We have entered a period of marked volatility in foreign exchange markets. Volatility will be a permanent feature in international business for some years to come. CFOs need to be on top on their game in this area because much economic value is at stake. We offer a program in 3 steps to master foreign exchange risks when you are doing business overseas.

1. June 2011 Currency markets are unforgiving for the unprepared FOREIGN EXCHANGE PROGRAM CFO André Du Sault (LBS, Harvard) Confidential and proprietary to SDA Conseil Inc 1

2. June 2011 2 SDA Conseil Inc www.sdaconseil.com www.sdaconseil.com On becoming lean & strategic CFO FOR THE 21ST CENTURY Mastering foreign exchange risks When doing business overseas A discipline & tool kits Confidential and proprietary to SDA Conseil Inc

3. June 2011 SDA Conseil Inc www.sdaconseil.com High volatility in currency markets is here to stay US$ / C$ Financial Times US$ / Euro for three reasons... Confidential and proprietary to SDA Conseil Inc 3

4. June 2011 SDA Conseil Inc www.sdaconseil.com 1. Many Western countries are under severe economic stress High debt Budget deficit Current account deficit Unemployment Slow growth Bad politics With remedies hard to swallow. Confidential and proprietary to SDA Conseil Inc 4

5. June 2011 SDA Conseil Inc www.sdaconseil.com 2. Financial markets remain huge and half regulated, driven by the opportunities of the short term and the herd mentality. Confidential and proprietary to SDA Conseil Inc 5

6. June 2011 SDA Conseil Inc www.sdaconseil.com 3. The rise of India-China is remoulding the macroeconomic cycle 2000-2010: Worldwide disinflation 2010-2020: Worldwide commodity inflation Confidential and proprietary to SDA Conseil Inc 6

7. In a context of macroeconomic instability, there are costs for not being ready July – August 2005 Was it really the perfect crisis in 2007-2008? Signals about a forthcoming crisis were there (see Atlantic). Tracking stress indicators allows to anticipate and react in time. Confidential and proprietary to SDA Conseil Inc June 2011 7

8. June 2011 You need to have your act together in foreign exchange 3 LESSONS Confidential and proprietary to SDA Conseil Inc 8

9. June 2011 SDA Conseil Inc www.sdaconseil.com Lesson 1: Be prepared Exposure forecasts at hand Hedging objectives defined FX policies in place Instruments ready Confidential and proprietary to SDA Conseil Inc 9

10. June 2011 SDA Conseil Inc www.sdaconseil.com Lesson 2: Anticipate the stress signals Understanding risks Assessing possible scenarios Tracking relevant stress indicators Seeing clouds and storms ahead Confidential and proprietary to SDA Conseil Inc 10

11. June 2011 SDA Conseil Inc www.sdaconseil.com Lesson 3: Act on your best options Your initial reference position Scenarios & turning points Your best hedging options Taking positions and negotiating Confidential and proprietary to SDA Conseil Inc 11

12. June 2011 SDA Conseil Inc www.sdaconseil.com If foreign exchange feels like walking on a tightrope, it is time to get advice on toolkits on best practices for the CFO on policies adapted to your situation on hedging strategies Confidential and proprietary to SDA Conseil Inc 12

13. June 2011 Perhaps all you need is a quarterly review to see more clearly ahead to weigh your risks to figure out your best options Confidential and proprietary to SDA Conseil Inc 13

14. June 2011 SDA Conseil Inc www.sdaconseil.com Or if you would like to participate in a training session to acquire a new skill set to exchange with peers to build a new comfort zone Confidential and proprietary to SDA Conseil Inc 14

15. June 2011 Confidential and proprietary to SDA Conseil Inc 15 SDA Conseil Inc www.sdaconseil.com For more information, insights & requests: André Du Sault 514 777-1538 adusault@sdaconseil.com www.sdaconseil.com Conference on FX risks Economic reviews Transfer of best practices Strategic tool kits Complete FX program