report on economic, social and environmental sustainability · social and environmental...

Value Report

2015

Report on economic, social and environmental

sustainability

1

Value Report

2015

Report on economic, social and environmental

sustainability

2

Table of Contents

Letter to stakeholders 4

Methodological note 6

1. The SIA Group 81.1 Group Profile 10

1.2 Mission, vision and principles 14

1.3 Governance 16

1.4 Regulatory compliance and Institutional relationships 18

1.5 Risk management 19

1.6 Strategic Plan 2016-2018 21

1.7 Responsible management for sustainability 211.8 Certifications 22

1.9 Stakeholder’s involvement and materiality 24

2. The economic value 262.1 Economic results of the SIA Group 28

2.2 Determination and distribution of the Added Value 30

3. The value of suppliers and partners 343.1 Purchasing and suppliers 36

3.2 Tender procedures and supplier qualification 37

3.3 Sustainable management of the supply chain

and required certifications 38

4. The value of customers and users 404.1 Group customers and services 42

4.2 SIA's role in payment systems 46

4.3 SIA's role in collections and payments: Gateway 47

4.4 SIA's role in card payments 484.5 SIA's role in capital markets 49

4.6 Quality of services 50

4.7 Security of services 51

4.8 Service continuity 52

4.9 Innovation and finalisation of services 52

4.10 Listening to and satisfying customers 54

4.11 Relations with customers and partners 55

3

5 The value of people in the SIA Group 56 5.1 Employment and turnover 58

5.2 Industrial Relations 62

5.3 Diversity and equal opportunities 64

5.4 Training and career development 65

5.5 Employee Health and Safety 68

5.6 Company welfare 70

5.7 Listening and involvement of employees 74

6 The value of the community 76 6.1 Actions and donations to health and social projects 78

6.2 Partnerships with Universities and Research Centres 81

6.3 Relationships with the media 82

6.4 Relations with Trade Associations 82

7. The value of the environment 86 7.1 SIA's approach to the environment 88

7.2 Energy and water consumption 88

7.3 Emissions 89

7.4 Responsible management of resources 90

7.5 Discharges and waste 92

Table of GRI G4 indicators 94

Independent Auditors' Report 98

4

This year marks the first Value Report prepared by SIA: a document that illustrates, through qualitative and quantitative indicators, what the Group has accomplished and what it is doing in order to achieve sustainable development and ensure harmonious growth of business, with positive impacts on all of its stakeholders, not only under the economic aspect but in terms of social and environmental repercussions as well.

Indeed, in addition to a legitimate profit objective, it is important that our company basis its activities on a relationship with stakeholders that is founded on social, ethical and environmental values.

In 2015, still not an easy year for the entire European and global economic system, our revenues increased by 5.4%, approaching € 450 million, with an EBITDA of nearly € 124 million. Results that confirm the constantly positive trend of the last five years. The Added Value, namely the wealth created by the company in favour of all stakeholders, was over € 270 million, of which nearly 50% distributed to personnel in the form of salaries, benefits and other costs, 26% used for remuneration of shareholders, and 16% designated to public administration in the form of taxes and duties.

In order to assess and measure the "sustainability" of SIA and its development trend, an analysis was conducted in 2015 to identify the growth factors considered most relevant, by management as well as by our external stakeholders, subsequently verifying the extent to which our behaviours are in line with these expectations. The answers to these questions are in the pages below and, for greater simplicity and immediacy, are also summarised at the beginning of each chapter.

Quality, safety, continuity of service and innovation capacity are among the main issues that were identified as being essential in order to give our customers what they expect, as well as for the development of our business into new areas and new markets. In fact, SIA constantly invests resources in these areas, and in 2015 it set up a specific structure called Innovation Lab to ensure, in addition to extremely high reliability, a supply of innovative services from the technical standpoint and in terms of applications.

Thanks to this commitment, our company has increasingly become a leading partner in the world of national and international financial institutions and, more generally, for companies, to which it offers an important contribution to innovate, digitise, increase efficiency and find new sources of revenue.

Similarly, with our expertise and technology, we are participating in the digitalisation of our country, supporting public administration in designing digital processes and simplifying the relationship with citizens.

Letter to stakeholders

Giuliano AspertiChairman

Massimo ArrighettiCEO

5

Many aspects of SIA's activities have a strong social impact: the Group's activities enable financial and economic relationships among all players of the productive system. The technological services provided in the area of retail and wholesale payments, such as clearing platforms and RTGS (Real Time Gross Settlement) or network services, have become essential for the economic relations of each individual, the entire country, Europe and many international communities.

Although not always immediately perceived, the services provided by the Group contribute to significantly improving the administrative activities of many businesses, from large multinationals to small shops, the operations of Public Administrations and the daily life of individuals, thanks to the efficiency, simplicity, security, reliability and speed with which the payment transactions assigned to us can be carried out.

We are a company that has made excellence its mission and which, over these years, has built its success on this excellence, thanks to the contribution of solid professionals who find in SIA a place in which they can express their full potential and be recognised for their achievements. To attract and keep the best talents within the company, we adopt a rewarding and merit-based salary policy in which, with a particular commitment in 2015, the salary differences between men and women have been almost entirely eliminated, even at the highest levels. We make substantial investments in training, in order to provide our people with concrete career opportunities within the Group.

Our welfare system is far-reaching and innovative: from health services to so-called time-saving services, from educational and work-related orientation for the children of employees to an internal campus during periods in which schools are closed. SIA strives to provide people with a stimulating work environment able to best reconcile work life with personal life, also applying the most advanced forms of smart working (used by 34% of personnel), such as flexible hours, remote working, and smart working. Moreover, we are proud to have hired over 120 people in 2015, bringing our total staff to upwards of 1,600 employees, the majority of which are active in Italy, in addition to South Africa, Hungary, Belgium and the Netherlands.

The sector we work in, namely that of services, is typically not involved in major environmental issues. Nevertheless, SIA pays the utmost attention to issues such as resource conservation (energy and water), recovery and recycling of material, production of electricity from solar energy, and reduction of emissions, even though it does not produce a significant amount. For example, in 2015 we replaced the majority of our company vehicles with more eco-compatible models.

This is how SIA perceives sustainability and social responsibility: being a driver of excellence and innovation in every area of activity, from the smallest to the most important, with positive impacts on employees, customers, shareholders, suppliers, the community and every other stakeholder of the Group. In other words, pursuing company growth in harmony with the social and environmental context, respecting the values, expectations and needs of everyone. Happy reading!

GIULIANO ASPERTI MASSIMO ARRIGHETTI Chairman CEO

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Methodological note

This first Value Report of the SIA Group is the evolution towards transparent and structured communication with its stakeholders and constitutes an important tool to illustrate what the Group has accomplished in terms of sustainability during 2015, through qualitative and quantitative indicators.The concept of "sustainability" expresses the

capacity of a company to ensure harmonious and sustainable development of business, with positive impacts on all of its stakeholders, in accordance with the values of social and environmental compatibility. This report has been drawn up in accordance

with the "G4 Sustainability Reporting Guidelines" published in 2013 by the Global Reporting Initiative (GRI), at the "Core" application level.The information and data contained in the Report

refer to issues identified as material (in other words, significant, as per the materiality matrix) for the Group and for its stakeholders, in terms of economic, environmental and social impact.Data and information on prior years are provided

for comparison purposes, in order to allow an assessment of the trend in activities and services over a medium time frame. This document refers to the SIA Group, which

consisted of the following companies as at 31 December 2015:

• SIA S.P.A. (parent company)• EMMECOM S.r.l.• PERAGO FSE Ltd.• PI4PAY S.r.l.• SIA CENTRAL EUROPE Zrt.• TSP S.r.l.

Cases in which the qualitative and quantitative information cover a different scope are expressly indicated. Note that within the document, the term SIA is used to refer to the entire scope defined as the Group.

Auditing of this report has been assigned to a third and independent company. This activity has been completed, with issuance of the "Independent Auditors’ Report on the Sustainability Report” by the Auditing Society (pag. 98).

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The SIA Group1

10

Milano

Utrecht

Torino

Bruxelles

MacerataBudapest

Pretoria

Roma

SIA is european leader in the design, creation and management of technological infrastructures and services dedicated to Financial Institutions, Central Banks, Corporates and Public Administrations, in the areas of payments, cards, network services and capital markets. The SIA Group serves customers in over 40 countries in Europe, the Middle East, and Africa, also operating through subsidiaries in Hungary and South Africa. The Group has offices in Milan, Rome, Turin, Macerata, Brussels, Utrecht, Budapest and Pretoria.

1.1 Group Profile

1,612 Group employees as at 31 December

41.7 billion financial transactionsover 100 brokers and traders in 18 countries adopting SIA's compliance and surveillance systems

350 million deal proposals handled daily (50,000 per second)

29 trading venues and over 580 customers connected to the Financial Ring

9.9 billion clearing transactions

over 4,800 EBA STEP2 participants

3.9 billion issuing and acquiring transactions

747,325 merchantsmanaged

65.1 million credit, debit and prepaid cards managed

2.8 billion transactions 1,154 customers

358.2 terabytes of data carried on the network180,000 km of SIAnet network100% availability

INSTITUTIONAL SERVICES

CARDS

PAYMENTS

NETWORK

CORPORATE DATA

Milan

Utrecht

Turin

Brussels

Macerata

Budapest

Rome

All data refer to the year 2015.

449.4 million in Group revenues

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Corporate structure of the SIA Group as at 31 December 2015

100%100%100%100%51%

Emmecom, 51%-owned by SIA, specialises in fixed, mobile and satellite telecommunication networks. The company combines the quality services offered by the main telephone providers with added-value services that simplify communication among consumers, retailers and banks through M2M ("machine to machine") services for remote control, collection and management of information.

Perago, wholly owned by SIA, is based in Pretoria and, backed by the experience acquired as a result of the transformation of payments systems in the Republic of South Africa, is specialised in the design and development of mission critical solutions such as RTGS (Real Time Gross Settlement). The company acts as a commercial point of reference for all services offered by the SIA Group in countries of sub-Saharan Africa.

Pi4Pay, wholly owned by SIA, was one of the first operators in the Italian market to be authorised as a payment institution by the Bank of Italy.

The company offers citizens and companies services for the collection and payment of postal bills in multi-channel mode, as well as top-up services for prepaid cards (such as Postepay) and travel documents.

SIA Central Europe, wholly owned by SIA, is based in Budapest and provides - predominantly to financial institutions, Corporates, issuers and acquirers of payment cards - ATM and POS terminal management services, transaction switching, fraud monitoring and other payment system services.

The company acts as a commercial point of reference for all services offered by the SIA Group in Hungary and in central-eastern European countries.

TSP (Tecnologie e Servizi per il Pubblico), wholly owned by SIA, is a turn-key supplier of structured projects in the area of payment services, privately-issued cards, and electronic clearance services, through networks of POS terminals integrated with the systems of companies. The company also handles processing for the sale of digital content on the touch points of banks and companies.

The National Interbank Network (RNI) and payment systems

• Development of the National Interbank Network, connecting all financial institutions

• Automation of the interbank payment system

• Creation of the first Bancomat (ATM) and POS terminals.

Automation of financial markets

Technological innovation invests in the financial markets: SIA is a major player in the automation of Borsa Italiana markets and in launching the Italian wholesale markets: e-MID and MTS.

The first payment card projects take shape: Bancomat/Pagobancomat, Fastpay,electronic wallet and Microcircuit project to move from magnetic strip cards to microchipcards.

Growth in Europe

Technological excellence is recognised at the European level. The company become one of the leading player on the international market.

Innovative services linked to the Euro and to Europe are developed:

• issuing and acquiring processing solutions

• EBA STEP2 platform for retail payments in Euro

• Monte Titoli post trading

• surveillance services

• compliance with international EMV circuits and standards.

International experience and expertise

• Network Service Provider for access to T2S

• SIAnet Financial ring with 29 trading venues connected

• Collateral management for Central Banks and CSDs

• 4CBNet

• Outsourcing for IPs and Imels

• Development of Jiffy service, for transfers of money P2P.

1980s

1990s

2000s

2010 ∙ 2015

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SIA: a history of innovation

Right from its establishment, the SIA Group has been a high-quality operator that is competitive on the market thanks to the added value of its services and a strong innovation capacity.

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Shareholding structure of parent company SIA S.p.A. as at 31 December 2015

Fondo Strategico Italiano1

49.48%

Banca Mediolanum4

2.85%

Deutsche Bank2.58%

Banco Popolare2.52%

Altri8.94%

UniCredit3.97%

Intesa Sanpaolo3.97%

Orizzonte3

8.64%

Fondi Italiani per le Infrastrutture2

17.05%

On 15 September 2015, the capital increase reserved for executives of SIA S.p.A. was fully subscribed, through the issue of 1,410,253 new shares, for a nominal value of € 0.13 each, for a total value of approximately € 6 million, including the premium. The objective of the plan is to align the interests of management with those of shareholders.The shares issued were special category shares and cannot be sold for a period of 36 months, starting from the subscription date, and do not include the right to vote in Shareholders' Meetings.

PARTICIPATION OF EXECUTIVES IN THE SHARE CAPITAL

1. Through FSIA Investiment S.r.l.

2. Through F2I Reti Logiche S.r.l.

3. Through Orizzonte Infrastrutture Tecnologiche S.r.l.

4. Banca Mediolanum S.p.A. + Mediolanum S.p.A.

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SIA carries out its activities in complex environments and in highly competitive sectors. The company has made a commitment to conduct its business with a strong focus on ethics, intended as the means to orient the

behaviour of all parties performing activities within the Group, by referring to general ethical principles. Moreover, SIA believes that ethics in business is a necessary condition in order for the company to be successful.

1.2 Mission, vision and principles

Our vision

To create an international network of highly qualified and efficient

specialists and infrastructures in order to become the unifying hub of a network of excellence that is agile and well-organised, operating with

the highest levels of professionalism.

Our mission

To design, create and manage competitive transaction services that are secure and reliable, in the areas of payments, cards,

networking, trading and post-trading on behalf of Financial and Central Institutions, Corporates and Public

Administrations.

Values of the SIA Group

Participation ResponsibilityReliability Innovation

The guiding principles at the basis of the activities of the Group and its people are:

• the central nature, of the customer, which is the driving force of every project and initiative and the point of reference to direct the behaviours and choice of strategic measures, as well as everyday activities;

• the excellence, which is the ultimate objective of SIA, as well as the result of daily application of the values on which the Group is based.

SIA's values permeate the conduct of individuals and of the company with regard to relationships with all stakeholders and are an integral part of the Group's culture.

Competence

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Cod

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Legi

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231/2

001

Org

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SIA's Code of Ethics is binding, without exception, for all company members and all outside collaborators. Suppliers, business partners, and all those who, directly or indirectly, have commercial, professional or work-related dealings with SIA are also required to ensure that their conduct is in line with the principles under the Code.

In its Code of Ethics, SIA expresses its commitment also with regard to elimination of any form of conflict of interest, whether personal or company-based.

In accordance with the Governance and Control System adopted by the SIA Group,

members of the Corporate Bodies must adapt their activities to the principles of fairness and integrity, refraining from acting in situations of conflict of interest in the realm of activities conducted within the company.

Members of the Corporate Bodies are also required to display behaviour in line with the principles of autonomy, independence and respect of the corporate guidelines in their relationships, on behalf of SIA, with public institutions and with any private entity.

The obligations of loyalty and confidentiality are binding for these parties even subsequently to termination of the relationship with the company.

Code of Ethics

Expresses the ethical and company values, rights, duties and responsibilities with respect to all parties with which SIA comes into contact in the achievement of its corporate mission.

Dictates the general management, supervision and control principles on which the organisational models must be based. SIA has established a specific Board to oversee functioning and compliance of the organisational and management model pursuant to Italian Legislative Decree 231/2001 and prevent any breaches of said decree.

Concrete application of the principles of lawfulness, transparency, solidity and loyalty that have always characterised SIA's dealings with its stakeholders.

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Parent company SIA S.p.A. is governed by a Board of Directors comprising 11 members, of which 64% over 50 years of age, and the remaining 36% between 30 and 50 years of age.

Members are appointed by the Shareholders' Meeting for a term established by the Meeting upon appointment, but no longer than three years, without prejudice to the provisions of art. 2383 of the Italian Civil Code, and may be re-elected.

The Board of Directors is vested with the broadest powers of ordinary and extraordinary management of the company, without any exceptions and, more specifically, with the powers for implementation and achievement of the corporate goals that are not specifically reserved for the Shareholders' Meeting by law.

The Chairman, Vice-Chairman and CEO are the only Directors within the Board of Directors with executive powers and whose remuneration is supplemented by an additional amount based on the specific position held.

All other Directors are non-executive and, therefore, do not receive additional amounts beyond the compensation established by the Meeting for all Board members.

The approach to remuneration of top management is geared towards performance and achievement of the business objectives.

The Managing Directors of the subsidiaries receive variable remuneration in some cases, based on the achievement of specific EBIT and revenue objectives.

Remuneration Committee Established and appointed by the Board of

Directors in 2014; this Committee carries out consulting and advisory functions such as:• presentation to the Board of Directors of

proposals to define the general remuneration policy for Executive Directors and other Key Directors;

1.3 Governance

Composition of the Board of Directors of SIA S.p.A. as at 31 December 2015

Member Office held

Giuliano Asperti Chairman

Carlo Tresoldi Vice-Chairman

Massimo Arrighetti CEO

Fabio Albano Director

Giuseppe Dallona Director

Fiore Della Rosa Director

Paolo Maria Grandi Director

Barbara Poggiali Director

Barnaba Ravanne Director

Marco Tugnolo Director

Valerio Zappalà Director

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Organisational structure of parent company SIA S.p.A. as at 31 December 2015

Chairman

CEO

Internal Auditing

Communication

Risk Governance

Senior VP Senior VP Innovation Lab

Public SectorCorporateFinancial

InstitutionsNetwork Services

Capital Markets

Central InstitutionsOperations

Senior VP

Law & Legal Affairs

Strategies, Plannig & Control

Human Resources & Organization

Finance & Administration

• expression of opinions regarding proposals to increase the remuneration of executives by the Board of Directors, in accordance with the company's framework of powers and authorisations;

• drawing up and submission to the Board of Directors of proposals to adopt long-term incentive systems for executives;

• monitoring of the performance and correct application of the aforementioned incentive systems, periodically evaluating the adequacy, overall consistency and concrete application of the policy adopted for remuneration of the aforementioned parties.

Committee for research and evaluation of new investment opportunities

Established and appointed by the Board of Directors in 2014; has consulting and advisory functions such as:

• definition of a plan for the analysis and identification of new investment opportunities, with particular reference to new potential acquisitions, analysing them on a preliminary basis and identifying the possible options for financial structuring;

• reporting to the Board of Directors once a year and any time a significant opportunity deemed worthy of concrete examination by the Board is identified.

Supervisory Board SIA S.p.A. has established a specific

Board to oversee functioning and compliance of the Organisational and Management Model pursuant to Italian Legislative Decree 231/2001 and prevent any breaches of said decree. The Supervisory Board reports to the Board of Directors on its activities at least once a year.

