Spend time to search for information on the latest developments on the company. With the advent of technology today, this has become so much easier compared to the pre-Internet era. Keeping abreast on the recent key developments of the company and the industry will definitely enhance your ability to engage in a broader range of topics during your dialogue with your interviewers. In fact, the very position that you are interviewing for may be the result of some recently announced business initiatives.

　　Note the names of the Chairman, Chief Executive Officer, Chief Financial Officer, geographical heads or other senior people in the organization responsible for key business or functional areas.

　　Find out the unique aspects that the company takes pride in, for example, people culture, innovation, management style, philosophy, etc.

　　Every global financial institution has a strong and distinctive corporate culture in order for them to function across diverse geographical regions and respond speedily to the dynamic nature of the inter-connected global financial markets. Most basic of all, employees in any business establishment must share common vision, values and spirit of enterprise in order to deliver its value propositions to clients. Some of the corporate leaders put in tremendous efforts to propagate its corporate philosophy. Having a good idea of what they are will allow you to better understand the company’s business culture, and why certain questions are asked during the interviews.

　　Current Affairs

　　This is a broad category and it is difficult to know them all. The financial markets are complex, all encompassing and fickle-minded. Economic performance, corporate events, government regulations and policies, political affairs, war & conflicts, monetary policies and terrorism could all have a profound impact on investors?sentiment and capital flows; and hence, affect the financial markets. Students of the financial markets must pay keen attention as to how all these confluence of factors interact with the respective financial markets, and differentiate both the short-term sentiment and long-term fundamentals. Major topics to pay attention to include the impact of the Federal Reserve of U.S. interest rate actions and the prevailing policies of the other G7 central banks; the compliance and accountability issues now facing corporations; trade sanctions between major trading blocks; crude oil prices; the major problems and issues facing the major G7 economies such as U.S., Japan and Europe; and details of the latest financial scandal or crisis, which will always be a topic of interest.

　　Having distilled all the news and its implications on various markets and investments, it is then essential to be able to make a judgment regarding the investment or portfolio on hand. This is not as easy as it sounds, as in most cases, the signals might not be that clear, and the markets could have already moved on the news. Success can only be achieved by constantly keeping abreast with the latest developments.

　　NonfinancialFinancial/Expectations

　　Average factory workweekStock prices(S&P500)

　　Initial claims for unemployment insurance Real money supply(M2)

　　Vendor performance(delivery lead times)Change in yield curve(10year note yield

　　Building permits minus Federal funds rate)

　　Real new orders for consumer goods and

　　materials Consumer expectations

　　Real manufacturer’s new orders,

　　nondefense capital goods

　　DescriptionValueNet Change%Changetime

　　North/Latin America

　　DOW JONES INDUS. AVG8737.85-5.08-0.0612/04

　　S&P 500 INDEX917.57-3.18-0.3512/04

　　NASDAQ COMPOSITE INDEX1430.35-18.61-1.2812/04

　　S&P/TSX COMPOSITE INDEX6610.36-30.25-0.4612/04

　　MEXICO BOLSA INDEX6187.67-34.01-0.5512/04

　　BRAZIL BOVESPA STOCK INDEX10640.11-22.72-0.2112/04

　　Europe/Africa

　　DJ EURO STOXX 50 P INDEX2577.00-8.42-0.3312/04

　　FTSE 100 INDEX4048.60-26.80-0.6612/04

　　CAC 40 INDEX3199.84-22.42-0.7012/04

　　DAX INDEX3320.7540.261.2312/04

　　IBEX 35 INDEX6512.80-69.60-1.0612/04

　　MILAN MIB 30 INDEX25450.0028.000.1112/04

　　AMSTERDAN EXCHANGES INDEX343.28-5.95-1.7012/04

　　SWISS MARKET INDEX5010.406.400.1312/04

　　Asia/Pacific

　　NIKKEI 225 INDEX8917.57-89.16-0.9901:01

　　HANG SENG INDEX9987.86-7.87-0.0823:35

　　S&P/ASX 200 INDEX3040.5013.300.4400:07

　　Industry SectorWeightage in Index(%)

