Post-close Trading Update and Change of Directorate

Full year revenue for the Group is in line with market expectations. Full year underlying operating profit is now anticipated to be above the top end of the market consensus*. This outperformance has been driven by good growth in Identity Systems and Product Authentication & Traceability product lines. The Currency business has performed in line with market expectations.

Following the completion of the $25m acquisition of DuPont Authentication on 6 January 2017, net debt as at 25 March 2017 was c£14m higher than at the end of the prior year at approximately £120m.

While the sustained weakness of Sterling gives us a competitive advantage in the export market, this benefit is substantially offset by increased investment in R&D, product management and sales capability, as well as the rising cost of raw materials such as cotton. Hence overall the Board’s expectations for the financial year of 2017/18 remain unchanged.

Separately, Rupert Middleton, Chief Operating Officer and Executive Director, has informed the Board of his intention to step down from the Board after the AGM on 20 July 2017.

Rupert joined the Company as Managing Director, Supply Chain in October 2011 before being appointed Chief Operating Officer and Executive Director in July 2015. In the six years he has been at De La Rue, Rupert has led a step change in a number of key areas, including establishing an end to end Supply Chain function and an extensive and far-reaching programme of operational excellence, driving greater efficiencies, significant cost savings and quality improvements. He also led a recent fundamental review of the Group’s manufacturing footprint, the first phase of which has already been implemented.

The Board is very grateful to Rupert for his contribution and he leaves with our best wishes for the future. The position will be replaced by the newly created role of Chief Operations Director, reporting to the CEO as a member of the Executive Leadership Team; the appointment will not be a Board position. A search has been commenced to identify suitable internal and external candidates.

The Group will issue its 2016/17 full year results at 7a.m. BST Tuesday 23 May 2017. Analyst presentation and conference call details will be provided two weeks prior to the announcement.

This announcement has been determined to contain inside information.

De La Rue plc’s LEI code is 213800DH741LZWIJXP78

*The top end of market consensus of underlying operating profit for the financial year ending 25 March 2017 is £66.4m. The consensus data can be found in the Investors section of our website www.delarue.com