11 November, 2010 J. P. M O R G A N – S U P P L Y C H A I N F I N A N C E GFP in Association with VISA Qualifieds S T R I C T L Y P R I V A T E A N D C.

11 November, 2010

J . P . M O R G A N – S U P P L Y C H A I N F I N A N C E

GFP in Association with VISA Qualifieds

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Martin ScottExecutive Director

English_Commercial Bank

This presentation was prepared exclusively for the benefit and internal use of the J.P. Morgan client to whom it is directly addressed and delivered including such client’s subsidiaries, (the “Company”) in order to assist the Company in evaluating, on a preliminary basis, certain products or services that may be provided by J.P. Morgan. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan. It may not be copied, published or used, in whole or in part, for any purpose other than as expressly authorised by J.P. Morgan.

The statements in this presentation are confidential and proprietary to J.P. Morgan and are not intended to be legally binding. Neither J.P. Morgan nor any of its directors, officers, employees or agents shall incur any responsibility or liability to the Company or any other party with respect to the contents of this presentation or any matters referred to in, or discussed as a result of, this document. J.P. Morgan makes no representations as to the legal, regulatory, tax or accounting implications of the matters referred to in this presentation.

IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters included herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone not affiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

J.P. Morgan is a marketing name for the treasury services businesses of JPMorgan Chase Bank, N.A. and its subsidiaries worldwide. In the United Kingdom, JPMorgan Chase Bank, N.A., London branch and J.P. Morgan Europe Limited are authorised and regulated by the Financial Services Authority

JPMorgan Chase is licensed under US patent numbers 5, 910,988, and 6, 032 and 137

©2006 JPMorgan Chase & Co. All rights reserved.

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Agenda

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J.P. Morgan Trade Finance Credentials 1

Working Capital Optimisation 4

Supplier Segmentation 7

Next Steps 13

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2010

Global Trade Bank of the Year

J.P. Morgan Trade Services Credentials

Providing Global and End to End Supply Chain Services from the purchase order to Structured lending solutions

Global Coverage and Processing Centres

Providing Supplier Financing services since 1994 Over 50 major client

programs Over 50,000 suppliers on

board

Releasing over $2bn of working capital liquidity in a revolving basis

Market leadership in the Trade spaceMarket leadership in the Trade space

2009

Trade FinanceDeal of the Year

2006/2009

Most Innovative and Responsive Trade Services

2008/2009

Best Global Trade

Bank

2009

Best online Trade Finance Bank

2009

Structured Trade Deal of the Year

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J.P. Morgan locations worldwide

230 locations in 57 countries worldwide230 locations in 57 countries worldwide

Canada

United States of America

North America

Belgium

Czech Republic

Denmark

Estonia

Finland

France

Germany

Hungary

Ireland

Italy

Latvia

Netherlands

Nigeria

Norway

Poland

Russia

Saudi Arabia

Slovakia

Europe, Middle East and Africa (EMEA)

Argentina

Brazil

Chile

Colombia

Mexico

Peru

Venezuela

Latin America

New Zealand

Philippines

Singapore

South Korea

Taiwan

Thailand

Vietnam

Asia

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

Austria

Cyprus

Greece

Iceland

Liechtenstein

Luxembourg

Malta

Portugal

Slovenia

Additional SEPA Reach

S U P P L I E R S P E N D S E G M E N T A T I O N / P O S I T I O N I N G

South Africa

Spain

Sweden

Switzerland

Turkey

United Kingdom

UAE

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Next Steps 13

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REL, CFO magazine WC analysis Medians and quartiles are based on the listed companies; DSOs, DPOs & DIOs were based on financial information made available through the One Source Business BrowserDSO = (Account Receivables / Total Revenue)*365DPO = (Account Payables / Cost of Goods Sold)*365

DSO – DPO analysis: Global Food & Staples Retailing Industry

DSO

DPO

15 days

30 days

0 days

50 days0 days 100 days

Caseys

Carrefour

Jeronimo

Metro

Guyenne

Sainsbury’sWm Morrison

ETS

Koninklijke

Axfood

Laurus

DelhaizeMajestic

Wasgau

Kesko

Sligro

MARR (83,70)

