1. May 17, 2006 Utilizing AP Data to Target Spend Opportunities S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A LS T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L © 2005 JPMorgan Chase & Co. All rights reserved. Steve Evans Commercial Card Expansion Services

2. T O S H I B AT O S H I B A The purpose of today’s discussion  Help Toshiba gain greater value from their Purchasing Card program  Provide a framework and assistance for integrating program Best Practices  Offer findings and recommendations for specific spend categories identified during the Toshiba data analysis  Re-commit JPMChase as a value added resource for assessment and implementation of the recommended projects

3. T O S H I B AT O S H I B A Goals & Responsibilities  Establish baseline goals and objectives  Identify key players/stakeholders  Review roles and responsibilities Quantitative Analysis  Analyze spend at the transaction level  Determine supplier acceptance  Assess financial impact Qualitative Assessment  Conduct stakeholder interviews  Review policies, processes, and goals  Understand other system interfaces such as eProcurement, Inventory and Capital systems Recommended Approach  Build specific recommendations that support quick hits and strategic objectives  Identify payables spend segmentation  Leverage best practices, industry benchmarks, and client successes  Develop a detailed business case and action plan Project Plan Implementation  Prioritize recommendations  Develop strategic roadmap for growth  Schedule routine conference calls  Track and update project plan Expansion Services proven methodology helps clients identify realistic Pcard spend opportunities within a framework of best practices Goals & Responsibilities Quantitative Analysis Qualitative Assessment Recommended Approach Project Plan Implementation Provide “hands on” resources for overcoming any hurdles with the development and implementation of the recommendations

4. T O S H I B AT O S H I B A A recap of efforts to date  Contract effective October, 2005  Phase one - concentration on T & E conversion  Data files for all Toshiba business units received September through October 2005  Data output reports completed by November 2005  Implementation of Pcard programs has begun  Some data discussions have occurred (TIC, TAI-SF, TAI-NY)  There have been ongoing discussions and further AP analysis completed in preparation of Spend Management Conference

5. T O S H I B AT O S H I B A Over $4B in spend was analyzed across the 9 business units  Analysis identifies, amongst other things:  Transactions in the appropriate bands of spend  Pcard acceptors and non-acceptors  Top suppliers by spend and transactions  Top Expense types, MCC and spend categories

6. T O S H I B AT O S H I B A Pcards are highly suited for transactions of $10,000 or less

7. T O S H I B AT O S H I B A On average 58% of your suppliers accept Pcards Appropriate band of spend for Pcard By targeting accepting suppliers, there are minimal barriers to program adoption, with no investment or sell-in required

8. T O S H I B AT O S H I B A Analysis was completed to determine appropriate spend and accepting suppliers 67% of spend is less than $1,000 Who are the top acceptors?

9. T O S H I B AT O S H I B A Data without a qualitative review can only get you part of the way Qualitative discussions to with each business unit is required to understand:  Controls  Systems  Expense types (MRO, inventory, capital goods)  Processes (AP, Purchasing, etc) Understanding what can and may be migrated to the Pcard is key to identifying and recommending realistic spend and growth opportunities  Non-strategic, low-hanging fruit  Strategic  Not suitable for traditional Pcard  Other payables solutions (ExacTrac, Order to Pay)

10. T O S H I B AT O S H I B A Working with Toshiba, additional analysis was completed to understand top spend categories Example purposes only

11. T O S H I B AT O S H I B A Toshiba’s Top 5 Spend Categories Appropriate for Pcard  Ground Transportation  UPS, FedEx  Freight carriers (i.e. Watkins, United, Mayflower)  Telecommunications Equipment and Services  AT&T, Sprint, Cingular, Verizon  Computer Programming, Systems and Maintenance  Falcon Technology, Intelenet, etc (varied by unit)  Reprographics/Publishing  Xerox, FedEx-Kinkos, Sir Speedy  Marketing and Advertising  California Marketing Group, Keeler Advertising, etc (varied by unit)

12. T O S H I B AT O S H I B A The powerful story told by the Spend Category analysis Multiple facts surface:  ALL of the spend categories are perfectly suited for Pcard  ALL of the top suppliers in those categories accept Pcard  Toshiba has a great strategic sourcing opportunity  Drive collective spend to preferred suppliers  Reduce number of suppliers in same category  Improve supplier negotiations  Migrating spend in these 5 categories will:  Increase process efficiencies  Reduce process costs  Optimize rebate potential

13. T O S H I B AT O S H I B A Beyond the identified Spend Category analysis Considerable opportunity exists in other areas as well: Business Services  Temporary employment agencies  Consultative services  Exterminators  Cleaning maintenance Service Providers  Security agencies  Legal services Utilities  Water  Waste Disposal