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SEPA Enabled via Deutsche Bank -SEPA Services Proposal-

October, 2011

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Table of Contents

Table of Contents ..................................................................................................... 2 

Introduction ............................................................................................................... 3 

Why Deutsche Bank for SEPA clearing? ........................................................................................ 3 

SEPA Connect via Deutsche Bank – full Reachability with extended Scope ................................. 5 

Deutsche Bank’s SEPA Solution ............................................................................. 6 

SEPA Connect – SEPA Compliance via Deutsche Bank ............................................................... 6 

Advising and Information Reporting .............................................................................................. 10 

Reporting ...................................................................................................................................... 10 

db-direct internet: .......................................................................................................................... 11 

Cinq - Online inquiries and investigations: ................................................................................... 11 

Service Excellence ................................................................................................. 12 

Conclusion .............................................................................................................. 13 

Disclosures ............................................................................................................. 14 

Statement of Confidentiality .......................................................................................................... 14 

Documentation .............................................................................................................................. 14 

Maintaining our Operational Strength ........................................................................................... 14 

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Introduction

Deutsche Bank is pleased to present Eurogiro Network A/S’ members our Single European

Payment Area (SEPA) Solution. Our SEPA solution is an integral component of our overall global

clearing and settlement service offering. Our solution continues to provide Eurogiro Network A/S’

members a single-entry point to full scale and highly flexible payment solutions for all inbound and

outbound payments (i.e. SEPA and non-SEPA).

Deutsche Bank is one of the world’s largest global clearing bank, with a #1 position in EUR, and

leading positions in USD and multi-currency. In an effort to demonstrate our commitment to the

cash management business, we continue to invest heavily in innovative payment solutions and

technology. Our clearing and settlement solutions are well positioned to help Eurogiro Network

A/S’ members reduce their cost infrastructure and support the long-term growth of the business.

We view this proposal as a valuable opportunity to build upon our important relationship with

Eurogiro Network A/S’ members and clearly outline how Eurogiro Network A/S’ members will

benefit by choosing Deutsche Bank as the cash management partner for SEPA.

Why Deutsche Bank for SEPA clearing?

Since January 2008 Deutsche Bank meets all Day One commitments – full-readiness on a pan-

European platform, both for Credit and Debit transfers. We carry out our SEPA clearing via EBA

STEP2, bilateral file exchange and in-house transfers. This ensures that our clients are SEPA-

enabled with extended scope. As you read through the following pages, it will become evident that

Deutsche Bank’s SEPA solution was developed to ensure Eurogiro Network A/S’ members’s

success.

Allow us to highlight some essential points which form the basis of our SEPA solution:

Deutsche Bank provides Eurogiro Network A/S’ members with a “plug-and-play” solution.

We provide full SEPA clearing capabilities or, if preferred, selective conversion services

enabling Eurogiro Network A/S’ members to be SEPA reachable - with minimum

investment.

With automatic conversion capabilities, Deutsche Bank supports SEPA payments beyond

the ”standard reachability” offered by a pan-European ACH (PE-ACH), thereby, avoiding

rejects and processing delays.

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Deutsche Bank’s SEPA solution is perfectly aligned to compliment our already existing

global cash management and high-value payment proposition via our switchboard. By

working with Deutsche Bank, our Financial Institution clients will fully leverage our

investments in the Clearing and Settlement infrastructure and benefit of a single entry

point for all of their SEPA transactions.

We trust that our offering provides Eurogiro Network A/S’ members with opportunities for both

short-term tactical as well as long- term strategic options. We look forward to partnering with you

in the decision making.

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SEPA Connect via Deutsche Bank – full Reachability with extended Scope

Deutsche Bank believes that

“Reachability” is one of the key

requirements for the success of SEPA.

The scope of SEPA Connect via

Deutsche Bank is EU/EEA, Monaco and

Switzerland. In order to deliver any

SEPA transactions from our Financial

Institution (FI) clients we use the

aforementioned switchboard.