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The Compliance System essentially comprises the following activities and cyclical phases:• recognition, assessment and implementation

of laws and sector regulations;• support, training, information and internal

consulting;• monitoring (maintenance of certifications;

preparation of ISAE 3402 reports, reconciliation with the Plan for management of company risks).In the Reconnaissance phase, the laws and

sector regulations applicable to the company are identified and collected in a company database. In addition to the key information

referring to said regulations, the obligations to which the company is subject and with regard to which compliance is constantly monitored are identified as well. Moreover, there is an internal "alert" system to ensure widespread and extensive reporting on the new regulatory trends.

Lastly, in the event of compliance risk, evidence is provided to the risk system for tracking within the Risk Management Plan and subsequent monitoring and management.

The company has specific guidelines on anti-corruption, aimed at avoiding active or passive corruption.

1.4 Regulatory compliance and Institutional relationships

+

!

Monitoring

Implementation

Assessment

Awareness

Collection

Reporting

Advice

Compliance System

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Relations with the Bank of Italy and Eurosystem

Pursuant to art. 146 of the Consolidated Banking Law, SIA is subject to the provisions on the supervision of retail services and payment systems issued in September 2012. These provisions envisage, among other things, specific reporting obligations to the Bank of Italy and performance of an assessment by the Supervisory Authority every two years, to verify application of the supervisory standards to the payment systems managed.

Moreover, SIA is required to respect the "Guidelines applied to the business continuity of financial market infrastructures", dated May 2014, containing similar content to the regulations issued for the business continuity of banks.

The Italian regulation on retail payment systems is consistent with the regulatory framework of the Eurosystem which, in performing surveillance on payment systems, is based on two pillars:• ECB Regulation of 3 July 2014 (GUCE -

Official Journal of the European Union - no. 795/2014) on the surveillance requirements for payment systems of systemic importance, with which the Principles for Financial Market Infrastructures (CPSS/IOSCO, 2012) were endorsed;

• the Revised Oversight Framework for retail payment systems.

Pi4Pay, as payment institution, is subject to the provisions of Italian Legislative Decree 11/2010 and, therefore, supervision by the Bank of Italy.

SIA is aware of its exposure to risks, heterogeneous and changing over time, and of the impacts that these risks may have on its operations, customers, payment systems, financial community and citizens.

As a qualified infrastructure for payment systems and financial markets, SIA is monitored by the Bank of Italy and has an internal control and risk governance system, used to prevent and combat threats and vulnerabilities that may arise and compromise the provision of its services.

Developed in accordance with the ISO 31000 international standard and taking into account the relative provisions by the Bank of Italy, SIA's risk management process:• is aimed at achieving objectives and protecting

the company's value;• is an integral part of the organisational systems

and company processes, initiatives under

definition and services provided;• directs conditions of uncertainty and is part of

the company's decision-making processes; • is carried out in a systematic, structured, timely

and documented manner; • considers human factors, perceptive and

cultural, that may facilitate risk reports and impact assessments;

• is assessed periodically in order to ensure that that overall process is in line with the company objectives. As part of the 2015 risk management process,

training of personnel to increase awareness of the risks to the company continued, with particular regard to cyber security and reputation risk, through specific workshops which saw the participation of approximately 180 Group employees.

1.5 Risk management

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Risk records/risk register

OutputInput

Rules

Process

Risk assessment

Method

Internal/external audit activities and certifications

Heads of governance systems units

Significant external incidents and/or events

Staff responsible for operating processes/technologies

Customers/staff responsible for services/initiatives

Risk reports for service/product

initiatives

Risk reports at the corporate level

Risk identification

Risk treatment

Com

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Mon

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and

rev

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■ Risk policy

■ Roles and responsibilities

■ Risk appetite

■ Notifications

■ Risk likelihood evaluation criteria

■ SIA risk model ■ Risk impact evaluation criteria

■ Risk analysis methods for services/products and initiatives

Risk analysis

Risk evaluation

Definition of the context

SIA's risk management process includes:• a Risks Committee, which brings the most

significant aspects to the attention of company management;

• a Risk Team, responsible for implementing and developing the risk management programme, as well as governing and

monitoring the identification and analysis of risks and of the management plans for the risks identified.

A more detailed illustration of company risks and their management is provided in the Report and Financial Statements as at 31 December 2015.

SIA Group risk management process

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The new 2016-2018 Strategic Plan approved in 2015 confirms, in accordance with the previous one, the objective of organic and self-financed growth, particularly with regard to the European market and Italian public administration.

The main objectives of the plan, apart from the one already mentioned, envisage diversification and expansion of the offer, also through internal

start-ups, stabilisation of the company's profitability and growth in size, where possible, through corporate transactions.

In the long term, the Plan lays the foundation for SIA to become one of the leading international operators, particularly in the payment services segment.

1.6 Strategic Plan 2016-2018

The SIA Group has built its identity and success on a solid and shared value: the excellence. This value has driven the construction of an international network of state-of-the-art infrastructures and highly qualified and efficient specialists that operate according to the utmost levels of professionalism. To further solidify the pursuit of excellence in organisational dynamics, SIA has decided to undertake a structured and organic path towards corporate social responsibility, taking into consideration aspects of economic, social and environmental responsibility, in line with the company's objectives.

By undertaking this path, the Group has expressed the social inclination that has always characterised it. In fact, since its establishment, SIA has paid growing attention to aspects such as:• accessibility to services, without discrimination

based on level of financial literacy or geographical area of origin, with significant attention to local public administration, to which SIA provides its contribution in the digitalisation process (see Chapter 4.1 - Group customers and services - Public Sector);

• the search for cutting edge solutions aimed at strengthening the economic system not only in favour of customers, but of the entire community, through investments in infrastructures and innovative projects such as the Jiffy service to transfer money "Person to Person" (see Chapter 4.9 - Innovation and finalisation of services);

• implementation of initiatives in favour of employees and their families with regard to balancing of life-work, health, corporate environment and training, such as prevention and screening visits for employee health (see Chapter 5.5 - Employee health and safety);

1.7 Responsible management for sustainability

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• respect for society and promotion of initiatives in favour of the local community, including support for non-profit organisation that provide assistance to the less fortunate and to the elderly in need (see Chapter 6.1 - Actions and donations to health and social projects);

• protection of the environment and energy resources, such as through the production

and use of solar energy (see Chapter 7.2 - Energy and water consumption).

The SIA Group therefore undertakes to constantly strengthen its commitment to corporate social responsibility and integrate it into its business strategy, with a view to an increasingly positive impact of its actions on all of its stakeholders.

SIA has a number of certifications that confirm and guarantee the quality of services and company processes, card processing

services, payment infrastructures and mobile telephony applications.

1.8 Certifications

Compliance with the ISO 9001 standard certifies the existence of a Quality Management System aimed at improving efficacy and efficiency in providing the service and increasing customer satisfaction.Group companies certified: SIA S.p.A., SIA Central Europe, TSP

SIA ISO 9001 CertificationQUALITY

Main certifications of the SIA Group as at 31 December 2015

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Compliance with the PCI DSS security standard certifies protection of information with regard to the debit and credit cards issued by the VISA, MasterCard, Amex, JCB and Discover International Circuits. SIA is included in the list of certified companiespublished on the web sites of VISA and MasterCard.Group companies certified: SIA S.p.A., SIA Central Europe, TSP* *The scope of card processing of TSP is included within that of SIA S.p.A.

SIA PCI DSS CertificationPAYMENT CARD INDUSTRY - DATA SECURITY STANDARD(PCI DSS)

Compliance with the ISO 22301 standard confirms the existence and monitoring of aBusiness Continuity Management System aimed at ensuring operational continuity ofcompany services.Group companies certified: SIA S.p.A.

SIA ISO 22301 CertificationBUSINESS CONTINUITY

Compliance with the ISO/IEC 27001 standard certifies implementation and monitoring of an Information Management Security System aimed at ensuring the objectives of confidentiality, integrity, availability and compliance of company information.Group companies certified: SIA S.p.A., Perago, SIA Central Europe

SIA ISO/IEC 27001 CertificationINFORMATION SECURITY

SIA also has technical certifications regarding the payment infrastructures of the mobile telephony applications and authorisations, including those relative to the systems

supporting company logistics (electricity, gas, water, etc.).

o The updated certificates are available at: www.sia.eu

24

SIA promotes numerous initiatives for involvement and communication with its stakeholders during the year: corporate climate surveys with employees, customer satisfaction surveys and meetings, initiatives and meetings with the media, shareholders, institutions, students and the Universities. A detailed system of communication channels useful not only to inform, but also and above all to collect assessments of its behaviour and to better comprehend the expectations of stakeholders themselves with respect to the company.

With specific regard to this first Value Report, the issues to be reported on were identified

through a "materiality" (or "relevance") analysis, involving personnel from every company department, determining the most significant aspects for the SIA Group and for its stakeholders, with regard to economic, social and environmental sustainability.

The analysis was conducted based on the GRI G4 Guidelines, the "G4 Sector Disclosure" Survey in the Financial Services area, the internal documentation provided by the company and the results of a benchmarking assessment on the issues of sustainability on which the key sector players report.

The process concluded with the identification

1.9 Stakeholder’s involvement and materiality

• ISAE 3402 Type2 SIA Issuing & Acquiring Services Report Group companies certified: SIA S.p.A.

• ISAE 3402 Type2 SIA Supporting Services Report Group companies certified: SIA S.p.A.

• ISAE 3402 Type2 T2S Connectivity Services Report Group companies certified: SIA S.p.A. with partner Colt Technology Services

ISAE 3402 Report

Lastly, SIA has 3 ISAE (International Standards for Assurance Engagements) reports, which

confirm the efficacy and effective functioning of existing controls.

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Materiality matrix

Economic materiality

Economic resultsMarket presence Indirect economic impactsIndustrial relations

Materiality for customers and users

Service continuitySecurity for customers and usersProtection of privacyInnovation capacityCompliance with laws and regulations on servicesEthics and integrityInternal and external controlsAccess to servicesInformation on products and servicesManagement of complaintsMarketing communicationInstitutional relationsPortfolio of services

Materiality for people of the SIA Group

Training and development of skillsWork practicesSafety and well-being of employees and their familiesRemuneration and benefits systemDiversity and equal opportunities

Materiality for the community

Community relations

Materiality for the environment

TransportEnvironmental impacts

Materiality for suppliers and partners

Practices for the procurement and evaluation of suppliers

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Poco rilevante Molto rilevante

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of 26 aspects that emerged as particularly relevant, illustrated in the "materiality matrix" in different colours according to the specific area of reference. As it is the first Value Report, the reporting process was launched with a

particular focus on impacts directly linked to SIA's operations. The reporting process will be expanded in the upcoming years in order to include the material impacts outside of the scope of company activities.

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The economic value 2

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2Significant issues and SIA's answers

MATERIAL ISSUES MANAGEMENT METHODS 2015 ACTIONS

Economic results

• Pursue organic and self-funded growth.• Focus development on the European

market and Italian public administration.

• Increase in revenues by more than € 23 million due to a significant increase in card transactions and payments managed by the Group.

• Development of solutions for local public administration.

• Diversification and expansion of the services offered.

Indirect economic impacts• Contribute to the growth of the economic

systems in which the Group operates.

• Innovative services that improve efficiency of financial institutions, companies and public administration.

• Support given to local projects and philanthropic donations supporting communities.

2.1 Economic results of the SIA Group

Revenues by customer type

Revenues by service type

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The results that the SIA Group achieved in 2015 clearly show an improvement over 2014, which had also benefitted from extraordinary one-time revenues following the SEPA migration. The additional increase in 2015 was attained with the growth in electronic payment transactions, increased traffic volumes on the

SIAnet network, acquisition of new customers and cross-selling, as well as the development of new services. The customer churn was very low, which once again confirms the quality of the services offered and the exceedingly high reliability in managing mission-critical services, with service availability levels at the highest market standards.

GROUP REVENUES

449.4(MLN €)

+5.4% compared to 2014

Public Sector

1%

Financial Institutions

59%

Corporates20%

Central Institutions20%

2015

Public Sector

1%


61%

Corporates19%

Central Institutions19%

2014

Payments25%

InstitutionalServices

26%

Cards49%

2015

Payments23%

InstitutionalServices

25%

Cards52%

2014

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In 2015 cards, and especially debit cards, grew the most, and payments to a lesser extent.

The Group's position in clearing on the EBA Step2 platform became even stronger in institutional services, and volumes on the trading platform continued to rise as it managed over 40 billion orders (+38%).

With regard to innovation, development of the mobile payment projects continued, especially the innovative service for Person to Person (P2P) payments called Jiffy that was launched in October 2014.

The decision taken last year to keep a firm hold on the public administration market with a specially formed Division fostered the development of solutions specially created for local public administration, with the design and development of the SIA EasyCity platform that automates and integrates the active and passive cycles of an organisation.

SIA EasyShop was developed as a Network service. It is an offer designed specifically for retailers, professionals and small businesses, and its launch is planned for 2016.

Revenues by geographic area

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1. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is an indicator of profitability that highlights the income of a company based only on its ordinary operations, hence without considering interest (financial operations), taxes (tax management), the depreciation of assets and amortization.

2. EBIT (Earnings Before Interest and Taxes) is the expression of the company's result before extraordinary charges.

2014 2015 change

Revenues from sales and services 426.3 449.4 5.4%

EBITDA1 122.6 123.9 1.1%

EBIT2 97.8 100.5 2.7%

Result attributable to the Group 65.8 69.8 6.2%

Italy79%

Abroad21%

2015

Italy80%

Abroad20%

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The overall picture of the economic aspects regarding the activity of the SIA Group is brought out by calculating the Added Value, which can be defined as the wealth the company creates in carrying on its business. Added Value is one of the elements to consider when measuring the economic and social impact of the Group, as well as the wealth generated and distributed to some categories of parties that, with their different contributions, have contributed to producing it and/or are however

amongst the main stakeholders of the Group.

From the methodological viewpoint, the statements on the determination and distribution of Added Value were drawn up in compliance with the principles set out by the Sustainability Report Study Group (SRSG).

The two statements are balancing in so far as the first calculates the amount of Added Value while the second explains it distribution to some categories of stakeholders.

2.2 Determination and distribution of the Added Value

2014 2015

A) Value of production reclassified

Revenues from sales and services 426,295 449,409

Change in third party inventories 1,214 -1,510

Other revenues and income 4,450 2,769

A) Total value of production reclassified 431,959 450,668

B) Intermediate costs of production reclassified

Costs for raw materials, consumables and goods -29,473 -37,160

Service costs -131,929 -138,931

Provision for risks -37 -79

Value adjustments to tangible and intangible assets -175

Adjustments to trade receivables -75 -187

Other operating costs -3,005 -3,977

B) Total intermediate costs of production reclassified -164,519 -180,509

Gross characteristic Added Value (A+B) 267,440 270,159

C) Income less bank fees 82.399

Financial income 1,819 833

Bank fees -156 -320

C) Total financial income and charges 1,663 513

Total Gross Added Value (A+B+C) 269,103 270,672

Formation of Added Value

GROUP ADDED VALUE

270.6(MLN €)


(values in thousands of euros)

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2014 2015

Staff remuneration 131,195 133,368

Staff cost 131,195 133,368

Remuneration of public administration 46,637 43,486

Income taxes for the year: current, deferred and prepaid 33,217 30,559

Other taxes 13,420 12,927

Remuneration of credit capital 407 346

Charges for short and medium/long-term capital 407 346

Remuneration of risk capital 35,686 49,440

Distribution of profit for the year 35,686 49,440

Remuneration of the company 54,823 43,573

Profit/(loss) for the year allocated to provisions 30,154 20,574

Amortisation/Depreciation 24,669 22,999

Remuneration of the community 356 409

Membership fees 189 168

Contributions to universities and research centres 32 91

Donations, perks 135 150

Total gross Added Value 269,103 270,672

Statement of distribution of Added Value

Distribution of Added Value

The statement of distribution of Added Value provides a detailed picture of the economic

repercussion of the SIA Group's activities on its main stakeholders.

270.6 (MLN €)

(values in thousands of euros)

Remuneration of the company16.10%

Remuneration of risk capital18.28%

Remuneration of the community0.15%

Staff remuneration

49.27%

Remuneration of credit capital

0.13%

Remuneration of public administration

16.07%

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The portion of consolidated Added Value allocated to personnel (49.27%) is € 133.4 million, up 1.7% over 2014. The item corresponds to: wages and salaries, social security costs, employee severance indemnity and other costs, including costs for training, substitute canteen services, charges for restructuring, and insurance policies. The item also includes the costs of the Corporate Bodies (Directors, Board of Statutory Auditors) and other staff.

The remuneration of risk capital, which totals almost € 50 million (18.28% of the total Added Value), corresponds to the profit for the year actually distributed. The amount is 38% higher than that of the previous year.

The remuneration of the company, amounting to € 43.6 million and 16.1% of the Added Value created in 2015, corresponds to the amount invested in the company through the earnings allocated to reserves and the amortisation/depreciation.

The portion distributed to the public administration was € 43.5 million (16.07% of the total), paid in taxes, direct and indirect, attributable to the State and the other local entities. Compared to 2014, this figure was 6.8% lower, above all due to detaxation of the staff cost by IRAP.

The credit capital received € 346 thousand and they correspond to the interest expenses incurred during the period (0.13% of the Added Value), and decreased compared to 2014 (-15%).

A sum of € 409 thousand was allocated to the community, a figure in line with 2014, and was in the form of perks, sponsorships of charitable activities, membership fees to trade association and contributions to universities and research centres.

SIA S.p.A. joined the Borsa Italiana Elite project for Large Corporate in November 2014. This wide-ranging international programme involves an increasingly larger number of companies, partners and investors. Elite intends to accelerate the growth of companies by taking a path of organisational and managerial development aimed at making already deserving companies even more competitive, visible and attractive in the eyes of investors.

ELITE PROJECT FOR LARGE CORPORATE

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The value of suppliers and partners3

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Procurement practices and supplier assessment

Improve the fairness and transparency in the supply chain, from supplier qualification to performance assessment.

Implementation of a platform for monitoring the purchasing process and for future supplier assessment, also based on their certifications in the area of social and environmental responsibility.

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The aim of the SIA Group purchasing policies is to ensure effective and efficient processes for procurement and for controlling procured good and services by implementing lean procedures that can ensure that the requirements demanded of suppliers are met and for seeking the best quality to price ratio for each supply. Profitability is pursued in observance of ethics principles that prohibit attaining maximum competitive advantage using suppliers that are not in line with the same principles that the SIA Group declares and observes.

The company also started a collaboration policy with several suppliers some years ago in order to offer more and more relevant and innovative services for the payments market and to expand its presence on the foreign markets.

In 2015 SIA S.p.A. made purchases for the total value of €125,626,448 from Italian and foreign suppliers. The purchases made involved a total of 639 suppliers.

3.1 Purchasing and suppliers

SIA S.p.A. purchases by product category

Since 2015 SIA S.p.A. has subscribed to the Codice Italiano Pagamenti Responsabili -- CPR (Italian Responsible Payments Code), an initiative designed and started by Assolombarda and inspired by the British Prompt Payment Code. By supporting the Code, SIA is committed to meeting the deadlines (no more than 60 days) and means of payment agreed to with suppliers with the goal of efficiency and fairness that helps speed up and simplify procedures to the utmost.

