1. Foreign Exchange Hedging Tutorial: Currency Impacts 101 Foreign Exchange Impacts on Corporate Value Merrill Lynch Analyst & Investor Presentation Presented by FiREapps October 31, 2008

6. A Perfect Storm Copyright 2007 Rim Tec Inc. Slide

7. The Beginning of the Problem Business Units Corporate Controllers Banks and Trading Platforms Complex Exposure Reporting Spreadsheets Controller Treasurer 1. Accounting 2. Actions Copyright 2008 Rim Tec Inc. Slide Several days

8. Translate Your Financial Statements into Reporting Currency Copyright 2008 Rim Tec Inc. Slide

15. Index: Exposure Income Statement & Balance Sheet Impact Exposure Risk 2.Income Statement, Balance Sheet 1. Introduction Copyright 2008 Rim Tec Inc. Slide

18. Accounting Impacts & FAS 52 translation Copyright 2008 Rim Tec Inc. Slide translation No fx gain/loss from remeasurement Translation gain/loss (CTA) fx gain/loss from remeasurement No translation gain/loss (CTA) Transaction Currency Functional Currency Reporting Currency Result Example 1 Revenue EUR EUR USD USD value of EUR revenue at risk Example 2 Revenue EUR USD USD USD Value of EUR revenue at risk Example 3 A/R EUR EUR USD No income statement effect; only CTA adjustment in Balance Sheet Example 4 A/R EUR USD USD Income statement effect from FAS 52 remeasurement; no CTA adjustment

19. Impacts of a Rising Dollar Example: EUR Revenue Financial Statement Risk Notes Copyright 2008 Rim Tec Inc. Slide Result: $.27 (17%) difference between projected revenue & cash collection Q3 Guidance EUR USD Rate=1.55 August Sale 120 day payment terms Aug EUR Rate=1.50 Revenue EUR Revenue translated at August average rate August Month-end Balance Sheet Rate=1.45 FX gain/loss Account Receivable Remeasurement September Month-end Balance Sheet Rate=1.40 FX gain/loss Account Receivable Remeasurement December 27 Month-end Balance Sheet rate=1.28 FX gain/loss A/R Collected, Converted to USD

20. Index: Actions Operational & Financial Impact Exposure Actions Risk 2.Income Statement, Balance Sheet 3. Operational & Financial (hedging) Copyright 2008 Rim Tec Inc. Slide

24. Transaction Currency/Functional Currency and Impact on Cash Flow Hedging Copyright 2008 Rim Tec Inc. Slide Hedging Relationship Risk Transaction Currency Functional Currency Reporting Currency Cash Flow Hedge? Example 1 Revenue EUR USD USD Can hedge EUR-USD risk Example 2 Revenue EUR EUR USD Cannot hedge EUR-USD risk Example 3 Revenue EUR GBP USD Cannot hedge EUR-USD risk

26. Impacts of a Rising Dollar Example: EUR Revenue Financial Statement Risk Hedge Actions Copyright 2008 Rim Tec Inc. Slide Result: Reduced currency impacts on your corporation Q3 Guidance EUR USD Rate=1.55 Cash Flow Hedge – FAS133 Hedge accounting August Sale 120 day payment terms Aug EUR Rate=1.50 Revenue Cash Flow Hedge Expires Balance sheet hedge of A/R – 120+ days August Month-end Balance Sheet Rate=1.45 FX gain/loss Balance sheet hedge Continues September Month-end Balance Sheet Rate=1.40 FX gain/loss Balance Sheet Hedge Continues December 27 Collection Balance Sheet rate=1.28 FX gain/loss Close Balance Sheet Hedge when Cash is Converted

27. Index: Currency Impacts on Corporations Copyright 2008 Rim Tec Inc. Slide Impact Exposure Net Risk Actions Risk Solution 2.Income Statement, Balance Sheet 3. Operational & Financial (hedging) 4. What you should ask as an investor / analysts / board member 1. Introduction

30. Example Exposure Net Risk Actions Risk Balance Sheet Exposure = $1.2B Actions: <$800M> $400M x 10% (Vol) = $40M Net Risk Copyright 2008 Rim Tec Inc. Slide