DZ CARD GROUP2016

DZ CARD representative

Ahmed ALI

Technical Sales Manager, DZ (Africa)

6 years in DZ:- SIM Cards/Scratch Cards/VAS Applet

- EMV/Payments Cards

- Non Telecom-Banking Products

- Sales/account manager

Who is DZ CARD

• Established by current owner/CEO Jørgen Schmidt in Denmark 1971

• Head Quarters now in Bangkok, Thailand

• 900+ employees worldwide

• 9 facilities currently and growing

• 5 VISA/MC certified facilities (6th on the way)

• 80-100 million Financial Cards annually (250+ clients)

• 60-80 million SIM cards annually (40+ clients)

• 400 – 600 million others

DZ CARD is 100% owned by Joergen Schmidt and is as such run on family values, strong ethics and with the aim to deliver the highest quality product at a fair price. The aim is to “make our customers happy”.

DZ Milestones

1971: DZ founded in Denmark

1983: DZ established in Thailand

1991: DZ established in Malaysia

1993: DZ established in Philippines

1995: Graphium (Xponcard, later Oberthur) buys DZ Denmark

2001: DZ established in India

2003: DZ established in Indonesia

2006: DZ established in Africa

2007: DZ established in Latin America

2008: DZ re-established in Denmark

2013: DZ established in Myanmar & United Kingdom

In process are offices/bureaus in Eastern EU, West Africa, East Africa and Scandinavia.

What does DZ produce• Financial cards

– Dual Interface, EMV contact, Magstripe, special card designs and solutions (metal, diamond, surface inks etc.)

• Telecom

– SIM cards, Scratch cards and Application solutions.

• Loyalty

– Complete solutions end-to-end production, system, packaging, design, application, fulfillment etc.

• Government

– ID cards, drivers license, Polycarbonate cards, desktop printer solutions

• Machines

– Reseller of NBS and Fargo machines. Provider of Instant Issuance solutions software and machinery.

• Technical support

– EMV migration, Application development, Programming etc.

Why DZ• Family owned Scandinavian company, clients are very important to us

and a lost client can be felt directly with the owner family

• Strong ethics, partnership respect and personal service to suppliers as well as clients

• End-to-end solutions, production, fulfillment and personalization

• Immediate decision process, involvement of company owners with all clients and suppliers

• A large portfolio of products and chip solutions, freedom in choice of chip supplier for the bank

• 45 years of Security Printing experience, more than 30 in cards

• Profitable and Secure company still expanding world wide

• Experience in the most developed markets in the world and portfolio to meet any demand

• DZ Family & DZ foundation:

– Clients, suppliers and employees treated as family

– DZ Family foundation and scholarships for employees

• Environmentally friendly production and green initiative

Core Strengths EMV

• More than 10 EMV chip suppliers in the portfolio

• EMV manufacturing for more than 10 years

• 5 service bureaus world wide, large capacity

• More than 250 banks of all sizes

• Fast turn around times, usually 2-3 weeks for orders up to 500,000 units

• Pricing not based on region, same prices worldwide

• All mistakes that can be made has been made and learnt from

• Dedicated sales people who will suggest the best option, not the most expensive

• Continues chip stock of the most used chip

• Possibility of urgent orders/inquiries

• Special designs card producer – can suggest techniques to make special cards based on designs.

• Certified for all major brands (VISA, MC, AMEX, CUP, JCB, Diners)

EMV capacity

• Card production capacity = 40 million cards/month

• Actual output = 15-20 million cards/month

• Embedding capacity per day = 220.000 cards

• Personalisation capacity per day (in Thailand) = 275.000 EMV cards

• Personalisation capacity per day (World wide) = 600.000 EMV cards

• Actual output range 200.000-300.000 per day on EMV cards

• 5 service bureaus worldwide Visa/MC certified, 6th in progress

– Thailand (AMEX, CUP, JCB, Diners)

– India

– Malaysia

– Philippines

– Denmark

– Tanzania (within Q2 of 2017)

Shipping of EMV cards

• Shipping of EMV cards according to EMV standards. VISA usually sent by VUN or VAL freight option when cards un-personalised

• Shipping from Thailand (base card stock) in volume via Air freight, lead time 1-3 days

• Shipping cost per card between 0.02 – 0.10 USD, depending on country (expensive in developing countries)

• Optional to use Brinks secure shipping, added cost minor. However this is not used by many banks in developed countries and also not a requirement from VISA or MC.

