EPG marketing material.

1. Erste Group Procurement (EGP)

2. 03
Table of Content
What is EGP? (Erste Group Procurement) 04
Principles of EGP 05
Erste Group Procurement Service Pillars at a glance 05
Sourcing International/Local 09
Tactical Purchasing 11
Order Management 13
Customised Procurement Service (CPS) 14
Outsourcing Competence Center (OCC) 14
Business Process Outsourcing (BPO) 14
Glossary of Terms & Definitions 15
Contacts 16

3. 04
What is Erste Group Procurement (EGP)?
Erste Group Procurement (EGP) has been established as the within Erste Group with exception of personnel expenses. Its
first address for the group’s external supply needs and man- mission has been approved by the Erste Group Management
ages the whole external spend of all majority owned entities Board and local Boards and is as follows:
Erste Group Holding Board decision on the Erste Group Purchasing Policy (PO 1008-PUR-A approved on 10 May 2011)
– The central and single competence for procurement activities within Erste Group lies in Erste Group Procurement (EGP).
– ll external spend should follow the principle of Total Cost of Ownership (TCO) and Quality, Cost and Delivery. In balance
A
with socio-economic, ecological and customer relationship factors the assignment of a contract has to follow the principle of
highest added value for Erste Group.
– GP has to be involved in any external spend of any Erste Group majority owned entity. Any exception has to be agreed
E
between EGP and the respective Erste Group entity.
– EGP owns, defines and aligns with the local entities the purchasing processes within Erste Group.
Erste Group Procurement (EGP) contributes the most in S2D in your S2P process.
Source to Pay (S2P)
Category Purchasing
Contract project and Requisiton and Receipting and Invoice
Management contract Ordering Evaluating Processing
Supplier (not in scope of EGP)
Demand creation
Source to Delivery (S2D)

4. 05
Services
Principles of EGP
– Transparency in procurement decision making – Highest ethical standards in all activities and interactions
– Service Quality is selection on best value not lowest cost – Fraud Prevention
– ustainable and measurable Cost Reduction and Cost
S
Avoidance
EGPErste Group Procurement Services at a glance
Services in Scope Service i in scop e
S ervice n scope
S ervice ooutof sc ope
Service ut of scope
Erste Group Procurement
Customised Outsourcing Business
Sourcing Tactical Order
Procurement Competence Process
International/Local Purchasing Management
Services Center Outsourcing
Category Mgmt Category Mgmt Category Mgmt
Supplier Mgmt Supplier Mgmt Supplier Mgmt
Contract Mgmt Contract Mgmt Contract Mgmt Additional Compliance with Operations of
requirements Outsourcing support
Purchasing Project Purchasing Project
requested Policy Provisions processes
Purchasing Project
by customer and for the local
and are not in maintenance of entities, i.e.
the scope of outsourcing
Contract Creation Contract Creation Contract Creation
procurement project
documentation. • Services AT
Requisition Requisition Requisition • Print Shop
• Warehouse
Ordering Ordering Ordering
Documentation Documentation Documentation
CR/CA Calculation CR/CA Calculation CR/CA Calculation
Receipting Receipting Customer Compliance to Provide
Receipting
Satisfaction regulatory cost-efficient
Evaluating Evaluating Evaluating and services
internal
Invoice Invoice Invoice requirements
Processing Processing Processing
Strategic, monitored Ensure fast, easy and efficient execution On Customer’s Additional Services
purchasing in a team Demand for the customer ’s benefit
approach By EGP By EGP or Customer
Invoicing as a % of 3rd party spend Invoicing in a separate fee (SLA)
EGP – Member of EG © 2012
All rights reserved

