Confidential
Base Metal Outlook, Financing Alternatives and Risk Management
February 2011
PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATIONThese materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Credit Suisse.
February 2011
Table of Contents
� Credit Suisse is pleased to sponsor and participate in the PROEXPLO 2011 – Congreso Internacional de
Prospectadores y Exploradores.
� Credit Suisse has been consistently recognized for its presence in metals markets.
� Over the past few years, Credit Suisse has become the counterparty of choice for many metals producers and
consumers around the world.
� Credit Suisse has a complete team of traders and marketers with many years of experience and unparalleled
execution skills.
� Our strategic long term licensing and consulting agreement with Glencore provides us with unique insights and
differentiates Credit Suisse from our peers.
� In this presentation, we will cover the following topics:
– Economic outlook and commodity markets
– Financing alternatives
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11
– Price risk management
– Questions & Answers
Confidential
Commodity Markets Outlook
PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATIONThese materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Credit Suisse.
Factors driving metals prices higher
Commodities should continue to perform well in 2011, with growth likely
to remain above average
� Strongest performance to come from commodities
heavily used in construction/infrastructure and
2010 Price Performance by Commodity
heavily used in construction/infrastructure and
production, as well as agricultural products
� Crude and coal prices likely to remain more range
bound – macro stability may be at risk should energy
prices break significantly higher
� Robust new inflow into commodities as an
investment class
� We believe that global recovery strengthens, the
Credit Suisse Commodity Forecasts 2011
Confidential
3
� We believe that global recovery strengthens, the
correlation between the US$ and commodity prices
will weaken gradually
� Expectation of continued low interest rate in G7
countries should also support commodities
75
100
125
150
175
200
225
250
(5)
0
5
10
Inflows (Left Axis) AUM (Right Axis)
Robust new flows into commodities push prices higher
50
100
150
200
250
300 Commercial Non-commercial Physically backed ETFs
Commodity Linked AUM (US$Bn, estimate) Commodity Linked AUM (US$Bn, estimate)
0
25
50
75
Jan-11
Oct-10
Aug-10
May-10
Feb-10
Nov-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
Jul-08
(10)
(5)
Source: the BLOOMBERG PROFESSIONAL™ service, Credit Suisse Global Commodities Research Source: the BLOOMBERG PROFESSIONAL™ service, Credit Suisse Global Commodities Research
0 Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
EUR/USD and Commodity Price Correlations
Price correlations have changed since January 2010
� Dropping for Brent
� Reverting for Gold
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4
� Holding steady for Copper
Source: Credit Suisse calculations
Global growth is gathering momentum
Global Manufacturing PMI New Orders Index vs. Global IP Momentum
Global Composite PMI New Orders Index vs. Global GDP Growth
Growth Gap between Emerging and Developed Markets
Global Real Fixed Asset Investment
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5
China PMI DataChina PMI weakened further in January
� January PMI weakened by 1% to 52.9, reflecting a mild
moderation in economic activities, though partially distorted
by the early arrival of the Chinese New Year festival.
� The PMI new orders index declined 0.5% to 54.9. Most
infrastructure related items and metal items fell, while other
Pressure on inflation rebounded
sectors were mixed. The PMI new export orders index was
down 2.8% to 50.7, dragged by a sharp fall in metal export
orders.
� The PMI input price index was up 2.6 p.p. to 69.3, with the
indices of most infrastructure-related items rising. Pressure
on raw material prices remains acute in China, fuelled by the
resilience of the economy and excess liquidity conditions.
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6
� A slowdown of this magnitude should not trigger any policy
change in Beijing. The rise of the PMI input prices index in
this survey does not offer any comfort to inflation concerns
among policy makers, in our view.
Global Economic Forecast
Summary Forecast Table
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7
Commodity Price Forecasts
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8
Source: Credit Suisse Research: Commodities Quarterly, Jan 7th 2011Please consult in conjunction with the complete Research report being made available concurrent with the presentation
Confidential
Financing
PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATIONThese materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Credit Suisse.