　　Industrial12.0

　　Consumer Durables13.5

　　Health14.6

　　Finance20.9

　　Information Technology13.6

　　Type of CorporateAction Adjustment FactorDivisor

　　ActionAdjustment Required

　　Company Change(AdditionAdd new company market value Yes

　　&Removal of Company)minus old company market value

　　Share IssuanceShares Outstanding plus Newly Yes

　　(i.e.change¡Ý5%)issued Shares

　　Share RepurchaseShares Outstanding minusYes

　　(i.e.change¡Ý5%)Repurchased Shares

　　SpinoffPrice of Parent company minus(PriceYes

　　of Spinoff Co/Share Exchange Ratio)

　　Stock Split(i.e.2x1)Shares Outstanding multiplied No

　　by 2 Stock Price divided by 2

　　Special Cash DividendsShare Price minus Special DividendYes

　　Rights OfferingPrice of parent company minusYes

　　(Price of Rights/Right Ratio)

　　SectorSubsectorMacroMicroValuationStock

　　FactorsFactorsToolsDrivers

　　MultiIndustry GDP growth,

　　asset prices(particularly property)

　　Sum of parts,

　　DCF,

　　EVA

　　Relative value,restructuring,M&A activity

　　Real Estate Hotels, Dev-elopers, & investment Pro-perty Consul-tants

　　Interest rates, GDP growth, demographics

　　Supply,vac-ancies,

　　afford-ability, bank liquidity, government policy

　　P/E, NAV,

　　Adjusted ROE

　　P/E, NAV,

　　Adjusted ROE

　　Property sector turning points.

　　consumer senti-ment, rates

　　Technology PC/Wireless/Internet demand Inventory levels.order book.

　　new customers

　　P/E to Growth

　　Volume growth,

　　gross margins

　　Telecoms Economic growth demand for communications services,

　　regulations

　　Competitive landscape,

　　tariff changes,

　　customer acquisition costs prof-itability, network coverage/reli-ability’finan-cial strengthDCF,

　　EV/EBITDA,

　　P/EEE adjusted to growth rates,sum-of-parts

　　DCF,

　　EV/EBITDA,

　　P/EEE adjusted to growth rates,sum-of-parts

　　For developed markets,

　　exposure to data and internet assets, strategic partnership with int’l players,

　　restructuring in emerging Asia

　　Transport Airlines GDP growth,

　　oil pricesNew aircraft orders,

　　aircraft utilization,

　　fuel hedging

　　Earnings momentum

　　Utilities GDP growth.

　　weather,

　　regulatory policy

　　Unit fuel costs,

　　growth in instal-led capacity

　　EV/EBITDA,

　　P/E,

　　EV/Capacity, CF,

　　sum of parts

　　Restructuring,

　　realizing hidden value

　　BanksGDP growth,

　　loan growth,

　　interest rates?asset prices

　　Cost structure.

　　noninterest income contribution?target market strategy,

　　technology usageP/ABV,

　　P/BVGDP growth.

　　spreads,

　　country risk pr-emiums,

　　M&A activity

　　Oil & GasExploration &

　　Production Oil prices Production growth profile, exploration upside potential, management track record.

　　P/C E,

　　P/NAV.

　　EV/EBITDA

　　P/C E,

　　P/NAV.

