Innovations at SIX Forum Financial Innovation Sofia, 16th June 2015 Sophie Bertin Group Head of Corporate Development SIX Group

has to innovate to stay in the market in the long run 6_84 For SIX, innovation is a necessary step with potential to differentiate and stay ahead Customers New markets Customers and consumers have new demands and new behaviours New technologies are reshaping the industry opening new markets has to innovate to stay in the market in the long run New entrants Competitors Competitors across Europe are already investing heavily in new technologies and regulation is opening borders Start-ups and other players (e.g., banks) are entering SIX industries

Innovation will sustainably strengthen SIX and increase Swiss financial market competitiveness Innovative Ideas Implementation speed recognised innovation Innovation Revenues Innovation Fields Group-wide areas of innovation strategy focus Innovation Culture Shared purpose and values focused on innovation

Innovation is not always a customer pull Henry Ford: “If I had asked people what they wanted, they would have said faster horses”

We have introduced an efficient innovation management at SIX 77_84 We have introduced an efficient innovation management at SIX Scouting & Screening Ideation Business Analysis Conception Development & Implementation Discover and under- stand opportunities Enlarge and quantify opportunities Develop prototype or detailed concept Detail and test concept Gate 1 Gate 2 Gate 3 Gate 4

Four fields of innovation were defined as part of the SIX Group strategy

We effectively support the innovative strength of the financial market SIX Hackathon SIX P2P Payment App Paymit Fast trading platform Technology Incubator Project Passion Fruit

We successfully launched Paymit, the first P2P payment app on Swiss market in which anyone can participate

«You have to kiss many frogs, to discover the prince!» ─ Arthur Frey, Inventor of 3M-Post-it’s Failure is important and an option