Solvay GEST 310: Empowering Finance Industry with Thaler Software Package

1. Helping the finance industryreach new horizons Ecole de Commerce SolvayGEST 310 : gestion des technologies Etude de cas : éditeur de progiciels 2 mai 2005

2. Your speaker today Philippe de Wouters, Directeur Commercial, Callataÿ & Wouters SA pdw@c-w.be INTRODUCTION

3. Our agenda in some points • The company C&W • Financial IT • The Thaler software package • What is a package vendor ? • What is a service provider ? • Human resources • Sales and marketing strategy • International development • The future… INTRODUCTION

4. Our agenda in some points • The company C&W • Financial IT • The Thaler software package • What is a package vendor ? • What is a service provider ? • Human resources • Sales and marketing strategy • International development • The future… INTRODUCTION

5. COMPANY PROFILE To deliver innovative IT solutionsfor the financial services industry… …that help our customersto meet their business objectives Mission statement

6. COMPANY PROFILE Dedicated to the finance services industry 280 consultants with in-depth technical and financial knowledge Focus

7. COMPANY PROFILE Three principal activities Implementationanddevelopment projects Solution development Support Consistent and complementary Activities

8. COMPANY PROFILE Focus on development and imple-mentation of a software package First banking software development at Sogénal Incorporation 1983 1987 1993 Breakthrough: Argenta, Banque de la Poste, NSI, Cortal, Eural, LBK, Rabo… Commercial launch of Thaler v.1 Intensification of international sales effort 1996 2000 2002-05 Milestones

9. COMPANY PROFILE International expansion Presence Brussels 1983 Luxembourg 1991 Jakarta 2004 Geneva 2003 London 2000 Singapore 2002 Paris 2002

10. COMPANY PROFILE Main Figures (end 2004) • Revenue : 33.6 Mio EUR • Net result : 3.0 Mio EUR • Reserves : 7.8 Mio EUR • Staff : 320

11. COMPANY PROFILE Revenue Consistent, strong profitability

12. COMPANY PROFILE 58,5% 3% 38,5% C&W Shareholders

13. COMPANY PROFILE LA POSTE (RNCC) References 10 millions 1 million Volume (millions of accounts) Retail Universal Private Securities Commercial Corporate Public Sector

14. COMPANY PROFILE International Groups

15. COMPANY PROFILE So... why C&W ? Customer dedicated Relevant solutions Committed people Sound strategy Fruitful partnerships

16. COMPANY PROFILE These have all contributed to C&W’s reputation for QUALITY and PROFESSIONALISM So... why C&W ? Customer dedicated Relevant solutions Committed people Sound strategy Fruitful partnerships

17. Our agenda in some points • The company C&W • Financial IT • The Thaler software package • What is a package vendor ? • What is a service provider ? • Human resources • Sales and marketing strategy • International development • The future… INTRODUCTION

18. Some features • Banks : bigger and bigger • Culture : no revolution ! • Belgium : dynamism, competition yet synergies • Tradition of in-house development,but move to market solutions/outsourcing • Long term relationships with providers FINANCIAL IT

19. Large IT consumers • Global Banking IT market : 125 bio $ • External systems market : 15 bio $ • Yearly increase : 15 - 20 % • 10 % of total revenue • 16 % of total costs • 17 000 € / year and employee • 40 € / year and customer • A serious issue… but be careful with figures ! FINANCIAL IT

20. Market response Know your customer Operational productivity Corporate structure Management information IT is a decisive toolfor the implementationof the bank’sstrategy Long term IT choices Is IT strategic ? FINANCIAL IT

21. High costs • Long development • Tests and tuning • IT team master • Vendor independant • Lower costs • Short implementation • Proven and stable • Ext. responsibility • Vendor dependant MAKE BUY From home-made applicationsto market solutions FINANCIAL IT • Necessary balance between both extremes • A big change, ongoing, and implying : • mature solutions • a new vision of IT • a new role for IT teams

22. Our agenda in some points • The company C&W • Financial IT • The Thaler software package • What is a package vendor ? • What is a service provider ? • Human resources • Sales and marketing strategy • International development • The future… INTRODUCTION

23. THALER Product family

24. THALER Large functional coverage Maximum flexibility Strong added value Unique combination of Turns your IT system into a strategic key differenciator

25. THALER Extensive functionality Open and modular design Framework based Integrated Factory Product philosophy

26. THALER Thaler-Treasury Thaler-Loans Thaler-Deposits Thaler-Payments Thaler-Securities General Scheme Thaler – Bank Management ‘2003-C&W

