Evolan Capital Adequacy An efficient way to meet

Evolan Capital Adequacy An efficient way to meet the Basel II requirements in Romania © Sopra Group, 2006 / Evolan CAD / p 1

Sopra Group at a glance g An independent Group in Consulting and IT Services founded in 1968 g Euronext Paris / SRD (SBF 120, CAC Mid 100) g Workforces 10 000 – international 3 500 g Geographical scope : worldwide /Europe g A transversal organisation Sopra Group & Axway Consulting Integration Systems & Solutions Outsourcing Application Software A strong position in banking software (loans, reporting, …) 2004 Split of TO per sector 34% Consolidated Turn Over (M€) +1 000 757 525, 3 2003 © Sopra Group, 2006 / Evolan CAD / p 2 EAI 629, 2 2004 2005 2006 +20, 2%/2004 Forecast

Geographical scope more than 70 countries Sopra Group Subsidiaries © Sopra Group, 2006 / Evolan CAD / p 3 Sopra Group solutions & products

Reporting and Risk software g More than 600 banks referenced world-wide g French subsidiaries of UK high street banks g g Largest French banks g g g Cetelem, CGI, Franfinance, GE, PSA Financement, Cofidis, Cofinoga, Volvo Financement, Diners Club, 130 Swiss banks g g Deutsche Bank, ABN Amro, Lehman Brothers, Goldman Sachs, CSFB, Morgan Stanley, Caixa, Bayerische Landesbank, Qatar National Bank Finance companies g g Société Générale, Credit Lyonnais, BNP-Paribas, Caisses d’Epargne, CIC, etc French subsidiaries of world’s largest banks g g HSBC, Abbey National, Lloyds TSB, Woolwich, Barclays, etc ABN Amro, BDA, BNP Paribas, JP Morgan, UBP, Vontobel and many “Kantonal” banks Luxemburg and Moroccan banks…. A 15 year long experience © Sopra Group, 2006 / Evolan CAD / p 4

Our observation of the implementation of the IRB method g The costs of implementation can be more important than the capital savings g IS adaptation (credit delivery, …) The IS often do not have histories with the required wideness, depth or quality g Complexity to train all the players and the branches Ø Implemented by very big banks Ø Projects started in 2003 g © Sopra Group, 2006 / Evolan CAD / p 5

Basel II : a winning approach g Applies to the banks g g g For which the IRB approach is not mandatory Which do not particularly need to save equity Which do not have the accurate histories Which do not have the time or the budget to invest on risk management for the moment Which have an activity not relevant to the mother company’s one © Sopra Group, 2006 / Evolan CAD / p 6

Basel II : a winning approach g Pragmatism g g Meet the regulator and the mother company requirements at first step Start with the standard method and implement it fast g g g Ready in 2007 Enhancing step by step data quality and completeness Take time to evolve towards IRB method © Sopra Group, 2006 / Evolan CAD / p 7

What type of tool ? g To accompany the banks, there’s a need for a product that : g g Takes care of the weighting determination and makes all calculation relevant to the Standard Method Is simple to implement Automatically integrates the changes in the regulation Is able to evolve to more complex methods when the bank will need it © Sopra Group, 2006 / Evolan CAD / p 8

Evolan Capital Adequacy g Risk management g g according to Basel II requirements for : g g g the standard method According to each country specificity the IRB Foundation method Large exposure management Developed in partnership with banks © Sopra Group, 2006 / Evolan CAD / p 9

Evolan Capital Adequacy Positioning Modelling History constitution ( KMV, JP Morgan / Credit. Metrics, Credit Risk+, Va. R Model ) Regulatory Risk factors (PD, LGD, EAD, Value at Risk) parameters Contracts Risk position calculation Exposure weighting Credit conversion factor Risk mitigation Capital allocation Solvacy ratio Risk Weighted Assets Regulatory Reporting (Evolan Report) Basel II reporting (COREP) © Sopra Group, 2006 / Evolan CAD / p 10 Weighting factor Conversion factor

Evolan CAD – main advantages g g g A real software, dedicated to risk calculation Installed and integrated in 20 days Reasonable price Latest technology Allows a gradual use g g Only for regulatory and mother company requirements As a real risk management tool Extended with IRB engine if required by the bank Basel II reporting (COREP) © Sopra Group, 2006 / Evolan CAD / p 11

Thank you for your attention For any information, please contact our local account manager : David Coyne dcoyne@sopragroup. com © Sopra Group, 2006 / Evolan CAD / p 12