ITALIAN RESPONSIBLE PAYMENTS CODE

Travel and Logistics1.4%

Consultancy32.4%

Admin. and Prof. Management Services3.1%

Telecommunications9.4%

Software18.6%

Professional Services9.6%

Hardware5.6%

Real Estate10.1%

Professional Services9.6%

Equipment0.2%

125.6 (MLN €)

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A strict procurement procedure that regulates the purchase of all goods and services is in force at SIA. The procedure describes and regulates the entire purchasing cycle in detail. In addition to this, the Purchasing organisational structure draws up a "procurement plan" based on the requirements stated by the various Budget stakeholders, through which it defines the purchasing strategies implemented with suppliers and the market.

As the SIA Code of Ethics states, “the company prepares appropriate procedures in order to guarantee adequate competition for every purchasing process and maximum transparency of the supplier selection operations and the purchase of goods and services".

Entry to the SIA Register of Suppliers and the criteria followed to select them for the assignment of contracts are subordinate to objective and transparent assessments of the quality, price, methods of carrying out the service and delivery, and the availability of organisational means and structures, in compliance with current corporate procedures in force.

Following the execution in 2014 of an IT

platform to manage the purchasing process, in 2015 the Suppliers Portal was put into service. It allows SIA to manage the entire relationship, from initial qualification up the assessment of the performance. The new Portal also allows foreign suppliers to be managed and to introduce questionnaires both general in nature and specific according to product category so that every supplier can be appropriately added to the category list when the qualification phase is completed.

The platform manages the entire purchasing process in an absolutely transparent and traceable manner by using various modules (Suppliers Portal, Procurement, Contract Management). Lastly, development of a vendor rating/evaluation has been started, and it is expected to become available in 2016.

Sixteen tenders, of which 11 were assigned, were managed during the year using the Procurement module of the platform. SIA's strategy requires, whenever possible, that offers be requested from multiple suppliers in order to maximise profitability, again in observance of the principles of the Code of Ethics.

3.2 Tender procedures and supplier qualification

38

SIA requires its suppliers to comply with the corporate Code of Ethics. It is brought to their knowledge at the time they qualify as suppliers and when the contracts and/or orders are executed.

SIA's suppliers have to present a number of general and specific certifications by product category through the Portal. Not all certifications are a mandatory requirement, but they contribute to proper monitoring of the suppliers.

The list (extracted from the Portal) of the certifications for which SIA requests confirmation follows:

• ISO 14001 certification• ISO 22301 certification• ISO 27001 certification• ISO 9001 certification• OHSAS 18001 certification• PCI DSS certification• Specific certifications• Albo Nazionale Gestori Ambientali (National

Register of Env i ronmenta l Operators) certification.

3.3 Sustainable management of the supply chain and required certifications

Qualifications in the possession of SIA S.p.A. suppliers

Qualifications31.12.2014No. suppliers

31.12.2015No. suppliers

ISO 9001 (quality management) N/A 110

ISO 14001 (environmental management standard) N/A 10

OHSAS 18001 (occupational health and safety) N/A 18

Italian Leg. Decree 231/2001 (administrative responsibility) N/A 75

Code of Ethics N/A 90

Environmental certifications N/A 4

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Sustainability questionnaire

No. Ref. Example of Query

1 Labour ContractDoes your company guarantee a labour contract in writing and payment of social security contributions to all its workers in all countries where it operates?

2 Management SystemDo you ensure your employees with a healthy and safe work environment through a Management System that provides operating instructions?

3Freedom of association and collective

bargaining

Does your company recognise the right to collective bargaining and does it observe the right of workers to form or join their organisations to promote their interests or to bargain collectively?

4 Prohibition of forced labour Does your company prohibit forced and obligatory labour?

5 Prohibition of child labour Do you abolish any practice of child labour?

6 Equal opportunitiesDoes your company ensure equal opportunities to all genders, minorities or other diversity categories?

7 Ethical conductDoes your company ensure, through a system of rules, that your personnel maintain an ethical conduct, above all in reference to the prevention of bribery and unfair trade practices?

8Sanctions for representatives and/or

directors

Does your company ensure that none of its representatives and/or directors has been sanctioned in the last three years for bribery and/or organised crime (Mafia crimes) committed in the interest or to the advantage of the company?

9 Organisational ModelHas your company made a company organisational model pursuant to Italian Leg. Decree 231/2001? (for Italian companies only)

10 Safety SystemsDoes your company supply its workers the necessary safety equipment, including personal protective equipment (PPE) to prevent occupational injuries, diseases and accidents and to manage emergencies free of charge?

11 Environmental Protection

Has your company provided itself with a registration system able to identify, monitor and keep track of the environmental requirements set out by law, regulations and administrative procedures in force in the countries where it operates that are applicable to the company?

12 Energy EfficiencyDo you have specific projects and activities in the field of energy efficiency and/or energy production from renewable source?

The Suppliers Portal also includes a specific section for checking social and environmental sustainability and responsibility requirements

met by the suppliers. It is structured as shown in the figure.

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The value of customers and users4

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4MATERIAL ISSUES MANAGEMENT METHOD 2015 ACTIONS

Information on products and services

Portfolio of services

• Offering a wide range of services that satisfy the requirements of Italian and foreign customers, with particular attention to their specific characteristics by sector of reference.

• Design, realisation and management of technological infrastructures and services in the areas of payments, cards, network services and capital markets, in over 40 countries and for over 4,450 customers.

Security for customers and users

Protection of privacy

• Ensuring an adequate level of protection of information and data, given their critical nature.

• Development of the Personal Identifiable Information document, in addition to the ISMS (Information Security Management System), the privacy regulations and the DPS (Documento Programmatico sulla Sicurezza - Security Policy Document), already in effect previously.

Access to services • Guaranteeing fair access to services.• Structuring of the offer for any public or private

entity, bank or company, without discrimination.

Service continuity

• Encouraging continuity of service through structured management of emergencies and crisis situations.

• Ensuring an immediate response in the event of interruptions, critical events and emergencies in providing services.

• Updating of the Business Continuity Management System (BCMS).

• Continuation of activities by the entity in charge of coordination and support of Business Continuity in the Risk Governance Department.

• Monitoring of respect of the international standards in terms of Business Continuity Management Systems.

• Measurement of service levels.

Innovation capacity

• Supporting and promoting innovations, within a scenario of strong developmental trends and a constant increase in competitive pressure.

• Creation of the Innovation Lab Division.• Development and planning of innovative services

for customers.• Investment in new technologies.

Compliance with laws and regulations on services

Institutional relations

Internal and external controls

Management of complaints

• Ensuring a service that complies fully with the laws and regulations of the sector.

• Promptly handing customer complaints, identifying the causes of any problems reported and implementing the appropriate corrective measures.

• Constant monitoring of the regulatory trends.• Careful management of customer requests by the

Service Desk System.• Identification of new organisational strategies for

better management of customer relations.

Marketing communication• Communicating with customers in an

appropriate and transparent manner, in an environment of mutual collaboration.

• New internet site.• New brochures.• The Place, new magazine on innovation news.• Presence on social media.

Significant issues and SIA's answers

42

The SIA Group designs, creates and manages technological infrastructures and services in the areas of payments, cards, network services and capital markets.

Its 4,464 direct customers, served in over 40 countries during 2015, include

Financial Institutions, Central Banks, corporates and Public Administrations.

SIA's offer is open to any public or private entity, bank or corporates, w i thou t geog raph i ca l , s i ze o r sector-based discrimination.

4.1 Group customers and services

Segment of Group customers

Central Institutions


Corporates Public Sector

Capital Markets

Central Banks

ACH

Financial Associations

System Financial institutions

Domestic and Multinational Banking Groups

Intermediaries

Brokers/traders

Services Centers

Telco

Utility

Petrol

Insurance Payment Institution

Mobility

Manufacturing

Retail

Media

Services

Central P.A.

Local P.A.

Agency for Digital Italy

Health Authorities

Trading platform

CSDs

Clearing Houses

Global Custodian

Supervisory Authorities

The offer covers the entire value chain of payment systems and financial transactions, across all phases and for each specific customer segment.

All services managed by SIA are provided in compliance with the laws in effect in the countries in which the service is provided and with the regulations defined by the Supervisory Authorities.

Provided below is a brief description of the services offered to customers of the six Business Divisions of SIA S.p.A. and of the subsidiaries.

Financial InstitutionsWith regard to card services, SIA offers

complete and modular services to manage all types of payment cards: debit, credit, and prepaid, domestic or international.

Services are provided by the SIA data centre, a centralised IT platform that manages all customers and business lines, including the Group companies throughout Europe.

The platform uses scalable hardware systems with high resiliency, able to support significant growth volumes.

4.464direct

customers

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*Number of direct customers of the SIA Group by customer segment and geographical area (Italy/Abroad - 2015)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



Capital Markets

Corporates

Public Sector

81% 19%

13% 87%

92% 8%

99% 1%

100%

Italy Abroad

SIA solutions ensure complete coverage of the value chain of issuing and acquiring, as better described in the pages below, in the diagram entitled "SIA's role in card payments".

The services permit cards to be issued and/or accepted through an outsourcing service and a cutting edge platform, open to several countries and available in various languages and currencies.

Central Institutions SIA provides Central Institutions with

specialised technological services, ensuring the highest market standards in terms of reliability, resilience, security and performance, thanks to in-depth knowledge of the market and consolidated technical and functional expertise.

The offer supports the institutional activities of Interbank Associations, Central Banks and ACHs (Automated Clearing Houses) in the area of payment systems with regard to Clearing and Settlement activities.

Moreover, the Group provides the banking system with the major secure databases of the financial sector (for example, the national ABI-CAB coordinates of all bank branches and Italian post offices), ensuring security, confidentiality and Business Continuity as envisaged by the ISO 27001 certification.

Capital Markets For financial market operators in OECD

countries, SIA offers specialised technological services of high quality, in terms of reliability, resilience, latency as well as technical and business expertise, aimed at clientele consisting of: Trading Venues, Central Securities Depositories (CSD), Clearing Houses and Central Counterparties (CH/CCP), Global Custodians and Supervisory Authorities.

The services offered by the Group are broken down into three macro areas:• trading, thanks to technological innovation,

SIA is able ensure latency times of less than one thousandth of a second in closing deals on the market; moreover, it has introduced new communication protocols and a virtual trading channel able to facilitate access to trading and make the offer more competitive;

• post trading, SIA is provider for securities settlement services in the new European T2S context and is qualified as T2S VANSP (Value Added Network Service Provider) with the European Central Bank. It has also developed a new collateral management technology, with the objective of supporting recent market changes and the growing demand for guarantees at the lowest possible cost;

* Groups with companies in several countries are counted as many times as the nations in which they generated turnover in 2015. The database is higher than the total number of direct customers, equal to 4,464.

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• surveillance, SIA has enriched its monitoring offer with analytics services able to provide the Supervisory Authorities and the markets with the possibility to interpret data on a predictive basis.

CorporatesSIA supports corporates in managing collection

and payment flows and implements complex projects that require specific know-how, dedicated structures, maximum transparency, certifications

with regard to safety and high performance levels in the management of financial flows on a multi-channel basis.

Corporate customers operate predominantly in the markets of telecommunications, insurance, services, utilities, petrol, retail, mobility, media, payment institutions and manufacturing.

A large part of the projects converge towards digitalisation of the internal processes of companies, to encourage interaction of companies with the final consumers, due to the

Services provided by customer segment



Corporates Public Sector Capital Markets

Pre-settlement services on behalf of Bank of Italy

Domestic ACH services

Pan-European clearing services (EBA STEP2)

Real Time Gross Settlementtechnology

ACH technology

CSD technology

Enterprise Service Integration

Card Processing: issuing and acquiring

ATM and POS terminal handling

P2P payments, Digital Wallet for e-commerce, My Bank

Solutions to access Italian and SEPA systems

Payments and collections

Intermediaries compliance

Anti-money laundering/anti-terrorism solutions

Services for access to Fixed Income trading

Bank treasury

Payment Factory to support treasury processes

Multichannel collection & payment services

Payment Gateway for physical & virtual terminals

Mobility & Parking Micropayments

Processing of Private Label Cards, Fuel Cards & Gift Cards

Account Management for IMELs & Payment Institutions

Compliance & AML services

eInvoicing& Long-term preservation

Reporting & BI Services

VAS (electronic direct debit, apps, couponing) and Back Office

Accounts PayableElectronic invoicing

Local Electronic Order System

e-Document Keeper

Accounts ReceivableDigital payments

Reconciliation of payments

Ticketing

Trading engine for primary and secondary Fixed Income markets

Post trading services for CSDs (LSE-Monte Titoli)

Access to T2S

Collateral Management services

Compliance & Surveillance services

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reduction in the complexity of integration of the various systems, improvement of the efficiency of processes linked to the cash flows, reporting and monitoring.

Public SectorFor the public administration sector, a specific

Division has been operational since 2014, with the task of developing a dedicated offer and contributing to the process of PA digitalisation, particularly at the local level, thanks to commercial partnerships with major public associations, financial institutions and a number of leading industrial partners in this market. The primary objective of SIA is to address the requirements of citizens and organisations in terms of simplification and rationalisation of the cycle of collections and payments, in addition to dematerialisation and digitalisation of administrative documentation, also through the electronic invoicing service.

In the Public Health realm, in collaboration with Federsanità ANCI (which brings together 150 hospitals), a service for the web-based management of all in-hospital practice issues has been created, together with POS tools integrated with the collection, reporting and reconciliation services.

In the Local Public Transport sector, the top-up service for travel documents via banking network (ATM, Home Banking), provided by the company Pi4Pay, has been integrated with a new parking payment service via mobile technology.

Network services SIA provides its customers with a Secure

Messaging system known as SIAnet, which allows the telematic transmission of data and information that are part of banking and financial transactions.

Transmission of the data takes place through a messaging system that ensures service continuity, resilience and confidentiality of the information exchanged, guaranteeing respect of the standards required by the national and international financial community.

SIA is a Network Service Provider of the National Interbank Network and also allows access to the STEP2 platform of EBA Clearing and to the Target2-Securities platform of Eurosistema.

This area also includes specific technological outsourcing services such as:• the transaction collection service, which collects

transactions carried out on POS terminals at the European level, allowing customers to develop their business even outside of their usual scope of reference;

• the connectivity service for access to the main European stock markets, through low-latency proximity services;

• management of technological infrastructures for high-resilience private banking networks.

For central public administration, SIA has designed and manages an infrastructural component that facilitates the interaction between PA and the banking system in the management of telematic payments.

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In the area of payment systems, SIA provides services aimed at ensuring the proper technological execution of each type of payment (both large amounts as well as retail) and linking all players in the entire chain, through highly reliable connections: Central Banks and Clearing Houses, commercial banks and end users, comprising Corporates, Public Administrations or private citizens.

Systems involving large amounts (wholesale) known as RTGS (Real Time Gross Settlement) are managed by Central Banks and mainly handle interbank and commercial transactions, which

need to be carried out quickly.Retail payment systems involve both Central

Banks for the settlement of transactions, as well as Automated Clearing Houses, which carry out Clearing functions (transmission, reconciliation, confirmation of payments and determination of positions for settlement).

Banks access these systems directly, allowing their customers to make or collect payments. The SIA Group provides technological platforms, management solutions and access networks to all of these entities.

4.2 SIA's role in payment systems

Activities and interactions attributable to SIA are highlighted in red in the diagram.

SIA's role in payment systems

SIAnet SIAnet

SIAnet SIAnet

SIAnet SIAnet

SIAnet

SIAnetSIAnet

Corporates End-UsersCentralBanks

Public Sector

BanksKey

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4.3 SIA's role in collections and payments: Gateway

To make payments easier to carry out and reporting more reliable for individuals and corporates, SIA has designed a technological platform known as Gateway, which allows companies or public entities to manage a series

of transactions (such as payment, activation, consulting and redemption) regarding, for example, telephone top-ups, payment of postal bills, activation of content and discount/bonus for celiac disease.


SIA's role in collections and payments: Gateway

Thanks to SIA technology, Lombardy is the first Italian region to develop a system that allows one to purchase, with the allowed discounts, products for those with celiac disease directly at the supermarket and no longer only at the pharmacy: just show your Health Card or Regional Services Card at the checkout, along with a celiac code.An automated system associates the code to the user's monthly balance for the purchase of gluten-free products and, once at the checkout, automatically distinguishes between "normal" products and the eligible gluten-free ones. In 2015, approximately 400 sales points were activated in Lombardy, belonging to 12 major supermarket chains.

EASIER SHOPPING AT THE SUPERMARKET CHECKOUT FOR THOSE WITH CELIAC DISEASE

Banks

Service provider

TAX/PUBLICSERVICESMOBILITYMEDIAPETROLUTILITYTELCO

Retailers

CHANNELS

MOBILE

SIA GATEWAYAUTHORISATION

SYSTEM

ATM POS IVR INTERNET DEALER I-TVGDOCALL CENTER

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4.4 SIA's role in card payments

In terms of payment cards, SIA manages the platforms that allow, in just a few seconds, confirmation or non-confirmation of card payment on the POS terminal in question.

The SIA Group has customers on both the acquirer side (the entity used by the retailer on the various payment circuits) and the issuer side (the entity issuing the payment card).

In addition to the technological platform for back office activities, SIA provides the support

of a dedicated team with specific skills, ensuring reliable and efficient services compliant with national and international regulations for the following services:• management of retailers and cardholders• management of transactions• management of complaints• management of fraud• toll-free number to block cards.

SIA's role in card payments


Processor acquirer

Terminal handling

Corporates End-UserShop

ACQUIRERISSUER

Processor issuer

BankStatement

BankStatement

SIAnet

SIAnet

SIAnet

SIAnet

BanksKey

SIAnet

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4.5 SIA's role in capital markets

On the financial markets, SIA covers the requirements of all players in the value chain: from trading to post-trading and surveillance. Products and services are aimed at those managing the execution locations, those enabling the settlement of securities once the trade has taken place on or off the market, and those who govern and supervise proper functioning of the capital market.

SIA also offers services to market participants (for trading on fixed income markets, placement of securities on the primary market and respect of the compliance obligations) and access to securities settlement.

The scope of activity is international (OECD countries) due to the global nature of the financial markets, in which a regulatory harmonisation process has been underway for years.

SIA's role in capital markets


Regulator

Trading Venue

Access totrading

Compliance

ClearingSecurities

SettlementSecurities

SIAnet SIAnet

RTGS

SIAnet

SIAnet

FinancialInstitutions TradingKey

SIAnet

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SIA places great attention on quality as a crucial element for the satisfaction of its customers. Indeed, SIA's success is based on the reputation and trust placed in it by customers and other stakeholders in the business community. In this respect, data security, protection of privacy and business continuity are essential aspects.

Consequently, SIA updates and boosts the protection systems and resilience of products and services offered to customers on a daily basis, integrating the requirements in systems and in its internal procedures, as well as those of its suppliers.

4.6 Quality of services

SIA's QUALITY POLICYKey principles

• Guaranteeing satisfaction of the requirements of customers and of the applicable regulatory requirements.

• Continuous improvement in company processes through measurement and monitoring systems.

• Behavioural and technical training aimed at guaranteeing professionalism able to ensure customer satisfaction.

• Periodic examination of the Policy, in order to ensure constant satisfaction of the requirements of customers and of the market.

