1. May You Live in
Interesting Times 2008
7 October, 2008

2. AGENDA
Living in Interesting Times
• Liquidity Crunch and the Corporate Treasurer
• Liquidity Crunch and the Investor
• Current Operational Topics
• Thinking Forward
• Appendix: Greenwich Associates
Confidential 2

3. May you live in interesting times: a curse come true?
• Commodity prices up, or down again?
• Inflation spiking, or moderating again?
• EOS, Silverjet, Zoom, XL
• Alitalia, BA/Iberia, LH/SAS
• Bear Stearns, Northern Rock, Lehman, ML
• ?
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4. Responsible for Current Market Turmoil in the United States
63%
65%
Investment Banks (555) 67%
59%
60%
42%
Mortgage Underwriters (533) 47%
73%
60%
61%
Rating Agencies (533) 60%
60%
53%
43%
Government Institutions and Regulators* (471) 49%
57%
39% Overall
40%
The U.S. Federal Reserve/Central Bank (341) 41%
37% Asia Pacific
34%
Consumers (303) 20%
22%
Europe
45%
30% North America
23%
Accounting Regulations (266) 32%
30%
26%
22%
Hedge Funds (226) 26%
26%
23%
24%
Sellers of Credit Default Industry (203) 18%
26%
11%
7%
The Housing Construction Industry (100) 7%
15%
Nobody is Responsible (5) 4%
12%
Other (103) 8%
9%
14%
* U.S. Congress, U.S. Securities and Exchange Commission and U.S. Treasury Department
Note: Based off responses from 900 respondents globally
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5. Responsible for Current Market Turmoil in the United States
Other Mentions:
• “All of the parties that bought poorly written securities or changed their underwriting/risk taking
standards.” – Asset Manager, North America
• “Bush's economic policies.” – Asset Manager, North America
• “Government policy encouraging lending to low income people and lax lending standards overall.” –
Asset Manager, North America
• “Greed of homebuilders, banks and consumers.” – Asset Manager, Europe
• “Lack of understanding of underlying risk.” – Asset Manager, Europe
• “Loose credit policy across the board; free money thanks to Alan and cheap lending by banks based
more on asset valuation then credit scoring. Also, consumer desire for goods that led them to borrow to
spend so lets blame advertising at the same time.” – Asset Manager, Europe
• “Many are responsible. We have had low interest rates and low spread for too long. We ended up with
all the same positions which were too leveraged.” – Corporate, Europe
• “Mr. Greenspan, due to his period of easy money and low interest rates.” – Corporate, Europe
• “Real estate speculators.” - Asset Manager, North America
• “The cheap money over the last 15years and clearly a misunderstanding in modeling risk this was
compounded by rates being keep extremely low and a housing market worldwide that contributed too
large a percentage to everyone's GDP.” – Asset Manager, North America
• “Wrong Compensation Incentives of IB [Investment Banks].” – Asset Manager, Europe
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6. Entity that Inspires Most Confidence in Addressing Current Market
Turmoil
32%
The U.S. Federal 30% Global
Reserve/ Central
33%
Bank Asia Pacific
32%
Europe
31%
U.S. Government North America
32%
institutions and
35%
regulators
28%
19%
18%
The quot;free marketquot;
13%
23%
18%
20%
None of the above
19%
17%
Note: Based off responses from 882 respondents globally
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7. Level of confidence in the U.S. Federal Reserve’s $700 Billion Bailout Plan
Uncertain Asia Pacific 64%
16%
Europe 58%
Very/
Somewhat
confident
61%
Latin America 92%
Not at all
confident
24%
North America 61%
0% 25% 50% 75% 100%
Note: Based off responses from 901 respondents globally
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8. Short Selling of Financial Services Firms
Do you think short selling of financial services firms should be allowed?
Asset Managers Corporates Pensions
Uncertain Uncertain Uncertain
14% 14% 14%
Yes
No
47%
20% No
Yes 55%
32%
Yes No
65% 39%
Note: Based off responses from 868 respondents globally
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9. A clear majority of companies expect their economies to deteriorate over
the next six months, with a positive turn not until 12-18 months out.
Expected Length of Time Before
Positive Economic Turn
U.S. Companies – September 2008
February 08
16% September 08
Deteriorate 6 Months
Significantly/
4%
Deteriorate
71%
49%
12 Months
50%
Improve
Significantly/
28%
Improve 18 Months
11% 32%
7%
No Change
2 Years
11%
18%
0%
Longer than 2 years
4%
Note: Based on interviews with 100 U.S. companies in February, and 291 U.S. companies in September of 2008.
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10. Expected Length of Time Before Positive Economic Turn
52%
24% 1 - 2 years
Global (889) 22% 12 Months or less
2%
More than 2 years
47%
Uncertain
23%
Asia Pacific (84) 25%
0%
52%
22%
Europe (310) 24%
0%
69%
5%
Latin America (13) 15%
0%
53%
27%
North America (492)
20%
1%
Note: Based off responses from 889 respondents globally
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11. Amount of Time Before Equity Markets Hit Bottom
23% 1 - 2 years
67%
Global (887) 12 Months or less
6%
3% More than 2 years
21% Uncertain
70%
Asia Pacific (84) 9%
1%
22%
70%
Europe (310) 5%
4%
15%
77%
Latin America (13) 0%
8%
24%
66%
North America (490)
6%
3%
Note: Based off responses from 897 respondents globally
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12. Corporate Bond Spreads only match those of 2002/2003 while FI spreads
exceed them, highlighting how difficulties in the Financial System will extend
the current difficult environment
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13. The strongest increase in demand for financial products is for hedging
products and funding products.
Expected Change in Need for Funding (% of Companies)
Decrease/Decrease Significantly Increase/Increase Significantly
Companies’
expected change in
22
need for funding
Hedging Products
-6 shows only
relatively modest
24
shifts, with expected
Funding for
Ongoing Operations -9 increases and
decreases nearly
15 netting to zero.
Structured Finance Need for funding for
-12
ongoing operations
13 is up, while need for
Funding for
Capital Expenditures -16 funding capital
expenditures or
14 acquisition finance
Acquisition Finance
-15 is flat to down
slightly.
-50 -25 0 25 50
Note: Based on interviews with 291 companies in the United States in September 2008.
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14. The Short View: Credit squeeze outlook
Lending officers said they were continuing to tighten standards, whether on credit cards,
prime mortgages, consumer or business loans, even though a strong majority of banks
had done this in the second quarter. That implies a squeeze on consumption, and lower
investment, as the year goes on.
Polling lenders in the eurozone, seemed a little less gloomy, but only on the surface.
There were slight decreases in the proportion of banks planning to tighten standards for
corporate loans. Furthermore, lending officers said demand for company loans was
decreasing and economic risks were putting pressure on them to tighten.
In Europe and the US, the cost of insuring against default for investment-grade
companies has risen but stayed well below recent highs, while the default risk for high-
yield or lower-quality credits has shot up, almost regaining its highs. Spreads payable on
speculative-grade credits are at their highest in four months.
Financial Times PUBLISHED: AUGUST 14 2008
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15. Tightening of Credit Standards is expected to continue in the USA and
Europe
60
50
40
30 Europe
USA
20
10
0
1st Qtr 2nd Qtr 3rd Qtr
Note: Third quarter values are expected
Source: ECB and FRB Quarterly Lending Conditions surveys
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16. Both in Europe and the US banks expect loan demand to weaken, but in
the US more than before and in Europe less than before
20
15
10
5
0 Europe
USA
-5
-10
-15
-20
1st Qtr 2nd Qtr 3rd Qtr
Note: Third quarter values are expected
Source: ECB and FRB Quarterly Lending Conditions surveys
Confidential 16

