1. POD - Opportunities to Better Utilize Existing Systems
Option
Benefit
Comments
Treasury Workstations (TWS, Treasura & XRT)
Review options for netting/ automated cross sweeps
Efficiency - Reduced number of intercompany payments
Improved Cash Utilization
EMEA currently utilizes this function
Treasury Workstations (TWS, Treasura & XRT)
Review options for Debt Management Modules
Potentially replace end user spreadsheets
Accuracy and Efficiency - automates numerous processes associated with Intercompany Loans (accrual calculations, cash flows, journal entries, and payment execution)
Efficiency - Halves the work for Intercompany Loans (1st legal entity posts on behalf of both entitles, with the 2nd entity reviewing and approving)
All regions manage IC loans via Excel except JAPA
Canada and JAPA have additional loan activity that can be entered
Review options for Investment Modules
Accuracy and Efficiency - Automates numerous manual processes associated with investments
Chase –
Insight and Access
Consolidate into one (these are 3 versions of the same service)
Expense Reduction – eliminates two systems
Improves consistency
Can be done immediately 1

2. POD - Opportunities to Better Utilize Existing Systems, cont.
Option
Benefits
Comments
Phoenix
Rollout of Phoenix to AMEX banks & EMEA region
Automation – Elimination of manual tracking spreadsheets
Reporting – Enhanced reporting and accounting capabilities
Establish automated link into Treasury workstations
Accuracy – STP decreases error rates
Efficiency – Elimination of manual input
Migrate FACTS functionality to Phoenix
Efficiency – Eliminate maintenance and enhancements to multiple systems
Adaptive
Perform assessment of existing functionality versus current functionality being utilized
Risk Management Improvement – understanding of calculations
Expense Reduction – potential elimination of other systems
Efficiency – potential elimination/streamlining of manual processes
Conclusion – While opportunities exist to enhance and consolidate individual systems within the POD AMEX Treasury architecture this approach will not address the key issues of numerous disparate systems and manual processes and the inability to provide timely analysis to downstream consumers. As such our recommendation is to focus on the core underlying problems as opposed to attempting to enhance the existing infrastructure. 2 2

3. System Functional Needs – Instruments
Debt
Short-term debt
Commercial paper
Short-term loans
Bank overdrafts
Negative cash balances at banks
Repos
Insured Network Deposits
Overnight credit lines
Master notes
CDs (Retail & Brokered)
High yield saving accounts
Sweep
Long-term debt (Unsecured)
Capitalize leases
Syndicated credit facility
Long-term credit facility
Medium term notes
Retail notes
Investments
Liquidity portfolio
Cash products
Investment Portfolio
State & municipal securities
Mortgage back securities
Other
Retained portion of ABS issuances
Retail notes
US government treasuries & agencies
Foreign government bonds
Mutual funds
Equities
Intercompany loans
Intercompany purchase of A/R (CC receivables)
Intercompany loan collateralized by A/R
Derivatives
FX instruments
FX forwards, non deliverable forwards & spots
Window forwards
Cross currency swaps & non deliverable CCY swaps
Interest rate swaps
Credit derivatives – CDS & Equity TRS
Embedded derivatives
Leases with foreign denominated
Embedded equity derivative

4. System Functional Needs – Functionality
Trading
Paperless trade entry through trading platforms
Robust trade workflow and approval process
Automated process to capture both sides of intercompany loans
Real-time position monitoring
Middle Office
Valuation of all financial instruments
Industry standard forward curves
Strong trade compliance (i.e. trade limits and counterparty exposure monitoring)
Automated trade confirmation capabilities
Sensitivity risk analysis
Collateral management
Back Office/Accounting
Compliance - FAS 91, 115,133 & 157/159
Ability to capture and account for all trade events
Monthly accounting close process
Segregation of accounting by legal entity and ability to account for multiple accounting basis
Cash Management
Bank Account Management & Fee Administration
Automated input of bank statements
Cash Polling, Reporting, Positioning & Forecasting
Netting and Pooling Options
Payment Capabilities
Intercompany Loan Management
Reporting
Collateral Management
Position Daily Average Balances
Regulatory reporting & analysis
GAAP disclosure reports
Data access for custom reporting by user
Interfaces
Standard Interfaces (Banks, trading platforms, market data providers, pricing sources, etc.)
Interface with Oracle
Technology
Segregate users based on security permissions
Data audit trails capturing data entry, modification and deletion
ASP deployment model

5. POA – Treasury Technology Conversion Cost Overview
High Estimate
2012
2013
2014
2015
2016
2017
Incremental Costs - Integrated TW
($600,000)
($500,000)
Implementation & Related Expenses
(1,226,280)
(3,272,880) -
Technology Exp./System Savings
216,800
1,391,800
1,681,974
Net Savings
($1,609,480)
($2,382,080)
$1,181,974
Cumulative Savings
($3,991,560)
($2,809,586)
($1,627,612)
($445,638)
$736,336
High Estimate has break-even of 5.6 years
Low Estimate
2012
2013
2014
2015
2016
Incremental Costs - Integrated TW
($400,000)
($150,000)
Implementation & Related Expenses
(1,226,280)
(3,273,880) -
Technology Exp./System Savings
216,800
1,391,800
1,681,974
Net Savings
($1,409,480)
($2,032,080)
$1,531,974
Cumulative Savings
($3,441,560)
($1,909,586)
($377,612)
$ 1,154,362
Low Estimate has break-even of 4.25 years
Assumptions:
Year 1 System’s Retired - TWS, Chase Insight, Adaptive and Chatham
Year 2 System’s Retired - XRT, Treasura, Phoenix, FACTS and JAPA Loan System
Interface to Oracle and Treasury Data Repository not included in costs 5

6. POA Systems/Functions Retained
System/Interfaces
Purpose
Comment
JPM Access/
Other Bank Websites
Bank websites used to import files and make payments
Function not available in treasury workstation
Market Data Vendors
Obtain valuation metrics
Trading Platforms
Execute transactions
EMS (Internal System)
FX Contract Acctg; Card member Currency Acctg. and Inter-Center spending payment lags
Unique functionality and analytics - not readily available in treasury workstations
MISYS
FX Confirmation Reconciliation System
Possible to replicate in Treasury Workstation, but requires customized builds and interconnects
IPA Banks
Issuing and Paying Agent Banks
DTCC
Depository/Industry Utility
BlackRock
Investment Mgt and related analytics and accounts
Expertise not in house and costly to replicate
Deloitte
Valuation – TRS; Embedded Derivatives, Non-FV instruments
High expertise investments – analytics not readily available in Treasury Workstations