Banks in countries that are not linked to EBA STEP2 SCT, and are not SEPA Connect customers

of Deutsche Bank can be reached by converting SEPA payments into SWIFT FIN MT103

messages outside of the Scheme. We believe that this service is extremely important especially

as domestic infrastructures still exist and it is not guaranteed that all EU/EEA and Swiss banks

are yet SEPA reachable.

Reachability for non-SEPA Payments is not restricted to any specific geographic area. We, as the

leading EUR clearing bank, continue to use the existing individual high-value payment clearing

infrastructure to route payments directly to the beneficiary bank whenever possible, or use our

correspondent banking network.

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Deutsche Bank’s SEPA Solution

Deutsche Bank is ready with its pan European payment platform for both credit transfers and

direct debits. The SEPA Connect Solution outlined in this proposal includes clearing services for

SEPA Credit Transfers and SEPA Direct Debits. For SEPA Direct Debits Deutsche Bank’s

offering will not only include the core services as published by the European Payment Council but

also additional optional services such as the handling of Business to Business (B2B) direct debits.

SEPA Connect – SEPA Compliance via Deutsche Bank

With this model, banks are connected to the clearing infrastructure (SEPA PE-ACH) as indirect

participants through Deutsche Bank to receive and send SEPA Credit Transfers and SEPA Direct

Debits. They are able to accept SEPA-compliant transactions from their corporate and retail

customers without the need to directly participate in SEPA clearing. In addition to XML, SEPA-

compliant refers to instructions sent for example, in EDIFACT or CSV formats, but contain all

SEPA relevant data fields/mandatory information.

This solution results in minimum investment necessary in adjusting the front-end systems to

receive and to validate SEPA-compliant transactions. Deutsche Bank ensures the conversion

into/from the SEPA XML formats, bulking, clearing, and settlement.

Indirect participations in EBA STEP2 SCT and EBA STEP2 SDD together with the respective

EPC Adherence Agreements, are integral components of this solution.

Receipts:

SEPA Credit Transfers are received by Deutsche Bank from the Clearing Infrastructure and

credited to Eurogiro Network A/S’ members’ account.

The outgoing messages from Deutsche Bank to Eurogiro Network A/S’ members can be either

XML PACS messages in a file to the beneficiary bank, or converted into pre-agreed formats such

as SWIFT FIN MT103 which allows processing in existing local environments.

For inbound transaction received via Clearing, Deutsche Bank offers a variety of reporting

possibilities such as the XML messages or SWIFT FIN MT103.

In addition to the standard return via XML format, as a value added service, a process can be

agreed between Deutsche Bank and Eurogiro Network A/S’ members for handling of return items

using either a SWIFT MT103 including the code word /RETN/ or a SWIFT MT199 which is then

converted by Deutsche Bank into a SEPA-compliant return instruction.

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Payments:

Deutsche Bank accepts SEPA Credit Transfers sent by Eurogiro Network A/S’ members either by

XML PACS, CSV or MT103 format via various delivery channels like FileAct, db-direct, Eurogiro

or MT103 via SWIFT FIN messages.

SEPA Credit Tranfers returned by the beneficiary bank through the SEPA clearing can also be

forwarded to Eurogiro Network A/S’ members via the MT103 FIN solution, including all relevant

information, e.g. the Return Reason, the Original End-to-End Identification, as well as the Original

Transaction Identification.

The booking in the accounts of Eurogiro Network A/S’ members takes place either as a bulk (per

XML PACS bundle), or per transaction (in case of individual FIN MT103 messages). In the case of

conversion from/to SWIFT MT103 Deutsche Bank takes care of the full transmission of the End-

to-End Identification, the Transaction Reference and the Remittance Information for your SEPA

receipts/payments via the account with us.

Incoming SDD (Eurogiro Network A/S’ members as debtor bank):

SEPA Direct Debit transactions are received by Deutsche Bank from the Clearing Infrastructure

and debited from Eurogiro Network A/S’ members’s account.

