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Number 5 Opportunities Survey
Number Five: commanding the Auto ID area
www.nfive.com

In five years, Number Five had a tremendous growth, allowing it to be market leadership in Europe. North America, Asia and Africa are the next challenges.

Created in October 1996 to develop solutions for the Auto ID market (automatic identification systems), Number Five sells its products in 83 countries all over the five continents. Among these company's main solutions are software applications based on SmartCard technology, label and identity cards printing software and drivers for Windows systems, can be found.

Number Five had a turnover in 2000 of 2 million Euro and around 3 million Euro last year. Therefore, offers from investors and enterprises to partially or totally buy the enterprise havet been several, according to the company's father Vítor Marques statements: "There are two offers to buy on the table made by American companies, but these offers aren't favourable enough". Shortly "the company will be converted in an PLC and a transfer of shares to a recently created SGPS will also take place", says the single shareholder.

The global evolution forecasts for Number Five head towards an annual growth around 34%. The company is now developing new products: a Software Developer Kit for programmers, a system that allows Web authentication through SmartCard, and equipment for SmartCards, Loyalty and Debit. At the end of the year a Data Entry Kit for database management will be put on the market.
Market Leadership

The vast majority of Number Five total production (96,7 per cent in 2000) is for export, due to the reduced size of the Portuguese market. "Our product is extremely specialized and so it represents a very small market niche," points out Vítor Marques. On the world scale, Europe has a 70% of share of the company's sales.

With 224 distributors spread around the world, the company is the market leader in Europe and in the USA, where it already has an office (in Simi Valley, California), is almost reaching the same goal. The creation of an office in Asia is already under preparation. The EMEA zones (Europe, Middle East and Africa) and North America (USA and Canada) are the strategic targets of Number Five, although the projects for expansion stretch around the globe. The main goal is to maintain its own offices for sales and technical support in the USA and Asia, and distributors in the remaining countries.

The possibility of Stock market entering is for the time being suspended, due to the volatility of ITs market. "If nothing changes, we will be on in the Stock exchange in two years", emphasises Vítor Marques.

At the moment, Number Five is restructuring the company's image through the creation of a new logo and a new website, and is undergoing the process of quality certification (ISO 9001). The company is also building a new head office which should be completed during the beginning of this year.

NUMBER FIVE - Software, L.da
Parque Residencial S. Sebastião, 3 R/C
2655-270 Ericeira
Tel: (+351) 261 860450
Fax: (+351) 261 865647
www.nfive.com

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