The document provides an overview of the European banknote industry. It discusses production and circulation trends for euro banknotes and coins from 2006-2010. Key points include a fall in banknote production in 2010 compared to previous years, with higher growth rates for €50 and €100 notes. Euro cash in circulation continued rising even outside the Eurozone. Issues discussed include the threat of counterfeiting and a small decline in counterfeited euro notes in 2010. The document also covers population trends, with declining immigration to Europe after 2008 impacting the labor force.

2. TABLE OF CONTENTS
1. European Banknote Industry
1.1. Life Cycle
1.2. Banknote Printing
1.2.1. Security Printing
2. Euro Currency Performance
2.1. Production of EU Banknotes and Coins
2.1.1. by Volume & Value
2.1.2. Euro Coins by Volume
2.2. Circulation of EU Banknotes and Coins
2.2.1. Euro Banknotes by Value and Volume
2.2.2. Euro Coins by Value and Volume
3. EU Banknote Industry Developments and Opportunities
Issuance of New GBP 50 Notes in England
Second Generation of Euro Notes
Development of New Security Features
Concern of Brand Owners and Growing Demand for Security Inks
Rising Immigrants to Europe
Popularity of Euro Notes in International Markets
Polymer Banknotes Demand
4. EU Banknote Industry Issues
Threat of Counterfeit for Euro
UK to Withdraw 500 Euro Notes from Circulation
Impact over the Demand for Money
5. Growth Drivers
5.1. Gross Domestic Product
5.2. Inflation
5.3. Europe Population
6. Industry Players

3. 6.1. Competitive Landscape
6.2. DE LA RUE PLC
6.2.1. Business overview
6.2.2. Recent Updates
6.3. Giesecke & Devrient GmbH
6.3.1. Business overview
6.3.2. Recent Updates
6.4. Oberthur Technologies
6.4.1. Business Overview
6.4.2. Recent Updates
7. Appendix
7.1. Abbreviations
7.2. Research Methodology
Data Collection Methods
Approach
7.3. Disclaimer

4. LIST OF FIGURES
Figure 1: Stages of Banknote Production
Figure 2: Euro Banknotes Production by Volume 2006-2010
Figure 3: Euro Banknotes Production by Value 2006-2010
Figure 4: Euro banknotes in Circulation by Volume 2006-2010
Figure 5: Euro banknotes in Circulation by Value 2006-2010
Figure 6: Euro Coin Growth with Change in Euro-Area GDP, in Percentage, 2006 - 2Q’2011
Figure 7: Counterfeit Euro Banknotes by Denominations in Percentage, 2010
Figure 8: Europe GDP at Current Prices 2006-2010
Figure 9: Number of Employees in Europe, 2010 and 2011
Figure 10: De la Rue Plc Revenues by Geography in Percentage, 2010
Figure 11: Oberthur Technologies Revenues by Geography in Percentage, 2010
LIST OF TABLES
Table 1 : Total Number of Euro Banknotes Produced by Denominations in Million, 2010 7
Table 2: Allocation of Production of Euro banknotes by Denominations in 2011E
Table 4: Euro banknotes by Denominations in Circulation by Volume (2009-2011 Aug)
Table 5: Change in Euro Coin Monthly Growth in Percentage, 2006-2011
Table 6: EU Immigrants Population Distribution by Countries in 2010
Table 7: Seized Coins from Circulation, 2006-2010
Table 8: EU GDP Growth and Growth in Euro Cash in Circulation in Percentage, 2006-2010
Table 9: EU Population by Countries in Thousand, 2010
Table 10: Major Industry Players
Table 11: Industry Codes

5. Table 12: Number of M&A and Divestitures, 1986 to 2011
Table 13: Industry Codes
Table 14: Number of M&A and Divestitures, 2000 - 2011
Table 15: Number of M&A and Divestitures, 2000 - 2011

