SIA-SSB: 2011-2013 Strategic Plan Approved

19 October 2010

Objective of the new Strategic Plan: to become one of the leading players in Europe in payment systems, increasing market shares in
Italy and abroad, also through strategic partnerships and other corporate initiatives

In Italy, SIA-SSB aims to extend its range of services for banks, consolidate its presence in the Corporate and P.A. sectors and
maintain its leading role for central institutions

In Europe, strong focus on payment cards and new network services for banks and central institutions

Target for 2013: growth in revenues (+11%), reduction in costs (-20%), R.O.E. (Return on Equity) at 16%,
investments in technology of €65 million

New organizational model launched, based on four Business Divisions (Financial Institutions, Corporate & P.A., Central Institutions and Network Services) aimed at the market and designed to achieve the objectives set

The Strategic Plan for the three-year period 2011- 2013, already approved by the Board of Directors, was presented today by the
Chief Executive Officer of SIA-SSB, Massimo Arrighetti. With the realization of the new Strategic Plan, SIA-SSB aims to become one of the leading players at European level in payment systems, within a competitive scenario characterized by the progressive concentration of the technology operators working in the financial services sector.

The objective is to increase market shares both in Italy and in Europe, also through strategic partnerships and other corporate initiatives. Strategic guidelines In particular, growth in the domestic market will be pursued through the expansion of the range of services for banks - both national and multinational – beginning with the collection and payment services which have always represented the core business of the company.

Attention will also be focused on the development of the Corporate and P.A. sector, with the aim of offering new, value-added services including the opportunities related to the opening up of the payment services market to the new non–banking organizations (the so-called “Payment Institutions”) following the introduction of the PSD (Payment Services Directive).

At the same time, the strong presence in the “system” areas (clearing and settlement, market infrastructures, RNI - national interbank network) will be maintained, as well as the leading role for central institutions. In the European markets, the Plan presents a distinct focus on processing services for payment cards in eastern and western Europe (where the volume of transactions is growing annually by +4.5% with around 45 billion operations estimated for 2013) and on the development of new network services for central institutions (investment in IT for 2013 forecast to increase by 104%).

In addition, SIA-SSB proposes itself as the partner of choice supplying clearing services to the European banking system.
The consolidation of the sales operations, the strong focus on the customer, alongside an increasing orientation towards innovation, represent the key elements for the achievement of the objectives set by the Strategic Plan.

Turning to the cost structure, the company has set itself the objective by 2013 of attaining total savings of €65 million (-20%). The areas where action will be taken include the elimination of non-strategic business lines (for example, securities back office and derivatives platforms), optimization of technology platforms (especially those for card management and authorization transactions), and the revision of governance and development processes and instruments of the Software Factory.

In addition, the company’s logistical efficiency will be improved. By the middle of next year, SIA-SSB’s headquarters will move to eco-technological premises in the Lorenteggio district of Milan, to support the current re-launch and repositioning phase of the company.

Financial objectives at 2013

The Strategic Plan aims to achieve, within the three-year period, an R.O.E. (Return on Equity) of 16% compared to the 3% expected for the end of 2010, and a growth in revenues to €369 million from the €331 million forecast for the current year (approx. +11%), with a CAGR (Compound Annual Growth Rate) of 3.7%.

SIA-SSB also plans to make investments in technology of around €65 million.

Massimo Arrighetti, CEO of SIA-SSB commented: “The three-year Strategic Plan presented today represents a crucial turning point in the development of SIASSB Group. With this Plan, we believe we are laying the foundations to become a leading player in the European payment systems market, which for some time now has been experiencing a profound transformation and witnessing the progressive concentration of its operators. Today we are working with a renewed sense of passion and attention to our customers, with the objective of creating important projects and partnerships which will enable us to offer tailor-made, high performance technology solutions and to promote the creation of a network of excellence at international level”.

Human Resources

Turning to the management of human resources in the three-year period 2011-2013, the Strategic Plan provides for the preservation within the company of key competences, a reduction in the use of external consultants and the optimization of the staff and skills present at the Group companies. This will be accompanied by a recruitment policy that promotes the entry of young graduates
and the careful selection of qualified and skilled personnel from the market. Over the three-year period, the personnel of the SIA-SSB Group, made up of 1,511 people at the end of 2010, will remain largely unchanged, totaling 1,496 staff in 2013.

New organizational model

SIA-SSB also has a new organizational structure, which is strongly oriented towards the market and designed to achieve the objectives of the 2011-2013 Strategic Plan. This will allow for greater focus on the individual business segments and an improvement in the efficiency of the processes used to deliver the services to customers.

The new organization is divided into four Business Divisions (Financial Institutions, Corporate & P.A., Central Institutions and Network Services), with responsibility for covering and developing the specific customer segments, a Shared Services Division, to support and distribute the services, and seven Staff Divisions.

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