Appendix 1: Profit from operations
Profit from operations is a non-GAAP measure, defined as IFRS operating income adjusted for amortization & depreciation of intangibles resulting from acquisitions, for all equity-based compensation charges and for restructuring & acquisition-related costs.

Profit from operations differs from adjusted EBIT non-GAAP measure in 2008 and 2009 by excluding all equity-based compensation charges:
(In € million)     2008 actual     2009 outlook
Gemalto adjusted EBIT     € 169.3m     around € 180m
(unchanged)
Equity-based compensation charges     € 11.5m     around € 12m
Gemalto Profit from operations     € 180.7m     around € 192m

The Company adopts this measure as its performance metric to evaluate and manage the business and to take operating decisions. Gemalto believes this measure is helpful to increase understanding and transparency of its results and will facilitate reconciliation with the operating cash flow. Gemalto also believes that it will allow investors to better evaluate the Company’s operations and compare its results on a more consistent basis to the results of other companies. Management uses Profit from operations to establish budgets and goals, and to evaluate performance of its business units and management.

Profit margin from operations is the ratio resulting from the division of Profit from operations by Revenue.

CONTACT:
Gemalto
Investor Relations
Vincent Biraud
M.: +33(0) 6 08 48 33 23
vincent.biraud@gemalto.com
or
Corporate Communication
Rémi Calvet
M.: +33(0) 6 22 72 81 58
remi.calvet@gemalto.com
or
TBWA Corporate
Emlyn Korengold
T. : +33 (0) 6 08 21 93 74
emlyn.korengold@tbwa-corporate.com