　　EV/EBITDA

　　Oil pricesRefining &

　　MarketingOil pricesRefinery complexityP/E Refining

　　marginsBase Materials Paper & Forest ProductsCommission pricing, global GDP(demand),new capacity additions(supply)Inventory lev-els,

　　production cost changesInventory lev-els,

　　production cost changesEV/EBITDA,

　　P/E,

　　NAV

　　EV/EBITDA,

　　P/E,

　　NAV

　　Product pricing,Restructuring storiesRetail/Consumer Goods

　　Food, Beverage,Tobacco, Appa-rel Retail, Food Retail, Household Applian-ces, Footwear Supply

　　Influences on consumer senti-ment(GDP growth,asset prices particularly property, change in unemployment rate), inflation/deflation(pricing power, sourcing cost), rentals,salaries’exchange rate(for imported materials), savings rate, population growth/household formation

　　Cost structure,product strat-egy, distribution and marketing strategy, relative pricing

　　PE/Growth,

　　E V/EBITDA,

　　EV/EBITDA

　　Growth, P/B VPE/Growth,

　　E V/EBITDA,

　　EV/EBITDA

　　Growth, P/B VDemand dyna-micspricing/volume,

　　margin expansion pote-ntial, restruc-turing, M&A activity

　　Source: MORGAN STANLEY DEAN WITTER, Asia/Pacific Investment StrategyEV: Enterprise Value;

　　EVA: Economic Value Add;

　　DCF: Discounted Cash Flow;

　　NAV: Net Asset Value;

　　P/ABV: Price to Adjusted Book Value Multiple;

　　P/B: Price to Book Value;

　　P/CE: Price to Cash Earnings;

　　P/E: Price to Earning ratio

　　7/3/2001S Sales EPSEarning EstimatedPEGMktYTD ROIC

　　Per ShareEPS Growth

　　Earning Data(5year growth

　　estimates)

　　Price01-05E01-05E0001E02E00?01/02/200020012002Cap%Chg0001E02E

　　00E01E

　　595%10%1.691.922.2316%13%16%2.182.361.6536,308-9%27%31%35%

　　295%10%1.181.011.173%-14%17%8.19na.1.4530,548-20%19%18%24%

　　565%10%3.323.403.7411%3%10%1.535.491.4930,398-21%22%21%23%

　　644%9%3.003.203.583%7%12%7.112.861.4982,672-19%21%18%18%

　　714%12%2.603.274.0613%25%24%2.100.860.7270,0215%nanana

　　5994%12%27.829.937.422%7%25%0.972.860.6439,4925%nanana

　　765%11%1.521.711.9424%12%13%2.083.703.0151,545-16%nanana

　　10%13%8%17%-11%22%22%25%

　　122410%53.956.664.514.56.810.01.563.181.90-7%

　　Colagate($)

　　Gilette($)

　　Kimbely Clark($)

　　Procter Gamble($)

　　Unilever NV(EUR)

　　Unilever PLC(p)

　　L’Oreal(EUR)

　　Large Cap Average

　　S&P500

　　Mkt cap: Market Capitalization

　　YTD Price Change: Year-to-date Price Charge

　　ROIC: Return on Invested Capital

　　PEG: Price Earnings/EPS Growth

　　Valuation ParametersP/ERelative PEP/CEEV/EBITDADividend Dividend

　　2000E2001E2002E2000E2001E2002E2000E2001E2002E2000E2001E2002E

　　34.930.826.5153.7147.3139.632.626.926.218.817.215.70.631.1%

　　24.628.824.7108.3137.7130.023.326.924.013.214.913.50.652.2%

　　16.816.414.974.178.676.616.115.714.910.29.79.11.122.0%

　　21.319.917.893.695.393.819.719.117.711.711.010.51.402.2%

　　27.221.717.4119.7103.891.729.022.518.213.412.210.91.432.0%

　　21.520.116.094.896.084.426.820.416.511.811.210.00.130.0%

　　50.144.639.3220.7213.3207.1na na na27.024.1na0.440.6%

　　28.126.022.4123.6124.6117.924.622.319.615.214.311.60.831.4%

　　22.720.919.0100.0100.0100.0na na na16.71.3%

　　Colagate($)

　　Gilette($)

　　Kimbely Clark($)