5. 06
The following sections gives a short description
about the procurement steps within EGP
Category Mgmt
Supplier Mgmt
Contract Mgmt
Step 1 – Demand Analysis
Category Management EGP uses a scheme which clusters currently 145 categories on three levels and assigns responsibili-
ties, activities, contracts, key suppliers and strategies to those categories. Together with the respec-
tive customers a category strategy is aligned and approved.
Supplier Management In order to have more efficient processes between EGP customers and the suppliers. EGP is identify-
,
ing and focusing on key suppliers. EGP is jointly implementing supplier relationship models including
Business Reviews, Supplier Audits, Supplier Strategies and Escalation paths.
Contract Management Contract management is a structured and organised storage of contracts and the according meta-
data. It allows rapid access to both contracts and aggregated information. Objectives are to provide a
central point of information, distribute the contracts and enable their usage, link spend information
to contracts, support the contract lifecycle management and allow analysis of suppliers or categories.
Purchasing Project
Step 2 – Purchasing Project/Tender Project
RFx Package An Rfx Package contains at least one of the components RFI, RFQ or RFP The process can range from
.
a simple one-time RFQ to a complex multi-stage RFI/RFP/RFQ process, depending on the needs of
the project. The complexity of the RFx process is then determined by the completeness of the require-
ments, the number of suppliers that have been qualified, expected competition in the supplier base,
inherent risk in the sourcing effort, and projected savings or cost avoidance opportunities.
Evaluation Matrix The key objective is to collect bids from suppliers, negotiate terms and conditions with the sup-
pliers and to award winning suppliers. There is no regulation that all activities in this step have to
be executed in each project. Depending on the specific demand several steps can be skipped and/
or there can be directly a project finalisation after the clear specifications and evaluation criteria have
been defined and approved by the project team.
Supplier Offers To provide an offer is the legal act by which the supplier manifests its will unilaterally to be legally en-
gaged in a purchase contract in determined conditions. The offer must be firm, unequivocal, precise
and complete.
Project Team The responsible EGP specialist organises the project team members that can include employees from
EGP and from the requesting entity, covering commercial and technical expertise. In addition, the
roles and responsibilities within the project team will be defined.
eAuction An eAuction is the tool by which suppliers can place bids for a contract via the internet. An e-
auction or reverse auction allows suppliers to compete for your business by outbidding each other in
terms of quality, price and/or other criteria. The eAuction allows this to take place ‘real-time’ on the
internet. The eAuction tool is provided by EGP with defined specifications.
PO creation A Purchase Order is the concrete request towards a supplier to deliver clearly specified goods or
services according to defined conditions. A PO needs to be confirmed by the supplier. A PO can also
be requested by the customer directly, if it is a call-off from an existing agreement.

6. 07
Contract Creation
Step 3 – Contract Creation
Template To support the alignment of activities, roles and responsibilities within the purchasing process it
is mandatory to utilise a common set of templates. These will be provided via EGP Governance
Department.
Negotiation Perform commercial and technical negotiations with the short-listed suppliers after RFx rounds
have been completed and evaluated. The goal is the final terms and conditions of the short-listed
suppliers.
Approval Approval process of the contract/PO has to be in alignment with the group standards, set by EGP and
the local regulations. The output is the draft contract for supplier approved by all certified approvers.
Signature Correctness of the content is always confirmed by the project responsible EGP Buyer. The signature
depends on the obligation out of the contract and has to be undertaken in alignment with the existing
Power of Attorney and Delegation of Authority guidelines.
Requisition
Ordering
Step 4 – Requisition Ordering
The transactional part of the Source-2-Deliver process is the core responsibility of Order Management but also an integral part of
Sourcing International/Local and Tactical Purchasing.
Purchase requisition is a written order or a formal demand of a good or service, made available after a specific request. EGP
generates a document that authorises a purchase transaction. After acceptance of all involved parties, it becomes a binding
contract.
Documentation
CR/CA Calculation
Step 5 – Documentation Calculation
Project completition Information about finalised GMA/SLA has to be added in the system in order to be available also in
the countries for local implementation (Participation Agreement). Rate supplier based on the perfor-
mance provided in course of this project.
CR/CA documentation Close project in respective EGP tools by inserting project data, activity recording data and CR/CA
results.
Receipting
Evaluating
Step 6 – Receipting Evaluating
The Goods Receipt activities are decentralised, as the delivery of goods and services is directly to the beneficiary (e.g. business
unit). Nevertheless the feedback to EGP about the completeness and quality of goods and services is needed to execute a
supplier quality appraisal and as input or future sourcing activities.
Invoice
Processing
Step 7 – Invoice Processing
Invoice Processing based on Purchase Orders (POs) is in tasked to determine the payment for goods and services including
invoice processing and resolving discrepancies. This step is not in scope of the regular Procurement Services.

