1. Agenda Purpose of meeting
Initial discussion on processes & controls for Tokyo
Brief update on Toyo
Commercial: Power, Metals, FX, Weather, Oil, EBS
New office
Staffing
Outsourcing to Sydney
See next slides
Other

2. Why Sydney? Costs (25% of Tokyo costs)
Mature office, 2 years of operation, main controls in place
Enron FO/MO/BO segregation model in operation
Language (Easy to recruit bilingual staff)
Time zone (1 hour ahead of Tokyo)

3. Reporting Lines and Responsibilities
All reporting signed off in Tokyo
Daily DPR & P/L from Tokyo to Houston
Weekly cash flow report from Tokyo to Houston
Monthly packs from Tokyo to Houston
Consolidated BS, P/L and notes
Bank reconciliation (Sydney)
CT, salary and other reconciliations
Curve validation
EMS report
Reconciliations in Sydney, approved by Tokyo
Signatures
Tokyo & Sydney can sign wire transfer requests individually
Tokyo approves G&A’s
Tokyo approves trade settlements (Validations)
Tokyo signs trade confirmations

4. Timeline BACK OFFICE MID. OFFICE Now August 25 Initial trades
General accounting functions in Houston
August 25
Move general accounting functions to Sydney
Invoice collection, reviewing and approval in Tokyo
MID. OFFICE
Initial trades
Legal in Tokyo involved in Documentation process
Books in spreadsheets
Manual settlement process
In general manual processes, everyone involved in details
Trade accounting in Sydney
Critical Deal Mass in place
Documentation, Settlement and Trade Accounting
Automate processes and move to Sydney
Logistics
Part of the Commercial team, in Tokyo, dotted line to Commercial Support
Risk Management
In Tokyo
System decisions, design and calibration

5. Enron Japan Commercial Support
Logistics
TOKYO
Communication &
Systems
Documentation
SYDNEY
Contract Details
Physical
Transportation
Trades
Risk Management
TOKYO
Physical
Volumes
Financial
DPR & P/L
Financial
Commercial
TOKYO
Price & Vol Curves
Settlement & Cash Flow
SYDNEY TOKYO
Corporate Reporting &
Local Statutory Reporting
& Tax/VAT Reporting
Treasury
HOUSTON
Accounting & Management
Reporting
SYDNEY