• Implementation and maintenance of a Quality Management System compliant with international standard ISO 9001:2008.

Service levels

The company has drawn up a Quality Management System that includes:• definition of company processes;• assignment of the relative responsibilities;• specific indicators to measure the capacity of its

processes and services to produce the expected results with regard to defined objectives.

The system's strengths and weaknesses may be identified through the periodic analysis of indicators, defining any corrective or preventive measures and ensuring constant improvement of the system itself.

RETAIL SERVICES INSTITUTIONAL SERVICES NETWORK SERVICES

99.976%

99.8%

99.999% 100%

2013

2014

2015

100%

99.9%

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4.7 Security of services

In order to better govern the security aspect, SIA has developed the Information Security Management System (ISMS), whose objective is to ensure a level of protection for information handled by company services and processes that is adequate to the critical nature of said information. In particular, the ISMS sets out a series of organisational, technical and procedural measures to ensure confidentiality, integrity and availability of information, treating it in accordance with the relative sector laws and regulations on security.

For optimal protection of the entire payments system, SIA collaborates with the Institutions assigned to oversee the issues of protection

from and prevention of cyber threats and IT fraud; these institutions include: • the CNAIPIC (Centro Nazionale Anticrimine

Informatico per la Protezione delle Infrastrutture Critiche - National Computer Crime Centre for Critical Infrastructure Protection) of the Ministry of the Interior, dedicated to avoiding the interruption of public services, the unlawful acquisition of information and cyber-attacks on a vast scale that could jeopardise the country's security;

• the European Network and Information Security Agency (ENISA) for participation in work groups and research on cyber security issues that are relevant for the financial sector.

The activities of SIA S.p.A., which are dependent on information, have always complied with the principles of the Privacy Code, whose constant application has contributed to giving SIA its reputation of reliability and integrity.The provisions aimed at protecting the personal data subject to processing, to protect the party to which the data refer, are contained in the privacy regulations which:• outline the main principles (right to the protection of personal data, principle of

necessity, pertinence and non-excessiveness);• envisage a specific disclosure on the processing of data and the request for consent;• acknowledge the right to access the personal data and other rights;• envisage forms of protection (complaint, notification, recourse to the Privacy

Authority, recourse to the judge);• provide for a sanctioning system to be applied in the event of non-compliance with

the provisions on the protection of personal data.Moreover, the Security Policy Document illustrates the organisational, physical and logical safety measures that SIA implements, as data controller, in order to reduce to a minimum the risk of said personal data being processed in a manner not compliant with the legal provisions. In 2015, the document "Personally Identifiable Information Assurance Program" was also drawn up, identifying the risks related to the processing of personal data.

CONFIDENTIALITY AND PROTECTION OF PERSONAL DATA

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Aware of the strategic importance of Business Continuity for the sector in which it operates and in accordance with the contractual commitments defined with its customers, SIA has set up a Business Continuity Management System and technological infrastructure aimed at:• driving the decisions made in emergency and

crisis situations;• defining the plans, procedures and technical,

human and logistic resources to ensure continuity in the provision of services;

• reacting promptly in order to reduce interruptions in business processes and guarantee recovery effectively.

The Risk Governance Department has defined a structure to coordinate and support the Business Continuity activities in the company, the tasks of which are described in the company's organisational chart.

This structure includes:• a Risks Committee, which brings the most

significant aspects to the attention of company management;

• a Business Continuity and Disaster Recovery Guidance Committee, to coordinate development of the issues regarding Business Continuity and resilience in the provision of application and infrastructural services and projects.

Since 2008, SIA is compliant and certified in accordance with the international standards of the Business Continuity Management Systems (first BS 25999, now ISO 22301). To verify that the system is applied correctly, inspections by third-party companies are conducted on an annual basis.

Inspections and trials of the technological and application functions were organised in 2015, with disaster recovery tests that also involved a number of customers, along with business continuity tests involving the company's management chain.

4.8 Service continuity

4.9 Innovation and finalisation of services

The markets in which SIA operates undergo significant changes and a constant increase in competitive pressure. In this scenario, SIA's commitment is aimed at ensuring a constant capacity to support the innovation of its customers, through the development of solutions and services that enhance the most recent technological trends and that are created based on the specific requirements of the reference market.

Consequently, in 2014, SIA created a business unit called Innovation Lab, with the objective of ensuring greater effectiveness in pursuing technological innovation.

From a technological standpoint, the project known as Active/Active permitted the implementation of a mainframe architecture with machines in different geographical locations cooperating to support the processing of very high transaction volumes, leading to a substantial

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The Jiffy service allows money to be sent and received in real time and absolute security, associating the IBAN bank account code to a mobile number.Jiffy is currently available to current account holders of the major national banking groups; once all banks have been activated, it will be used by over 32 million Italian current accounts, equal to over 80% of the total. Based on SEPA wire transfer, it is open to all banks operating in the Single European Payment Area.Jiffy has also become an innovative tool to make donations to charities.The Italian Cancer Research Association (AIRC) was the first to use this opportunity, in occasion of the "Research Days" initiative, followed by UNICEF, which chose Jiffy to support projects in favour of children.

SEND AND RECEIVE MONEY INSTANTLY WITH JIFFY

increase in reliability of the services provided.Financial InstitutionsSmartphone-based payment systems have

been the subject of significant innovations with the launch of new services, such as Jiffy, the service that permits money transfers in real time through banking Apps set up in a fashion similar to WhatsApp, selecting the beneficiary directly from one's contacts.

For proximity payment systems from smartphones, the HCE (Host Card Emulator) service has been launched, allowing credit cards to be "virtualised" on secure servers. SIA's solution was among the first in Europe to achieve the specific Visa and MasterCard certifications and has already been adopted by two major issuers of Italian cards and by a major credit institute in Eastern Europe.

In the cards sector, the main innovations have regarded integration of the JCB circuit (authorisation and clearing) and introduction of the advanced anti-fraud solution RiskShield. The VISA requirements and those of the EU directive on MIF++ (Multilateral Interchange Fee ++) have also been integrated into the fee calculation model: this provides customers with full autonomy in defining the pricing rules.

In the Digital Payments area, additional services aimed at simplification of payments have been introduced, including the Payments Engine created for Poste Italiane: a marketplace accessible via web and App, allowing citizens to benefit from a single access point for payment of various services to public administration

and to the so-called "major invoicers" such as telephone, electricity and gas companies.

Other important changes have allowed further improvement in services supporting the capital markets; these include revision of the SIAnet Financial Ring architecture, modified in order to position the London access points in data centres with a higher concentration of Trading Venues in hosting, for significant advantages in terms of quality of access to markets.

CorporatesDuring the course of 2015, subsidiary Pi4Pay,

payment institution of the SIA Group, obtained authorisation by the Bank of Italy to issue and acquire payment instruments, significantly expanding its offer portfolio to introduce a series of new collection services for third parties, both online, as well as through physical channels. Pilot projects are underway with major companies in the Insurance, Utility and Telecommunications sectors.

Public SectorSIA has begun operating the Smart City sector

through an innovative platform for integrated management of digital services to citizens.

Using a single App, and with payment and authentication credentials, it will be possible to access the SPID (Sistema Pubblico per la gestione dell’Identità Digitale - Public System for the Management of Digital Identity), the new system that allows citizens and companies to access the online services of public administration using a single digital identity.

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During the service offer and supply phase, SIA works alongside its customers in order to promote comprehension of the operational processes, providing first and second level support aimed at facilitating proper use of the service.

Current and potential customers may contact SIA through its Italian and foreign offices, by telephone or via website. A Customer Support service is operational for customers, accessible by telephone, fax or email during office hours.

For some types of services, coverage is envisaged 24 hours a day and 7 days a week.

The Divisions organised thematic events aimed at current and potential customers, in order to discuss innovation, encourage discussion and create a reference community for each technical segment.

Every two years, SIA conducts a customer satisfaction survey through a third company, in order to: • analyse the level of satisfaction of customers

using the services, both overall as well as in terms of the specific service used;

• identify the factors impacting satisfaction and the possible areas of improvement;

• verify the current perception of customers, with a view to improving the relationship.

The last survey was carried out in 2014 and involved the management, operational and marketing staff of 18 major customers, with the objective of analysing the perception of customers with regard to the company's image, reputation and reliability, the quality of service offered, the capacity to respond to customers' requirements and the problem solving capacity.

4.10 Listening to and satisfying customers

Management of complaints SIA has a Service Desk System, that manages

all requests by customers and end users: from the simple request for information to the management of complaints, up to the request for refunds and penalties.

The complaints management process aims to quickly manage complaints by customers who are not satisfied with the services provided and/

or products offered, as well as limit customer dissatisfaction and improve service, setting out the appropriate corrective measures, in addition to preventive ones to avoid the event from repeating.

The process for management of refunds and penalties aims to manage any such requests from customers, in accordance with the provisions of the relative contracts and of the Italian Civil Code.

RESULTS OF SIA'S 2014 CUSTOMER SATISFACTION SURVEY

STRENGTHS AREAS FOR IMPROVEMENT

• Competence, professionalism and reliability

• Solidity and reputation

• Quality of services

• Listening to the needs of customers

• European/international outlook

• Innovation capacity

• Proactive attitude in relations with customers

• Extensive commercial offer

• Customer support/comprehension of requirements

• Post-sales assistance

• Internal coordination

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4.11 Relations with customers and partners

During the course of the year, many initiatives have enabled SIA to consolidate the communication and dialogue channels with current and potential customers and partners.

In November 2015, the new version of the website www.sia.eu was activated, now greater oriented towards customers, providing on its

home page the offer of solutions and services by sector of activity. Navigation from mobile devices such as smartphones and tablets was also facilitated, and the layout of the information was reorganised.

In August of 2015, the site jiffy.sia.eu was also published, dedicated to SIA's P2P service.

The evening organised at Teatro alla Scala on 14 December 2015 brought together approximately 1,600 customers, partners, shareholders and representatives from a wide variety of associations for the Scala's Philharmonic concert, conducted by Christoph Eschenbach. An opportunity to meet in a social scenario and to support the Institution.

SIA AT TEATRO ALLA SCALA

As part of its internationalisation strategy, SIA presented the results of a study on the use of e-money in Poland and on how new technologies can help to develop the country's economy, also in terms of the relationship between citizens and public administration. Some 150 operators of the financial and business sectors participated in the meeting, with 14 speakers from four different countries and 10 local and international journalists.

MEETING IN WARSAW ON NEW PAYMENT TECHNOLOGIES

INITIATIVES FOR CUSTOMERS AND PARTNERS

EVENTS BROCHURES 2 NEWSLETTERS www.sia.eu

SIA

jiffy.sia.eu

Workshops, conferences, user groups, fairs,

presentations.

Recipients of Periscope

Pills.

Recipients of Periscope Pills and The

Place.

Active since 26 August 2015:

9,982Users

36,135Pages

viewed.

Cards, Payments and Istitutional Services

segments.

201449

201560

201434

201540

2014803

20152,245

201486,867

Users

423,975Pages

viewed.

2015113,605

Users

569,238Pages

viewed.

Jiffy

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The value of people in the SIA Group5

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5MATERIAL ISSUES MANAGEMENT METHOD 2015 ACTIONS

Working practicesInvest in people and ensure the correct management of the working relationship.

• Pursue initiatives relating to training, career development, opportunities of professional growth, collective bargaining, company welfare and the work/life balance.

Training and development of professional skills

Protect and promote the importance of human resources in order to safeguard and develop the professional skills of each employee.

• Development of an intense training programme in response to technical, managerial and linguist requirements.

The safety and wellbeing of employees and their families

Promote programmes and initiatives aimed to protect the health and safety of employees in the workplace.

• Creation and expansion of initiatives to prevent incidents and to protect employee health and safety.

Payment and benefit schemeEnsure a correct salary scale for employees and reward commitment to the group through an appropriate benefit scheme.

• Agreement for the renewal of the company bonus.• A broad range of company benefits.

Diversity and equal opportunities Ensure equal working conditions and opportunities of professional growth for all employees.

• Development of assessment schemes and professional growth programmes.

• Promotion of a new and flexible working arrangement.

Significant issues and SIA's answers

Employees are a key resource for any company in the service industry, and this is even more relevant for SIA, a company which has focused on professional excellence as the key foundation to its success. The Group invests in its employees in every aspect: training, career

development, opportunities for professional growth, company welfare and the work/life balance are all elements which SIA considers the basis of a modern, positive and effective management of human resources.

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5.1 Employment and turnover

At 31 December 2015 the SIA Group employed a total of 1,612 employees, almost all of which (98.6%) were on open-ended contracts.

Of the other types of contract used by the Italian subsidiaries of the Group, such as project contracts, administration and apprenticeships, only the latter has grown slightly over the past year, from 33 trainees taken on in 2014 to 37 in 2015, with an employment rate at the end of the apprenticeship of 78%. Other forms of contract have been gradually phased out following legal amendments (the repeal of project contracts) and in order to pursue objectives for the progressive internalisation of key skills.

All employees of the Group's Italian subsidiaries (with the sole exception of Emmecom, which applies the commercial contract agreement) are employed on CCNL (National Labour Collective Agreement) contracts signed on 19 January 2012 for management staff and employees working in professional areas dependent upon

banks, financial companies and related companies. Irregular working relationships are not tolerated in any circumstance.

Over the year the Group employed 123 new employees (82 of which were employed by the parent company SIA S.p.A.) while 52 employees left the company (28 of which worked

in the parent company). The wage paid to new employees complies with the Italian minimum wage as specified in the relevant national contract, regardless of type. 95% of managers are recruited from the countries where the offices of each company of the Group are located.

To approach young and talented candidates and to promote the recruitment of new graduates, in 2014 SIA launched a specific employer branding initiative, developing relationships with universities. The project began with the organisation of a recruitment day at the Polytechnic University of Milan and participation at the Job Fair held at the Sant’Anna School

In 2015 the group visited four universities, met with more than 200 students and collected over 150 CVs. To optimise the search for new employees and recruitment in Italy and abroad, recruitment campaigns have been launched on leading websites including TrovoLavoro in Italy, Pracuj in Poland and Stepstone in Germany. During the career days, interest in SIA was particularly high from Economics and Engineering undergraduates as well as those studying for degrees in Law and Political Science. In particular, SIA searches for goal-oriented graduates with a focus on customer satisfaction, a keen desire to get involved, good problem solving skills and a drive for constant improvement.

SIA ON THE LOOKOUT FOR TALENTED NEW GRADUATES

1,612people

+5% compared with 2014

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Employees by professional category Employees by level of education

Employees by sector Employees by geographic location

Managers43%

Senior Managers2%

External Staff8%

Employees47%

Degree or University Diploma36%

College Diploma

4%

High School

Diploma60%

Corporate Center11%

Customer service16%

Sales & Marketing13%

IT60%

Italy92.2%

Abroad 7.8%

Pretoria3.6%

Budapest3.1%

Utrecht0.2%

Brussels0.9%

1,612 people

1,612 people

1,612 people

1,612 people

The data refers to SIA employees as at 31 December 2015.

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of Advanced Studies in Pisa. In 2015 a new company brochure aimed at undergraduates was produced and the company participated in career days at the Polytechnic University of Milan, the Sant’Anna School of Advanced Studies in Pisa, the Catholic University of the Sacred Heart and Bocconi University.

Furthermore, in 2008 a partnership with the Sant’Anna School of Advanced Studies in Pisa was agreed, enabling SIA to offer bursaries to students studying for MAINS (Master in Service Management, Innovation and Engineering). The 13 Masters students were also offered work experience with SIA and two thirds of the students were later recruited.

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EMPLOYEES BY GROUP SUBSIDIARY AND GENDER

As at 31 December 2014 As at 31 December 2015

Men Women Total Men Women Total

SIA S.p.A. 788 343 1,131 1,028 448 1,476

SIA Central Europe (Hungary) 36 12 48 40 10 50

Perago (South Africa) 27 14 41 38 20 58

Pi4Pay (Italy) 3 1 4 3 1 4

TSP (Italy) 23 19 42 8 5 13

Emmecom (Italy) 10 1 11 10 1 11

RA Computer (Italy)* 181 77 258 - - -

Total 1,068 467 1,535 1,127 485 1,612

EMPLOYEES BY PROFESSIONAL LEVEL AND GENDER



Senior Managers 33 7 40 27 6 33

Managers 510 156 666 535 165 700

Employees 480 285 765 472 279 751

Apprentices 5 1 6 2 1 3

External Staff 40 18 58 91 34 125

Total 1,068 467 1,535 1,127 485 1,612

FULL AND PART TIME EMPLOYEES BY GENDER



Full Time 1,057 361 1,418 1,117 381 1,498

Part Time 11 106 117 10 104 114

Total 1,068 467 1,535 1,127 485 1,612

EMPLOYEES BY TYPE OF CONTRACT AND GENDER



Fixed Term Contract 17 6 23 14 8 22

Open-Ended Contract 1,051 461 1,512 1,113 477 1,590

Total 1,068 467 1,535 1,127 485 1,612

EMPLOYEES ON SHIFT CONTRACTS BY GENDER



Shift Workers 84 20 104 87 24 111

* Incorporated into SIA S.p.A. on 1 January 2015

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EMPLOYEES BY AGE AND GENDER



< 30 years 52 18 70 59 24 83

30-40 years 221 112 333 218 104 322

40-50 years 498 240 738 509 243 752

50-60 years 292 97 389 322 111 433

> 60 years 5 0 5 19 3 22

Total 1,068 467 1,535 1,127 485 1,612

EMPLOYEES BY EDUCATION LEVEL AND GENDER



Degree or university diploma 347 184 531 378 201 579

College diploma 679 260 939 708 262 970

High school diploma 42 23 65 41 22 63

Total 1,068 467 1,535 1,127 485 1,612

EMPLOYEES ENTERING AND LEAVING THE COMPANY BY GENDER*

RecruitmentsTerminations of Contract

Recruitment Rate (based on total

employees on 31.12)

Turnover Rate (based on total

employees on 31.12)

2014 2015 2014 2015 2014 2015 2014 2015

Men 74 90 42 36 6.9% 8.0% 3.9% 3.2%

Women 26 33 14 16 5.6% 6.8% 3.0% 3.3%

Total 100 123 56 52 6.5% 7.6% 3.6% 3.2%

EMPLOYEES ENTERING AND LEAVING THE COMPANY BY AGE*



employees on 31.12)


employees on 31.12)

2014 2015 2014 2015 2014 2015 2014 2015

< 30 years 38 38 5 10 48.7% 45.8% 6.4% 12.0%

30-50 years 59 77 31 27 5.2% 7.2% 2.7% 2.5%

> 50 years 3 8 20 15 0.9% 1.8% 6.3% 3.3%

Total 100 123 56 52 6.5% 7.6% 3.6% 3.2%

EMPLOYEES ENTERING AND LEAVING THE COMPANY BY PROFESSIONAL LEVEL*



employees on 31.12)


employees on 31.12)

2014 2015 2014 2015 2014 2015 2014 2015

Senior Managers 0 2 1 2 0.0% 6.1% 2.5% 6.1%

Managers 16 20 20 11 2.4% 2.9% 3.0% 1.6%

Employees 76 62 18 14 9.9% 8.3% 2.4% 1.9%

Apprentices 2 1 1 2 33.3% 33.3% 16.7% 66.7%

External Staff 6 38 16 23 10.3% 30.4% 27.6% 18.4%

Total 100 123 56 52 6.5% 7.6% 3.6% 3.2%

* The data includes employees whose final working day was 31 December.