7. 08
Your first choice
provider for procurement
related services.

8. 09
Sourcing International/Local
Sourcing International is the strategic process of identifying Sourcing Local is the fulfillment of purchasing for commodities
potential suppliers, conducting negotiations, and agreeing on that have either a strong local dependency or where no major
supply contracts in order to achieve sustainable cost reduc- leverage on group level can be expected. Sourcing Local is
tion/cost avoidance on group level and meet the customer’s done individually in each of the countries and ensures efficient
expectations. strategic coverage of local demand.
The Action Plan What are the benefits for you?
Sourcing International/Local
– Sourcing Specialist, one single contact and groupwide/local
You have a requirement/demand
with a value above € 30.000? Category and Supplier Lead.
– Transparency in the level of achieved goals of cost reduction
and cost avoidance through one clear methodology and
Contact EGP in your country tool-based measurement.
– High compliance through common collaboration on the
product groups strategies and/or supplier strategies.
– We can help you decipher which solutions are applicable
An integrated project team collaborates
to achieve the best possible solution. to your specific needs.
Process owner of following steps is EGP. – Value-driven services designed to enhance strategic
sourcing efforts and tactical processes
Step 1. Demand Analysis – Identification and focus on key suppliers. Implement
supplier relationship model in close collaboration with you.
Step 2. Purchasing Project
A structured process with clear responsibilities.
Step 3. Contract Creation
Step 4. Purchasing Requisition
Step 5. Documentation Calculation
Jointy conclusion of a GMA and achieving
sustainable Cost Reduction/Cost Avoidance.

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The fast, easy
and efficient execution.

10. 11
Tactical Purchasing
The fast, easy and efficient execution of routine administrative volume with no strategic importance or based on agreements
tasks. These are day-to-day buying activities, which are low that have been set in place.
The Action Plan What are the benefits for you?
Tactical Purchasing
– Tactical buyer one single contact.
You have a requirement/demand
in the specific threshold? – The tactical buyer overviews the tender and RfX process.
– In collaboration with you to find the best available solution
for your request in a tender process coordinated by EGP‘s
Contact EGP in your country specialised buyers.
– EGP is searching for the best practise operation and
focusing to gain maximum efficiency for minimum cost.
An EGP buyer is searching for the best
practise solution to execute the request. A structured process with clear responsibilities.
Process owner of following steps is EGP.
Step 2. Purchasing Project
Step 4. Purchasing Requisition
Delivering of the requested good or service.

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The convenient execution
of routine administrative
tasks.

12. 13
Order Management
The convenient execution of routine administrative are low volume based on call-offs from existing
tasks. These are day-to-day buying activities, which contracts.
The Action Plan What are the benefits for you?
Order Management
– EGP is providing the necessary systems.
You have a requirement/demand
in the specific threshold? – EGP has optimised systems in place in order to execute
your request in a minimum of time.
– Process contract information implementation to enable
Call-off from an existing contract. call off from agreements
OR – The opportunity for you to handle your requests on your
Create a Purchase Order. own in a fast and efficient way. EGP is supporting the
OR service by providing the necessary environment and
Contact EGP in your country. systems.
– A convenient execution of your lower procurement requests.
Purchasing Requisition by EGP or by Customer A structured process with clear responsibilities.
Step 4. Purchasing Requisition
Delivering of the requested good or service.

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CPS/OCC/BPO
Customised Procurement Services (CPS) We give our commitment to continuous
Do you have an additional request, which is not already service
improvement in efficiency and
in the scope of Sourcing, Tactical Purchasing or Order Manage- effectiveness:
ment?
EGP increases its levels of customer satisfaction.
Please contact the appropriate person within the local EGP
entity (See page 16). EGP is reducing financial and environmental risk.
EGP is driving for more CR/CA in big spend areas and faster
execution in smaller projects.
Outsourcing Competence Center (OCC)
EGP is achieving sustainable Cost Reduction and Cost Avoid-
EGP ensures compliance with the Erste Group Outsourcing ance.
Policy with any internal and external outsourcing activity.
EGP’s solution draws on the significant experience of its
experts.
Business Process Outsourcing (BPO)
EGP creates a bridge between budget owners and suppliers
EGP is supporting the operational processes for the local through active management of product groups.
entities. Do you want further information on the local BPO’s,
i.e. Travel Management or Warehouse in AT? EGP uses unique systems and tools applied in all subsidiaries
in all countries.
Please contact the appropriate person within the local EGP
entity (See page 16).