Costco

Pantry

Wild OatsSafewayKroger

SuperValu

Spartan

Pathmark

Whole Foods

Wal-Mart

Smart

Great Atlantic

BJs

Nash Finch

Performance

Ruddick

Winn-Dixie

WeisIngles

Sysco

Walgreen

Longs Drug

Rite Aid

UnitedAndersons

CVS

EU Median

US Median

EU Companies

US Companies

Best in Class

Laggards

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Company A:

Supplier

Company B:

Supplier and Buyer

Company C:

Buyer

Opportunities in the Supply Chain

Receivables Purchase: Company A has the opportunity to discount receivables due from sales to

Company B on an undisclosed basis

Supplier Finance: Company B may choose to support its suppliers via putting in place a Supplier Finance

program whereby Company A has the opportunity to discount receivables due from sales to Company B

Supplier Finance: Company C may choose to support its suppliers via putting in place a Supplier Finance

program whereby Company B has the opportunity to discount receivables due from sales to Company C

Receivables Purchase: Company B has the opportunity to discount receivables due from sales to

Company C on an undisclosed basis

Goods and services Goods and services

Key point to remember is that there are opportunities across the Supply Chain depending on where you sit

Payments Payments

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Next Steps 13

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Payables Solution Roadmap – Optimise Working Capital

Best-in-class organisations segment their spend to gain visibility by type of supplier

Initial segmentation should include the supplier’s strategic importance and their annual spend

Non-Strategic

Supplier & Spend Segmentation Strategy Supplier & Spend Segmentation Strategy

Transaction Value ££££

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Strategic

Strategic but low spend

Non-strategic and low spend Non-strategic but high spend

Strategic and high spendStrategic but low spend

Non-strategic and low spend Non-strategic but high spend

Strategic and high spend

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The optimal working capital strategy encompasses solutions that vary by supplier

Non-Strategic(Indirect)

Transaction Value ££££

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Strategic

P-Card

Single Use Accounts

Strategic Supplier Low Purchase

Strategic Supplier High Purchase

Non-Strategic Supplier Low Purchase

Non Strategic Supplier High Purchase

Dynamic Discounting

Supplier Finance

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Important to recognise “win-win” scenarios

£6.58

£6.58

30 days

8%

4%

60 days

Suppliers’ working capital financing costSuppliers’ working capital financing cost

Terms extension combined with lower financing costs can leave suppliers indifferent or better off while freeing up cash for buyers.

Financing at suppliers’ cost of fundsFinancing at suppliers’ cost of funds

Extending terms at buyer’s cost of fundsExtending terms at buyer’s cost of funds

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Current cost for 30 days

New term

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cost of c

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Win-Win

£2.00

£3.00

£4.00

£5.00

£6.00

£7.00

£8.00

30 35 40 45 50 55 60 65 70

New Payment Terms (days)

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Supplier Finance – Operational Process

The following process flow describes the operation of program with your suppliers

1. Buyer uploads approved invoices to the multibank APAR system

4. If supplier accepts discount proposal, J.P. Morgan credits supplier immediately, net of discount

2. Supplier logs in APAR and chooses which invoices JPM can purchase

Buyer/Client Supplier

3. J.P. Morgan receives notification of invoices offered for purchase

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Establishing a Supplier Finance programme – Critical Success Factors

Choice of an experienced Bank provider

Dedicated resources on both sides to programme manage the implementation and on-going supplier enrolment

Focused marketing strategy aimed at on-boarding Suppliers

Simple documentation

Capabilities to efficiently incorporate other Bank providers for an expanded programme

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Next Steps 13




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J.P. Morgan team contact details

Trade SalesTrade SalesPublic Sector Sales Public Sector Sales

Nick HallExecutive Director

Telephone: +44 20 7777 2516

Anthony HolmesVice President

Telephone: +44 (0) 20 7777 5185

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11 November, 2010 J. P. M O R G A N – S U P P L Y C H A I N F I N A N C E GFP in Association with VISA Qualifieds S T R I C T L Y P R I V A T E A N D C.

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