* The data includes employees who left on the given date.

* The data includes employees who left on the given date.

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5.2 Industrial Relations

At SIA S.p.A., industrial relations are characterised by a conflict-free, collaborative and participatory atmosphere within a good market environment.

Members of the four leading trade unions make up for 37% of the workforce (553 members on 31 December 2015), resulting in an active collaborative relationship with the Unions in terms of the Group's activities and policies, as well as SIA's commitment to freedom of association and worker’s rights.

In the creation and management of contractual relations between employees and the hierarchical structures, SIA operates in such a way that the role of the Management is exercised fairly and correctly and the incentive scheme and company career structure are based on the ability of employees and their results. Furthermore, the company guarantees the privacy and the physical and moral integrity of its employees and collaborators, ensuring working conditions which are respectful of their personal dignity.

The principle elements of the Company Contract signed on 19 December 2012 are: the company bonus, working hours, professional profiles, professional growth opportunities and welfare.

In terms of working hours, the most significant factor is the flexibility for clocking in and out of Company Offices.

Organisational modifications necessary for optimum management of company activities are implemented after having notified the union representatives. On a contractual level, the CCNL agreement specifies the minimum notice which must be given to staff in the case of operational or organisational changes.

For other companies of the Group, relations with union representatives comply with the laws and regulations of the relevant countries.

In July 2015 the statement of agreement for access to the “Solidarity Fund for Income and Employment Support and Retraining of Banking Personnel” corresponding to SIA staff that will fulfil the criteria for access to the fund in the period between 1 August 2015 and 1 August 2018 was signed.

In November the statement of agreement for the allocation of the Company Bonus with reference solely to financial year 2015, to be awarded during 2016, was signed.

* TELEWORKING EMPLOYEES SUBDIVIDED BY GENDER



Remote work, permanent basis1 10 17 27 13 18 31

Remote work, alternating home/office2 92 50 142 95 51 146

Remote work, occasional basis3 159 85 244 265 113 378

Total 261 152 413 373 182 555

* Given that the teleworking agreement does not extend to other companies of the Group, the data refers solely to SIA S.p.A.1. Remote work, permanent basis: the work is carried out in a stable and continuous manner by the employee from their own home.2. Remote work, alternating home/office: the work is carried out by the employee from their own home for a predefined period of one or

two days per week; other working days are spent in the office.3. Remote work, occasional basis: the work is carried out by the employee at their own home for a maximum of 10 days per year, based

on specific and extraordinary circumstances.

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After being one of the first 60 companies to sign up to the “Flexible Working Day” event in 2014, SIA participated in the second edition on 25 March 2015, with the aim of promoting a working structure which delivers a better quality of life, less stress and less pollution. The company employees and associations who took part in the initiative responded to a questionnaire set by the Municipality of Milan, aimed at assessing the advantages both from a productivity point of view and in terms of traffic, pollution and energy consumption.In 2015 remote work at SIA grew by 34% compared to 2014, affecting 10% of the total workforce, while 26% of the company population took advantage of remote work with occasional basis for a collective total of around 1,300 days.The “Flexible Working Day” event is supported by the Municipality of Milan together with ABI, AIDP, ANCI Lombardia, Assolombarda, CGIL Milano, CISL Milano Metropoli, UIL Milano e Lombardia, SDA Bocconi, Unione Confcommercio Milano Lodi Monza e Brianza and Valore D.

FLEXIBLE WORK HOURS: MORE QUALITY OF LIFE, LESS POLLUTION

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5.3 Diversity and equal opportunities

SIA offers equal employment opportunities to all employees based on professional qualifications and capabilities, free from discrimination.

The selection, recruitment, remuneration and career development plan of each employee is based exclusively on merit and skills, without any discrimination regarding political or religious beliefs, membership of unions, race, language, gender, age, working timetable, family status or role within the company, in compliance with the current and relevant legislation, employment contract, regulations and directives.

On 31 December 2015 SIA S.p.A. employed 83 people belonging to protected categories, in the context of the agreements signed with the

Provinces of Milan and Rome for recruitment of this type. Within the company the role of “helper of persons with disabilities” was established, fulfilling the task of assisting persons with d isabi l i t ies where necessar y, act ing in accordance with emergency procedures and coordinating with emergency staff.

Since 2012 the SIA Equal Opportunities Commission has provided a new focal point and a stimulus within the company on the subject of work and the prevention of any kind of possible discrimination. The Commission, some members of which are also union representatives, monitors practices and procedures and acts to highlight any criticisms and suggest improvements in terms of flexibility, telework, careers, the work/life balance and return to work from leave.

* PAY SCALES BY GENDER FOR DIFFERENT PROFESSIONAL LEVELS


Men Women Men Women

Senior Managers 100 78 100 91

Managers 100 95 100 90

Employees 100 101 100 93

External staff N/A N/A 100 99

* The standard salary level for men in different professional levels is 100. The data for 2014 refers solely to SIA S.p.A.; for 2015 the data refers to the SIA Group (excluding the company Perago).

* The data for 2014 refers solely to SIA S.p.A.; for 2015 the data refers to SIA S.p.A., Emmecom, Pi4Pay and TSP.

* PARENTAL LEAVE AND RETURN RATES SUBDIVIDED BY GENDER



No. granted periods of parental leave 16 30 46 6 30 36

No. workers back in work after having taken parental leave

16 25 41 6 25 31

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5.4 Training and career development

SIA protects and promotes the importance of human resources and is committed to safeguarding and developing the professional skills of each collaborator, ensuring that the skills and legitimate aspirations of each worker are suitably fulfilled in the achievement of company goals. Training programmes aim to constantly improve working practices, increasing professionalism and promoting high standards of conduct and practice.

In 2015, an intensive training programme was defined in response to technical, managerial and linguistic requirements. In total, SIA S.p.A. provided a total of 34,000 training hours, equal to around 3 days of training per capita.

Of the training initiatives carried out, the following are of particular note:• the induction process for staff coming from

the merger with the company RA Computer, aimed at facilitating knowledge of essential SIA operating practices, values and principles;

• the programme of meetings aimed at streamlining skills, techniques and strategic planning and operative marketing tools used across the company;

• initiatives to optimise soft skills in English, with the dual aim of consolidating negotiation, public speaking and telephone communication skills as well as optimising linguistic skills and the interaction with employees in foreign offices. In 2015 the first courses taught entirely in English and German were held.

Over the year the Banking and Insurance Fund (FBA) submitted and approved the plan for the “Development of commercial skills and innovation”, aimed at financing the training initiatives for the consolidation of the commercial business, specifically in terms of the public authorities market, and to maintain competitive ICT skill levels within the company.

Training activities by content (SIA S.p.A.)

Management training31%

Linguistic training27%

Technical training40%

Conferences2%

Over

34.000 training

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In 2015 SIA provided a training course for the Master in “Analytics and Business Intelligence”, organised by MIP - Politecnico di Milano School of Management and CEFRIEL and financed by the Lombardy Region. The programme was aimed at new graduates in technical and scientific subjects hired on High Level Training and Research Apprenticeships contracts by participating companies.The Master involves 15 companies and aims to develop the managerial skills necessary for the management of the entire life cycle of IT services, with the goal of furthering skills such as business intelligence, data handling and analysis, data mining and data management. Participation by SIA was driven by the wish to provide young people with specific know-how on important business and technological themes.CEFRIEL has been operating as a centre of excellence for innovation, research and training in the sector of Information and Communication Technology since 1988.MIP has been acting as a Consortium between Milan Polytechnic and numerous institutions and companies since 1979 and is part of the Polytechnic School of Management.

HIGH LEVEL TRAINING FOR NEW GRADUATES

* AVERAGE ANNUAL TRAINING HOURS BY EMPLOYEE, SUBDIVIDED BY GENDER AND LEVEL

2014 2015


Senior Managers 42 28.4 40 14.55 20.58 15.62

Managers 27 26.2 26.8 26.33 26.36 26.34

Employees 25 15.5 21.2 22.49 16.52 20.27

Total 26.6 20.3 24.7 24.27 20.22 23.04

* The data refers exclusively to SIA S.p.A. Average training hours are calculated based on the workforce as at 31 December.

Many professional certificates are offered to SIA staff in order to further the growth of skills and excellence in working roles:• PMP – Project Management Professional of the

PMI Project Management Institute;• CISSP – Certified Information Systems Security

Professional;• CISM – Certified Information Security Manager;• CISA – Certified Information Systems Auditors;• ITIL – Information Technology Infrastructure

Library (professional certification in the framework of best practices in the management of IT services);

• ADACI – Associazione Italiana di Management degli Approvvigionamenti (Italian Association for Supply Management);

• COBIT – Control Objectives for Information and related Technology – Foundation (professional skills certification in the context of the governance and management of IT companies).

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For the purposes of career development, a crucial role is played by the service evaluation process: this is essential for the optimum orientation of the expectations and activities of workers through the assessment of two different aspects:• performance, or rather the contribution of each worker to the achievement of

company goals;• conduct, or rather the attitudes of staff in line with the company mission, vision

and values.This process is comprised of four stages:• assessment by the direct manager in order to identify projects and activities

carried out by the collaborator, evaluating performance and conduct and defining a development plan;

• calibration, where the assessments are verified and validated by an internal panel within each Department, the Calibration Committees and finally the Board of Directors;

• a feedback interview where the manager and worker discuss the assessment, areas for improvement and development opportunities;

• finalising of the assessment process, where the worker can make their own observations and highlight any training needs.

EVALUATION OF SERVICES AND CAREER DEVELOPMENT

* PERCENTAGE OF STAFF WHO REGULARLY RECEIVE PERFORMANCE AND CAREER DEVELOPMENT EVALUATIONS SUBDIVIDED BY GENDER AND LEVEL


Men Women Men Women

Senior Managers 100% 100% 100% 100%

Managers 100% 100% 100% 100%

Employees 100% 100% 100% 100%

Total 100% 100% 100% 100%

* The data refers to SIA S.p.A., Pi4Pay, SIA Central Europe and TSP.

*100% of all staff receives

performance evaluations

*100% of all staff receives

the Variable Performance Bonus,

linked to the economic performance of the

SIA Group.

* The percentage refers to the workforce of SIA S.p.A., TSP, Pi4Pay and SIA CE.

* The percentage refers to the workforce of SIA S.p.A., TSP and Pi4Pay.

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5.5 Employee Health and Safety

Staff of the SIA Group handle and interpret information and data as part of their work through the use of data handling tools and machines.

For this type of activity, as well as general

issues related to the business, machinery, equipment and safety directives, particular relevance is given to emergency procedures, the microclimate and the use of display screens.

SIA S.p.A produces a Risk Assessment Document (DVR) and periodically adapts this to

comply with legal and corporate directives.

The parent group also applies employee health and safety legislation in force in Belgium and the Netherlands.

Going beyond the minimum legal requirements, SIA is intensely committed to the promotion of programmes and initiatives aimed at increasing health and safety in the workplace for its employees, as well as combating work-related stress.

At SIA personal health is a constant focal point and prevention has become an important tool in the workplace. In 2015 SIA invested €72,000 in preventative measures (+46.8% compared to the previous year), enabling employees of SIA, Pi4Pay and TSP to access:• screening for gynaecologic cancers (€15 contribution to be paid by the employee)

with cervical smears and breast ultrasound screens conducted in the office;• prostate screening (€10 contribution to be paid by the employee) with a complete

PSA test;• skin cancer screening (€15 contribution to be paid by the employee) with a

consultation with a dermatologist to identify moles or suspicious marks;• blood tests (€15 contribution to be paid by the employee) including 16 basic tests

to assess general health;• optional vaccination campaign against seasonal influenza (free for employees)

carried out by the company doctor at the infirmaries of the various company or contracted offices;

• examinations for medical certificates for non-competitive sports (€30 to be covered by the employee) at the infirmary of the main SIA office.

SIA’S COMMITMENT TO THE HEALTH OF ITS EMPLOYEES

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In terms of protecting the health and safety in the workplace for employees of third party companies working with SIA, the company arranges a DUVRI (Interference Risk Assessment Document) for each supplier. This document includes detailed information about the activities carried out by the third party operator and illustrates the methodology for the assessment of risk levels concerning employee health and safety, clearly identifying potential

sources of danger and risks of exposure and providing an estimate of the consequent risk level.

In terms of the protection of health and safety in the workplace, in 2015 no incidents were reported in the company, while 10 incidents occurred during the commute between home and work.

*KEY ACCIDENT INDICATORS

IndicatorsAs at 31 December 2014 As at 31 December 2015

Employees and collaborators Employees and collaborators

No. accidents at work 2 0

No. accidents in transit 15 10

No. fatalities as a result of accidents 0 0

No. days lost due to accidents 341 265

No. cases of occupational illness 0 0

No. days lost due to occupational illness 0 0

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* The data for 2014 refers to SIA S.p.A, Pi4Pay and TSP; for 2015 the data refers to SIA S.p.A., Emmecom, Pi4Pay and TSP.

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5.6 Company welfare

SIA aims to be an attractive company to work for and as such has developed a caring and rewarding welfare policy (available to employees of SIA S.p.A, Pi4Pay and TSP), offering various different services and benefits:• work/life balance (flexible working

hours, paid leave, parental leave);• family support (grants for children’s

s tud ies , academic gu idance, company campus childcare during school holidays during school/nursery holidays, receipt of personal parcels, pharmacy, tailor, cobbler, laundrette, Christmas markets);

• health (supplementar y health insurance, check-ups, company doctor, preventative programmes);

• income support (pension contributions, in-store benefits, flexible benefits);

• training and instruction (refresher courses, foreign languages, participation in conferences and seminars).

SIA’s investment in welfare initiatives equals 6.4% of employee costs and corresponds to €5,800 per capita each year (2015).

Company welfare approximately

€ 5,800on average

per employee

Investments in company welfare

In order to confront and manage welfare aspects linked to the professional and personal wellbeing of employees, SIA has created two

specific programmes called “sia@work” and “sia@life”.

Medical cover and insurance23.18%

Social events0.78%

Time-saving services0.08%

Preventive health care0.51%

Childcare vouchers0.74%

Institutional and managerial training12.35%

Payments to Supplementary Pension Schemes

30.52%

Meal vouchers26.17%

Contributions by the Company Contract

4.92%

Conferences and Seminars0.75%

8,5 (MLN €)

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is a collection of projects and initiatives aimed

at constantly improving the working practices at SIA, increasing professionalism and promoting high standards of conduct through:• training sessions on business, technical and

managerial issues;• meetings between the management and senior

management to discuss the business plan, strategies and relevant company issues;

• prompt information on all relevant internal and external notifications via the press review and

the Intranet portal;• company awards;• risk culture programmes aimed at creating a

healthy culture of risk management;• visits to important innovation centres and

articles posted on the intranet to provide a 360° overview on progress and new frontiers in the fields of science and technology;

• change management processes to manage organisational changes;

• smart working and remote working (permanent basis, alternating home/office, occasional basis).

The SIA Excellence Award was designed to share the value given by employees to the projects and initiatives which over the year were most in line with company goals and values. Each year 5 prizes are awarded to 5 categories inspired by the company values, as well as an Oscar for the best overall initiative. All SIA employees can nominate or self-nominate projects, initiatives and activities and are then able to vote on the projects.In 2015 the Oscar of Excellence went to the Monte Titoli in T2S initiative, which was also awarded the PARTICIPATION award. The project supported Monte Titoli in the migration to the new European share regulation platform launched by the European Central Bank in 2015. The team of over 150 internal and external collaborators worked with determination and dedication, demonstrating cohesion, motivation and efficiency in reaching the objective.The other 4 winning projects in each category were:COMPETENCE. The contract for the new payment system of an important Central Bank: for the efficient division of labour between SIA and Perago on the instruction of the contract to restructure a wholesale and retail payment system, implementing one of the most complex and significant systems in the world.RELIABILITY. Active/Active: provision of geographically distributed mainframe services: a highly innovative project which enabled the implementation of a mainframe structure with geographically distributed cooperative machines, enabling very high volumes of data to be processed and resulting in a considerable increase in the reliability of provided services.RESPONSIBILITY. One Step Ahead (OSA): new back office organisational strategies for the optimised management of customer relations: an initiative aimed at identifying and experimenting with new organisational strategies, improving the possibilities of interaction in the team and providing employees with job satisfaction and participation in customer satisfaction.INNOVATION. The Host Card Emulation (HCE) infrastructure for the management of NFC contactless payment services on Android mobile devices: this project combined innovative screen compatibility processes and the simultaneous management of different infrastructural projects of the three leading issuers.

SIA EXCELLENCE AWARD 2015

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In 2015, SIA organised the first stage of the course at the Sant’Anna School of Advanced Studies in Pisa and its international Research Centres for Group employees and their families.Over the course of two days, around 15 employees and members of their families visited the BioRobotics Institute of Pontedera, where applied research projects and advanced studies such as the “My Hand” project which created the first bionic hand with tactile perception are developed. Over the same period a visit was made to the Perceptual Robotics Laboratory (PercRO) at the Institute of Communications, Information and Perception Technology of Ghezzano (Pisa), the site of European Union projects such as the first Italian exoskeleton for the extension and optimisation of force and X-Cave, a “virtual theatre” created through research into computer graphics and immersive viewing, where virtual reality is perceived as more “authentic” than the real thing.

THE INNOVATION JOURNEY: A TRIP TO THE LEADING CENTRES OF ITALIAN EXCELLENCE

TIME - SAVING SERVICESMany services are available in the company which enable employees and their families

to save time and money, available on fixed days or on request.

SNACK BAR INSURANCE CONSULTANCY

SERVICES

BANKING CONSULTANCY

SERVICES

TAX AND FLEXIBLE BENEFIT

CONSULTANCY SERVICES

TRAVEL AGENCY

is a collection of initiatives aimed at helping staff to find a

balance between their working and private lives, as well as holding social and entertainment events open to employees and their family members: • parental services such as: a company campus

childcare during school holidays for children of employees during summer and winter school holidays; agreements with external childcare, coding courses (IT programming), academic and career guidance for the children of employees;

• various benefits including: company flexibility, extension of leave, supplementary health insurance, supplementary pension scheme, study grants for employees and their children,

income support (for families with children at nursery or attending summer schools or children with disabilities);

• on-site and on-demand time-saving services;• the promotion of healthy lifestyles: weekly

organic market, changing rooms and showers for employees who play sport during the lunch break, partnerships with the Theodora Association for employees participating in the Milan City Marathon;

• community and integration: visits to leading innovation centres and sporting events for employees and their families;

• corporate and environmental responsibility initiatives: banquets, fund-raising initiatives and recycling.

PHARMACY TAILOR / DRY CLEANER

COBBLER MECHANIC / ELECTRICIAN

INBOUND PARCEL SERVICE

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In order to identify new suggestions for the sia@life project and to organise these in the most efficient way possible, the company engages in a continuous dialogue with its employees. As well as evaluating the satisfaction level of participants in each initiative, an annual survey is launched to assess and identify the most popular initiatives and preferred methods of access.

