel. Enforcement. Training. Technology. Mobile authentication or overt security. Implementation & Timelines. Data.... In country, back-up? Taking action Solution Next Steps Problem What do we need to know? Fair tendering Setting standards Contacts Compliant Working with you to meet national and international standards DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS Ask for our needs analysis document....

15. Supplier qualification. Size, experience, quality, transparency. Solution specification. Ownership, access to data, open technology, don’t get locked in. Implementation. Experience, look for cultural awareness and easy to business with. Service. Buying Process. Allow time. Set up a tender committee. Involve industry. Face to Face. Q&A. Funding. Phased implementation, World Bank, WCO. Fair tendering Solution Next Steps Problem Trusted partner Governments around the world trust De La Rue to deliver sensitive projects on time and on budget DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS What do we need to know? Fair tendering Setting standards Contacts

16. Standard terminology RFP Guidelines Ethics initiatives Measuring success – contract management & KPI’s Data quality & accessibility Open technology Setting Standards Solution Next Steps Problem First line of defence Everything we do is designed to protect our customers DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS What do we need to know? Fair tendering Setting standards Contacts We need to set standards

17. Contacts Solution Next Steps Problem Looking forward to discussing your unique project in more detail and answering any questions you may have Helen Cochrane Government Revenue Solutions Tel: +44 (0) 7917 277 893 Email: helen.cochrane@uk.delarue.com Corporate Email: governmentrevenuesolutions@uk.delarue.com Phone: +44 (0)1256 605000 Post: De La Rue plc, Jays Close, Basingstoke, Hampshire RG22 4BS DE LA RUECURRENCYCASH PROCESSINGPASSPORTS & IDENTITYGOVERNMENT REVENUE SOLUTIONSFINANCIAL & SECURE DOCUMENTS What do we need to know? Fair tendering Setting standards Contacts