14. 15
Glossary of
Terms Definitions
The document contains a number of terms that may be unfamiliar Order Management (OM)
to non-procurement person. The following table, provides a OM is placing and chasing Purchase Orders, based on exist-
glossary of terms in alphabetical order: ing contracts or using preferred suppliers provided solely by
EGP Purchase Request is either based on existing catalogue
.
Category Lead items or it is described in a free-text form in case that required
The Category Lead is the purchasing expert for a specific product or service is not in a catalogue. The core responsibility
category/commodity, owns the according strategy and the in of OM is to generate Purchase Orders which are fulfilled by a
depth knowledge about all purchasing activities in the respective supplier.
category.
Source to Delivery (S2D)
Category Strategy S2D covers all processes required to ensure that a demand is
A Category Strategy is a document, which describes how to covered by an optimal good or service. These S2D processes
approach a specific commodity from the purchasing perspective. include the fields of procurement and category management as
It is based on market data and supplier analysis, defines next well as support for transactional buying.
activities to be undertaken and contains also the framework for
approaching new demand (i.e. using a dual supplier strategy). Service Level Agreement (SLA)
It is established by a Category Lead for the commodity aligned A SLA is a part of Service Contract between a service provider
and approved by the responsible cooperation partner. and customer, where the level of service is formally defined. The
goal is to make the control options for the customer transparent
Cost Avoidance (CA) by guaranteed performance characteristics such as a scope of
CA means that new costs can be reduced or avoided through services, priorities, responsibilities, guarantees and warranties
procurement activities. CA can be achieved for goods or services
in case of a first time buy. CA can be achieved if a price increase Supplier Long List
is completely or partly avoided. The Supplier Long List considers all potential suppliers that
shall be considered in the project execution phase. The list is
Cost Reduction (CR) determined by the category strategy, the market situation and
CR means that existing costs have been reduced through existing business relationships.
procurement activities. CR can be achieved for goods or services
that have already been purchased previously. Supplier Short List
Negative CR is possible (i.e. in case of a price increase). Evaluate RFx responses according to evaluation criteria and
CR can be achieved in case of a contract with duration longer generate and approve a supplier short-list if necessary. Define
than one year also for the years after the first year. ranking within this short-list.
eAuction RFI – Request for Information
An eAuction is the tool by which suppliers can place bids for a An RFI is a document that is used to obtain non-price informa-
contract via the internet. An eAuction or reverse auction allows tion from suppliers. RFI’s are most commonly used in purchases
suppliers to compete for your business by outbidding each other that are complex or of significant value. Often times RFI’s are
in terms of quality, price and other criteria. The eAuction allows used when the procurement organisation needs information
this to take place ‘real-time’ on the internet. to ensure that its specification is feasible or the organisation
wishes to narrow down its field of potential bidders to the most
Group Master Agreement (GMA)/Master Agreement (MA) qualified candidates. Procurement departments usually follow a
A GMA/MA is a special type of contract that regulates the general RFI with one of the other solicitation documents (RFQ, RFP).
conditions (i.e. rates, payment terms) for all Group entities for
assessing goods and services from a contracted supplier. RFQ – Request for Quotation
Due to the broad range of possible contract users, the level of An RFQ requests that suppliers respond with only prices, lead
detail varies and more concrete specifications are defined in time, and terms from suppliers based on fixed specifications.
a separate Participation Agreement or the according Purchase Generally, RFQ’s do not allow for changes to the specification.
Order. The lowest price is usually the determining factor in awarding
an order based on RFQ responses.
Matrix Management Organisation
The Matrix Management Organisation applies for sourcing RFP – Request for Proposal
operations. It means that for sourcing the four-eye principle Like an RFQ, an RFP requests pricing, delivery, etc. However,
will be applied in a way that each Sourcing Specialist reports unlike an RFQ, an RFP allows, sometimes requires, supplier
both to the Country Manager and the Head of Sourcing. input on specifications. RFP’s are often used to find solution
Adherence to this strict principle will guarantee close and to a problem. Orders based on RFP responses are generally
decisive appearance of EGP towards its suppliers in order to awarded based on the best overall value and not necessarily
achieve all possible benefits for Erste Group. on price alone.