6. EUROPEAN BANKNOTE INDUSTRY
Euro cash in circulation is continuously increasing even outside Euro Zone and reflecting a
rapid growth compared to GDP. Another trend which has been noticed in recent years is the
increased popularity of Euro 100 and Euro 50 notes is rising. Increase in cash circulation is
the impact of rising inflation and even low confidence over banks after 2008 credit crisis.
PRODUCTION OF EU BANKNOTES AND COINS
BY VOLUME & VALUE
In 2010, demand for banknotes to be
In 2010, European central bank produced produced was low comparative to the
7.15 billion of Euro banknotes, with a value
previous year. European central bank
of EUR 264.90 billion
produced ~ billion of Euro banknotes, with a
value of EUR ~ billion. There was a fall in
number of EUR 20 and EUR 50 notes
produced in 2010 comparative to previous year. To support Euro notes demand, more Eastern
European countries entered into the euro area.
Table: Total Number of Euro Banknotes Produced by Denominations in Million, 2010
Denominations Quantity (Millions of Banknotes) NCB Commissioning Production
€5
€10
€20
€50
€100
€200
€500
TOTAL

7. Figure: Euro Banknotes Production by Volume 2006-2010
Qty in Millions
2006 2007 2008 2009 2010
Figure: Euro Banknotes Production by Value 2006-2010
EUR Millions
2006 2007 2008 2009 2010
Once again number of banknotes to be produced in 2011 is expected to be low from 2010
level. ECB has allotted 6,017.90 million notes to be produced during the year, at value of
EUR ~ million.
Table: Allocation of Production of Euro banknotes by Denominations in 2011E
Value (Euro NCBs commissioning
Quantity (millions) millions) production
€5

8. €10
€20
€50
€100
€200
€500
TOTAL
EURO COINS BY VOLUME
Member States are accountable for the production of Euro coins. 1, 2 and 5 cent coins
accounted for more than 80% of the production. Production cost of these coins is higher than
the income generated and the face value, therefore ECB is planning to make some
amendments in the production process of Euro coins keeping cost benefit analysis into
consideration. At the end of 2009, around 84.30 billion Euro coins were in circulation
accounting for value of EUR ~ billion.
CIRCULATION OF EU BANKNOTES AND COINS
EURO BANKNOTES BY VALUE AND VOLUME
By volume, there were ~ billion Euro notes in circulation, with an increase of 3.87%
compared to ~ billion in 2009. Despite the economic slowdown in recent past, the Euro in
circulation in terms of value continued to
Euro 50 and Euro 100 notes grew at high increase. In terms of growth rate, Euro 50 and
rates of 6.75% and 5.37% respectively,
Euro 100 notes grew at high rates of 6.75% and
whereas Euro 200 notes showed low
growth from previous year 5.37% respectively, whereas Euro 200 notes
showed low growth from previous year.
At the end of 2008, the number of euro banknotes in circulation stood at ~ billion, total worth
of EUR ~ billion. This represented an increase of 8.30% in terms of volume and 12.70% in
terms of value as compared with 2007 results.

9. Figure: Euro banknotes in Circulation by Volume 2006-2010
Qty in Millions
2006 2007 2008 2009 2010
Table: Euro banknotes by Denominations in Circulation by Volume (2009-2011 Aug)
Total EUR 500 EUR 200 EUR 100 EUR 50 EUR 20 EUR 10 EUR 5
2009
2010
Q4’
2010
Q1’
2011
Q2’2011
June
2011
July
2011
Aug
2011

10. Figure: Euro banknotes in Circulation by Value 2006-2010
Euro Millions
2006 2007 2008 2009 2010
Table 5: Euro Banknotes by Denominations in Circulation by Value 2009-Aug 2011
Total EUR 500 EUR 200 EUR 100 EUR 50 EUR 20 EUR 10 EUR 5
2009
2010
Q4’
2010
Q1’
2011
Q2’
2011
June
2011
July
2011
Aug
2011
In the second half of 2010, euro currency inflow was higher than the outflows, while there
was a stable performance prior to the period. During 2010, a reduction in banknote demand
outside Euro area has been witnessed.

