IBS to Implement SAP Based Management Information System for VTB-Leasing

November 21, 2007 IBS, Russia’s leading player in the IT and consulting market, will deliver a management information system for VTB-Leasing. This will be the first implementation of a system based on the SAP ERP software solution for a Russian leasing company.

VTB-Leasing needs a new system supporting leasing business processes as it plans fast-paced build-up of its leasing portfolio, geographical expansion and increasing return on capital and operating profitability. Seeking to have 11 to 12 per cent market share by the size of the leasing transactions portfolio by 2011, the company must ensure that its portfolio grows 20 per cent faster than the market. In addition, VTB-Leasing plans to open regional units in each federal district of the Russian Federation and grow its leasing business in other countries where VTB Group is present. In order to secure manageability and information transparency of the business and support business processes inside the fast growing company, it needs a state-of-the-art management information system.

Based on the results of a bidding process held to select the information solution provider, IBS, which offered a system based on the SAP ERP solution from SAP AG (Germany), has been invited to carry out the project. IBS possesses extensive experience of serving financial companies and implementing SAP based solutions, and has Russia's biggest team of business applications consultants, being SAP Preferred Partner for banking and financial entities.

The information system to be delivered by IBS for VTB-Leasing supports maintaining information on customers, transactions, contracts, relationship histories (CRM functions) and includes analytical tools based on the data warehouse technology. Analytical tools built in the system can be used to assess profitability of leasing transactions, calculate key leasing portfolio indicators and forecast incoming leasing payments. Capability for accurate and fast preliminary assessments based on state-of-the-art mathematical techniques and a large amount of actual data is especially important prior to entering into major leasing transactions each having possible implications for the leasing company's financial results. After the system implementation each manager will have powerful and convenient tools for such online forecasts and assessments.

The system will be easily scalable to accommodate an increasing number of users and new regional and overseas units, with all units operating the single information system by using remote access. The system supports mobile operation: being on customer premises, a manager of the leasing company will be able to use his or her mobile computer to access the information system via the internet to analyze a transaction and then prepare contracts and other necessary documents right in the system.

Evgeny Gavrikov, Project Supervisor from OAO VTB Bank commented: "The corporate information system being built with the help of IBS professionals will offer us fundamentally new ways of conducting business. It will assist us in monitoring and developing our customer service processes and will support fast market expansion. It will prevent interchange of business information from restraining our growth. We selected an internationally recognized solution as the platform for the corporate information system. This will enable us to ensure transparency and auditability of financial results, which is important as VTB is a public company".

Alexander Saksin, Deputy Director, Corporate Management Systems Department, IBS said: "The business of VTB-Leasing is unique in its scale and complexity as the company takes part in very big investment projects and has ambitious growth objectives. Those objectives require information tools that offer unrivalled capabilities. Those tools are now being developed in close cooperation between IBS consultants and VTB-Leasing professionals. Project participants will have to do a lot of work to adapt the core SAP ERP solution to deliver tools that will accommodate all the details and specific needs of the company's business".

The first phase of the project is planned for completion before the end of 2007 and expected to deliver 50 implemented workplaces.

Profiles of the companies:

OAO VTB-Leasing was established in June 2002. The sole shareholder of OAO VTB-Leasing is OAO VTB Bank. The authorized capital of VTB-Leasing is 620.00 million rubles.

As of July 01, 2007, the company had a capital of USD 83.7 million according to the IFRS. The company has assets worth USD 1,646.7 million (IFRS). In 2006, the company had a net profit of USD 31.8 million (IFRS).

OAO VTB-Leasing is Russia's top leasing company based on 2006 results and ranks 42-nd among Europe's top 100 leasing firms (according to the research conducted by LEASEUROPE, the European Federation of Leasing Company Associations).

IBS is Russia’s leading player in the IT and consulting market. It is part of IBS Group. For more information on IBS please visit http://www.IBS.ru.

IBS is the first Russian company to become Local Service Alliance Partner (the top partner level) of SAP AG, and the first SAP partner for business analytics solutions. In 2005 IBS was named the best Local Service Partner of SAP AG in Russia and the CIS. IDC, the global market research firm, named the IBS team of SAP implementation consultants one of the best in Russia.

For detailed information about the corporate management systems practice of IBS, including descriptions of products, technologies, operating principles and projects completed, please visit http://www.mis.IBS.ru.

For further information on IBS please contact Lada Scherbakova, PR Director. Phone: +7 495 967-80-80, e-mail: lada@IBS.ru.