　　Procter Gamble($)

　　Unilever NV(EUR)

　　Unilever PLC(p)

　　L’Oreal(EUR)

　　Large Cap Average

　　S&P500

　　P/CE: price/cash earnings

　　EBITDA: Earnings Before interest, Taxes, Depreciation & AmortizationPreviousPreviousCurrentCurrentYld ChgPrc Chg

　　BillsMatPriceYieldPriceYield

　　3month11/14/021.58(1.61)1.59(1.62)0.01+1

　　6month2/13/031.53(1.56)1.54(1.57)0.01+1

　　Notes/PreviousPreviousCurrentCurrentYld ChgPrc Chg

　　BondsCouponMat DatePriceYieldPriceYield

　　2year2.2507/31/04100-17+(1.96)100-19(1.94)-0.02+0.01

　　5year3.2508/15/07100-20(3.11)100-26(3.07)-0.04+0.06

　　10year4.3758/15/12102-11+(4.09)102-19+(4.05)-0.03+0.08

　　30year5.3752/15/31106-06+(4.97)106-14(4.95)-0.01+0.07Current and previous yield curves not differentiated in above chart as yield change was minimalBond Investment Return Calculation-US$ Benchmark Unchange

　　Assumptions2 April 20012 Sep 2002

　　Yield %Yield %

　　U.S. Benchmark5.005.00

　　Hanvit Spread8.002.77

　　(12.75% due Dec 2, 2005)13.007.77

　　Bond Price%99.10056114.03410

　　Interest Accrual $/$100 face value4.25003.1875

　　Investment Cashflow: Assuming US$1,000,000.00 face imvestment

　　Purchase cost(2 April 2001)1,033,505.60(99.10056%X1,000,000)+

　　($4.25¡Á1,000,000/100)

　　Sale Proceeds (2 Sep 2002)1,172,216.00(114.03410%¡Á1,000,000)+

　　$3.1875¡Á1,000,000/100)

　　USD Profits138,710.40

　　Coupon Payments191,250.00(3 sa coupon payments

　　received each US$63,750,

　　as Hanvit did not default)

　　Total Investment Returns USD329,960.40

　　Actual Returns over Period31.9263%

　　Annualized Returns22.1882%(investment period of 518 days)CurrencyCurrency Code in Global Fx Markets

　　US DollarsUSD

　　Japanese YenJPY

　　EuroEUR

　　Sterling PoundsGBP

　　Swiss FrancsCHF

　　Australian DollarsAUD

　　New Zealand DollarsNZD

　　Hong Kong DollarsHKD

　　Singapore DollarsSGD

　　Korean WonKRW

　　Chinese YuanCNY

　　New Taiwan DollarTWDCurrercy distribution of reported globalforeign exchange market turnover1

　　Percentage shares of average daily turnover in April

　　1989199219951998.22001

　　US Dollar90.082.083.387.390.4

　　Euro----37.6

　　Deutsch Mark327.039.638.130.1-

　　French Frane2.03.87.95.1

　　ECU* EMS*Dollar4.011.815.717.3-

　　Japanese Yen27.023.424.120.222.7

　　Sterling Pound15.013.69.411.013.2

　　Swiss Frane10.08.47.37.16.1

　　Caradian Dollar1.03.33.43.64.5

　　Australian Dollar2.02.52.73.14.2

　　Swedish Krona4-1.30.60.42.6

　　Hong Kong Dollar4-1.10.91.32.3

　　Singapere Dollar4-0.30.31.21.1

　　Emerging Market-0.50.43.05.3

　　Currencies4,5

　　Other22.08.57.99.310.0

　　All Currencies200.0200.0200.0200.0200.0

　　*ECU: European Currency Unit

　　*EMS: European Monetary SystemCurrency PairExplanation

　　USD/JPY

　　Other major USD reference pairs:

　　U SD/CHF;

　　USD/CAD;

　　USD/RMB

　　E UR/USD

　　Other major EUR reference pairs:

　　E UR/JPY;

　　EUR/STG;

　　EUR/AUD;

　　EUR/CHF

　　How much is one USD worth in JPY terms,i.e. a USD/JPY quotation of127means that it takes127 JPY to exchange for 1 USD.When the market says that JPY has strengthened,it means that the USD/JPY FX rate is lower than127,e.g.123. That is, it takes less JPY now to buy 1 USD, thus JPY has strengthened.