Roadmap for Long Term Capital Structure
Early Stage Equity
Bank BondIPO / Follow-on
offerings
Company building, exploration and early stage development
Company grows in size and seeks financing from banks
Company builds a market reputation and start to issue bonds
To achieve a mixed capital structure Company gains access to equity market
Commodities Group and Private
Bank
Debt Capital Market / High-
Yield
Equity Capital Market
- Project loan facilities
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10
Credit Suisse offers a full product suite to build long-term relationships and assist clients in each step to achieve their ultimate goals
- Project loan facilities- Equipment finance- Structured trade finance
- Commodity risk management
Lending Considerations
TARGET BORROWER
Market Identifiable market with positive long-term fundamentals
Reserve Base Sizable JORC compliant proven reserve base
Management Strong management team with proven experience
Track Record Strong track record of performance
Solid Margins Healthy cash margin at current price and futures implied priceSolid Margins Healthy cash margin at current price and futures implied price
Ownership Solid equity base with reputable shareholders
Price Hedging Limited commodity price risk, through physical or financial contracts
TARGET SECURITY
Senior Secured Senior pari passu to all outstanding obligations
Licenses and Titles Assignment of mining rights, titles, licenses (to the extent permitted by law)
Off-take Contracts Assignment of off-take contracts
Assets Charge over fixed assets or other available asset collateral
Price Hedge Charge over any hedging agreements
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11
Price Hedge Charge over any hedging agreements
Cash Accounts All receivables paid directly to designated accounts held by the Lender
TARGET LOAN TERMS
Tenor 3 – 6 years
Size USD 30 – 75 million, as sole arranger
Spread Approx. 3.0 – 8.0% over LIBOR1
Transaction Time 1 – 2 months
(1) Margins determined based on loan size, tenor, and company credit quality.
Summary Transaction Diagram
1CS Secured FinancingUS$50 million
Security Package2
3
Offtake Contract
Offtake PaymentsCollection Accounts
4
Excess Cashflows(subject to maintenance threshold)
5
Metal Price Hedge
Metal Price Hedge Payments
6
7
COMMODITY TRADINGOfftaker Borrower / Sponsor
8Spot metal / mineral sales
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12
Debt ServiceCapital
ExpenditureOperating Expenses
Taxes and Royalty
Timeline for deal execution
Pre-mandate/Initial due diligence(Primary Requirements Needed)
1-2 weeks
Term sheet negotiation / Exclusive CS Lending Mandate
1-2 weeks
1-4 weeks
Detailed due diligence(Secondary Requirements Needed)
(Independent Report Prepared)
4-6 weeks
Documentation
3-6 weeks
2-4 weeks
CS Credit Internal Approval(Site Visit and Mgnt Meetings)
3-4 weeks
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13
Process can typically be completed within 5-10 weeks depending on availability of information, complexity of asset/structure and market conditions
Market Syndication (if any)2-4 weeks
US$55,000,000 upsize
Project term loan
Sole Lead Arranger
December 2010
US$85,000,000
Joint Lead Arranger
December 2010
Project finance term loan facility
US$50,000,000
Project finance term loan
Sole Arranger
October 2010
Mining finance transactions
US$13,000,000
Sole Lead Arranger
December 2010
Silver Prepay
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US$45,000,000
Project finance term loan
Sole Arranger
November 2009
GB£45,000,000
5 year term loan due December 2014
Mandated Lead ArrangerMarch 2010May 2010
US$100,000,000 /US$ 30,000,000 Term loan / revolving facility
Co-Lead Arranger
US$47,000,000US$25,000,000 upsize
Term loan
Sole Arranger
September 2010
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14
US$30,000,000
Term loan
Sole Arranger and Underwriter
February 2009
US$190,000,000 / US$80,000,000Project finance term loan / Bridge facilityJoint Lead Arranger and UnderwriterApril 2009
US$30,000,000
Term loan
Sole Arranger and UnderwriterJune 2009
US$20,000,000
Senior Secured Export Finance Facility
Sole ArrangerJune 2009
Kingsrose Mining, Way Linggo Project.
