Evolan Capital Adequacy

1. Evolan Capital Adequacy An efficient way to meet the Basel II requirements in Romania

2. A transversal organisation Sopra Group & Axway Consulting Integration Systems EAI & Solutions Outsourcing Application Software Sopra Group at a glance • An independent Group in Consulting and IT Services founded in 1968 • Euronext Paris / SRD (SBF120, CAC Mid 100) • Workforces 10 000 – international 3 500 • Geographical scope : worldwide /Europe • A strong position in banking software (loans, reporting, …) 2004 Split of TO per sector Consolidated Turn Over (M€) +1 000 34% 757 629,2 525,3 2003 2004 2005 +20,2%/2004 2006 Forecast

3. Geographical scopemore than 70 countries Sopra Group Subsidiaries Sopra Group solutions & products

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

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

6. Basel II : a winning approach • Applies to the banks • 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

7. Basel II : a winning approach • Pragmatism • Meet the regulator and the mother company requirements at first step • Start with the standard method and implement it fast • Ready in 2007 • Enhancing step by step data quality and completeness • Take time to evolve towards IRB method

8. What type of tool ? • To accompany the banks, there’s a need for a product that : • 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

9. Evolan Capital Adequacy • Risk management • according to Basel II requirements • for : • the standard method • According to each country specificity • the IRB Foundation method • Large exposure management • Developed in partnership with banks

10. Evolan Capital AdequacyPositioning Regulatory parameters Risk factors (PD, LGD, EAD, Value at Risk) Weighting factor Conversion factor 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) Modelling History constitution ( KMV, JP Morgan / CreditMetrics, Credit Risk+, VaR Model )

11. Evolan CAD – main advantages • A real software, dedicated to risk calculation • Installed and integrated in 20 days • Reasonable price • Latest technology • Allows a gradual use • 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)

12. Thank you for your attention For any information, please contact our local account manager : David Coyne dcoyne@sopragroup.com