11. EURO COINS BY VALUE AND VOLUME
Euro coins in circulation have increased in 2010 from previous year by 6.20% reaching ~
billion in terms of volume while its total value grew 4.50% to reach EUR ~ billion.
Figure: Euro Coin Growth with Change in Euro-Area GDP, in Percentage, 2006 -
2Q’2011
Euro Coin Growth % GDP Growth Rate %
2006
2007
2008
2009
2010
Q2’2011
RISING IMMIGRANTS TO EUROPE
EU experienced an impressive growth in number of immigrant population after the Second
World War. Migrants from different parts of the world accounted for a significant percentage
of the EU population growth. After 2004, EU experienced a dramatic growth in its member
states population due to rise in net migration and this trend continued till mid 2008, adding
1.80 million every year. Unfortunately, poor economic conditions lowered the percentage of
immigration to EU at the end of 2008 and continued to fall even in 2011. At present, EU
states are facing a shortfall in skilled workers due to a fall in number of immigrants to EU.
Table: EU Immigrants Population Distribution by Countries in 2010
Total Foreign-born Born in other EU state Born in a non EU
Country (‘000s) % (‘000s) % state (‘000s) %
EU 27
Germany
France
United
Kingdom
Spain
Italy

12. Netherlands
Greece
Sweden
Austria
Belgium
(2007)
Portugal
Denmark
EU BANKNOTE INDUSTRY ISSUES
THREAT OF COUNTERFEIT FOR EURO
The increasing number of replication in euro banknotes has become a major issue and forced
issuing authorities to enhance security features and to make it difficult to copy. Recently
results have showcased a small percentage
drop in total number of counterfeit euro notes.
The total counterfeited euro notes
At the end of 2010, there were ~ counterfeit
declined by 11.70% in the 1H’2010 as
compared to 1H’2009 euro notes were found (according to the
National analysis centre); though counterfeit
notes account for a very low percentage of
total euro banknotes in circulation.
Figure: Counterfeit Euro Banknotes by Denominations in Percentage, 2010
Euro 500
Euro 200
Euro 100
Euro 50
Euro 20
Euro 10
Euro 5

13. There has been a rise in the number of counterfeit euro coins in 2010. Around 7.50% false
euro coins were recorded in the total coin circulation during the mentioned period.
Table: Seized Coins from Circulation, 2006-2010
50-cent 1-euro 2-euro Total
2010
2009
2008
2007
2006

14. DISCLAIMER
The research reports provided by AM Mindpower Solutions are for the personal information
of the authorized recipient and is not for public distribution and should not be reproduced or
redistributed without prior permission. You are permitted to print or download extracts from
this material for your personal use only. None of this material may be used for any
commercial or public use.
The information provided in the research documents is from publicly available data and other
sources, which are reliable. Efforts are made to try and ensure accuracy of data. With respect
to documents available, neither the company nor any of its employees makes any warranty,
express or implied, including the warranties of merchantability and fitness for a particular
purpose, or assumes any legal liability or responsibility for the accuracy, completeness, or
usefulness of any information, apparatus, product, or process disclosed, or represents that its
use will not infringe privately owned rights.
The report also includes analysis and views expressed by our research team. The research
reports are purely for information purposes. The opinions expressed are our current opinions
as of the date appearing in the material and may be subject to change from time to time
without notice. Investors should not solely rely on the information contained in the research
documents and must make investment decisions based on their own investment objectives,
risk profile and financial position. The recipients of this material should take their own
professional advice before acting on this information.
A M Mindpower Solutions will not accept returns of reports once dispatched due to the
confidentiality of information provided in our reports. In case, a report qualify for return, we
will issue a credit, minus shipping charges, of equal value to the original purchase price,
toward a future purchase—no refunds. The decision about whether the product return can be
accepted or not is solely at our discretion. Any dispute will be subject to laws of India and
exclusive jurisdiction of Indian Courts.
No part of this manual or any material appearing may be reproduced, stored in or
transmitted on any other Web site without written permission of AM Mindpower Solutions
and any payments of a specified fee. Requests to republish any material may be sent to us