Welcome to the Finance Club Kickoff Meeting

1. Welcome to the Finance ClubKickoff Meeting Ross School of Business University of Michigan September 2005

2. Agenda Overview: • Financial Services • Timeline • Finance Club Overview Functional Areas: • Corp Finance • Investment Banking • Research/Asset Management • S&T • PWM Wrap Up • To Do’s • Company Presentations

3. Financial Services Landscape EVC Club Investment Assoc. Finance Club • Venture Capital • Private Equity • Turnaround Mgmt. • Corporate Finance • Investment Banking • Capital Markets – Syndicate • Research • Sales & Trading • Asset Management • Private Wealth Mgmt. • Asset Management • Equity Research • Inst. Sales & Trading • Private Wealth Mgmt. • Personal Investing

4. Internship Search Timeline It’s Sooner Than You Think Sept. / Oct. Company presentations Form study groups, review Course pack, and begin profiling potential employers October 14 Resume deadline for iMpact Oct. 18-21 1st Term Final Exams Oct. 24-26 Wall Street Forum Ross Corporate Finance Forum Informational interviews Nov. / Dec. Jan. / Feb. On-campus interviews!

5. Finance Club Overview “The Finance Club is a student-run organization that provides members interested in finance careers (or finance-related) the resources, tools, and guidance needed to successfully reach their professional goals.” • Members of the Finance Club have a strong commitment towards building Michigan’s brand in Finance. • Your Resources: • OCD • Alumni • Faculty • Second Years • Each Other

6. Quotes from Alumni & Recruiters “The Finance Club at Michigan is the best of its kind in the nation because it has to be.” “If you have to, miss a class. NEVER miss a Finance Club meeting.” “The most successful students are those that treat the Finance Club and the recruitment process as a fifth class.” “Sometimes we like to ask individuals what they did in Finance Club over the past week just to see if they have been preparing themselves”

7. Corporate Finance • CFO and management team • Forecast revenues/expenses - budgeting • Invest in projects to maximize shareholder value • Treasury • Cash management, Invest excess cash • Controller • Internal auditing • Risk Management • Country risk • Market risk • Strategy and Business Development

8. CF - Just the Facts

9. Investment Banks • Raise debt and equity capital for clients • Maintain active securities markets enabling cost effective distribution • Financial advisory services • Mergers & acquisitions • Divestitures • Restructuring • Merchant banking (private equity investment) • Syndicate: selling securities to “the street”

10. Investment Bankers • Perform industry analysis • Create quantitative models to determine return on investment for all stakeholders • Perform sensitivity analyses based on different scenarios • Offer the client multiple financing options • Leverage the Capital Markets to execute these proposals

11. IBD - Just the Facts

12. Research / Asset Management Research • Also known as a Sell-Side analyst • Generates investment ideas for investors • Conducts fundamental analysis of companies within an industry • Identifies factors and trends that drive a company’s or industry’s future growth and comments on valuation of securities • Examples: CSFB, Morgan Stanley Deutsche Bank Asset Management • Known as the Buy-Side • Manage a portfolio of securities for other investors • Buy-Side includes • Mutual funds, Pension funds, Insurance companies, Hedge funds • Examples: Fidelity, Janus, Oppenheimer, Apollo

13. Research - Just the Facts

14. Sales & Trading • Represents the public or secondary market where investors can trade securities • Traders “make markets” in securities, providing liquidity to the market • Salespeople build relationships with the buy-side to draw trading business to its bank • Trading and sales desks must work together to be successful; many internship programs include rotations in both

15. S&T - Just the Facts

16. Private Wealth Management • Develops and manages relationships with wealthy investors • Markets the investment services of the firm • Advises clients on investment opportunities • Analyzes client portfolios • Additionally, provides advice regarding banking, lending and wealth transfer needs

17. PWM - Just the Facts

18. CONFUSED? • Conduct Self-assessment- interests, skills, sacrifices • Schedule OCD counseling appointments • Realize that finance is a wide field offering many different and exciting opportunities • Learn more about the functional areas • Ask questions- DUMB ONES TO US, smart ones to recruiters • Second-years are your best resources for information and first-years are your partners

19. To Do’s • Company presentations begin tomorrow • Resume book deadline of October 14 • Start forming study groups • Sign up for FinClub06 • Go to the Finance Club Website • Sign up for Finance Club

20. Company Presentations • On a daily basis, go to OCD Events and look up which companies are coming when – look for “Office Hours” too • Attire is business casual for every event unless stated • Research a company’s web page before they arrive (vault, wet feet, etc… are also great resources) • Ask great questions that show your knowledge about the company, industry, and market – stay away from personal/specific questions! • Be a good, courteous listener: • Do not walk around/leave • Do not talk • Do not disregard proper event attire • Do not eat food • Do not ask poorly thought out questions • DO NOT HAVE YOUR LAPTOPS UP • DO NOT HAVE YOUR CELL PHONES TURNED ON

21. Company Presentations • Be able to “talk the talk” • Read Wall Street Journal everyday • Review company/bank websites • Company overview section / investment bank • Investor relations / press releases • Investext for analyst reports, Vault.com, WetFeet • Be able to articulate early on: • Why do you want to do IB? • Why XYZ bank? • Tell me about yourself • Most important: listen, learn, and don’t eliminate yourself

22. Company Presentations • Good Questions: • Questions about their internship program • How the bank is organized • Questions about the bank’s strategy • Deals bankers have worked on • Trends in the investment banking industry • Bad Questions: • Too detailed – “Why did your bank’s credit card net income decline by XX% in the third quarter?” • Too vague / easily researched – “How big is your investment bank?”