Advantages of full ATM networks outsourcing

1. Advantages of full ATM networks outsourcing Otakar BOBKO Chief Representative Global Payments Ukraine

2. Pioneer in payment processing. Combining Technology & Expertise (Formerly NDC) Publicly traded on the NYSE (GPN) Leading payments company in the United States, Canada, Central and Eastern Europe and Asia-Pacific region Merchant acquiring Card issuing ATM and POS processing Leading money transfer provider in the United States, Spain, UK and Belgium Consumer to Consumer Business to Business HQ Atlanta, regional centers inToronto, Mexico City, Prague, Madrid, and Hong-Kong Servicing clients in 40 countries worldwide Company OverviewGlobal Payments Inc. 2

3. Company OverviewBusiness Highlights • Providing payment processing services since 1967 • Over 3 billion transactions processed annually • Over $100 billion in annual transaction volume • Over 1.5 million merchant locations worldwide • Over $3.0 billion in market capitalization

4. Central & Eastern European Operations • Acquired in February 2004 • Renamed to Global Payments Europe in August 2005 • Largest indirect payments processor in the Czech Republic • 50% share of market • EMV chip card compliant technology • Market reputation for high-quality services, technological leader in the CEE region

5. Definition of outsourcing Outsourcing represents: • A complex arrangement of specific services from an external provider • A modern and successfully developing strategy to manage company‘s important but not the core activities • A shift from providing a partial service to the complete takeover of responsibility for a given functional scope

6. WHY Outsourcing ? • Cost reduction (economy of scale, cheaper labour resources) • Higher level of supplier‘s flexibility • Opportunity to focus on key business issues • Lack of internal resources (time, money, employees) • Efficient achievement of goals • Increased flexibility to react to the changing market conditions • Effective operational expenses control, predictable costs • Lower initial and running investment into the internal infrastructure • Securing a higher service accessibility • Access to innovations • Guaranteed continual development

7. Trends in outsourcing I • Cost reduction • Motivation is important but not primary • Reasons to outsource: • Concentrating on the core business • Improving service quality • Accessing expert knowledge, experience and skills • Important criteria for the selection of a supplier: • Proven experience (track record) • Guaranteed level of services • Growing trends - „multiple outsourcing contracts“ • Benefits of a cooperation with several outsourcing partners have not yet been proved in practice • Offshore outsourcing • Not only goods butservices are provided across the borders

8. Trends in outsourcing II • Highly competitive outsourcing market • 85% of projects assigned through tenders • Usually mid-term contracts • Standard period of a contract – 3 years • Internal opposition to outsourcing • Data security and personal data protection are the main arguments when trying to reverse a decision • Outsourcing companies must manage two conflicting requests: • Requirement to standardise and to reach maximum efficiency • Demand for unique service for each customer (customization, value added services etc.)

9. ATMOUTSOURCING - Service Description • ATM Purchase or lease • Setup of telecommunication connection • Installation of ATM • ATM maintenance management • ATM network operation management • ATM network statistics • Financial services • Remote Client‘s access to all information

10. ATM OUTSOURCING - Management of ATM network BANK VENDOR 1 ….. VENDOR n FINANCIAL SERVICES, RENT CONTRACT MANAGEMENT, LOCATION MANAGEMENT, CAPTURED CARDS MANAGEMENT CASHMANAGEMENT,MARKETING ATM andSW PRODUCTS, SERVICES and MAINTENANCE CASH REPLENISHMENT, CLEANING SERVICES AUTHORIZATION SERVICES, SW CUSTOMIZATION, PAYMENT PROCESS SERVICES SECURITY GROUP INSTALLATION, LABELLING PROCESSOR CONSTRUCTION COMPANY

11. Solution proposalfor ATM network outsourcing BANK • Concentration on core banking business • Lower cost incl. investments • Reduced number of suppliers • Simple and efficient communication • System integration • Sophisticated services • Quality, reliability, security • Cross business activities Card Associations Merchants GSM operators E-shops Other subjects VENDOR 1 …n CONSTRUCTION COMPANY SECURITY GROUP ABAK

12. Principal cooperation model GPE coordinates all services related to ATM network operation for BANK Straightforward process model=> BANK Request Project activities = planning + implementation - ATM positionmanagement - Rent contract - Optimal ATM type selection - Construction works • SW customization • Implementation of value added services Providingcontinual operational services • Cash management • HW and SW maintenance • Cash replenishment and cleaning services

13. Purchase / leasing of ATM • Selection of optimal ATM type • ATM Outdoor • ATM Lobby • Deposit ATM • Purchase of ATM • Financing forms • Direct purchase • Leasing • Financing through service • Delivery of ATM within 6 – 8 weeks • Ecological liquidation of ATM

14. Setup of telecommunication connection • Design of telecommunication solution for specific location • Data line logistics • Installation of IP connection • Installation of GPRS connection • Installation of V-SAT connection • Preparation and installation of VPN concentrator • Dealing with telecommunication provider

15. Installation of ATM • HW technical setup • Basic SW for ATM • Client‘s tailor made SW (customization of services, modifications …) • Consultation – right place for ATM installation • Engineering (dealing with authorities, preparation of installation place) • Preparation and conclusion of rent contract • Transport, installation and initiation of ATM • ATM labeling, navigation for clients

16. ATM network operation management • Implementation and configuration of a new ATM into authorization system • Delivery of expandable supplies • Delivery of spare parts • HW maintenance and prophylactic service • SW maintenance • Association requirements • Upgrade of ATM application software • Security key management • Generation and implementation of unique keys • Standby service • Regular maintenance and key replacement

17. ATM network operation management • Client service 24x7x365 • Monitoring – immediate information about faults detected by ATM • Fraud detection system – recognition of suspicious behavior • Reporting – preparing reports and statistics (out of operation, type of fault, length of repair…) • Cash management – predictions and cash replenishment • Electronic journals management • Project works • Marketing campaigns management

18. End to End product approach 1. Business case modeling • Processing • Feasibility study 3. Project management • Change management 18

19. Financial aspects • Lower investment needs • Innovative price models and competitive charges • Competitive monthly charges (including free transactions) + cost per transaction • Simple cost evaluation • Saving a double digit % of your expenses related to ATM business

20. Are you ready? • Together, we can identify areas where additional savings can be made • Simple price plan for provided solutions and services • Improvement of service quality and capability • You feel confident: You're talking to someone who understands not only your needs but also knows how to deal with them quickly and effectively! We can help you increase your profitability in consumer finance market.

21. Thank you for your attention Otakar BOBKO Chief Representative Global Payments Ukraine