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Key Contacts
EGP – Erste Group Procurement Headquarter
Am Heumarkt 4, 1030 Vienna, Austria
Managing Director, CPO Erste Group AG Leopold IVAN +43 (0) 5 0100 - 28300
Managing Director, CPO Erste Group AG Robert SEMETHY +43 (0) 5 0100 - 28222
EGP Austria – Procurement Services GmbH
Am Heumarkt 4, 1030 Wien, Austria
Country Manager AT Jörg STRAUSS +43 (0) 5 0100 – 28140
Support Center AT +43 (0) 5 0100 – 28000
supportAT.EGP@erstegroup.com
EGP Czech Republic – Procurement Services CZ, s.r.o.
Budejovická 1912/64b, 140 00 Praha 4, Czech Republic
ˇ
Country Manager CZ Tomáš ZATLOUKAL +42 0 956 78 2700
EGP Croatia – Procurement Services Croatia d.o.o
Ivana Lučića 2, 10000 Zagreb , Croatia
Managing Director HR Darko SEPIC +385 62 37 – 5345
Director Procurement Department Montenegro Ivan CERDIC +385 99 237 – 2441
EGP Hungary – Procurement Services HU Kft.
Népfürdő str. 24-26., 1138 Budapest
Managing Director HU Nikoletta KOVACS +36 1 373 - 2780
EGP Romania – Procurement Services RO srl
155 Calea Victoriei Stree, bl. D1, Sector 1, Bucarest, Romania
Country Manager RO Calin VALCEA +40 37 2269 111
EGP Slovakia – Procurement Services SK, s.r.o.
Tomášikova 48, 832 75 Bratislava, Slovakia
Managing Director SK Ivan UJČEK +42 1 910 684 410
Erste Bank Serbia – Procurement Department Serbia
Bul. Milutina Milankovića 11b, 11070 Belgrade, Serbia
Director Procurement Department RS Milan GASIĆ +381 11 201 5046
Erste Bank Ukraine – Procurement Department Ukraine
24-d Polyova St., Kyiv, 03056, Ukraine
Director Procurement Department UA Eduard MATULA +38 (050) 41 31 460

16. 17
Erste Group Procurement –
Procurement Company of Erste Group
Bitte die Landkarte auf der letzten Seite ersetzen
Procurement Dept.
Ukraine
Czech Rep
Slovakia
Int. Austria
Hungary
Romania
Croatia
Procurement
Dept. Serbia
Erste Group Procurement Facts Figures:
 Central procurement function within Erste Group
 Headcount approximately 180 employees
 Process owner for group-wide S2P process
www.erstegroupprocurement.com
Erste Group Procurement
Management Board
HRM Finance Sourcing Org/IT
Erste Group Procurement AT Sourcing AT
EBSPK Sourcing SK Erste Group Procurement SK
Erste Group Procurement CZ Sourcing CZ
Sourcing HU Erste Group Procurement HU
Erste Group Procurement HR Sourcing HR
ME1) Sourcing RO Erste Group Procurement RO
RS2) Sourcing RS
SPV – DRUCK Sourcing UA UA3)
1) Department of Erste Bank AD Podgorica - Montenegro
2) Department of Erste Bank Novi Sad - Serbia Division
Board Team in Matrix
3) Department of Erste Bank Ukraine

17. Imprint:
We have prepared this advertisement and verified the data
and information herein with the greatest possible caution.
This folder reflects our current state of knowledge and is
intended to inform customers about our products and
possible applications for them. However, errors arising from
rounding, transmission, typesetting or printing cannot be
excluded. Responsible: Erste Group Procurement –
Procurement Services GmbH, Am Heumarkt 4, 1030 Vienna,
communications.egp@erstegroup.com.
Print: SPV-Druck, Grimmelshausengasse 1, 1030 Vienna