Business plan contents

DeLaRue

• Executive Summary

• De La Rue overview

• Solution summary

• Tax stamp manufacturing facility

• Tax stamp design and feature considerations

o Digital solution and software

• Hosting considerations

• Equipment for product manufacturing lines

• Operations, service and support

• Draft commercial model

• How to work together?

CONFIDENTIAL 2
Executive summary (I)
DeLaRue

• De La Rue are a world leader in security printed documents including tax stamps and
banknotes
• We have a proven and leading solution for digital tax stamps and a long history of working with
governments and partners on complex investment projects

• We propose a BOT model where DLR builds and operates a full solution for DNS and Turkey
and then transfers this in stages during a ten year process
• This solution will include a tax stamp manufacturing facility, operation of that facility, tax
stamps, the digital track and trace solution, plus all associated services and support

• De La Rue will make the majority investment in this full solution

(manufacturing facility plus hosting, etc.) c. £15 million with DNS contributing c. £10 million

• Revenues from the sale of tax stamps to Turkey and other countries services from the Turkey
facility will be shared between De La Rue and DNS
• Estimated revenues over 10 years are c. £360 million

CONFIDENTIAL 3
Why De La Rue? DeLaRue

• Turkey is a signatory to the World Health Organisation's Framework Convention of Tobacco

Control, Illicit Trade Protocol that requires a compliant track and trace solution for tobacco
products implemented by October 2023

• De La Rue has the World's only three national systems compliant with FCTC in Saudi Arabia,
UAE and the United Kingdom - together we secure more than 3 billion cigarette packs every
year

• This solution is being used in Turkey today by JTI and PMI for products manufactured in Turkey
for export to the GCC and the UK

• We are also the largest supplier of physical tax stamps and track and trace codes in the EU for
their version of FeTC (EU TPD)

• The same solution can be used for multiple product types and we hold contracts to expand to
soft drinks on high speed bottling and canning lines

• We also hold contracts for tax stamp solutions for liquor, wine, beer, soft drinks and water
CONFIDENTIAL 4
D a e
The world's largest commercial security solutions provider Del.aRue

•• Customers in over 140 countries

.............
.. ... . . .
............. .
7 billion OOnknotes ......
.... ..... . ........ ..
.. ..
,
...
..
..

n, I!ho 22 million
......
.............
..............
..............
.............
• secure identity documents

More than On the ground knowledge, strong partnerships

prodUClS and and in country jointventues
solutions that are ccntri>uting 11 billion
o a safer. more sectJl'9 and Tax stamps and labels 7 Centres of rnarofacllri1g excellence
sustanable future across 4 oontinents arxi 20 locations globally
British comp any with over

$
Solutions protecting
• •• 2,500 $50
" employees
around the world
billion of
products every year

CONFIDENTIAL 5
Global manufacturing footprint DeLaRue

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DelJden.UK
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o.er1on.UK
Tecnr.oogycerJre

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• Sae.s Sl4JPOrt office

o MBnlfacturing fBClTIty and lllgionaI ofIice

CONFIDENTIAL 6
Existing DL CertifyTM schemes
DcLaRuc

European Union
3.5 billion tobacco tax stamps per
year in France, Austria, Sweden,
Finland and Cyprus
United Kingdom
1.7 billion tobacc o
tax stamps per year.
New co ntract for a
FCTC scheme United Arab Emirates
400 million tobacco tax
stamps per year; and soft
drinks solution to be
Ghana implemented
4:9 billion tobacco.
beer, soft drinks.
Sudan
water and alcohol
1.1 billion tobacco and
Saudi Arabia
tax stamps per year 1.2 billion tobacco tax
shisha tax stamps per
stamps per year; and soft
year
Cameroon drinks solution to be
300 million tobacco and implemented
alcohol tax stamps per year
CONFIDENTIAL 7
 esults in other reference cases (J)
DeLaRue

Saudi Arabia United Arab Emirates Cameroon Sudan

Solution implemented Solution implemented Solution implemented Solution implemented

"(0 in 6 months ••Q) in 9 months ··0 in 6 months "0 in 6 months

4 10% of volume increase 4 15% of volume increase ;:: 100% volume increase 4I 10% of volume increase
in tobacco and sisha oDD in tobacco D u in tobacco and alcohol in tobacco and sisha in
• in 3 years 3 years

From 1.1 billion to 1.2 From 350 millions to 400 From 150 millions to From 600 millions to 1.1
billion items millions packs 300 millions items billions items