• Shipping on pallets of 100,000 cards on each pallet

• Shipping by FeEx maximum 500 cards per day for each payment scheme (for currier shipments to high end clients or to the bank directly)

EMV Projects

• EMV migration in Malaysia 2006-2008, and not to Dual Interface in 2016-2018 (around 25% of the market)

• EMV migration in Thailand 2016. So far 15 million card orders received from 5 major banks –Contact and Dual Interface.

• EMV migration in India, supply of 2 million cards per month currently as well as Rupay migration to EMV chip.

• 3.2 million card EMV migration in Kenya. Personalised 2.5 million cards in Thailand and shipped bulk to Kenya in 2 month from approvals.

• EMV migration (contact and DI) in South Africa with Perso bureau partner.

• EMV migration in Philippines on-going ( first 3.2 mil order received).

• Many other projects on-going and in the pipeline

Telecom Capacity

• Current production of 80 mil SIM annually

• Potential to produce 200 mil+ SIM cards per year

• 2 major factories for production of SIM

• 2 major factories for production of Prepaid cards

• Thailand factory with SAS GSMA certification

– (Africa factory pending certification)

• Prepaid card production 500 mil PINs/year

• Prepaid capacity 1 billion+ PINs/year

Prepaid scratch cards

• ISO card format of flexo print custom format

• ISO format in 1, 2, 4, 5, 6, 10 Pin format

• Flexo print customizable, normally 10, 20, 50, 100 or 200 PINs per unit.

• Optional security features:

– Microprint

– Black inlay paper

– OVI ink (Optically Variable ink)

– Various scratch surfaces (label, hotstamp, flexo)

– Overprint on label/hotstamp

Smart Card production 2015

Source: Nilson report 2015

Telecom output

Source: Nilson report 2015

Quality Assurance

• CQM, PCI, ISO 9001:2008 and EMV standard QA guidelines

• Internal checking of 100% of cards before shipping (we can do 200% checking if needed with clients sensitive to even less than ISO standard printing flaws).

• Quality Assurance documents (ISO spec) can be sent.

• Testing of EMV & SIM chip glue/torsion/pressure test on every 10.000 card

• Newton de-lamination testing after lamination process, SIM card on mono-block

• Sample card production before main production possible, printing of main order to match sample (same machines setup gives better results)

• SAS GSMA for advanced Telecom production security

• Visa, MC, CUP, AMEX, JCB, Diners, Discover certifications for EMV

Chip Strategy EMV

• More than 10 EMV chip approved suppliers, the bank can choose any of these or we can propose the best in terms of lifetime/specs/price to meet the demand.

• Chip suppliers used are not linked to certain manufacturers so the bank is never forced to buy from the same supplier if they are unhappy or the suppliers cannot deliver (if using a proprietary chip from a specific manufacturer then only that supplier can deliver cards, using a chip everyone can buy leaves the bank free to choose supplier at any time).

• If a bank wishes to use a certain chip we will accommodate the demand, however usually there is a reason we do not have the chip in our portfolio.

• We offer both Native and JAVA solutions, from 8Kb Eeprom to 80Kb Eeprom with possibilities for other applications to be loaded (transport, health care, loyalty etc.) on the high end JAVA cards.

Chip & OS strategy Telecom

• Up to date with latest OS developments and chip supplier

• Will propose the right product for each client and not a high end product when not needed.

• Specific development for each client possible and quoted on request

• Various OS and chip suppliers to ensure no shortage of modules

DZ FAMILY