17. AGENDA
Living in Interesting Times
• Liquidity Crunch and the Corporate Treasurer
• Liquidity Crunch and the Investor
• Current Operational Topics
• Thinking Forward
• Appendix: Greenwich Associates
Confidential 17

18. 70% of Investors Expect a Recession in the United States
February 2008
Total Institutions
Asia (ex Japan)
Europe
71%
Limited borrowing 66% North America
capacity for corporates 76%
67%
70%
74%
Recession in the
United States 69%
69%
58%
Global economic 58%
downturn 51%
66%
2%
None of the above 0%
0%
5%
Note: Based on responses from 234 global institutions.
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19. Performance of CDOs and Structured Credit Products has Made more
than One Half of Investors Reluctant to Invest in them
February 2008
Has the performance of CDOs/ structured products made
you less likely to invest in these products in the future?
Uncertain, Uncertain,
22% 21%
Uncertain,
31%
Yes, 58% Yes, 50% Yes, 56%
No, 19%
No, 29%
No, 13%
Asia (ex Japan) Europe North America
Note: Based on responses from 221 global institutions.
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20. But a Meaningful Minority Plan to Invest in Illiquid Instruments
February 2008
Did you or do you plan to Which illiquid instruments did you or do
invest in illiquid instruments you plan to invest in?
due to the turmoil in the credit Mortgage-backed securities 50%
markets?
High-yield credit bonds 48%
Asset-backed securities 46%
Commercial mortgage-backed 41%
securities
Emerging markets bonds 33%
Distressed debt 28%
No, 63% Yes, 37%
Leveraged loans 26%
Collateralized debt obligations 24%
Covered bonds 24%
High-yield CDS 24%
Agency securities 22%
Note: Based on responses from 128 global institutions. 17%
Asset-backed commercial paper
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21. Systemic and Counterparty Risk Have Become Bigger Concerns
February 2008
Systemic/market risk
Proportion of Investors Citing Each Factor as a Top Risk
Credit/default risk
65% Liquidity
60% Counterparty risk
United States (Q1 2007)
47%
15%
64%
56%
Europe (Q2 2007)
38%
14%
56%
60%
Global (Q3 2007)
83%
27%
76%
Global (Q1 2008) 54%
60%
33%
Note: Asked of 1,007 U.S. investors from 2/12 – 4/12/07; asked of 1,106 European investors from 5/21 – 7/27/07; asked globally of
251 fixed-income and equity derivative investors from 8/30 – 9/7/07 and 214 from 1/22-2/6/08.
Confidential 21

