MARKET ORGANISATION AND OFFER

The Engineering Group is the prime Italian operator in the service & software sector, with 6,300 employees distributed between Italy, Benelux, Ireland and Brazil.

With consolidated earnings equivalent to 740 million Euro, and a portfolio of 1,000 customers distributed throughout all the vertical markets, Engineering is active in 6 market macro-divisions: Finance, Public Administration & Health, Energy & Utilities, Industry & Services, Telco & Media, Research & Innovation. 10% of the Groups production value is generated abroad, directly or indirectly with Information Technology projects deployed in more than 50 countries.

Proprietary products and solutions for the financial, health, local government, industry and utilities markets, system integration & consulting, and on site outsourcing services supplied by the European Data Center at Pont Saint Martin, near Aosta in the North of Italy.

The Research & Innovation Department has been involved as a partner of the European Union in the development of over 20 innovative software re-engineering projects and works with 250 researchers located in various parts of Italy and Europe. The Engineering Group produces internationally acclaimed open source and business intelligence solutions, which are developed by a dedicated team of software researchers. These solutions are downloadable from www.spagoworld.org

The Group is represented in South America by the controlled company Engineering do Brasil, which has the same market organisation as the main Group, an autonomous local management structure, and an established customer portfolio in the telecommunications and automotive sectors. Engineering do Brasil employs 30 specialised staff and generates a production value of over 23 million dollars.

THE FINANCE DIVISION

A global partner offering a complete, integrated service that covers the full software value chain: system integration & consulting, managed operation services supplied by the European Data Center in Pont Saint Martin, a market-leading range of proprietary solutions and products, and market penetration points in 80% of national banking structures in sectors such as Governance & Compliance. 1,323 process, business and solutions specialists, revenue of 208 million Euro, and a portfolio of 200 customers corresponding to an overall share of 12% of the Italian Financial Services market. Engineering Finance integrates its skills package unilaterally, adapting it to the project execution, needs analysis, and solution start up phases, and guaranteeing evolution in line with the customer's business strategies. The Software Factory Finance has laboratories in Milan, Brescia, Bologna, Padua, Palermo, and Naples and employs approximately 400 specialised staff and product analysts. The factory has been a reference point for the Financial Services market for the past 30 years.

The methodological approach involves: continuous valorisation of information by means of innovative, modular and integrated approaches complete access to all optimised data for the decision making processes; planning, control, and operative, strategic marketing.

Not just application solutions but also ideas: the Finance products factory is a centre of excellence of functional innovation and process in the Governance & Compliance, Credit & Customer Management, Payments & Settlement areas. Product range Over 600 latest generation proprietary licences have been installed, demonstrating the benefit of Engineering Finances investment in research and innovation, equivalent to 10% of the divisions annual earnings. Engineering Finance is a partner of the principal national banking and insurance groups and assists the market in implementing internationalisation policies, and interpreting the new regulations regarding IAS/IFRS, Basel II, PSD, MiFID and Transparency. Customer portfolio The 40 principal domestic banking groups with an international leverage More than 140 financial intermediaries outside the banking sector 17 insurance companies

Principal customers

Barclays Bank BNL Gruppo BNP Paribas Cariparma Gruppo Crdit Agricole Deutsche Bank Italia Groupama Gruppo Banco Popolare Gruppo Generali

Gruppo Intesa SanPaolo Gruppo Mediolanum Gruppo Monte dei Paschi di Siena Gruppo UBI Helvetia ITAS Unicredit Group

VISION OF THE FINANCE WORLD

Take over and merger policies, regulatory complexity, the constant drive for efficiency in containing and rationalising costs, new retail and corporate behaviour patterns: an exogenous group of factors that is encouraging banks to radically rethink their approach to the market and the business models necessary in a competitive context that has been exacerbated by the economic/financial crisis and the presence of new service providers; such as large scale retailers, the utilities sector and telephone service providers, who are taking up increasing shares in traditionally banking service sectors. The banks' response lies in creating targeted, made to measure or standardised services, modulating pricing and diversifying their offer: change drivers that are essential if the banks are to achieve their strategic sales and service targets and consolidate their customer and business relationships. Exploiting the wealth of information at the credit institutes' disposal is a key factor in acquiring a competitive edge. The banks must be able to manage and take full advantage of this information, interact with the customer, identify real preferences and needs, both present and future. It is in this context that technology has a new central role to play that is vital for the complex organisation of a bank and renders it more efficient and more commercially effective: automating and integrating business processes are exclusive tools for managing, measuring and controlling production, competitors, relationships, performances. A fast, proactive response, synchronised with the market, is a factor of success. Financial Services Portfolio
GENERAL MGMT GENERAL ADMINISTRATION SERVICE