Thanks to this analysis, in 2015 three new projects were launched:• the academic guidance initiative was designed to help the children of company employees to

choose their academic route after primary and secondary school. The guidance programme also involved employees in their role as parents. Staff from regional offices were able to take part in the seminar via videolink. Participating families were then offered an aptitude test and an interview with a guidance specialist;

• the career guidance initiative was designed to offer the children of company employees, who are looking for work, the possibility to take part in a training day in Milan or Rome, aimed at raising awareness of opportunities on the job market. Participants were able to learn skills and techniques to help finalise a job search and receive practical advice directly from a human resources manager from national and multinational companies, helping them to choose their ideal career path.

• the coding programme involved 20 employees with technical computer skills in a training course aimed at acquiring skills to pass on to young people in a stimulating way, using computational thought to create videogames, apps, web and mobile projects and even robots. In 2016 the 20 “students” will run a course aimed at the children of Group employees in partnership with a specialist coding company.

SIA@LIFE: A HOTBED OF IDEAS FOR NEW SERVICES, DIRECT FROM OUR EMPLOYEES

Have your children ever taken part in

career guidance initiatives?


academic guidance initiatives?


coding programmes

Would you be willing to pay a small contribution?



9% YES 91% NO

33% YES 67% NO

3% YES 97% NO

62% YES 38% NO

62% YES 38% NO

70% YES 30% NO

CODING

ACADEMIC GUIDANCE

CAREER GUIDANCE

Interest 2015

Interest 2015

Interest 2015

YES 352

YES 363

YES 349

NO41

NO30

NO44

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5.7 Listening and involvement of employees

SO MANY ADVANTAGES THANKS TO FLEXIBLE BENEFITSThe Flexible Benefits plan enables employees of SIA S.p.A., Pi4Pay and TSP to allocate

a proportion of the company or employee bonus to various services. This choice offers two key advantages: the percentage of the bonus allocated to Flexible Benefits is not considered as income (and therefore is not subject to tax or deductions) and is also increased by an additional contribution of 13% by SIA.

SIA believes it is essential that every employee should be able to work in a positive and stimulating environment; as such, every two years the company carries out an assessment to evaluate the company climate in order to identify areas for possible improvement. The most recent assessment carried out in 2015 had a high participation level of 86% of the company workforce, representing an increase of 19% on the previous study carried out in 2013. The results outline a decidedly positive atmosphere and confirm that the initiatives such as flexibility options and development programmes offered by the company to improve the quality of the working environment are well received.

The Group's growth objectives are clearly understood and shared by employees, who consider SIA to be a company with a concrete future of development and solid prospects in terms of reliability, technical skills, market awareness and innovation. Furthermore, 87% of

those interviewed rated internal relations between colleagues and direct managers as good, while the actions of management staff were also rated more positively than on previous studies.

Compared to the 2013 survey, the perception of working conditions has remained positive: considering benefits and pays on the one hand and space and tools on the other, two thirds of the workforce rated conditions as adequate; flexibility options are very well received and show an improvement in the work/life balance.

In general, analysis of the 2015 working environment reveals a company which is improving in almost all aspects. There are however some areas for improvement, with distribution of information and the awareness of personal contributions emerging as subjects requiring greater focus, providing the stimulus to give a concrete response to the indications given by staff.

TEACHING AND CHILDREN’S SERVICES

HEALTH SUPPLEMENTARY PENSION SCHEMES AND MORTGAGES

MOBILITY

Reimbursement of education, childcare,

nursery, summer school, summer camp and

examinations costs.

Additional contribution. Supplementary Pension Scheme, repayment of

passive interest exceeding the Official Interest Rate.

Purchase of annual ATM subscriptions.

Reimbursements of specialist medical visits and services fees and

dentistry, glasses, contact lenses, check-up and

pharmacy costs.

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Comparison of the 2013 and 2015 analyses of the working environment

Communication within the company is one of the aspects to which SIA dedicated particular attention in 2015, using multiple channels to

inform, involve and update all employees on events, facts and notifications regarding the Group.

INTRANET PRESS REVIEW

INTRANET PORTAL

MAIL AND BULLETIN BOARDS

END OF YEAR MEETING

General information, procedures, HRO forms,

facilities, company applications.

Daily review covering articles about the SIA Group and relevant

markets.

Information on SIA, the market, the risk culture, innovation and social

events.

For the launch of the sia@life and sia@work

initiatives.

Presentation of the results and the 2016-2018 Strategic Plan by the CEO to around

250 senior and middle managers.

Is SIA a good company?

Company relations

Work - Content

Company Image

Benefits

Management

Employee dedication

Working Environment

Wages and Salaries

Free Time

Assessment Process

Training and Development

Management / Department*

Recognition of individualcontributions

92%

87%

82%

75%

70%

66%

65%

59%

57%

57%

56%

52%

47%

32%

92%

83%

80%

67%

62%

61%

61%

59%

51%

51%

48%

46%

42%

24%

51% The objectives and duties of the various units in my department are clear

47% The level of collaboration and coordination between the various units in my department

30% Information is transmitted to all employees within my department in a clear and transparent manner

* Average taken from the following opinions:

52% The objectives and duties of the various units in my department are clear

50% The level of collaboration and coordination between the various units in my department

40% Information is transmitted to all employees within my department in a clear and transparent manner

Analysis of the 2013 working environment Analysis of the 2015 working environment

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The value of the community6

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MATERIAL ISSUES MANAGEMENT METHOD 2015 ACTIONS

Community relationsGenerate shared value in the communities where the company operates and stimulate personal and regional growth.

• Partnerships with hospitals, research institutions, associations and foundations for health and social care.

• Partnerships with schools, Universities and Research Centres.

SIA believes that the Group's corporate responsibility generates concrete value for the community. In line with its own mission, the company engages in constant dialogue with public and private bodies in the region and supports social development projects in partnership with non-profit organisations.

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Universities and Research Centres

38%

Social Projects20%

Health Projects42%

€ 241,000+42.6% compared

to 2014

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6.1 Actions and donations to health and social projects

SIA considers donations to health and social projects as a tool of corporate responsibility, which is used in accordance with the principles and rules of conduct set out in the Code of Ethics to promote and support the implementation of concrete, measurable and defined projects.

The projects and the Associations and/or Foundations that receive the donations are selected according to the following criteria:

• social relevance of the project;• level of innovation;• sustainability of long-term and on-

going projects;• feasibility and practicality;• possibility of verifying the results;• compliance with SIA's social

commitment objectives.In 2015 two key areas of interest

were identified within which to direct initiatives and support actions for the promotion of collectivity: health and social care.

AREA OF INTEREST

BODY/ASSOCIATION SIA ACTION

Istituto Mario Negri (Milan – Bergamo)OncologyAnnual study grant“Pharmacogenetics of ovarian cancers”.

Ospedale San Raffaele (Milan)Neurodegenerative diseasesAnnual study grant“Regeneration of the nervous system”.

AIRC - Associazione Italiana Ricerca sul Cancro (Italian Cancer Research Association)

OncologyPurchase of materials, payment of stay and other expenses for research projects.

Ospedale San Paolo (Milan)Neonatology and paediatric departmentsPurchase of a tracheal intubation machine.

Associazione Bianca Garavaglia

Teenagers with cancerous diseasesOne year’s support of rehabilitation and sports activities in the paediatric department at the Istituto Nazionale Tumori.

LILT – Lega Italiana per la Lotta ai Tumori (Italian League for the Fight against Cancer)

Cancerous diseasesSupport during cancer treatment for patients who do not have families, whose families are at work or who are in a vulnerable financial position.

Fondazione TOG (Together To Go)Children affected by lesions of the nervous systemOne year’s rehabilitation therapy for a child affected by lesions of the nervous system.

HEALTH

€ 150,000donated to healthand social care


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AREA OF INTEREST

BODY/ASSOCIATION SIA ACTION

Project ARCA Non-Profit OrganisationDisadvantaged peopleWarm meals and care packages for 150 people in nursing homes in December.

Fondazione Casa della Carità (Milan)Homeless peopleShower and clothing service for 550 homeless people.

Fondazione Opera San Francesco (Milan)Less advantaged peopleDental care and treatment for vulnerable people.

Associazione Emergenza Anziani (Milan)Elderly peopleFood vouchers for elderly people with reduced pensions.

SOCIAL CARE

In 2015 SIA participated in Milan City Marathon for the fourth year in a row, with 10 full marathon runners and 19 relay teams each composed of four company members. The funds raised covered the inscription fee and were donated to the non-profit Theodora Association which arranges visits by the Dream Doctors to children in the Paediatric Orthopaedics and Trauma wards at the Vittore Buzzi Children’s Hospital in Milan. The Dream Doctors are professional performers who have been specially trained by the Theodora Association to work in the paediatric hospital environment, offering support to hospitalised children and their families when facing difficulties linked to recovery through games, fantasy and smiles.

SIA AND THE THEODORA ASSOCIATION FOR HOSPITALISED CHILDREN

On 20 December 2015, SIA also sponsored the participation of a team of 8 staff in the 8x20 BNL Telethon Relay in Rome. All raised funds were donated to research into rare genetic diseases. 146 teams and 1,200 runners took part, donating the inscription fee via Jiffy, a service developed by SIA to send and receive money from a smartphone in real time which has proved to be an innovative tool for making charitable donations.

SIA AND TELETHON FOR RESEARCH IN GENETICALLY RARE DISEASES

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CLOUD4CARE is the first “Made in Italy” cloud computing project, designed to support cancer research through secure network connections and computer systems.Thanks to the partnership between SIA, Intesa Sanpaolo and UniCredit, the Mario Negri Pharmacological Research Institute has access to the high processing capacity of the three companies (around 1000 processors and more than 2 Terabytes of memory), enabling the researchers to accelerate laboratory data analysis regarding DNA sequencing. Next generation DNA sequencing is one of the new frontiers for research into cancer and other complex diseases.Thanks to the latest technological developments, this method enables the reading of a person's entire DNA sequence in just a few days, accurately identifying any abnormalities which may cause illness.

Since November 2015, SIA has worked with Banco Alimentare to improve the management of the meals served at company snack bar. At the end of the day, unused food is donated to the association at the end of the day to be distributed to homeless people. The same applies for unused food from catered company events in the office, which is donated to other care associations such as Opera San Francesco and Pane Quotidiano. Just in the last two months, over 400 portions of food have been collected and redistributed by the associations to people in need.

CLOUD COMPUTING FOR CANCER RESEARCH

FOOD FOR PEOPLE IN NEED

In partnership with the humanitarian non-profit organisation Humana, SIA offers its staff the possibility of donating used clothes which will be collected, reused and/orsold to fund social projects. In 2015, thanks to the container located in the SIA head office in Milan, 200 kg of various clothing items were collected, equating to an environmental benefit of: • a saving of 600 kg of carbon dioxide• a saving of 1,200,000 litres of water • a saving of 40 kg of pesticide• a saving of 60 kg of fertiliser.

USED CLOTHES FOR SOCIAL CARE AND ENVIRONMENTAL PROTECTION

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6.2 Partnerships with Universities and Research Centres

SIA promotes and sponsors activities, initiatives and study and research projects in the fields of IT, finance and economics in partnership with Universities and qualified Research Centres.

In the context of the partnership

with Milan Polytechnic, in 2015 the Group sponsored and contributed to important studies into key areas of Digital Innovation in companies and public authorities conducted by the Digital Innovation Observatories of the School of Management.

eCommerce B2c Observatory

Observatory for Electronic Invoicing and Dematerialisation

Observatory for the Internet of Things

Incentive Project for Electronic Payments

Observatory for the Digital Agenda

eGovernment Observatory

Observatory for Digital Innovation in Retail

Observatory for Mobile Payments and Commerce

offers interpretative models, tools and areas of interest to implement the opportunities offered by digital innovation in terms of the key themes which affect national competitiveness (efficiency of public authorities, fight again tax evasions, development support etc.).

represents a meeting point for all public and private entities that wish to contribute to the modernisation of Italian public authorities and support innovation through the identification and support of the distribution of the best organisational, managerial and technological solutions.

analyses digital innovations which impact processes in the retail environment including B2b (relations between suppliers and retailers), internal (relations within different retail departments) and B2c (relations between retailers and consumers).

studies innovative payment systems, concentrating on Mobile Payments (where mobile phones can be used to make payments) and Mobile Commerce (where mobile phones are used to support one or more phases of the commercial process in addition to payment).

monitors the evolution of electronic retail in Italy (highlighting the market value and relevant trends and business models), comparing it with the international scene. The Observatory has entered into partnerships with ANEE Assinform and the Netcomm consortium to represent the different companies operating in eCommerce B2c.

created with the goal of demonstrating the legal value of adopting electronic invoicing and the digitalisation of the entire retail process from order placement to payment. The Observatory is an Italian reference point for decision-makers in companies and public authorities, helping them to seize the opportunities offered by digitalisation.

investigates the real opportunities presented by the Internet of Things (IoT), combining future technology with management prospects to overcome the current lack of clarity about apps, possible benefits and the expected evolution of the market.

promotes electronic payment systems as a national development lever, involving operators, professional associations, consumers and institutions in the electronic payment sector.

€ 91,000invested in

Universities and Research Centres+93.6% compared

to 2014

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6.3 Relationships with the media

SIA dedicates significant focus to relations with the national and international media, maintaining continuous and transparent relations in the spirit of dialectic collaboration.

In 2015, SIA S.p.A. and other companies of the Group in the media were covered in 777

articles (21% of which were in the foreign press), obtaining a high standard of coverage across all informative means. Increased media interest has been noted in Jiffy, the P2P service offered by SIA for the transfer of money via smartphones in real time, with a total of 308 articles.

6.4 Relations with Trade Associations

For SIA, participation in trade associations represents an important focus for comparison, dialogue and collaboration. The company also has a social interest in the potential rewards for the economic systems of public authorities and

the entire community, an indispensable factor in the delivery of the company's services to customers and the community.

The table shows the main associations with which SIA maintains regular relations.

INSTITUTIONAL TRADE ASSOCIATIONS

A.I.G.I. - ASSOCIAZIONE ITALIANA GIURISTI D'IMPRESA (ITALIAN ASSOCIATION OF COMPANY LAWYERS)

An association which recognises and affirms the professional roles of company lawyers.

ABE/EBA - ASSOCIATION BANCAIRE POUR EURO - EUROPEAN BANKING ASSOCIATION

A neutral and supernational European banking association which supports cooperative European banking activities.

PRESS RELEASES HEADLINESARTICLES SIA S.p.A. @SIA PRESS OFFICE

Regarding economic results, partnerships,

new services, initiatives in collaboration with

institutions and collectivity projects.

20148

201515

2014765

2015777

2014166

2015167

20143.239

followers

20154.104

followers

2014136

tweet and retweet

2015413

tweet and retweet

In international publications (around 21.5% of the total)

In daily newspapers, general and specialist

magazines, press agencies, online news sources, radio and TV.

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ABI –ASSOCIAZIONE BANCARIA ITALIANA (ITALIAN BANKING ASSOCIATION)

An association which promotes initiatives for the growth of the banking and financial systems.

ACMI - ASSOCIAZIONE CREDIT MANAGERS ITALIA (ITALIAN ASSOCIATION OF CREDIT MANAGERS)

An association which promotes the professional development of Credit Management activities and, in particular, safeguards the professionalism of Credit Managers.

ADACI - ASSOCIAZIONE ITALIANA DI MANAGEMENT DEGLI APPROVVIGIONAMENTI (ITALIAN ASSOCIATION FOR SUPPLY MANAGEMENT)

An association which promotes transparency in the buying process and the management of supply chains.

AICOM - ASSOCIAZIONE ITALIANA COMPLIANCE (ITALIAN COMPLIANCE ASSOCIATION)

An association which promotes compliance and respect of financial legislation and regulations.

AIEA - ASSOCIAZIONE ITALIANA PER L’INFORMATION TECHNOLOGY (ITALIAN ASSOCIATION FOR INFORMATION TECHNOLOGY)

An association which certifies bodies which carry out professional Auditing and Control activities on ICT systems.

AIIA - ASSOCIAZIONE ITALIANA INTERNAL AUDITORS (ITALIAN ASSOCIATION OF INTERNAL AUDITORS)

The benchmark association in Italy for issues relating to Corporate Governance and Control.

AIIP - ASSOCIAZIONE ITALIANA ISTITUTI DI PAGAMENTO (ITALIAN ASSOCIATION FOR PAYMENT INSTITUTIONS)

An association which promotes awareness and knowledge of payment institutions and services.

AITI - ASSOCIAZIONE ITALIANA TESORIERI D'IMPRESA (ITALIAN ASSOCIATION OF CORPORATE TREASURERS)

An association for Corporate Finance professionals which governs procedures and management techniques of the Company Treasury.

AODV - ASSOCIAZIONE DEI COMPONENTI ORGANISMI DI VIGILANZA (ASSOCIATION OF SUPERVISORY BODIES)

An association which supports supervisory bodies in carrying out their duties while avoiding obstruction to business.

ASCAI – ASSOCIAZIONE PER LO SVILUPPO DELLE COMUNICAZIONI AZIENDALI (ASSOCIATION FOR THE DEVELOPMENT OF CORPORATE COMMUNICATION)

An association which promotes the culture and technical/professional ability of communications operators.

ASSBB – ASSOCIAZIONE PER LO SVILUPPO DEGLI STUDI DI BANCA E BORSA (ASSOCIATION FOR THE DEVELOPMENT OF FINANCIAL AND STOCK MARKET STUDIES)

An association which promotes studies, research projects and training in the banking and finance sectors.

ASSOCHANGE - ASSOCIAZIONE ITALIANA CHANGE MANAGEMENT

An association to raise awareness on change management and to promote increased innovation within Italy.

ASSOSIM - ASSOCIAZIONE ITALIANA DEGLI INTERMEDIARI MOBILIARI (ITALIAN ASSOCIATION OF SECURITY DEALERS)

An association which aims to represent operators on the Italian securities market towards institutional bodies and Public Administrations, other business associations, economic organizations and other associations, bodies as well as public and private entities.

BCMANAGER - ASSOCIAZIONE NAZIONALE BUSINESS CONTINUITY MANAGER (ITALIAN ASSOCIATION FOR BUSINESS CONTINUITY)

An association which promotes awareness of Business Continuity and related disciplines.

BUSINESS CONTINUITY INSTITUTE An association which supplies and maintains on-going continuity services.

CETIF – CENTRO DI RICERCA SU TECNOLOGIE, INNOVAZIONE E SERVIZI FINANZIARI (CENTRE OF RESEARCH INTO FINANCIAL TECHNOLOGY, INNOVATION AND SERVICES)

A centre which promotes and develops research and studies into technological and organisational innovation in the finance sector.

CLUSIT - ASSOCIAZIONE ITALIANA PER LA SICUREZZA INFORMATICA (ITALIAN ASSOCIATION FOR COMPUTER SECURITY)

An association for continual professional development and exchange of information in the computer security sector.

CMG ITALIA - COMPUTER MEASUREMENT GROUPA group for the assessment of computer system performance, the management of corporate computer systems and the assessment of cost-efficiency.