27. THALER Securities Loans Securities ID Mortgage & investment loans Securities accounting Customer loans Orders Overdraft & revolving credits Corporate actions Term advances Commitment credits Securities options Bank Management Treasury Credit files Portfolio valuation Foreign exchange Collateral management Model portfolios CustomerInformation Loans & deposits Credit opening & credit lines Physical delivery FX options Pension funds Accounting Payments IRS Risk management National payments FRA Deposits Tariffs & conditions Remittances Customer accounts Standing orders Interest calculations Messaging Cheques Term deposits Tax Direct debits Certificates of dep. General functions Bank card Agency operations Thaler components

28. THALER • Business-lines • variety • combination • customer view • multi-channel • Products • niches • innovation • Corporate • multi-company • munti-country • growth • acquisitions IT BUSINESS • Specific coverage • Evolution • Modularity • Openness • Connectivity • Scalability • Availability Design : from needs to choices

29. THALER 3-tier Thin client Standards Open Client-server architecture Network TCP/IP

30. THALER Client-server architecture Network TCP/IP

31. THALER Implementation Customisation Documentation Release management Complete toolset Closely linked to the methods

32. THALER Thaler-Treasury Thaler-Loans Thaler-Deposits Thaler-Payments Thaler-Securities Appropriation Thaler – Bank Management Thaler - Framework ‘2003-C&W Thaler is now yours

33. THALER Benchmarks results Configuration : from 8 to 72 CPUs • Transactional load : 600 transactions /sec • Interest calculations : 6 mio/hour • Payment processing : 5,5 mio/hour • Authorizations : 1600/sec More than the requirements of the whole country !

34. KYUDO Sales Office Counter Externalnetwork Externalnetwork Directnetwork B2C B2N Multi-channel Bank Back-Office Multi-channel Customers

35. TERAN Operational Systems TERAN DATA CENTER Historized data (D-M-Y) Derivated data Calculation CRA P&L IFRS AML B II Reports Reports Reports Reports Reports General scheme

36. Our agenda in some points • The company C&W • Financial IT • The Thaler software package • What is a package vendor ? • What is a service provider ? • Human resources • Sales and marketing strategy • International development • The future… INTRODUCTION

37. Editor’s tasks • R&D • Product development • Maintenance • Hot-line EDITOR

38. On-going R&D effort to ensure solutions meet the needs of changing markets Awareness ofbusiness andtechnologicalchanges Constant review and revision of products R&D EDITOR

39. Implementationpilot project  3 months  2 months Standardavailable Module Go Live Start Integration Module available Development cycle • Development • Delivery Analysis /design Developmentand tests Estimates Start of delivery Decision of offering Decision of dev. Decisionof study EDITOR

40. Maintenance contract New releases Bug fixing Product maintenance EDITOR

41. Depending on severeness Blocking Patch Non Blocking New releases Bug fixing EDITOR

42. For a subset of modules Non blocking bugs New functionalities External evolutions (regulatory – technical - interfaces) Patch integration New release contents EDITOR

43. PROGRESS STABILITY Paradox to be managed • New clients • Bug fixing • Legal evolutions • Market evolutions • New functionality • Existing clients • Minimal evolutions • Maximal added value • Minimal implementation cost • Maximal stability EDITOR

44. 2.2 2.2.b. • New Dev integration 2.2.a. 2.3.a. 2.2.x. 2.3 • “Full” patch • “Full” patch integration • New Dev integration • Rev. mod. / new funct. 3 + 1 Working cycles • Patch development (ASAP) • New minor release (1 / year) • New modules (when decided) • New major releases (transverse : +/- 8 years) EDITOR

45. Hot-line • Help desk for customers and integrators • NOT an assistance to users and operators ! • Bugs must be identified and reproducible • Output can only be a patch • Case management tool • Dedicated team • SLA-driven EDITOR

46. Editor’s pricing • Licences : • Basic prices per module • Weighting factors (intensity of use) • From 0,5 to 5 mio € • Maintenance : • Yearly fee • Usually 15 % EDITOR

47. Our agenda in some points • The company C&W • Financial IT • The Thaler software package • What is a package vendor ? • What is a service provider ? • Human resources • Sales and marketing strategy • International development • The future… INTRODUCTION

48. SERVICES Implementation project Post implementation support 2 services = 2 steps

49. SERVICES Product implementation Tailor-made development Projects

50. SERVICES Installation Analysis of the needs Integration Tests Go-live Design Project stages Parameterisation Compl. fcts develop. Migration Interfaces Project Management Time