22. AGENDA
Living in Interesting Times
• Liquidity Crunch and the Corporate Treasurer
• Liquidity Crunch and the Investor
• Current Operational Topics
• Thinking Forward
• Appendix: Greenwich Associates
Confidential 22

23. Return expectations for cash investment have declined in the United
States following declining interest rates and more conservative portfolio
allocations.
Target Annual Return on Cash Investments
February 2008 3.7%
United States
May 2007 4.9%
February 2008 5.5%
Europe
October 2007 3.8%
February 2008 6.7%
Asia
October 2007 7.1%
Note: Based on responses from 95 companies in the United States, 99 in Europe, and 66 in Asia from February 2008 and
678 in the United States from April through June 2007, 100 in Europe and 174 in Asia from August through November
2007.
Confidential 23

24. U.S. companies are shifting more cash investment into higher-
rated securities.
February 2008
Cash Portfolio Allocation US companies
May 2007
78%
AAA/Aaa
71%
16%
AA/Aa
17%
5%
A/A
8%
0%
BBB/Baa 1%
0%
BB/BA or below 0%
0%
No Ratings/Other 4%
Note: Based on responses from 65 companies the United States from February 2008 and 617 from April through June
2007.
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25. European companies have shifted cash investments toward lower-
rated/higher-yielding securities.
February 2008
Cash Portfolio Allocation European companies
October 2007
22%
AAA/Aaa
32%
47%
AA/Aa
28%
22%
A/A
15%
4%
BBB/Baa 3%
0%
BB/BA or below 0%
4%
No Ratings/Other 21%
Note: Based on responses from 53 companies in Europe from February 2008 and 110 from August through November 2006.
Confidential 25

26. Similar to U.S. companies, Asian firms have moved toward higher-
rated securities for cash investments.
February 2008
Cash Portfolio Allocation Asian companies
October 2007
49%
AAA/Aaa
45%
31%
AA/Aa
17%
16%
A/A
8%
5%
BBB/Baa 3%
3%
BB/BA or below 1%
6%
No Ratings/Other 26%
Note: Based on responses from 36 companies in Asia from February 2008 and 247 from August through November 2006.
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27. Average number of banks used for Cash Management Services by airlines
declines unlike in the wider market
Banks used
To p Tier Euro pe
5.8
Euro pean A irlines
5.2 5.2
5.4 5 5.1
A sia
4.8 4.8
4.7
4.3 4.7 4.4 A sian A irlines
4.2
4 3.9 U.S.
3.9
3.7 3.8
3.4 U.S. A irlines
3.3
2004 2005 2006 2007
Confidential 27