CONSORZIO CBI – CUSTOMER TO BUSINESS INTERACTION

The CBI Consortium defines the regulations as well as the technical and legal standards of the CBI, CBILL and Nodo services in a cooperative manner. It also manages the technical infrastructural connections between members to facilitate connection and dialogue with clients, promoting interoperability on a national and international level for the delivery of the above services.

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EACHA - EUROPEAN AUTOMATED CLEARING HOUSE ASSOCIATION

An association for the harmonious development of European policies aimed at clearing house interoperability.

EMVCo

EMVCo is an association born through the collaboration of the leading international payment circuits (Europay, MasterCard, Visa), defining a working platform for the development of technical specifications for electronic payment applications based on smartcards.

GIDP - GRUPPO INTERSETTORIALE DIRETTORI DEL PERSONALE (INTERSECTORAL GROUP OF PERSONNEL MANAGERS)

An association for the on-going training and professional development of Human Resources Managers.

GSE - GUIDE SHARE EUROPEA non-profit association of companies and professionals in the world of Information and Communication Technology (ICT) involved in the study of IBM structural solutions.

HRC - HUMAN RESOURCES COMMUNITYAn association to create intercompany synergies, develop significant solutions and increase visibility and the size of the banking network.

ICMA - INTERNATIONAL CAPITAL MARKET ASSOCIATION

An association which aims to promote the correct conduct of operators on the international capital markets.

IFSF - INTERNATIONAL FORECOURT STANDARDS FORUM LTD

A forum for international retailers and suppliers operating in the fuel industry.

ISACA - INFORMATION SYSTEMS AUDIT AND CONTROL ASSOCIATION

A centralised association for the information and guidance of IT auditing controls (such as governance, security, risks and audits) in the field of computer systems.

ISC - INTERNATIONAL INFORMATION SYSTEMS SECURITY CERTIFICATION CONSORTIUM

A global leader for the training and certification of computer security professionals.

ISPER - ISTITUTO PER LA DIREZIONE DEL PERSONALE (INSTITUTE FOR PERSONNEL MANAGEMENT)

An institute aiming to optimise the training of company talent.

ITASFORUM - CENTRO STUDI DI SICUREZZA (CENTRE FOR SECURITY STUDIES)

An association to increase and develop the culture of physical security in the company environment.

NFC AND MOBILE PAYMENT OBSERVATORYAn association which analyses innovative payment systems, focusing in particular on mobile phone payment systems.

THE RULING COMPANIESAn association for the promotion of the business culture, with particular focus on management, strategy and the social-economic scenario.

XBRL ITALIAAn association for the standardisation and modernisation of financial communication.


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The value of the environment 7

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Environmental impactsProtect the environment in compliance with the principles of eco-sustainability by applying the best technologies available.

• Production of clean energy.• Recourse to renewable sources.• Implementation of separated collection.

Transport Reduce environmental impacts

• Agreements with ATM and Trenord.• Promotion of car sharing.• Replacement of the majority of the vehicles of

the company fleet with models having a lower CO2 emission.

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7.1 SIA's approach to the environment

7.2 Energy and water consumption

SIA acts with the firm belief that the environment is a heritage to protect in everyone's interest and even though it operates in a sector having low critical impact on the environment, it is inspired by principles of eco-sustainability and applies the best technologies available in order to minimise direct and indirect impacts on the environment attributable to its activities.

The Group operates in compliance with the national and regional regulations of the countries hosting its operations in this area as well as in order to protect the natural environment for the benefit of the generations to come.

Its corporate environmental management strategy is founded on the following principles:• safety• savings• recovery-recycling.

The priority areas on which SIA's commitment to reduce the environmental impact of its activities is focussed are:

• energy and water• materials• mobility• other eco-sustainable activities.

The Group's aspiration is to be able to boost environmental awareness in everyone who works at SIA and with SIA so that there is the maximum level of attention to protecting resources in the small and large actions carried out every day.

During 2015 an energy audit of the main sites was carried out in response to Italian Leg. Decree 102 of 2014 in order to perform a complete analysis of energy emissions.

The energy audit is a systematic procedure aimed at:• providing adequate knowledge of the energy

consumption profile;• identifying and quantifying the opportunities to

save energy from the costs to benefits viewpoint;• report the results.

Rational use of energy and having recourse to renewable sources are the key drivers for a sustainable use of energy sources. The building of the headquarters of SIA S.p.A. in Milan falls under energy class B and has a 60 kW system consisting of 300 silicon photovoltaic, or solar, panels for a total of 630 m2, thanks to which an average of about 73,000 kWh/year of clean electricity is produced.

The lighting system is able to cut electric consumption by regulating itself according to the contribution of natural light, which is

measured by special sensors. The DALI (Digital Addressable Lighting Interface) control system also automatically switches off the areas not used for more than 20 minutes, thus minimising the energy consumption of the luminaires.

A system made up of 8 solar panels produces solar-thermal energy for heating some floors and the domestic hot water. The system is able to produce up to about 11,150 kWh/year with a significant savings in non-renewable energy resources.

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7.3 Emissions

A new generation of air conditioning system at the headquarters of SIA S.p.A. in Milan ensures a low CO2 emission level and is equipped with a smart system the manages the requests arriving from different areas of the building in a targeted manner, in this way avoiding waste and with efficiency four times greater than that of a traditional system.

The attention that it pays to the environment has led SIA to embark on an initiative to raise awareness of various pollution themes and to also test new methods of organising work and of travelling back and forth between home and office. This has made positive impacts on polluting phenomena due to mobility, such as reducing exhaust gases and noise emission, not to mention fuel consumption.

Advantageous agreements with the Milan public transport company ATM and the local

railway Trenord allow the amounts of the passes to be paid in instalments on the payroll, and this creates an incentive for employees to use public transportation.

In order to promote a new sustainable way to travel, SIA (in collaboration with Autostrade per l'Italia) supports car sharing between its employees by offering incentives such as reserved company car parks, discounts and reductions to those who share their cars with those travelling the same route.

The Group is engaged in the adoption and implementation of measures aimed at reducing the environmental impact of company vehicles. In the two-year period 2014-2015, 83 cars of the fleet were replaced with models having a lower emission of CO2, including one car fitted with a hybrid engine.

Average annual emissions of Co2 of the new cars of the company fleet (g/km)*

*INDIRECT EMISSIONS ORIGINATING FROM THE GENERATION OF ELECTRICITY AND STEAM HEAT

2014 2015

Electricity (t CO2e) ** 3,731 3,704

Natural Gas (t CO2e) ** 57.6 60.6

Diesel Fuel (t CO2e) ** 5.51

Total 3,788.6 3,770.11

* The companies: Emmecom, Perago and SIA Central Europe are not included.

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2014 2015

* The figure refers to the cars purchased in the year of reference

** The data are calculated on the basis of the coefficients provided by the Italian Ministry of the Environment for the Natural Gas emissions, the coefficients of the Istituto Superiore per la Protezione e la Ricerca Ambientale for electricity, and of those of ABI Lab for diesel fuel.

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In 2015 SIA carried out a survey on company mobility entitled "How do you get to the office?”. Following an analysis of the answers, SIA decided to go forward with the first of the activities suggested by making 100 reserved and covered parking spaces available to employees in the building adjacent to the company headquarters in Milan and guaranteeing 25% coverage of the cost.With a view to increasingly sustain mobility, SIA also committed itself to:• including the costs for the annual local home-work transport in the expenses

reimbursable with flexible benefits;• requesting the City of Milan for a bike sharing station near the company headquarters

in Milan;• make electric cars available to employees for their mobility during business hours.

SIA AND SUSTAINABLE MOBILITY

7.4 Responsible management of resources

Some materials are voluntarily collected separately by placing special containers on every floor in easy to see points of the building.

In 2015 14.8 tonnes of paper were collected and SIA gave it to Spazio Aperto Onlus, a social solidarity cooperative operating in Milan and the province to give jobs to young people who have psychiatric and physical problems.

In the same year the voluntary separated collection of the other materials produced the following results:• Batteries: 1,390 kg (estimate)• Toner: 180 kg (estimate)• Plastic: 6,240 kg (estimate)

• Glass: 2,080 kg (estimate)• Plastic caps: 250 kg (estimate)

Adopting new printers concentrated in dedicated and shared areas, greater use of the front/back printing and scanner functions and implementing the Equitrac software procedure led to a change in people's conduct to get a reduction in paper and toner consumption and about 40% fewer black and white and colour printouts in just three years.

The weight of the paper was recently reduced and more eco-friendly stationery articles will be used in the near future.

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*CONSUMPTION OF MATERIALS

Raw materials 2014 2015

Paper (kg)** 37,465 30,886 **

*CONSUMPTION OF ENERGY RESOURCES

Resources 2014 2015

Electricity (kWh) 11,487,866 11,408,093

Natural Gas (m3) 29,442 31,489

Diesel fuel (t)** 1.75 1.75

* Data refer to: SIA S.p.A., Pi4Pay, TSP** The figure includes consumption of hygienic-sanitary material that accounts for 58% of all paper.

* Data refer to: SIA S.p.A., Pi4Pay, TSP.** The figure refers only to the generators and does not include fuel consumption.

In 2015 SIA S.p.A., Pi4Pay and TSP drew 77% of water from aquifer and 23% from waterworks for a total consumption of 11,723 m3, 10% less than 2014.

The total water drawn is equivalent to the total water drained.

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7.5 Discharges and waste

SIA complies with all legal provisions on the subject of disposal and separately collects the following materials:• packing of computers and miscellaneous

goods • electric and electronic equipment out of use

(LCD monitors, electric condensers, etc.)• waste from buildings or demolitions connected

with restorations

• waste produced in the healthcare environment following vaccinations and/or health campaigns

• exhausted oils• lead batteries used in UPSs• fluorescent tubes• batteries• gases coming from air conditioner chilling

circuits• gases used to automatically extinguish fires.

*TOTAL WEIGHT OF THE WASTE BY TYPE AND DISPOSAL METHOD

Disposal method2014 2015

HazardousNon-

HazardousTotal % Hazardous

Non-Hazardous

Total %

Reuse (t) 0.05 0.05 0.080%

Recycle (t) 59.147 59.147 99.397% 1.369 67.694 69.063 100%

Incineration (t) 0.002 0.002 0.003%

Landfill (t) 0.31 0.31 0.520%

Total 0.312 59.197 59.509 100% 1.369 67.694 69.063 100%

*TOTAL WEIGHT OF THE WASTE BY TYPE AND DISPOSAL METHOD

Type 2014 2015

Total % Total %

Hazardous (t) 0.312 0.52% 1.369 2%

Non-hazardous (t) 59.122 99.48% 67.694 98%

Total 59.434 100% 69.063 100%

* Data refer to: SIA S.p.A., Pi4Pay, TSP

* Data refer to: SIA S.p.A., Pi4Pay, TSP

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INDICATORS PAGE LEVEL OF COVERAGE

GENERAL STANDARD DISCLOSUREStrategy and analysisG4 - 1 Statement from the Chairman and the CEO 4 - 5 TotalProfile of the organisationG4 - 3 Name of the organisation 6; 11 TotalG4 - 4 Primary brands, products, and/or services 6; 10; 11 TotalG4 - 5 Location of the organization’s headquarters 10; 102 TotalG4 - 6 Countries where the organisation operates 10 TotalG4 - 7 Nature of ownership and legal form 11; 13 TotalG4 - 8 Markets served 10; 42; 43 Total

G4 - 9 Size of the organisation10; 11; 28; 29; 42; 43

Total

G4 - 10 Workforce characteristics 58 - 61 TotalG4 - 11 Percentage of employees covered by collective bargaining agreements 62 TotalG4 - 12 Description of the organisation's supply chain 36; 37 TotalG4 - 13 Changes in organization's size, structure, ownership or its supply chain - Total

G4 - 14 Precautionary approach to risk management 19 - 20This is the first Value Report of the

SIA Group

G4 - 15Externally developed charters, principles or initiatives to which the organization subscribes

14 - 15 Total

G4 - 16Participation in national and/or international trade associations in which the organisation holds a position with the governance bodies

82 - 84 Total

Materiality and scope of the report TotalG4 - 17 Entities included in the organisation report 6 TotalG4 - 18 Reporting principles for defining report content 24 - 25 TotalG4 - 19 Material aspects identified in defining the report content 24 - 25 TotalG4 - 20 Material aspects within the organisation 24 - 25 Total

G4 - 21 Material aspects outside the organisation 24

TotalSince this is the first Value

Report, the SIA Group focused on the material aspects inside the

organisation

G4 - 22 Restatements of information provided in earlier reports -Total

This is the first Value Report of the SIA Group

G4 - 23 Significant changes from previous reporting periods in scope and aspect boundaries

-Total

This is the first ValueReport of the SIA Group

Stakeholder engagementG4 - 24 Stakeholder groups engaged by the organization 24 TotalG4 - 25 Identification and selection of stakeholders to engage 4; 5; 24 Total

G4 - 26 Organization’s approach to stakeholder to engage4; 24; 54; 74 - 75

Total

G4 - 27 Key topics collected through stakeholder engagement 54; 74 Total

Table of GRI G4 indicators

Profile of the reportG4 - 28 Reporting period 6 TotalG4 - 29 Date of the last report 6 Total

G4 - 30 Reporting cycle -

TotalThis is the first Value Report of the SIA Group which will be followed by

other reports each year

G4 - 31 Contact point for questions regarding the report 102 TotalG4 - 32 GRI Contents Index 94 - 97 TotalG4 - 33 External assurance policies and practices 6; 98 - 99 Total

GovernanceG4 - 34 Governance structure 16 - 17 TotalEthicsG4 - 56 Organization’s values, principles, standards and norms of behavior 14 - 15 Total

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SPECIFIC STANDARD DISCLOSUREECONOMIC INDICATORSMaterial aspect - Economic performanceG4 - DMA Generic Disclosure on Management Approach 28 - 30; 32G4 - EC1 Direct economic value generated and distributed 30 - 32 TotalMaterial aspect - Presence on the marketG4 - DMA Generic Disclosure on Management Approach 58G4 - EC6 Proportion of senior management hired from the local community 58 TotalMaterial aspect - Indirect economic impacts

G4 - DMA Generic Disclosure on Management Approach30 - 32; 78 - 81

G4 - EC7Development and impact of infrastructure investments and services supported

31; 78; 81 Total

Material aspect - Procurement practicesG4 - DMA Generic Disclosure on Management Approach 36

G4 - EC9 Proportion of spending on local suppliers 36

PartialThe supplier data collection system will be extended to the entire scope

of the Group (by 2018)ENVIRONMENTAL INDICATORSAspect - MaterialsG4 - DMA Generic Disclosure on Management Approach 88 - 90G4 - EN1 Materials used 91 TotalAspect - EnergyG4 - DMA Generic Disclosure on Management Approach 88 - 90G4 - EN3 Energy consumption within the organisation 88 - 89 PartialG4 - EN6 Reduction of energy consumption 88 - 89; 91 PartialAspect - WaterG4 - DMA Generic Disclosure on Management Approach 90G4 - EN8 Water withdrawal 91 TotalG4 - EN10 Water recycled and reused 91 TotalAspect - EmissionsG4 - DMA Generic Disclosure on Management Approach 89G4 - EN15 Direct greenhouse gas (GHG) emissions (scope 1) 89 PartialG4 - EN16 Energy indirect greenhouse gas (GHG) emissions (scope 2) 89 PartialG4 - EN17 Other indirect greenhouse gas (GHG) emissions (scope 3) 89 TotalAspect - Effluents and wasteG4 - DMA Generic Disclosure on Management Approach 88; 90G4 - EN22 Water discharge 91 TotalAspect - TransportG4 - DMA Generic Disclosure on Management Approach 88 - 90G4 - EN30 Environmental impacts of transport 89 PartialMaterial aspect - Supplier environmental assessmentG4 - DMA Generic Disclosure on Management Approach 38 - 39

G4 - EN32 Suppliers screened using environmental criteria 38 - 39

PartialThe supplier assessment

procedures data collection system will be extended to the entire scope

of the Group (by 2018)


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SOCIAL INDICATORSSUBCATEGORY: ADEQUATE WORKING PRACTICES AND WORKING CONDITIONSMaterial aspect - EmploymentG4 - DMA Generic Disclosure on Management Approach 58; 64 G4 - LA1 Number and rates of new employee hires and employee turnover 61 - 62 TotalG4 - LA3 Return to work and retention rates after parental leave 64 PartialMaterial aspect - Industrial relationsG4 - DMA Generic Disclosure on Management Approach 62G4 - LA4 Minimum notice periods regarding operational changes 62 TotalMaterial aspect - Occupational health and safetyG4 - DMA Generic Disclosure on Management Approach 68 - 69

G4 - LA6Injuries, occupational diseases, lost days, absenteeism and total number of work-related fatalities

68 - 69

ParzialeThe injury and absenteeism data

collection system will be extended to the entire scope of the Group (by

2018)Material aspect - Training and educationG4 - DMA Generic Disclosure on Management Approach 65 - 66 G4 - LA9 Training per employee 66 Total

G4 - LA11Employees receiving regular performance and career development reviews

67 Total

Material aspect - Diversity and equal opportunityG4 - DMA Generic Disclosure on Management Approach 16; 64

G4 - LA12Composition of governance bodies and breakdown of employees per indicators of diversity

16; 60 - 61 Total

Material aspect - Equal remuneration for women and menG4 - DMA Generic Disclosure on Management Approach 64G4 - LA13 Ratio of basic salary and remuneration of women to men 64 TotalMaterial aspect - Supplier assessment for labour practicesG4 - DMA Generic Disclosure on Management Approach 37 - 38

G4 - LA14 Suppliers screened using using labor practices criteria 37 - 38

Partial The supplier assessment procedu-res data collection system will be

extended to the entire scope of the Group (by 2018)

Material aspect - Labour practices grievance mechanismsG4 - DMA Generic Disclosure on Management Approach 54

G4 - LA16 Grievances about labour practices filed, addressed and resolved -Total

There were no grievances on labour practices during 2015

SUBCATEGORY - HUMAN RIGHTSMaterial aspect - Supplier assessment for human rightsG4 - DMA Generic Disclosure on Management Approach 38

G4 - HR10

Suppliers screened using human rights criteria 38

PartialThe supplier assessment procedu-res data collection system will be

extended to the entire scope of the Group (by 2018)

SUBCATEGORY: SOCIETYAspect - Local communitiesG4 - DMA Generic Disclosure on Management Approach 78 - 81

G4 - SO1Operations with implemented local community engagement, impact assessments and development programs

78 - 81 Total

Aspect - Anti-corruptionG4 - DMA Generic Disclosure on Management Approach 15

G4 - SO3 Operations assessed for risks related to corruption 15

Total The anti-corruption policies are

regulated by the SIA S.p.A. Code of Ethics

G4 - SO5 Confirmed incidents of corruption and actions taken -Total

There were no grievances on cases of corruption during 2015

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Aspect - Political contributionsG4 - DMA Generic Disclosure on Management Approach 18

G4 - SO6 Value of political contributions -Total

SIA's activities do not include funding to political parties

Aspect - ComplianceG4 - DMA Generic Disclosure on Management Approach 18

G4 - SO8 Fines and sanctions for non-compliance with laws and regulations -

TotalNo significant fines were received

due to non-compliance with laws or regulations in 2015

Material aspect - Supplier assessment for impacts on societyG4 - DMA Generic Disclosure on Management Approach 38

G4 - SO9 Suppliers screened using criteria for impacts on society 38

PartialThe supplier assessment

procedures data collection system will be extended to the entire scope

of the Group (by 2018)Aspect - Grievance mechanisms for impacts on societyG4 - DMA Generic Disclosure on Management Approach 54

G4 - SO11 Grievances about impacts on society filed, addressed and resolved -Total

There were no grievances on impacts on society during 2015

SUBCATEGORY - PRODUCT RESPONSIBILITYMaterial aspect - Customer health and safetyG4 - DMA Generic Disclosure on Management Approach 52

G4 - PR2Incidents of non-compliance with regulations and codes concerning the health and safety impacts of products and services during their life cycle

-

TotalThere were no incidents of

non-compliance with laws and regulations concerning health and safety of products and services

during 2015Material aspect - Product and service labellingG4 - DMA Generic Disclosure on Management Approach 50 - 54G4 - PR5 Results of surveys measuring customer satisfaction 54 TotalMaterial aspect - Marketing communicationsG4 - DMA Generic Disclosure on Management Approach 82

G4 - PR7Incidents of non-compliance with regulations concerning marketing communications

-

TotalThere were no incidents of non-

compliance with regulations and voluntary codes concerning

marketing communications during 2015

Material aspect - Customer privacyG4 - DMA Generic Disclosure on Management Approach 51

G4 - PR8Substantiated complaints regarding breaches of customer privacy and loss of customer data

-

TotalThere were no complaints regarding

privacy and management of customer data during 2015

Aspetto materiale - Conformità

G4 - DMA Generic Disclosure on Management Approach18 - 19; 22 - 24; 50 - 53

G4 - PR9Fines for non-compliance with laws and regulationsconcerning the provision and use of products and services

-

TotalNo significant fines were received for non-compliance with laws and regulations concerning the use of

products and services during 2015

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Deloitte & Touche S.p.A. Via Tortona, 25 20144 Milano Italia Tel: + 39 02 83322111 Fax: + 39 02 83322112 www.deloitte.it

Ancona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Palermo Parma Roma Torino Treviso Verona Sede Legale: Via Tortona, 25 – 20144 Milano - Capitale Sociale: Euro 10.328.220,00 i.v. Codice Fiscale/Registro delle Imprese Milano n. 03049560166 – R.E.A. Milano n. 1720239 Partita IVA: IT 03049560166

RELAZIONE DELLA SOCIETÀ DI REVISIONE INDIPENDENTE

SUL “BILANCIO DEL VALORE” 2015

Al Consiglio di Amministrazione di

SIA S.p.A.