　　W hen the market says the¡°Dollar Yen¡±is up, it would mean that USD has appreciated(gotten stronger)against the JPY; in this case, it could have risen to130.

　　This quote means how much USD is needed in exchange for one EURO. Does it matter if it is quoted or understood incorrectly? Let us take a look atthe following example:

　　A client wants to buy EUR1mln, and sell his USD in the process. Bank dealer quotes EUR/USD at 0.9700, the market convention.The correct transaction would mean that the client is charged only USD 970,000 and he gets his EUR1mln.

　　If one interprets it incorrectly and thinks the quote refers to amount of EUR for 1 USD,then the client could be mistakenly charged USD 1,030,920 for his EUR1mln.

　　A difference of US$60,920,which could be someone’s annual salary.

　　Currency PairExplanation

　　EUR/JPY

　　This quotation represents the amount of JPY required to buy 1 EUR.If one knows the FX rate of EUR/USD and USD/JPY,one can work out the EUR/JPY rate,which is commonly know as a CROSS RATE.

　　E.g.: E UR/USD...........0.9700

　　USD/JPY............127.00

　　EUR/JPY would be(0.97¡Á127)=123.19

　　Initial USD

　　Investment in the Local Currency

　　Initial Investment in Equivalent RMB

　　Exchange Rate Before Crisis/U SD

　　Local Equiva-lent of USD Investment Exchange Rate at Peak of Crisis

　　USD Equiva-lent of Local Currency at Peak of Crisis

　　Loss in USD

　　Loss in Equivalent RMB

　　100,000830,000

　　IDR2,150,000215,000,00015,000,00014,33385,667711,033

　　MYR2,100210,0004,40047,72752,273433,864

　　MYR

　　THB25,0002,500,00050,00050,00050,000415,000

　　The Firm

　　SecuritiesInvestment ManagementFinancial Services

　　Institutional SecuritiesTraditional InvestmentRetail Banking

　　A:Investment BankingMutual FundsA.Traditional Products

　　-Deposits& loans

　　1.Advisory ServicesSeparately Managed-Credit Cards

　　-Corporate FinanceAccounts-Mortgage Lending

　　-Mergers,Acquisitions

　　& RestructuringB.Investment products

　　-Real EstateAlternative Investments

　　2.Securities UnderwritingHedge FundsForeign Exchange

　　-Equity Capital MarketsMutual funds

　　-Debt Capital MarketsFund of Funds

　　C.Bancassurance

　　3.Principal ActivitiesVenture Capital

　　-Direct investments& Private

　　-Risk arbitrageEquity Funds

　　-Bank loan

　　-Inter-bank TradingReal Estate

　　B:Institutional Sales &TradingIndividual Investor Group

　　4.EquityA:Investor Advisory Services

　　-Core

　　-ConvertibleB:Wealth Management

　　-Derivatives

　　C:Self-Directed Investors

　　5.Fixed Income

　　-Interest rateD: Online brokerage

　　-Foreign Exchange

　　C:research

　　6.Euity

　　7.Fixed Income

　　D:Securities Services

　　-Securities Lending

　　-Prime Brokerage ServiceCoverage UniverseInvestment Banking Clients(IBC)

　　Stock Rating Count% of Count% of Total % of Rating CategoryTotalIBCCategory

　　Overweight688342724140

　　Equalweight949462934431

　　Underweight41420961523

　　Total2051661