The SDD Notification from Deutsche Bank to Eurogiro Network A/S’ members can be either an

XML Pacs message (pacs.003), or converted into CSV. Deutsche Bank forwards the messages to

the indirect participant FI client immediately after receipt from the clearing, but not earlier than on

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D-6.

On settlement date Deutsche Bank performs the debit booking (either single or bulked as per

Eurogiro Network A/S’ members choice) on Eurogiro Network A/S’ members’ account. Reporting

is available via usual account statements via SWIFT formats MT950, MT940, MT942.

As a value added service, a process can be agreed between Deutsche Bank and Eurogiro

Network A/S’ members for handling of return items by Eurogiro Network A/S’ members, i.e. using

a SWIFT MT199 which is then converted by Deutsche Bank into a SEPA compliant return

instruction (pacs.004) or transmitting a corresponding XML file message.

Outgoing SDD (Eurogiro Network A/S’ members as creditor bank):

Deutsche Bank accepts SEPA Direct Debit transactions sent by Eurogiro Network A/S’ members

either in XML pacs format sent directly via Eurogiro, or – in addition to the XML format also in cvs

file format - through SWIFTNet FileAct, db direct internet or Host-2-Host (H2H).

The booking in the accounts of Eurogiro Network A/S’ members takes place as a bulk (or single)

per XML pacs message or CSV batch. In the case of conversion from/to CSV format Deutsche

Bank takes care of the full transmission of the End-to-End Identification, the Transaction

Identification, the Remittance Information (max. 140 characters), the ultimate Debtor, the ultimate

Creditor and Mandate Information for outgoing and incoming SEPA Direct Debits via the account

with us.

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Multilateral Interchange Fee

The Multilateral Interchange Fee (MIF) is a fee that the creditor bank pays to the debtor bank

when a creditor initiates a direct debit transaction.

In consideration of the Regulation (EC) No 924/2009 on cross-border payments in the Community

a MIF shall apply for an interim period until October 2012.

Where a MIF for a national direct debit transaction applies between the Creditor Bank and

Debtor Bank before 1. November 2009 such MIF shall apply for any national direct debit

transaction during the interim period. If the MIF is reduced or abolished, such reduction or

abolition shall apply to any national direct debit transaction. The Creditor Bank and the Debtor

Bank may however bilaterally agree on a fee deviating from the MIF. The country codes in the

IBANs and BICs of Creditor Bank and Debtor Bank will be the basis for determining whether a

transaction is considered domestic or EU cross-border.

The level of the default interim MIF for cross-border SDD is set at a maximum of 8.8

eurocents.

Deutsche Bank’s approach is to charge the Multilateral Interchange Fee to their SDD indirect

participant FI clients acting as the creditor bank as surcharge via the monthly billing invoice.

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Advising and Information Reporting

Deutsche Bank offers a variety of advising and reporting tools available to Eurogiro Network A/S’

members, with all the necessary information to facilitate reconciliation.

Our product suite includes a broad range of distribution channels such as SWIFT, host-to-host,

db-direct internet, Deutsche Bank’s internet-based client tool, and Eurogiro. In addition to the

choice of channels, we also offer Eurogiro Network A/S’ members the option to choose from a

selection of industry and proprietary reporting formats.

With all our product offerings we increase the value for Eurogiro Network A/S’ members by

delivering timely and quality information to facilitate a faster investigation process, to optimise

liquidity management and to shorten the reconciliation cycles:

Reporting

End-of-day Statements

Deutsche Bank can provide Eurogiro Network A/S’ members with the commonly used FIN set of

statement messages for electronic end-of-day statements:

MT950 Statement Message

MT940 Customer Statement Message

Normally dispatched before midnight CET, Deutsche Bank ensures Eurogiro Network A/S’

members the availability of information by 7am on the next working day. These messages contain

all entries on the account for the related business day.

Intraday Reporting Statements

Complementary to End-of-day statements, the MT942 Interim Transaction Report can be sent to

Eurogiro Network A/S’ members at pre-defined times in the day.

