With the unpredictable economic environment and the importance of cash and liquidity on the corporate agenda, finance executives are evaluating the effectiveness of current operations across payables and receivables. Many companies are turning to payment factories to deliver value across the entire organization.

1. Spotlight on Payment
Factories
John Farrell
Senior Vice President, Financial Services
Nasreen Quibria
Payments Subject Matter Expert

2. © Logica 2012. All rights reserved No. 2
 US Economic Landscape
 Survey Methodology
 Logica Findings
 Key Takeaways
 Logica Resources
 Questions?
Agenda

3. © Logica 2012. All rights reserved No. 3
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
IV I II III IV I II III IV I II III IV I II III
2007 2008 2009 2010 2011
US Economic Landscape
PercentChangeinRealGrossDomesticProduct
SOURCE: US Bureau of Economic Analysis, National Bureau of Economic Research
Great Recession
December 2007 – June 2009
2012
?

4. No. 4© Logica 2012. All rights reserved
Company Size* Job Titles
Survey of 157 companies In North America and Europe
*2% No Response
7%
38%53%
Midsize
($25 million
to $1 billion)
Large
$1 billion
and over)
Small
(less than
$25 million)
Survey Profile
27%
36%
14%
6%
8%
4% 5%
Managing
Director Other
C-Level
Manager
Staff
Employee
Director
Treasurer /
Assistant
Treasurer /
Controller

5. No. 5© Logica 2012. All rights reserved
Survey Profile – Industry Type
3%
6%
6%
9%
10%
13%
13%
17%
22%
0% 5% 10% 15% 20% 25%
Transportation
Healthcare (including Pharmaceutical,
Biotech)
Government/Public Sector
Business Services/Consulting
Retail (including Wholesale/Distribution)
Energy and Utilities
Other
Banking / Financial Services / Insurance
Manufacturing
*1% No Response

6. No. 6© Logica 2012. All rights reserved
Driving Forces for a Payment Factory
4%
11%
25%
24%
36%
3%
6%
24%
29%
38%
0% 10% 20% 30% 40% 50%
Other
Consolidation of banking relationships /
Reduction of bank accounts
Improve transparency and reduce risk
e.g., fraud, payment errors
Improve visibility into cash (internal business
operations and external financial value chain)
Reduce internal costs
North America Europe

7. No. 7© Logica 2012. All rights reserved
Catalysts Based on Company Size*
6%
35%
18%
18%
24%
2%
14%
41%
21%
21%
3%
21%
19%
22%
34%
0% 10% 20% 30% 40% 50%
Other
Improve transparency and reduce risk
e.g., fraud, payment errors
Consolidation of banking relationships /
Reduction of bank accounts
Improve visibility into cash (internal business
operations and external financial value chain)
Reduce internal costs
Large Midsize Small

8. No. 8© Logica 2012. All rights reserved
Implementation Stage
40%
15%
7%
3% 2%
32%
2%
29%
14%
9%
4% 0%
45%
0%
36%
15%
8%
3% 1%
36%
1%
0%
10%
20%
30%
40%
50%
North America Europe Total
Business
Case in
Live Under
Consideration
In
Implementation
Stage
Selection
Process of
Consultants
and/or
Solution
Providers
No Plans Considered
and
Development Rejected
38%62%
Source: Logica, December 2011

9. No. 9© Logica 2012. All rights reserved
Implementation Model
62%
13% 10% 8% 8%
77%
12% 9%
0% 5%
66%
9% 9%
6% 7%
0%
10%
30%
50%
70%
90%
Plan to
implement
system in-
house
Outsource to a
payment
processor
Undecided Outsource to
our bankers
Other
North America Europe Total

10. No. 10© Logica 2012. All rights reserved
44%
34%
13%
10%
55%
31%
7% 7%
47%
33%
11%
9%
0%
10%
20%
30%
40%
50%
60%
Important Very important Not relevant Not important
North America Europe Total
Counterparty Risk - Importance of De-Risking
the Supply Chain
11%
39%
50%
8%
33%
59%
0% 20% 40% 60%
Not important
Very important
Important

11. No. 11© Logica 2012. All rights reserved
47%
28%
18%
7% 0%
66%
11% 13%
7% 4%
54%
22% 16%
7% 1%
0%
20%
40%
60%
80%
Good– our
bankers seem to
have a good
understanding of
our issues
Excellent – we fully
trust our bankers
to advise us on this
issue
Average – they
understand some
of our issues
We don't consult
our bankers
Poor – they don’t
seem to
understand what
we need
North America Europe Total
Rate Banks

12. No. 12© Logica 2012. All rights reserved
Rate Banks by Company Size
18%
9%
73%
7%
17%
51%
25%
5%
2%
17%
54%
22%
0% 20% 40% 60% 80%
We don't consult our bankers
Poor – they don’t seem to understand
what we need
Average – they understand some
of our issues
Good – our bankers seem to have a
good understanding of our issues
Excellent – we fully trust our bankers
to advise us on this issue
Large Midsize Small

13. No. 13© Logica 2012. All rights reserved
View of Single Euro Payments Area (SEPA)
Opportunity for
business
benefits
Unsure what it
means for our
business
Seen as a
burden or cost
with little or no
benefit
Not relevant to
our business
13%
43%
32%
13%
Can SEPA provide competitive advantage?

14. No. 14© Logica 2012. All rights reserved
Opportunity for
6%
68%
17%
9%
View of Same Day ACH
business
benefits e.g.,
improve cash
flow
Unsure what it
means for our
business
Seen as a
burden or cost
with little or no
benefit
Not relevant to
our business

15. No. 15© Logica 2012. All rights reserved
Not relevant to
our business
56%
Business case
development
17%
Live
In
implementation
stage
Review /Selection
process of
technology
providers
11%
14%
36%
39%
0% 10% 20% 30% 40%
Business case in
Review / Selection process
of technology providers
In implementation stage
Live
development
in
16%
5%
6%
International ACH Transaction (IAT)

16. No. 16© Logica 2012. All rights reserved
Key Takeaways
 Educate and advise your corporate customers - Help them
with their choice of transaction banking partner
 Provide a clear message
 Engage and educate your key internal stakeholders
 Provide value add - Structure optimal combination of
payment and collection instruments; offer choices of new
payment channels and services

17. No. 17© Logica 2012. All rights reserved
Logica Resources
http://www.logica.us/we-are-logica/media-
centre/brochures/2011/payments-have-advanced/
 Logica All Payments Solution (LAPS)
Related Products
http://www.logica.us/we-work-in/financial-services/related-
media/articles/2012/recent-financial-services-perspectives-from-
logica/
 Payments Factory
 Same Day ACH
Thought Leadership

18. No. 18© Logica 2012. All rights reserved
Thank You…
John Farrell – Senior Vice President, Financial Services
john.farrell@logica.com
781.373.8545
Nasreen Quibria – Payments Subject Matter Expert
nasreen.quibria@logica.com
781.373.8554