My International Experience at JPMorgan By Luis Morinigo

1. My International Experience at JPMorgan By Luis Morinigo University of Maryland Finance, Banking, and Investment Society Mar 31, 2010

2. Contents Background: your past helps define your future Deciding between Consulting vs Banking Confusion: what area of the Bank does what? Choosing the right Bank (or Company) for you Where I eventually ended up: JPMorgan DR group What are Depositary Receipts? JPMorgan’s position in DRs War stories from my experience abroad Key Takeaways

3. Background: your past helps define your future University of Maryland • Dual degree in Math and Econ , Honors Program • QUEST Program • Entrepreneurship Program and Hinman CEOs ISTN, Inc • Business Development Analyst • Part time/Full time during the school year • Frank Yang, Director of Business Development , Ex Lehman Bros. London School of Economics • MSc in Operational Research  “engineering for social sciences” – Luis Morinigo • Introduction to a very different culture JPMorgan Chase • Graduate Rotational Program, 2 yrs • Global Technology Infrastructure • Depositary Receipts • CFA exam MOSA Productions • Chief Operation Officer (COO), Co-Founder • Entrepreneurial venture integrating music and travel NOTHING IS A WASTE OF TIME !! Focus on building skills in each step along the way and learn as much as you can from each experience

4. The decision: to consult or not consult? Consulting Banking • The hours are better: average of 12 hour days vs 16 hour days • Traveling (can be a minus, but I looked at it as a plus) • Collegiate atmosphere, getting work done but ensuring your professional success – heavy emphasis on social events, helping consultants build contacts and relationships throughout the firm • Project workflow planning and execution • Power point master • Broader business knowledge • NETWORKING!! • Exit Opportunities: flexibility into other industries (because of broader business exposure) • At the time, the financial markets were booming, especially internationally • BONUSES BONUSESBONUSES! • More competitive, hierarchal structure- more tense relationships with bosses, coworkers much less willing to help each other out • Its all about financial valuation • Work endurance • Seeing deals get done • Excel master • Master of your universe • Exit Opportunities: flexibility within the world of finance VS I was bitten by the banking bug because I wanted to prove I could cope with the long hours – I had influence from my old boss at ISTN, inc. MOSA Productions

5. Banking offers many choices; it can be very confusing THE BIG BANK Corporate Finance Capital Markets Sales and Trading Treasury Services Asset Management IT and Operations • Mergers and Acquisitions • Vanilla products • Exotic and hybrids • Derivatives • Clearance and collateral • Escrow • Cash management • Business processes • Trade settlement • Technology support • Product Management • Business Management • Wealth management • Private Banking • Underwriting • Debt Capital Markets • Equity Capital Markets SUPPORT FUNCTIONS CAUTION: Choose your graduate program wisely Graduate rotational programs allow you to test each area! Think about your likes and dislikes; your skills and abilities to position yourself in the area you think you will fit the best

6. Choosing the right Bank for you: key things to think about Step 1 Step 2 Step 3 The interview Oct 17, 2004: The accident Picking up the pamphlet • 2 days of interviews • Case study • Psychometric test • Accepted in June 2005 to start in September 2005 • Got my “foot in the door”… or so I thought • Walking out of one of my classes two months later, I stumbled across a JPMorgan “360 degree pamphlet” • It turns out that they are still in the process of recruiting graduates • Only caveat: “operational program” • Severely broke my leg playing soccer while attending LSE • Missed all of the “front office” graduate recruitment deadlines • Massive setback in a heavily competitive recruitment process Once you choose a particular graduate program (in this case it was operations for me), it is very very difficult to move anywhere else (internally and externally!! I did, but it was very very lucky! My thought process: well, I got my foot in the door now I can go wherever I want. WRONG! Your Values Your Traits Firm Values Firm Culture IMPORTANT: what you feel is important to you in your life should be reflected to what the firm feels is important. Example: JPMorgan’s “old school” mentality • The more you know yourself, the easier it will be to choose the right firm for you based on what they value

