1. Karin Rätsep 10.06.2010 KPMG in the Baltics The Business Angle: In Preparation for the Euro Changeover

2. © 2010 KPMG Baltics OÜ, Eesti aktsiaselts ja Šveitsi ühingu KPMG International Cooperative iseseisvate tütarfirmade võrgustiku liikmesfirma. Kõik õigused kaitstud. 2 Main Focus Areas During our involvement with the euro conversion projects, we have many times encountered the opinion that the changeover to the euro is mainly a task for the IT department. The experience from the Slovenia, Slovakia and Cyprus shows that in order for the euro conversion to be successful, one has to also focus on the: Impact analysis of the Euro conversion (business processes, IT systems, business strategies) Proper project planning Providing relevant information regarding the euro conversion to employees, suppliers and key customers Organising testing and quality control

3. © 2010 KPMG Baltics OÜ, Eesti aktsiaselts ja Šveitsi ühingu KPMG International Cooperative iseseisvate tütarfirmade võrgustiku liikmesfirma. Kõik õigused kaitstud. Key Challenges for Estonian Companies Dual display of prices from July 1st 2010 Large amount of cash required for the €-day – planning and security aspects Employees have to be trained for Euro – risk of counterfeit money Changes in IT systems have to be thoroughly tested before €-day Equity capital has to be changed to Euros 3

4. © 2010 KPMG Baltics OÜ, Eesti aktsiaselts ja Šveitsi ühingu KPMG International Cooperative iseseisvate tütarfirmade võrgustiku liikmesfirma. Kõik õigused kaitstud. Experience from Estonian Companies Big companies (banks, telecom sector) have coordinated their Euro conversion project for years, currently quite well prepared Most of small and medium companies are even now not aware of the impact of Euro conversion on their business Conversion project schedule is very tight – already from July 1 st 2010, prices in retail sector have to be displayed in both currencies Conversion will put considerable stress on IT support and development (both internal and external), but also on printing houses (new pricelists, catalogues) 4

5. © 2010 KPMG Baltics OÜ, Eesti aktsiaselts ja Šveitsi ühingu KPMG International Cooperative iseseisvate tütarfirmade võrgustiku liikmesfirma. Kõik õigused kaitstud. 5 Key areas of the conversion Name all business processes and process guidelines that will be necessary to modify due to the euro changeover. Will it be necessary to create control mechanisms preventing someone from entering invalid data? Name all document templates, electronic materials, internal and external reports that will be necessary to modify. Will it be necessary to communicate the changes resulting from the euro conversion to other parties? If so through what channel? In which IT systems that your department uses will you be requesting changes related to the euro changeover? What, if any, training will you be requiring for your employees in relation to the euro changeover?

6. © 2010 KPMG Baltics OÜ, Eesti aktsiaselts ja Šveitsi ühingu KPMG International Cooperative iseseisvate tütarfirmade võrgustiku liikmesfirma. Kõik õigused kaitstud. Recommendations EURO conversion should have the highest priority within the organization Clearly define roles and responsibilities within the euro project Ensure the availability of the key staff members for the conversion period Do not ignore communication towards your employees and suppliers -> set up a central information line, intranet, etc. Tightly manage the testing 6

7. © 2010 KPMG Baltics OÜ, Eesti aktsiaselts ja Šveitsi ühingu KPMG International Cooperative iseseisvate tütarfirmade võrgustiku liikmesfirma. Kõik õigused kaitstud. Thank You! Karin Rätsep KPMG Baltics OÜ Head of Business Advisory Services +372 6 268 751 kratsep@kpmg.com 7