VLID3

Valid Soluções S.A. (VLID3) is a Brazilian company with more than six decades of experience in physical and digital security solutions, with shares traded on B3 since 2006, when it joined the Novo Mercado segment. Its origin dates back to 1957, with the founding of Thomas de La Rue in Brazil, a company focused on high-security graphic services and printing technology. Throughout the 1990s and 2000s, the company expanded its scope through acquisitions and joint ventures, incorporating graphic services businesses from major Brazilian banks and stakes in smart card companies. In 2010, after American Banknote Corporation ceased to be the main shareholder, the company adopted the name Valid Soluções e Serviços de Segurança em Meios de Pagamento e Identificação S.A., consolidating its focus on payment methods, identification and security printing. In 2018, it changed its name to Valid Soluções S.A., reinforcing its positioning as a global solutions provider for secure identification of people, objects and transactions.

Valid’s business model is based on the integrated offering of products and services that combine high-security physical and digital technologies. The company operates mainly in three business segments: Identification, Payment Methods and Mobile. In all of them, the core logic is to provide solutions that enable identity authentication, data protection, asset tracking and reliable transactions, with intensive use of anti-fraud technologies, biometrics, cryptography and large database management. The company positions itself as a provider of end-to-end solutions, from system development and data capture to the issuance of physical and digital documents, card personalization and the provision of software platforms and cloud services. This diversified portfolio supports close relationships with governments, financial institutions and telecommunications operators, which represent its main client sectors.

In the Identification segment, considered Valid’s strategic core, the company offers a full-service structure for issuing identification documents and managing data. Its solutions include biometric and biographic data capture systems, database administration, document digitization, printing and personalization of identity cards (RG and National Identity Card), driver’s licenses, functional IDs, professional association cards, professional credentials and security prints, as well as digital versions of these documents. The company operates in several Brazilian states, with more than 80 document issuance sites and an operational presence in 13 states, serving, directly or indirectly, all 27 states through functional IDs and other services. In 2024, for example, it took on new RG/CIN issuance contracts in Ceará and Bahia, increasing the annual volume of documents. The Identification vertical also includes Valid Certificadora Digital, accredited by ICP-Brasil, responsible for issuing digital certificates such as e-CPF, e-CNPJ, NF-e, CT-e and SSL/TLS certificates, in addition to timestamping, biometrics, public key management and hosting of certification and registration authorities. This portfolio is complemented by smart city solutions, such as unified citizen registries, geographic information systems for tax management and platforms for automating public processes, including biometrics projects for school attendance control and traceability solutions for products, vehicles and commodities.

The Payment Methods segment focuses on the production and personalization of cards and security documents aimed at the financial system and other sectors that use physical and digital credentials. Valid manufactures chip cards, contactless and magnetic stripe cards, gift cards and cards used in multiple applications, from healthcare services to online public services, with a strong presence in bank credit and debit cards. The company also produces security documents such as checkbooks, vouchers, tickets and passes, and performs electronic printing of invoices, bank statements and payment slips for financial institutions, insurers, telecommunications operators and power utilities. In this business unit, the company develops mobile payment solutions using technologies such as NFC, TSM and HCE, as well as platforms for managing digital communication with customers. A relevant component of this segment is its activity in RFID, in which Valid stands out as a pioneer in the manufacture of electronic identification tags in Brazil, benefiting from the Basic Production Process (PPB) program and focusing on item traceability solutions for large consumer electronics companies and other sectors.

In the Mobile segment, Valid operates globally as a supplier of SIM cards and technology solutions for the telecommunications market. The company is among the world’s leading SIM card manufacturers, with a significant share in the global market and production facilities in Brazil, Spain and Argentina, as well as operations in countries such as the United States, Mexico and Denmark. The portfolio includes traditional SIM cards, embedded-SIMs (eSIMs) and proprietary operating systems for chips, developed by research and development teams. In addition to physical production, Valid offers traditional and advanced OTA (Over-the-Air) platforms, device management systems (Device Manager, Device Entitlement Server), secure connectivity solutions for connected devices and IoT, and digital onboarding tools for mobile operators. These solutions enable operators to improve communication with their customers, remotely manage SIM and eSIM profiles, enable top-ups and payments via mobile phone, and support use cases tied to the connected life and digital mobility.

Valid’s geographic footprint combines a strong presence in Brazil with international operations in more than 15 countries. Around 60% of recent net revenue comes from the Brazilian market, where the company is a leader in issuing identification documents. Internationally, Valid has built a significant position especially in telecom and payment methods, with facilities and clients in North America (United States), Europe (Spain, Denmark), Latin America (Argentina, Mexico, Colombia, Uruguay), Africa (Nigeria) and Asia, in addition to operations in places such as Mauritius and Singapore. This setup reinforces geographic diversification of revenue and allows demand fluctuations in certain markets to be partially offset by others. The international expansion strategy has been driven by acquisitions of technology and security services companies in payment methods, identity and telecommunications, which has broadened its product portfolio and global customer base.

Valid’s customer base is concentrated in large public and private organizations, generally under long-term contracts with a high degree of operational criticality. In the Identification segment, the main clients are state governments and federal public agencies responsible for issuing civil documents, driver’s licenses and functional IDs, typically under bidding-based contracts with terms ranging from one to four years, subject to renewal. In Payment Methods, its portfolio includes some of the largest financial institutions in the world, as well as insurance companies, utilities and large bill and statement issuers, many of them with relationships averaging more than a decade. In Mobile, clients are mainly global and regional mobile network operators that require high volumes of SIM cards and connectivity management services. This combination of recurring contracts and high supplier replacement costs contributes to long-lasting relationships and revenue streams aligned with digital transformation projects and modernization of identification and telecom infrastructures.

From a regulatory standpoint, Valid operates in environments with strong state presence and high technical requirements. In the issuance of identification documents in Brazil, it is subject to federal and state regulations that define security standards, infrastructure and database integration, including the new National Identity Card model, established by Decree 10.977/22, which requires adherence to technical specifications and use of the CPF as a unique identifier. In digital certification, it operates under accreditation by the Brazilian public key infrastructure (ICP-Brasil), supervised by the National Institute of Information Technology (ITI), complying with requirements for issuing qualified certificates, providing timestamping, biometrics and trust services. These regulatory frameworks shape product development, require recurring certifications and create technical and compliance barriers to entry for new competitors.

In environmental, social and governance aspects, Valid emphasizes information security, data privacy and regulatory compliance as core elements of its activities, especially in a context of the trust economy and transaction digitalization. The company maintains international certifications focused on security standards, such as the recertification of the WebTrust seal for Valid Certificadora, attesting compliance with the standards of the American Institute of Certified Public Accountants (AICPA) and the Canadian Institute of Chartered Accountants (CICA). In its social activities, it stands out for supporting digital inclusion and modernization of public services through smart city projects and identification solutions aimed at improving access to healthcare, education, mobility and security services. In governance, the fact that it is listed on B3’s Novo Mercado indicates adherence to more demanding corporate governance practices, such as issuing only common shares and greater transparency in its relationship with shareholders, strengthening the company’s institutional framework in the Brazilian capital markets.