Industry Leadership Diverse portfolio of Trade clients includes leading names from Retail and Apparel, Defense, Diversified Industrial, Technology, Transportation, Commodities, Healthcare, Natural Resources, Energy, Chemicals, Power, Oil and Gas, Real Estate, Telecom, Media, Financial Institutions, and other sectors. G L O B A L T R A D E F I N A N C E O V E R V I E W Participation in industry groups, with executives chairing or actively serving on numerous boards or committees. Renowned analysts and research staff producing myriad proprietary publications. Risk and technical experts providing customized training for clients. Voted “Best Trade Services Provider” by corporate clients and financial institutions in the Trade Finance 2003 and 2004 Excellence Awards. Awarded “Deal of the Year” awards in 2003 and 2004 for deals including our innovative work with the Trade Bank of Iraq. Our clients value our ability to address a broad range of settlement, risk mitigation and financing requirements in a manner tied closely to the commercial transaction and flow of goods. JPMorgan delivers best-in-class trade solutions by combining trade and industry specific expertise with state-of-the-art technology. Industry Leading Commitment to Trade

Diverse portfolio of Trade clients includes leading names from Retail and Apparel, Defense, Diversified Industrial, Technology, Transportation, Commodities, Healthcare, Natural Resources, Energy, Chemicals, Power, Oil and Gas, Real Estate, Telecom, Media, Financial Institutions, and other sectors.

Participation in industry groups, with executives chairing or actively serving on numerous boards or committees.

Renowned analysts and research staff producing myriad proprietary publications.

Risk and technical experts providing customized training for clients.

Voted “Best Trade Services Provider” by corporate clients and financial institutions in the Trade Finance 2003 and 2004 Excellence Awards.

Awarded “Deal of the Year” awards in 2003 and 2004 for deals including our innovative work with the Trade Bank of Iraq.

Our clients value our ability to address a broad range of settlement, risk mitigation and financing requirements in a manner tied closely to the commercial transaction and flow of goods.

JPMorgan delivers best-in-class trade solutions by combining trade and industry specific expertise with state-of-the-art technology.

Trade Expertise Delivered Globally Documentary letters of credit Private label letters of credit Open account transactions Documentary collections Bank to bank reimbursements Standby letters of credit By leveraging technology JPMorgan extends its traditional capabilities and in-house expertise to create customized, scalable solutions with global reach. JPMorgan’s Trade Finance group, in order to provide our clients with superior service and process efficiency, has adopted a hub-satellite approach for the processing of Trade Products. Our modular suite of services create a customized solution backed by the resources, strength, and expertise of one of the world’s largest financial institutions. Capabilities Classical Trade Products Structured Trade Solutions Supply chain financing Securitization ECA backed structured trade Ex-Im Bank Pre import - export financing structures Risk mitigation and distribution capabilities G L O B A L T R A D E F I N A N C E O V E R V I E W TECHNOLOGY PLATFORM

Documentary letters of credit

Private label letters of credit

Open account transactions

Documentary collections

Bank to bank reimbursements

Standby letters of credit

By leveraging technology JPMorgan extends its traditional capabilities and in-house expertise to create customized, scalable solutions with global reach.

JPMorgan’s Trade Finance group, in order to provide our clients with superior service and process efficiency, has adopted a hub-satellite approach for the processing of Trade Products.

Our modular suite of services create a customized solution backed by the resources, strength, and expertise of one of the world’s largest financial institutions.

Supply chain financing

Securitization

ECA backed structured trade

Ex-Im Bank

Pre import - export financing structures

Risk mitigation and distribution capabilities

e-Solutions Linking Participants in the Global Supply Chain JPMorgan recognizes that the individual requirements of each client differ. Our approach is to offer a broad spectrum of trade services and to select the right mix for each client. This enables us to service the client on a global basis in a more effective manner. JPMorgan’s Global Supply Chain team has coordinated representation in locations around the world, providing industry specific trade finance solutions for corporate clients. Our strategy is to supply each client with the services, or combination of services, that will work best with that client’s technology, corporate objectives, and supplier portfolio. JPMorgan’s integrated electronic document management system, innovative Supply Chain Finance platform, and proprietary linkage with logistics management firm Vastera make us a true partner in the supply chain and provide our clients with a critical competitive advantage. G L O B A L T R A D E F I N A N C E O V E R V I E W EDI Integration Automated LC Issuance Logistics Management Purchase Order Management Enhanced Open Account Electronic Document Preparation Inquiry and Reporting Supply Chain Finance JPMorgan

JPMorgan recognizes that the individual requirements of each client differ. Our approach is to offer a broad spectrum of trade services and to select the right mix for each client.

This enables us to service the client on a global basis in a more effective manner.

JPMorgan’s Global Supply Chain team has coordinated representation in locations around the world, providing industry specific trade finance solutions for corporate clients.

Our strategy is to supply each client with the services, or combination of services, that will work best with that client’s technology, corporate objectives, and supplier portfolio.

JPMorgan’s integrated electronic document management system, innovative Supply Chain Finance platform, and proprietary linkage with logistics management firm Vastera make us a true partner in the supply chain and provide our clients with a critical competitive advantage.