Approx. US$ 200 m of Approx. US$ 100 m of Approx. US$ 20 m of Approx. US$ 30 m of
additional revenue additional revenue $ additional revenue additional revenue
CONFIDENTIAL 8
De La Rue digital tax stamp examples

The United Arab Emirates Saudi Arabia, United Kingdom, France, Austria and Cyprus

CONFIDENTIAL
What can we offer to DNS and Turkey? Cl)
DeLaRue

• We are a tax stamp manufacturer using banknote features on tax stamps

• We have our own tax stamp manufacturing factories and would be keen to work with
DNS to transfer this knowledge and build expertise and capacity in Turkey

• We can also bring export volumes to a facility built together in Turkey to help increase
revenues above and beyond what is possible form Turkey alone

• We have the world's only proven and fully implemented FCTC compliant software
platform and have this operating for three tax authorities and working in cigarettes
factories in Turkey

• This software may be available under licence for use by DNS

• We have expertise in data hosting, whether physical or in the cloud and in supporting our
solutions throughout the life of a contract
CONFIDENTIAL 10
De La Rue solutions for all products (I)
DeLaRue

solution to a dress all forms Intelligent tax stamp for tobacco with
of lllicit trade direct printed code for track & trace

Secure tax stamps to give absolute

authentication for tobacco, wine, spirits & Intelligent tax stamp
low volume beer and soft drinks for wine and spirits

Direct code printing for domestic high

volume beers and soft drinks
Intelligent tax stamp
for small volume imported beer
DLR Certifv'" traceability software for
and soft drinks
track & trace and reporting

Direct printed code for

cigarettes, high volume
beer and soft drinks
CONFIDENTIAL
Tobacco Products - cigarettes
Secure tax stamps and track and trace marker
Physical Tax Stamp:
- Carries Security Features
- Visible "tax paid" marker
Not used for track and trace
Issued by De La Rue
Applied by manufacturer
(J)
DeLaRue
Compl iant with WHO
Framework
Convention on
Tobacco Control
Compliant w ith EU
Tobacco Products
Directive
Digital Pack Code
- Track and Trace marker
Issued by De La Rue
For Illustration Pufpo",. Only
P",ilion of marten to beconfirmed
Printed directly to pack by
manufacturer
CONFIDENTIAL
Spirits and Wine (I)
DeLaRue

Secure tax stamps with track and trace marker

......1iiiioUii ClO 117 13

Physical Tax Stamp:

- Ca rries Security Featu res
- Visible "tax paid" marker
- Used to seal the bottle and prevent refill
with illicit alcohol

Code on stamp is used for track and trace

Common system
architecture with
Issued by De La Rue tobacco solution and
in-field inspector
Applied by manufacturer interface
CONFIDENTIAL
Beer a d Sof Drinks (J)
DeLaRue

a a e
Common system
Digital Secure Marker architecture with
- Track and Trace marke r tobacco solution and
- Printed directly onto bottles and cans
in-field inspector
- Suitable for standard high speed CU
systems
interface

lssued by De La Rue

Digital security, no need for special inks

Code structure and intelligent software

prevent counterfeiting and cloning

CONFIDENTIAL
DLR Certify ? '
Code allocation Product aggregation
and stamp and distribution
application to the
authentic products
Production
authentication, and
track & trace

Solution architecture,
starno design and production.
software development. code
generation. project
management andsolution Product verification and
impleme tanon consumer purchase

15
CONFIDENTIAL
Manufacturi ng facility
DeLaRue

Draft proposal for discussion

• De La Rue (DLR) implements a full tax stamp manufacturing facility in Istanbul on a Build,
Operate, Transfer (BOT) basis

• DLR makes the majority investment in this facility with DNS - total c. £20 million

• DLR takes full responsibility for the specification, purchase and build of the facility

Estimated to be production ready within 18 months of contract

• All tax stamps for Turkey are manufactured in this facility with capacity increasing as
volumes grow

• Add itional capacity is used for DLR export volumes for the benefit of both DLR and DNS

CONFIDENTIA L 16
Tax stamp designs
DeLaRue

Current designs and upgrades all possible

• The current designs as presented by DNS are within capability

• The manufacturing facility will be specified to produce these and with upgrades to more
modern stamps as used by DLR in other countries

• The design of the stamps will be the responsibility of DLR, bringing our 150 years of
expertise from tax stamps and banknotes

• All inks can be sourced from DLR or via our chosen partners

CONFIDENTIAL 17
Software solution
DeLaRue

DLR Certify with track and trace for all product types
• Proven in in many countries including the UK, the O rder

