De La Rue Regulatory News (DLAR)

DE LA RUE PLC

De La Rue secures multiple tax stamp contracts

28 March 2019

De La Rue, the world's leading security and anti-counterfeiting solution provider, has today announced it has secured multiple contracts to supply tobacco tax stamps which will be used to fight illicit trade and to reduce risks to citizens' health in six European countries.

The contracts will see De La Rue deliver more than 3.5 billion tax stamps each year to be applied on tobacco products sold in the UK, France, Austria, Sweden, Finland and Cyprus. The awards will more than triple its annual volume of authentication labels in FY2019/20.

The tax stamps are custom designed to meet the specific requirements of each of these countries. In compliance with the EU Tobacco Products Directive (EUTPD), the stamps also contain visible and invisible security features which are required to enable authorities and consumers to verify the authenticity of the tobacco products.

As part of its strategy to grow the Product Authentication & Traceability (PA&T) business, De La Rue has been investing heavily to boost its capabilities, product and service offerings in this area. These include installing a £10m new production line in Malta in 2018 to increase capacity and flexibility for tax stamps and secure labels. De La Rue also invests continuously to enhance DLR Certify™, the software platform that underpins its track and trace solution.

In support of the implementation of the EUTPD in the UK, De La Rue was appointed in February 2019 by HMRC to implement a digital track and trace system for all tobacco products sold in the UK and to manage the service for HMRC with the estimated 57,000 economic operators serving the UK tobacco sector.

Martin Sutherland, Chief Executive Officer of De La Rue, commented:

"We are pleased to have made further progress in growing our PA&T business. The tax stamp market is large and fast growing and as one of the largest tax stamp solution providers, we believe we are best placed to capture this opportunity."

De La Rue plc's LEI code is 213800DH741LZWIJXP78.

Enquiries:

De La Rue plc +44 (0)1256 605000

Sinead Keller Head of Media

Lili Huang Head of Investor Relations

Brunswick +44 (0)207 404 5959

Azadeh Varzi

Stuart Donnelly

Notes to editors

1) De La Rue's PA&T segment comprises two business activities: government revenue services or tax stamp solutions, and brand protection solutions for businesses. De La Rue delivered 1.6 billion authentication labels in FY17/18.

2) Counterfeit and contraband cigarettes account for one in ten cigarettes being consumed in the EU, and the illicit tobacco trade is costing EU governments €10bn in tax revenue annually (source: KPMG report).

3) EU Tobacco Products Directive is a directive of the European Union that aims to improve the functioning of the internal market for tobacco and related products, while ensuring a high level of health protection for EU citizens. Articles 15 and 16 of the Directive specify the purposes and requirements for the systems of traceability and security features for tobacco products to address the issue of illicit trade.

About De La Rue

De La Rue's purpose is to enable every citizen to participate securely in the global economy. As a trusted partner of governments, central banks and commercial organisations, De La Rue provides products and services that underpin the integrity of trade, personal identity and the movement of goods.

As the world's largest designer and commercial printer of banknotes, De La Rue designs, manufactures and delivers banknotes, banknote substrates and security features to customers in a world where currency will continue to be a key part of the developing payments eco-system. De La Rue is the only integrated supplier of both paper and polymer banknotes, and creates security features that ensure banknotes are protected against counterfeiting.

De La Rue is the world's largest commercial designer and printer of passports, delivering national and international identity tokens and software solutions for governments in a world that is increasingly focused on the importance of a legal and secure identity for every individual.

De La Rue also creates and delivers secure product identifiers and 'track and trace' software for governments and commercial customers alike to help to tackle the challenge of illicit or counterfeit goods and the collection of revenue and excise duties.

De La Rue is listed on the London Stock Exchange (LSE:DLAR). For further information visit www.delarue.com