Global Supply Chain Panelists G L O B A L T R A D E F I N A N C E O V E R V I E W John Hammond Head of Product Management and Marketing Exonomy Limited Jonathan Heuser (Moderator) Vice President and Global Supply Chain Team Leader JPMorgan Chase Bank Heather Plutino Manager of International Trade Finance Target Corporation Matthew A. Vega Senior Attorney Federal Express Corporation

John Hammond

Head of Product Management and Marketing

Exonomy Limited

Jonathan Heuser (Moderator)

Vice President and Global Supply Chain Team Leader

JPMorgan Chase Bank

Heather Plutino

Manager of International Trade Finance

Target Corporation

Matthew A. Vega

Senior Attorney

Federal Express Corporation

Re-examining our role – and asking some difficult questions G L O B A L T R A D E F I N A N C E O V E R V I E W For centuries, banks have held a well established position as a trusted intermediary in international trade transactions. Trade has grown and evolved rapidly, touching all corners of the world and making disparate nations and cultures more and more dependent upon one another. Technology, transportation methods, complex trade networks, and growing competition have given increasingly important roles to players such as logistics providers. The market power of buyers and sellers has grown substantially. Political uncertainty and government involvement in the supply chain are growing. Meanwhile, the role of banks is little changed…which leads us to ask some difficult questions: There isn’t much reason to a trade bank if we can’t provide useful services to our customers. What is it that our customers want from us? Is our role of lasting value? How is our environment changing, how should that shape our behavior today, and how should that inform the decisions we are making about tomorrow? As we invest in technology, reorganize businesses, and plan for the future, are we doing the right thing? Is there a place for banks in the Global Supply Chain, and if so, can we get there in time?

For centuries, banks have held a well established position as a trusted intermediary in international trade transactions.

Trade has grown and evolved rapidly, touching all corners of the world and making disparate nations and cultures more and more dependent upon one another.

Technology, transportation methods, complex trade networks, and growing competition have given increasingly important roles to players such as logistics providers.

The market power of buyers and sellers has grown substantially.

Political uncertainty and government involvement in the supply chain are growing.

Meanwhile, the role of banks is little changed…which leads us to ask some difficult questions:

There isn’t much reason to a trade bank if we can’t provide useful services to our customers. What is it that our customers want from us? Is our role of lasting value?

How is our environment changing, how should that shape our behavior today, and how should that inform the decisions we are making about tomorrow?

As we invest in technology, reorganize businesses, and plan for the future, are we doing the right thing?

Is there a place for banks in the Global Supply Chain, and if so, can we get there in time?

Presented at the Bankers’ Association for Finance and Trade’s 14 th Annual Conference on International Trade The Pace Quickens November 4-5, 2004 The Hotel InterContinental, Chicago, IL Matthew A. Vega Senior Attorney Federal Express Corporation The Global Supply Chain - Who are the Players?

Matt Vega, Senior Attorney Regulatory Changes – Influence on the Global Supply Chain U.S. Customs Advanced Cargo Information ACI (August 2004) FDA Interim Final Rule pursuant to Bioterrorism Act of 2002 (November 2004) DHS / TSA DSIP Re-write (December 2004) WTO Elimination of Quotas (January 2005) Canada and U.S. Customs’ Automated Commercial Environment (ACE) (March 2005) Japanese Personal Information Protection Law (April 2005) DHS / TSA NPRM and ASAC Working Group on “Freight Assessment” (June 2005) U.S.D.A. / APHIS Final Rules covering WPM (September 2005) U.S. Customs C-TPAT internationalization (December 2005)

U.S. Customs Advanced Cargo Information ACI (August 2004)

FDA Interim Final Rule pursuant to Bioterrorism Act of 2002 (November 2004)

DHS / TSA DSIP Re-write (December 2004)

WTO Elimination of Quotas (January 2005)

Canada and U.S. Customs’ Automated Commercial Environment (ACE) (March 2005)

Japanese Personal Information Protection Law (April 2005)

DHS / TSA NPRM and ASAC Working Group on “Freight Assessment” (June 2005)

U.S.D.A. / APHIS Final Rules covering WPM (September 2005)

U.S. Customs C-TPAT internationalization (December 2005)

Matt Vega, Senior Attorney Regulatory Changes – Impact on Shippers After 15 years of deregulation, now in era of greater regulation Requires increased shipper involvement and concern for both imports and exports Previously innocuous goods like food now more regulated Minor paperwork errors (e.g., insufficient descriptions) more likely to result in service delays and disruptions in supply chain

After 15 years of deregulation, now in era of greater regulation

Requires increased shipper involvement and concern for both imports and exports

Previously innocuous goods like food now more regulated

Minor paperwork errors (e.g., insufficient descriptions) more likely to result in service delays and disruptions in supply chain

Matt Vega, Senior Attorney Regulatory Changes – Our Response Harden the Internet and other electronic data systems Improve port security and supply chain logistics Address security issues with employment, identity and immigration Develop best practices for homeland security, customs, etc. Work towards comprehensive, rules-based approach through the WTO and WCO

Harden the Internet and other electronic data systems

Improve port security and supply chain logistics

Address security issues with employment, identity and

immigration

Develop best practices for homeland security, customs, etc.

Work towards comprehensive, rules-based approach through

the WTO and WCO

Matt Vega, Senior Attorney Regulatory Changes –Threats and Opportunities Security Regulations (WCO Guidelines) Data Protection/Privacy Laws (EU, Japan, etc.) Eliminate Customs Artificial Barriers (need automation and liberalization through WTO) Anticipate Future Regulatory Changes (e.g., SED filings)

Security Regulations (WCO Guidelines)

Data Protection/Privacy Laws (EU, Japan, etc.)

Eliminate Customs Artificial Barriers (need automation and liberalization through WTO)

Anticipate Future Regulatory Changes (e.g., SED filings)

John Hammond Head,Product Management and Marketing Exonomy Limited ~ a subsidiary of Standard Chartered Bank The Global Supply Chain - Who are the Players?

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