UAE and Saudi Arabia

Code
• FCTC compliant solution for tobacco products
,, , ,,
• Solutions for liquor, wine, beer, soft drinks and , ,,
water Personalisa .
Se rvice
• Modular and extendable for new product types , ,
and to add new features as required , ,,
DIrect
to
• Provided under licence on BOT terms Product
Production
• Held in ESCROW to insure the solution against L.ile
AdNalion
unforeseen future events

CONFIDENTIAL 18
Hosting considerations
le
EPCIS large data repository ensuring interoperability and event capture from supply chain
Cloud hosting
• Controlled and secure
• Scalable with disaster recovery built-in
• DLR CertifyTM ready for Microsoft Azure and Amazon Web Services
Examples for Microsoft Azure in the UKand in four additional countries with Azure and AWS

On premise hosting
• Controlled and secure
• Support heavy
USD 1.5m to USD 2m total investment for primary and OR racks and software
Examples in UAE and Saudi Arabia

DLR secure cage hosting

• Data hosting at DLR sites in the UK
• Specific instances by country
• Includes disaster recovery
Examples in Cameroon, Sudan and Ghana

CONFIDENTIAL
Product manufacturing equipment

Keeping investment to a mln imum and providing the east disrupfve solution

Tobacco manufacturers
• The large multi-national manufacturers are using our solution in Turkey now
• The industry prefers to purchase its own equipment from known, authorised suppliers
• We specify the minimum functionality of the hardware and software
• Provides least disruption for manufacturers and no capital or servicing costs for DLR / DNS
• Solution used for EU, UK, UAE and Saudi Arabia

Liquor and wine manufacturers

• Only require tax stamp applicators and software to activate codes
• Typically robust and easily maintained solutions that last decades
• Recommend survey of current equipment with a plan to upgrade and repair / replace where necessary
• As with tobacco, we recommend any new equipment becomes a direct purchase by the manufacturers

Beer, soft drinks and water direct code marking

• Least known about facilities currently in Turkey
• Potentially most expensive solution and most technically demanding
High-speed canning line for soda needs investment of c. $250,000 each

CONFIDENTIAL
Operations, service and support

Keeping investment to a minimum and providing the least disruptive so ution

Manufacturing facility
• Specified and built by DLR
• Operated with DLR employees for the contract term and then transferred
• To include all manufacturing and operational functions

Project management and training

• Project management for manufacturing facility
Project management for service delivery of solution
• Project management and in-depth , hands-on training for manufacturers and all other stakeholders

Service and support

Hosting facility (cloud preferred) and service for contract length
• Service centres for level 1, level 2 and level 3 support operated by DLR
Local support for Revenue Authority and local manufacturers
• Full service and support for DNS and all other stakeholders

CONFIDENTIAL
Draft commercial model Cl)
DeLaRue

Workshare DNS DLR Owner-

A profitable opportunity for DNS and DLR Factory IlnI5tment Y DUt
Factory set-Up Y OUt
Factory Run_ Y DUf
• Based on a 10 year BOT model Software Solution Y DUt
Solution Support Y OLR
Training Y DUf
.. All BOT activity the responsibility of DLR Material (Purc hase or Materials) y OUt
labour (Label Print) Y OUt
Sohltion Development Y DLR
Revenue from Turkey c. £360 million Central Management Y DUI
Factory Investment Y OHS
Client Management y O.VS
.. Investment required of c. £25 million Recovery of Site Investment Y OHS

.. Estimated standard margin of c. £120 million

Unit price £/1000
.. Split between DNS and DLR on approx. 20 / 80 ratio _. Tobacco ._..._._..-
._ 3.90
Alcohol (large) 5.00
Alcohol (small) 4.00
Beer (stamp) 2.00
Beer(directcode) 1.00
--
CONFIDENTIAL 22
 ow to work together? (J)
DeLaRue

Important next steps

• This is a very fast initial view of how to work together

• De La Rue is committed to this opportunity and ready to invest and work with DNS to find
the right solution for Turkey and our two businesses

• Much more information is needed and we need to collect this together and work on the
business plan together

• We suggest an exclusive Memorandum of Understanding where we commit to undertake

this work together in a spirit of partnership to build a viable and profitable business plan

o We believe this work can be completed with readiness to contract within 3 months

• Meaning a full solution with new manufacturing facility can be ready by Q3 2022

CONFIDENTIAL 23