BUSINESS

PLANNING & CONTROL PERSONNEL

BANK FUNCTIONS
ORGANIZATION AUDIT

INFORMATION SYSTEMS SECURITY

RISK MGMT

CORPORATE PRIVATE

RETAIL

BASEL II FRAMEWORK INFO PROVIDERS CHANNELS

COMPLIANCE

TRANSVERSAL PROGRAMS
BRANCH R-ENGINEERING PAYMENTS & SETTLEMENT

REHOSTING INFORMATION SYSTEM PRODUCT COMPANIES SUPPORT INFORMATION SYSTEM

FINANCE

E-PAYMENT

CORE BANKING SYSTEM

CREDIT CASH

FOREIGN

CORPORATE COMPLIANCE MGMT

CORPORATE PERFORMANCE MGMT

MANAGEMENT DASHBOARD

ENTERPRISE DATAWAREHOUSE
CORPORATE RISK MGMT

CUSTOMER MGMT

CORPORATE BUSINESS DEVELOPMENT

The vision of an effective architecture is simple: satisfy diverse requirements, share and harmonise objectives and processes through a mixed approach that integrates: specific and verticalised Finance solutions a vision positioning the customer and the information as the foundation of the new banking information system modular, integrated and adaptable solutions for successful companies

Engineering Finance offers complete solutions and approaches to diverse facets of the financial phenomenon: Governance & Compliance for the management area; Payments & Settlements for effectiveness; Credit & Customer Management for creating a client-centric business model. Group synergies and skills are integrated into strategic value proposition: consulting, system & business integration; business process services and applicable outsourcing, application & facility management, training packages, on site or supplied by the Engineering ICT Training School in Rome.

GOVERNANCE & COMPLIANCE

This area governs the financial company's efficiency and development, by monitoring and measuring risk, revenue and value variables, fulfilling accounting, administrative and reporting obligations for the control authorities, and analysing market developments and the company's competitors. The Engineering Finance suite is positioned within the evolving context of the banking area that deals with protection and integrated, data logging, and Group governance systems for the whole information archiving, in line with vigilance, accounting, risk and management control requirements. The solution enables financial companies to design strategies for more dynamic and contextualised information management and to deal with new business issues: data quality and congruency, process optimisation and control, and best practices. The solution interprets the natural evolutionary process in banking management systems and optimises the skills package that Engineering has built up over 30 years in the banking and financial services markets. Compliance & Governance: architectural design
OPERATIONAL SYSTEMS
CURRENT ACCOUNTS LOANS COLLECTIONS & PAYMENTS REGISTER CREDIT LINE & COLLATERALS FINANCING OTHER SERVICES ........

DATA WAREHOUSING SYSTEMS

SISBA3

STAGING AREA

DATA QUALITY MANAGEMENT SYSTEM

CFO & CRO OFFICE

MANAGEMENT INFORMATION SYSTEMS

REGULATIONS PUBLICATION PROCESSES DM2 DM3 DM4 RISKS REVENUE

INTEGRATION & EXTRACTION PROCESSES

DW OTHER INFORMATION

RELATIONAL AREA

PROCESS AREA

ANALYSIS & INTELLIGENCE SYSTEMS

DM1 DM5

QUERY & REPORTING, MULTIDIMENSIONAL ANALYSIS

DMn

DM1

DMn

TECHNOLOGICAL ITEMS

The Governance & Compliance suite is based on a central repository conceived as a federal structure. All its components have been developed for guaranteeing: a centralised and homogenous data view a modular and flexible integration the necessary connectivity

The federal architecture allows: to tailor the proprietary information assets through incremental steps as the needs change to have different views on the same data set

The vertical applications: Corporate Information Management central repository: the CFO & CRO DataWarehouse Corporate Risk Management suite: risk monitoring and measurement Corporate Performance Management suite: revenue & product profitability monitoring Corporate Compliance Management suite: to fulfil all the accounting, administrative and reporting obligations for the control authorities