Abbiamo svolto un esame limitato (“limited assurance engagement”) del Bilancio del Valore del Gruppo SIA (di seguito il “Gruppo”) per l’esercizio chiuso al 31 dicembre 2015.

Responsabilità degli Amministratori per il Bilancio del Valore Gli Amministratori sono responsabili per la redazione del Bilancio del Valore in conformità alle linee guida “G4 Sustainability Reporting Guidelines” definite nel 2013 dal GRI - Global Reporting Initiative, indicati nel capitolo “Nota metodologica” del Bilancio del Valore, e per quella parte del controllo interno che essi ritengono necessaria al fine di consentire la redazione di un Bilancio del Valore che non contenga errori significativi, anche dovuti a frodi o a comportamenti o eventi non intenzionali. Gli Amministratori sono altresì responsabili per la definizione degli obiettivi di SIA S.p.A. in relazione alla performance del Valore e alla rendicontazione dei risultati conseguiti, nonché per l’identificazione degli stakeholder e degli aspetti significativi da rendicontare.

Responsabilità del revisore

È nostra la responsabilità della redazione della presente relazione sulla base delle procedure svolte. Il nostro lavoro è stato svolto secondo i criteri indicati nel principio “International Standard on Assurance

Engagements 3000 - Assurance Engagements other than Audits or Reviews of Historical Financial

Information” (“ISAE 3000”), emanato dall’International Auditing and Assurance Standards Board per gli incarichi che consistono in un esame limitato. Tale principio richiede il rispetto dei principi etici applicabili, compresi quelli in materia di indipendenza, nonché la pianificazione e lo svolgimento del nostro lavoro al fine di acquisire una sicurezza limitata che il Bilancio del Valore non contenga errori significativi. Tali procedure hanno compreso colloqui, prevalentemente con il personale della società responsabile per la predisposizione delle informazioni presentate nel Bilancio del Valore, analisi di documenti, ricalcoli ed altre procedure volte all’acquisizione di evidenze ritenute utili.

Le procedure svolte sul Bilancio del Valore hanno riguardato il rispetto dei principi per la definizione del contenuto e della qualità del Bilancio del Valore, nei quali si articolano le “G4 Sustainability Reporting

Guidelines”, e sono riepilogate di seguito:

• comparazione tra i dati e le informazioni di carattere economico-finanziario riportati nel capitolo “Responsabilità economica” del Bilancio del Valore e i dati e le informazioni inclusi nel bilancio d’esercizio del Gruppo al 31 dicembre 2015, sul quale Deloitte & Touche S.p.A. ha emesso la relazione della Società di Revisione (ai sensi degli art. 14 del D.Lgs. 27 gennaio 2010, n. 39), in data 18 marzo 2016;

• analisi, tramite interviste, del sistema di governo e del processo di gestione dei temi connessi allo sviluppo sostenibile inerenti la strategia e l’operatività del Gruppo;

• analisi del processo di definizione degli aspetti significativi rendicontati nel Bilancio del Valore, con riferimento alle modalità di identificazione in termini di loro priorità per le diverse categorie di stakeholder e alla validazione interna delle risultanze del processo;

Deloitte & Touche S.p.A. Via Tortona, 25 20144 Milano Italia Tel: + 39 02 83322111 Fax: + 39 02 83322112 www.deloitte.it

Ancona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Palermo Parma Roma Torino Treviso Verona Sede Legale: Via Tortona, 25 – 20144 Milano - Capitale Sociale: Euro 10.328.220,00 i.v. Codice Fiscale/Registro delle Imprese Milano n. 03049560166 – R.E.A. Milano n. 1720239 Partita IVA: IT 03049560166

RELAZIONE DELLA SOCIETÀ DI REVISIONE INDIPENDENTE

SUL “BILANCIO DEL VALORE” 2015

Al Consiglio di Amministrazione di

SIA S.p.A.

Abbiamo svolto un esame limitato (“limited assurance engagement”) del Bilancio del Valore del Gruppo SIA (di seguito il “Gruppo”) per l’esercizio chiuso al 31 dicembre 2015.

Responsabilità degli Amministratori per il Bilancio del Valore Gli Amministratori sono responsabili per la redazione del Bilancio del Valore in conformità alle linee guida “G4 Sustainability Reporting Guidelines” definite nel 2013 dal GRI - Global Reporting Initiative, indicati nel capitolo “Nota metodologica” del Bilancio del Valore, e per quella parte del controllo interno che essi ritengono necessaria al fine di consentire la redazione di un Bilancio del Valore che non contenga errori significativi, anche dovuti a frodi o a comportamenti o eventi non intenzionali. Gli Amministratori sono altresì responsabili per la definizione degli obiettivi di SIA S.p.A. in relazione alla performance del Valore e alla rendicontazione dei risultati conseguiti, nonché per l’identificazione degli stakeholder e degli aspetti significativi da rendicontare.

Responsabilità del revisore

È nostra la responsabilità della redazione della presente relazione sulla base delle procedure svolte. Il nostro lavoro è stato svolto secondo i criteri indicati nel principio “International Standard on Assurance

Engagements 3000 - Assurance Engagements other than Audits or Reviews of Historical Financial

Information” (“ISAE 3000”), emanato dall’International Auditing and Assurance Standards Board per gli incarichi che consistono in un esame limitato. Tale principio richiede il rispetto dei principi etici applicabili, compresi quelli in materia di indipendenza, nonché la pianificazione e lo svolgimento del nostro lavoro al fine di acquisire una sicurezza limitata che il Bilancio del Valore non contenga errori significativi. Tali procedure hanno compreso colloqui, prevalentemente con il personale della società responsabile per la predisposizione delle informazioni presentate nel Bilancio del Valore, analisi di documenti, ricalcoli ed altre procedure volte all’acquisizione di evidenze ritenute utili.

Le procedure svolte sul Bilancio del Valore hanno riguardato il rispetto dei principi per la definizione del contenuto e della qualità del Bilancio del Valore, nei quali si articolano le “G4 Sustainability Reporting

Guidelines”, e sono riepilogate di seguito:

• comparazione tra i dati e le informazioni di carattere economico-finanziario riportati nel capitolo “Responsabilità economica” del Bilancio del Valore e i dati e le informazioni inclusi nel bilancio d’esercizio del Gruppo al 31 dicembre 2015, sul quale Deloitte & Touche S.p.A. ha emesso la relazione della Società di Revisione (ai sensi degli art. 14 del D.Lgs. 27 gennaio 2010, n. 39), in data 18 marzo 2016;

• analisi, tramite interviste, del sistema di governo e del processo di gestione dei temi connessi allo sviluppo sostenibile inerenti la strategia e l’operatività del Gruppo;

• analisi del processo di definizione degli aspetti significativi rendicontati nel Bilancio del Valore, con riferimento alle modalità di identificazione in termini di loro priorità per le diverse categorie di stakeholder e alla validazione interna delle risultanze del processo;

Deloitte & Touche S.p.A.Via Tortona, 25 20144 Milano Italia

Tel: + 39 02 83322111 Fax: + 39 02 83322112 www.deloitte.it

Ancona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Palermo Parma Roma Torino Treviso Verona

Sede Legale: Via Tortona, 25 – 20144 Milano - Capitale Sociale: Euro 10.328.220,00 i.v. Codice Fiscale/Registro delle Imprese Milano n. 03049560166 – R.E.A. Milano n. 1720239

Partita IVA: IT 03049560166

INDEPENDENT AUDITORS’ REPORT

ON THE “VALUE REPORT” 2015

To the Board of Directors of

SIA S.p.A.

We have performed a limited assurance engagement on the sustainability information included in the

Value Report of SIA Group (the “Group”) as of December 31, 2015.

Directors’ responsibility on the sustainability information

The Directors are responsible for the preparation of the sustainability information included in

the Value Report in accordance with the “G4 Sustainability Reporting Guidelines” issued in 2013 byGRI - Global Reporting Initiative, as stated in the paragraph “Methodological Note” of the Value

Report, and for such internal control as they determine is necessary to enable the preparation of

a Value Report that is free from material misstatement, whether due to frauds or unintentional

behaviours or events. The Directors are also responsible for defining the Group’s objectives

regarding the sustainability performance and the reporting of the achieved results, for the

identification of the stakeholders and the significant aspects to report.

Auditors’ responsibility

Our responsibility is to issue this report based on the procedures performed. We conducted our work

in accordance with the criteria established in the “International Standard on Assurance Engagements

3000 – Assurance Engagements other than Audits or Reviews of Historical Financial Information”

(“ISAE 3000”), issued by the International Auditing and Assurance Standards Board for limited

assurance engagements. The standard requires the compliance with ethical principles,

including independence requirements, and that we plan and perform the engagement to obtain limited

assurance of whether the Value Report is free from material misstatement. These procedures

included inquiries, primarily with the Group personnel responsible for the preparation of theValue Report, analysis of documents, recalculations and other evidence gathering procedures as

appropriate.

The procedures performed on the Value Report consisted in verifying its compliance with

the principles for defining report content and quality set out in the “G4 Sustainability

Reporting Guidelines”, and are summarized as follows:

• comparing the economic and financial data reported in the paragraph “The economic value”

included in the Value Report with those reported in the SIA S.p.A. Annual Report as of December

31, 2015, on which another auditor issued the auditors’ report (pursuant to articles 14 and 16 of

Legislative Decree no. 39 of 27 January, 2010), dated March 24, 2016;

• analysing, through interviews, the governance system and the management process of the matters

related to sustainable development regarding the strategy and operations of the Group;

• analysing the process relating to the definition of material aspects disclosed in the Value Report,

with reference to the methods used for the identification and prioritization of material aspects for

stakeholders and to the internal validation of the process results;

99

Pagina 2 • analisi delle modalità di funzionamento dei processi che sottendono alla generazione, rilevazione e

gestione dei dati quantitativi inclusi nel Bilancio del Valore. In particolare, abbiamo svolto:

− interviste e discussioni con il personale della Direzione di SIA S.p.A., al fine di raccogliere informazioni circa il sistema informativo, contabile e di reporting in essere per la predisposizione del Bilancio di+ Sostenibilità, nonché circa i processi e le procedure di controllo interno che supportano la raccolta, l’aggregazione, l’elaborazione e la trasmissione dei dati e delle informazioni alla funzione responsabile della predisposizione del Bilancio del Valore;

− analisi a campione della documentazione di supporto alla predisposizione del Bilancio del Valore, al fine di ottenere evidenza dei processi in atto, della loro adeguatezza e del funzionamento del sistema di controllo interno per il corretto trattamento dei dati e delle informazioni in relazione agli obiettivi descritti nel Bilancio del Valore;

• analisi della conformità e della coerenza interna delle informazioni qualitative riportate nel Bilancio del Valore rispetto alle linee guida identificate nel paragrafo “Responsabilità degli Amministratori per il Bilancio del Valore” della presente relazione;

• analisi del processo di coinvolgimento degli stakeholder, con riferimento alle modalità utilizzate, mediante l’analisi dei verbali riassuntivi o dell’eventuale altra documentazione esistente circa gli aspetti salienti emersi dal confronto con gli stessi;

• ottenimento della lettera di attestazione, sottoscritta dall’Amministratore Delegato di SIA S.p.A., sulla conformità del Bilancio del Valore alle linee guida indicate nel paragrafo della presente relazione “Responsabilità degli Amministratori per il Bilancio del Valore”, nonché sull’attendibilità e completezza delle informazioni e dei dati in esso contenuti.

I dati e le informazioni oggetto dell’esame limitato sono riportati, come previsto dalle “G4 Sustainability

Reporting Guidelines”, nella “Tabella degli indicatori GRI” del Bilancio del Valore.

Il nostro esame ha comportato un’estensione del lavoro inferiore a quello da svolgere per un esame completo secondo l’ISAE 3000 (“reasonable assurance engagement”) e, conseguentemente, non ci consente di avere la sicurezza di essere venuti a conoscenza di tutti i fatti e le circostanze significativi che potrebbero essere identificati con lo svolgimento di tale esame.

Conclusione Sulla base del lavoro svolto, non sono pervenuti alla nostra attenzione elementi che ci facciano ritenere che il Bilancio del Valore del Gruppo SIA al 31 dicembre 2014 non sia stato redatto, in tutti gli aspetti significativi, in conformità alle linee guida “G4 Sustainability Reporting Guidelines definite nel 2013 dal GRI - Global Reporting Initiative, come descritto nel capitolo “Nota metodologica” del Bilancio del Valore.

Milano, 29 marzo 2016

DELOITTE & TOUCHE S.p.A.

Franco Amelio

Socio

Pagina 2

• analysing how the processes underlying the generation, collection and management of quantitative

data of the Value Report operate. In particular, we have performed:

− interviews and discussions with the management of SIA S.p.A. to gather information about the

accounting and reporting systems used in preparing the Value Report, as well as on the

internal control procedures supporting the gathering, aggregation, processing and transmittal

of data and information to the department responsible for the preparation of the Value Report;

− analysis, on a sample basis, of the documentation supporting the preparation of the Value

Report, in order to gather the evidence of processes in place, their adequacy, and that the

internal control system correctly manages data and information in connection with the

objectives described in the Value Report;

• analysing the compliance and the internal consistency of the qualitative information disclosed in

the Value Report, in relation to the guidelines identified in the paragraph “Directors’ responsibility

on the sustainability information”;

• analysing the stakeholders engagement process, in terms of methods applied, through the analysis

of the minutes of the meetings or any other available documentation about the main topics arisen in

the discussion with them;

• obtaining the representation letter signed by the Chief Executive Officer of SIA S.p.A., on the

compliance of the Value Report with the guidelines identified in the paragraph “Directors’

responsibility on the sustainability information”, as well as the reliability and completeness of the

data and information disclosed.

Data and information subject to our limited assurance are reported, as required by the “G4

Sustainability Reporting Guidelines”, in the “GRI Content Index” of the Value Report.

The procedures performed in a limited assurance engagement are less than those performed in a

reasonable assurance engagement in accordance with ISAE 3000, and, therefore, do not enable us to

obtain assurance that we would become aware of all significant matters and events that might be

identified in a reasonable assurance engagement.

Conclusion

Based on the work performed, nothing has come to our attention that causes us to believe that the

Value Report of the SIA S.p.A. as of December 31, 2015 is not prepared, in all material respects, in

accordance with the “G4 Sustainability Reporting Guidelines” issued in 2013 by GRI - Global

Reporting Initiative, as stated in the paragraph “Methodological Note” of the Value Report.

Milan, March 29th, 2016


Franco Amelio

Partner

This report has been translated into the English language solely for the convenience of international readers.

Pagina 2

• analysing how the processes underlying the generation, collection and management of quantitative

data of the Value Report operate. In particular, we have performed:

− interviews and discussions with the management of SIA S.p.A. to gather information about the

accounting and reporting systems used in preparing the Value Report, as well as on the

internal control procedures supporting the gathering, aggregation, processing and transmittal

of data and information to the department responsible for the preparation of the Value Report;

− analysis, on a sample basis, of the documentation supporting the preparation of the Value

Report, in order to gather the evidence of processes in place, their adequacy, and that the

internal control system correctly manages data and information in connection with the

objectives described in the Value Report;

• analysing the compliance and the internal consistency of the qualitative information disclosed in

the Value Report, in relation to the guidelines identified in the paragraph “Directors’ responsibility

on the sustainability information”;

• analysing the stakeholders engagement process, in terms of methods applied, through the analysis

of the minutes of the meetings or any other available documentation about the main topics arisen in

the discussion with them;

• obtaining the representation letter signed by the Chief Executive Officer of SIA S.p.A., on the

compliance of the Value Report with the guidelines identified in the paragraph “Directors’

responsibility on the sustainability information”, as well as the reliability and completeness of the

data and information disclosed.

Data and information subject to our limited assurance are reported, as required by the “G4

Sustainability Reporting Guidelines”, in the “GRI Content Index” of the Value Report.

The procedures performed in a limited assurance engagement are less than those performed in a

reasonable assurance engagement in accordance with ISAE 3000, and, therefore, do not enable us to

obtain assurance that we would become aware of all significant matters and events that might be

identified in a reasonable assurance engagement.

Conclusion

Based on the work performed, nothing has come to our attention that causes us to believe that the

Value Report of the SIA S.p.A. as of December 31, 2015 is not prepared, in all material respects, in

accordance with the “G4 Sustainability Reporting Guidelines” issued in 2013 by GRI - Global

Reporting Initiative, as stated in the paragraph “Methodological Note” of the Value Report.

Milan, March 29th, 2016


Franco Amelio

Partner

This report has been translated into the English language solely for the convenience of international readers.

SIA S.p.A.Registered Office and HeadquartersVia Francesco Gonin, 36 - 20147 MilanTel. +39 02 [email protected]

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