It features the same data structure per reported transaction as the MT940 statement.

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db-direct internet:

In addition to the standard SWIFT reporting, Eurogiro Network A/S’ members has the option to

use the Internet-based Account Information module available within db-direct internet to view all

current or previous day balance and transaction information on a global basis.

Eurogiro Network A/S’ members may inquire about information for its accounts in any currency at

all Deutsche Bank branches. The Account Information module also provides the ability to obtain

Eurogiro Network A/S’ members balances and transactions from other institutions servicing an

account for them.

Using the Account Information module, balance and transaction data can be interactively

downloaded in BAI2, CSV and SWIFT formats. Alternatively, the Adhoc Query component of the

Account Information module allows Eurogiro Network A/S’ members to create customised reports

that can then be exported to a Microsoft Excel spreadsheet.

Cinq - Online inquiries and investigations:

In addition, Eurogiro Network A/S’ members can use a single point of entry to access cinq, our

internet-based customer investigation, and inquiry system. cinq provides access to all of your

high-value payment transaction details for accounts with Deutsche Bank – regardless of currency

– as well as SEPA Credit Transfer transactions on a single platform. Furthermore, they can initiate

payment investigations and determine the status of existing investigations via the Internet.

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Service Excellence

Our service mission is to provide comprehensive customer service, dedicated local contacts,

automated system links, 24-hours processing, and customer service operations. This commitment

to quality is reflected in the ISO 9001:2000 certification that has been awarded to Deutsche

Bank’s Clearing Operations.

Deutsche Bank is committed to superior customer service. Eurogiro Network A/S and its members

will be able to expect flexibility, efficiency, and responsiveness from Deutsche Bank. Deutsche

Bank will combine technological and human resources to provide both the tools and skills that are

essential to provide service of the highest quality.

Comprehensive service and support is provided through an integrated organisation that includes:

A Client Manager that manages Eurogiro Network A/S’ members relationship with

Deutsche Bank. Eurogiro Network A/S’ members’ Client Manager is supported by Product

Specialists who are dedicated experts in funds transfer and other applications.

A CMFI Customer Service team who act as the primary day-to-day point of contact for all

inquiries. Eurogiro Network A/S’ members will benefit from regular contact and support

from their dedicated AM&S officer for assistance with transaction information as well as

product training.

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Conclusion

We believe that Deutsche Bank’s commitment to cash management, specifically to being fully

SEPA enabled as from the first day, is evident in this proposal. We are pleased to extend our

payment platform, services, and products to make our key Financial Institutions clients successful

vis-à-vis SEPA and, more generally, EUR clearing.

We believe that our proposed SEPA solution model will meet your overall SEPA strategy and can

be quickly implemented to enable your business success leveraging Deutsche Bank’s significant

infrastructure investment.

Our objective is to be your single gateway for your global payments, including facilitating your

success with SEPA in an efficient, cost-effective, and seamless manner. Importantly, we strive to

enable you to meet and exceed your own client expectations for the best payment products and

services.

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Disclosures

Statement of Confidentiality

The information contained in this document is highly confidential and is intended solely for the use

of Eurogiro Network A/S and its members. The contents of this proposal should be handled in the

strictest confidence.

Documentation

Deutsche Bank, its subsidiaries, and affiliates do not intend their responses herein to create a

legally binding agreement between the parties. Many of the services described herein will require

a separate executed legal agreement before they can be provided. Our responses herein, any

formal agreements drafted in the future, and any services actually provided are subject to all legal

and regulatory requirements that now exist or that may come into effect from time to time.

Maintaining our Operational Strength

Deutsche Bank is constantly reviewing its operational platforms to ensure that we are providing

superior technologies and processes allowing us to focus on maintaining high quality,

dependable, value-priced services. One of our main goals is to continue streamlining our

operations so that we can direct both our money and talent in delivering the best services. We will

communicate in a timely and comprehensive manner any changes to our services that materially

affect our proposed solution.