CUSTOMER EXPERIENCE MANAGEMENT - CEM

The CEM area covers all aspects concerning the bank's relationship with its customers: from contact through to the finalised relationship, providing a transparent view of the bank, a well-defined, distinctive image, a clear and simple offer and a slim, flexible organisation. In addition to the dedicated applications, the suite assists commercial organisations in identifying the customers real requirements. The mix of products, services and pricing is tailored to the aims of the credit institute. The four principal modules are: advisoring, best offer, best price, sales and post-sales management. The modules can be integrated with the banks internal processes and IT applications - Regulator, Product Catalogue, Registries, CRM, dynamically and cooperatively with the commercial processes. CEM Process end-to-end
PLANNING TYPING RULES STRATEGY PARAMETERS IDENTIFYING REQUIREMENTS PROFILING CUSTOMER ADVISORING

PRODUCT ADVISORING CANDIDATE PRODUCTS SIMULATIONS PROPOSALS QUOTATIONS

NEGOTIATION

COMMUNICATION LEVELS DEFINITION/ IDENTIFICATION PLAYERS ........

PROPOSITION

PRODUCT COMPONENTS PRICING

MANAGEMENT ACTIVATING SERVICING FUNCTIONS ........

ANALYSIS

CUSTOMER

ACCOUNT MANAGER

SALES VIRTUAL CALL FINANCIAL BACK NETWORKS CHANNELS CENTER CONSULTANTS FIDUCIARIES OFFICE

PROPOSAL

NEGOTIATION

CONTRACT

MANAGEMENT

CREDIT MANAGEMENT

Credit Process end-to-end

HOLDING

The Credit Management solutions provide Financial Institutes with credit management support, especially in the commercial and credit areas: from the entrustment phase, including the offer of overdrafts and loans, to the continuous monitoring phase at both the customer/relationship/operations, and internal and external elaboration process levels. Engineering Finance Credit Management also offers dedicated modules for preventative and rapid management of insolvency risks, such as the first outstanding or late payments, and helps to identify and handle customers who are potentially at risk, with the aim of rendering them fully operative again, based on treatment methods that vary depending on the type of customer, retail, corporate, small business. The suite, which is modular and open, has been designed according to innovative process logic based on a development infrastructure created to generate WEB 2.0 applications.
GROUP BANKS PARTNERS MONITORING CUSTOMER EVALUATION
RESTRUCTURING AND WORKOUT

KNOWLEDGE CUSTOMER FILE GROUP REGISTER

PRE-EVALUATION UNPAID CHECKES LITIGATIONS PROTESTS PRE-RATING BALANCE SHEET SCORING

EVALUATION AND DECISION EVALUATION PLATFORM

CREDIT PORTAL

POST-DECISION COLLATERALS ELIGIBILITY CHECKS

GROUP MANAGEMENT PROSPECTS

DATA PROVIDERS

PROPOSAL

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OVERDUES AND PAST DUES

BEST OFFER

FINANCING AND LOANS

CREDIT LINES AND COLLATERALS

OPPORTUNITIES EVALUATION

LEGAL ACTIVITIES

DELINQUENCY MANAGEMENT SIMULATIONS

BEST PRICE

OPERATIVE CREDIT REPOSITORY

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MANAGEMENT

RESTRUCTURING AND WORKOUT

EVENTS

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REVIEW

ENGINEERING IN THE FINANCIAL SERVICES MARKET

STRENGTHS BENEFITS FOR THE CUSTOMER

Reliability: market leader since 30 years, 1,323 dedicated resources, equivalent to 20% of the Groups total workforce

Project vision focused on innovation, optimised analysis of context and historical data

Market, process and product skills in processes management and a core business of 200 customers

Focus: The Software Factory develops vertical solutions. The Solutions Deployment team adapts solutions to regulatory and organisational requirements

Coverage of all business requirements Reduced design and customisation costs Experience: evolving range of Functional and technologically solutions that can be adapted to new innovative solutions regulations and business practices Efficiency, time and cost savings Monitoring and integration of changes Management of complex situations

4 specialised Skill Centres: Governance & Compliance, Credits, Customer Relationship Management, Payments & Settlement Innovation management: complex project management, business area skills; technological know-how, project management

Easy to integrate with the principal commercial software systems and complex internal organisations. Technological and organisational change management

Reduced integration costs Increased operating efficiency Incremental approach System stability Capitalisation and building on investments

Modular functions, data and processes that can be incremented going forward

ENGINEERING Via San Martino della Battaglia, 56 00185 Rome - Italy Tel. +39-06-492011 www.eng.it info@eng.it