28. Distribution of PCM wallet to the lead PCM bank virtually unchanged
Airlines
Share of Wallet to the Lead PCM Bank Overall
63%
Total Asia
63%
55%
Top Tier Europe
61%
56%
United States
59%
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29. SEPA and electronic payments are catalysts for consolidation but not
main drivers
Anticipate consolidating cash management
service needs among fewer providers? Reasons
Greater use of electronic 28%
payments & receipts
Pressure from large credit
6%
Yes, 30% provider
No, 70%
The effects of SEPA being 32%
introduced
Other 58%
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30. Companies still do not anticipate meaningful changes from SEPA and
half have not made detailed plans to take advantage of its benefits
When will you have necessary payment data for 2007
Expected Impact of SEPA: clients in order to take advantage of SEPA? 2006
Reduction of the number of accounts 27%
used in different European countries for 38%
31%
the purpose of payments and collections
Already mostly in place 36%
Reduction of the number of 7%
finance/treasury centers within Europe
11%
Reduction of the number of cash 12%
15%
management providers used 18%
In place by the end of 2007 19%
Reduction in the amount of working 11%
capital required for your European
10%
operations
12%
More accurate cash flow forecasting 47%
14%
No detailed plans yet 44%
61%
No significant change
60%
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31. Fraud prevention is becoming more important in Europe in selecting
cash management providers
2007
Fraud Prevention Extremely Important in Selecting Providers* 2006
84%
Total Asia
97%
75%
Top Tier Europe
69%
91%
United States
90%
* Based on ratings of “4” or “5” on the 5-point scale.
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32. Key Sources of Fraud Monitored and Controlled: Internal sources of
fraud are becoming a greater concern
2007
2006
Total Asia Top Tier Europe
Check Processing (for receivables or 58% 40%
payables) 63% 56%
Internet-based or other electronic forms of 42% 50%
payments (receivables or payables) 43% 57%
Illicit use of company funds for payments to 42% 46%
third parties by your employees 50% 39%
Misappropriation of funds by employees or 45% 42%
your company 43% 30%
Protection of financial data of customers or 37% 39%
suppliers (e.g. customer credit card details
stored in your databases) 37% 30%
7% 16%
Other
4% 11%
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33. A meaningful minority of companies expects to move to direct access
to SWIFT shortly
Plans to move company to direct When do you expect company to
access to SWIFT begin using SWIFT?
0-3 months
44%
4-6 months
No, 72%
Yes, 28%
7-12 months
10%
1-2 years
18%
2-3 years
16%
3+ years 8%
4%
* Includes liquidity management, supply chain management, trade finance, cash management, and foreign exchange.
Confidential 33

34. AGENDA
Living in Interesting Times
• Liquidity Crunch and the Corporate Treasurer
• Liquidity Crunch and the Investor
• Current Operational Topics
• Thinking Forward
• Appendix: Greenwich Associates
Confidential 34

35. Changes in availability and cost of external funding will trigger
fundamental changes in companies’ funding strategies
• Funding cost has soared and access is getting harder
• Companies will need to change the way in which they manage
their bank relationships
• More consistent access to capital markets requires a different
approach to debt capital markets providers and investors
• New tools and payments options coming on-stream
• Increasing concerns about fraud in operations
• What you should think about next……
Confidential 35

36. Thinking Forward: Are You Prepared?
Funding Costs and Risks
How to demonstrate credit quality
Marketing the company to Investors
More limited funding options (sources and structures of capital)
Nervous intermediaries
Has the ability of our business to generate funds internally deteriorated
relative to the competition. Do we have better or worse access to
funding than competitors?
Which banks demonstrate a consistent and ongoing commitment to
corporate clients despite the credit crisis?
How do I need to adapt my communication with bond holders to improve
access to public markets?
Risks to the asset side of my balance sheet from bank counterparty
risk?
Operational Challenges
Surprisingly modest preparedness for SEPA
How can your banks help in fraud prevention?
Confidential 36

37. AGENDA
Living in Interesting Times
• Liquidity Crunch and the Corporate Treasurer
• Liquidity Crunch and the Investor
• Current Operational Topics
• Thinking Forward
• Appendix: Greenwich Associates
Confidential 37

38. The Greenwich Associates Mission
Provide decision-makers in institutional financial markets with market
intelligence and expert advice - based on proprietary, comprehensive
market research and in-depth analysis
Provide consistent quantitative and qualitative metrics to improve
customer/provider relationship management and promote greater
efficiency in the markets
Corporate Banking, Investment Banking, Cash Management, Foreign
Exchange, Derivatives, Fixed Income, Brokerage, Asset
Management
Offices in Stamford (USA), Tokyo, Singapore, London and Toronto
Standardized ongoing programs as well as tailored studies
Confidential 38

39. Our Business Model
Greenwich Associates’ principal focus is monitoring and analyzing the relationship dynamics between
buyers and sellers of financial services.
Buy-Side Services Sell-Side Services
• Peer-Based Compensation • Consulting Services
Corporate Commercial
• Greenwich Rankings Finance Banking • Competitive Positioning
• Market Trends Analysis • Customer Behavior
• Peer Benchmarks/Best Treasury Greenwich Investment • Customer Satisfaction
Practices Services Associates Management
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• Over 30 years of experience
• 40,000 Research Partner relationships in over 70 countries
• Provide consulting advisory solutions to over 250 clients globally
• Over 100 research programs underwritten by Greenwich annually
Confidential 39

40. Value Exchange
Greenwich produces high quality, relevant, and actionable financial industry intelligence. Market-driven feedback results
in confident business decision-making based on objective information.
• Greenwich Report
• Online access to extensive
Value research library
Delivered • Customized research
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providers
• Relevant questions
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Professional
Interviews • Flexible interviewing methods
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• Continuous market feedback sets research agenda
Relationship • Research Partner support:
Management • Executive Interviewer
• Customer Service
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• Lead Consultant
Confidential 40