7. Where I eventually ended up: Thanks Hugo!! Treasury and Securities Services InvestmentBank Asset & Wealth Management Commercial Banking Consumer Card Services Retail Financial Services • Treasury Services • Worldwide Securities Services • Credit & Rates Markets • Mergers & Acquisitions • Institutional Equities • Proprietary positioning • J.P. Morgan Asset Management • J.P. Morgan Private Bank • Private Client Services • J.P. Morgan Invest • Chase Middle Market • Asset Based Lending • Commercial Real Estate • Equipment Leasing • Credit Cards • Merchant Processing • Consumer Banking • Auto & Education Finance • Home Finance • Insurance • Small Business Banking After 1 year in the operations graduate program, I was about to leave… but I met my good friend Hugo on the tube and thus began my DR adventure. Depositary Receipts Group is here • Luck = opportunity meeting preparation

8. What are Depositary Receipts? (the boring stuff) Basic facts about Depositary Receipts • ADR refers to U.S.-listings or placements; GDR/HDR/SDR refer to listings which can be in Europe, Hong Kong or Singapore respectively • Depositary receipts are issued against the deposit of the issuer’s local shares in the custody account of the depositary bank in the Issuer’s home market • Depositary receipts are issued and cancelled to meet supply and demand in the markets in which they trade • Depositary receipts trade just like any other security on the exchange on which they are listed and/or traded • Depositary receipt settlement takes place in accordance with the protocol of the exchange and settlement system • Each depositary receipt represents a specific number of an issuer’s local shares (or a fraction). This number is called a DR ratio. The DR ratio sets the price of each DR in a price range competitive with the issuer’s international peer group As an analyst in the DR team my main responsibilities were to deliver the highest level of global capital market analysis and RFP support DR = equity-linked product that acts exactly as a regular stock that can be traded on a particular exchange 3

9. A leader in the industry A history of J.P.Morgan’s innovations 1st DR public offering: British Petroleum Rosneft IPOLargest GDR capital raising ADR MAX created J.P.Morgancreated the 1st DR JPM DR Indexes J.P.Morgan created http://www.adr.com DR Issuer Advisory Services launched 1927 1960 1970 1979 1998 2003 2005 2006 2007 • Leading GDR experience globally • Since inventing DRs in 1927, J.P.Morgan’s business model has concentrated on long term relationships, maximising ownership and liquidity in our clients’ DR programmes • J.P.Morgan manages 8 out of the top 20 largest DR programmes globally and has outstanding expertise with LSE listed offerings. J.P.Morgan acted as Depositary on the largest GDR offering ever (Rosneft, $10.6bn IPO, 2006) and the largest GDR offering from Africa in 2007 and first LSE listing of a Nigerian issuer (Guaranty Trust Bank, $825m). • JPMorgan continues to maintain a very strong position in the DR market

10. Now the fun stuff: stories from conducting business abroad • Learn to spell properly!! (colour vs. color) • American Football vs Rugby • “Hey, Yo, MORINIGOOO!” • Respect for history • All other Scandinavia countries included (Denmark, Norway, Iceland) • Giving up revenue sharing opportunities for the “greater good” • Russia: the respected power (a very proud nation) • Major deals from Oil and Gas • Good times at the Baltic Restaurant! • Nigeria: GTB (Guaranty Trust Bank) • Issuance of DRs (bicycles, fragile phone connections, etc.) • Understand and appreciate where you came from • Having a large amounts of knowledge about your own background has a very positive impression on other business parties involved • Americans are ignorant about other Americans! Three key things to remember: the importance of cultural differences, maintaining the highest level of attention to detail, and finally… ADAPT, ADAPT, ADAPT

11. Key Takeaways Zone in our your key skills and leverage them to get ahead Research, research, research what you are looking to get into KNOW YOURSELF and understand what motivates you Align your values to a company that reflects those same values Network and speak to people in the industry – the best information will come from here When working abroad, become a cultural GURU If you’re not having fun, do something else … Life is way to short to be wasting it Continue to challenge yourself by getting out of your comfort zone • ATTENTION TO DETAIL will save you!