A$13,000,000
Kingsrose Mining –Prepay Financing Case Study
Summary Terms and Conditions
Project finance loan
� Borrower: Kingsrose Mining
� Amount: A$13 million.
� Maturity: March 2013.
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A$13,000,000Sole Arranger
December 2010
� Maturity: March 2013.
� Silver: 486,000 oz delivered.
� Security: Parent Guarantee and Asset Security.
� Documentation: Transacted under ISDA.
Transaction highlights
� Silver prepay proceeds used to retire existing shareholder debt and provide liquidity to company.
� Time period from board decision to receipt of funds was very short, ~ 4 weeks.
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15
� Transacted under ISDA documentation, minimising legal costs and execution time.
� Company was able to move quickly to take advantage of high silver prices and capture the high forward prices to repay
existing debt.
Orvana Minerals Corp. Kinbauri Espana
Summary terms and conditions
Project finance term loan
� Borrower: Kinbauri Espana S.L.U.
� Loan amount: US $50 million
� Maturity date: 31 December 2015US $50 million structured trade finance loanGold hedging facility
Kinbauri gold project
� Rate: LIBOR + 4.00%
� Sole Arranger: Credit Suisse
� Security over assets of the project including mining rights, processing plant, mining equipment, and ground leases
Transaction highlights
� Refurbishment of existing gold mine with 10-year mining history
� Loan used to finance new equipment [and capital expenditures]
� 5-year term loan underwritten by Credit Suisse
Gold hedging facility
Mandated Lead Arranger
October 2010
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16
� 5-year term loan underwritten by Credit Suisse
� One-bank approach leveraging resources of the Private Bank and the Commodities Group
� Copper hedge for 13,672 tonnes from 2011 to 2015 at US $3.11 per tonne
� 37,500 ounces of gold sold forward from 2012 -2015 at a forward price of US $1,334
� Credit Suisse selected from 8 banks in a competitive process
Coeur d’Alene MinesKensington financing case study
Summary terms and conditions
� Borrower: Coeur Alaska Inc.� Guarantor: Coeur d’Alene Mines Corporation � Loan amount: US $45 million
� Maturity date: December 2014� Rate: LIBOR + 5.00% (upsize at LIBOR + 4.50%)
� Purpose: Finance equipment and tailings facilityUS $45,000,000 term loanUS $55,000,000 upsize
Coeur Alaska; Kensington gold project
� Purpose: Finance equipment and tailings facility� Security:
– First rank over Proceeds and DSRA– Shares of the borrower– Fixed and floating charges over all assets and
equipment
Transaction highlights
� Kensington is a 2 million ounce underground gold mine in Southern Alaska� Credit Suisse acted as sole arranger and underwriter� Rapid execution in approximately 2 months� Project gold cash cost of US $372 per ounce
US $55,000,000 upsize125,000 ounce gold hedging facility 125,000 ounce gold hedging facility upsizeSole Arranger and Underwriter
December 2009 & December 2010
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17
� Project gold cash cost of US $372 per ounce� Hedge:
− 125,000 ounce 5-year Mandatory Gold Hedging program− Costless collars structured to ensure repayment of debt with comfortable DSCRs
� Upsized transaction closed within 4 weeks of mandate− Reduced debt margin from 5.00% to 4.50%− Increased facility from $45 million to $100 million− Doubled the size of the hedge facility from 125,000 ounces to 250,000 ounces
Great Basin GoldFinancing case study
Summary terms and conditions
Project finance term loan
� Borrower: Great Basin Gold Ltd.
� Guarantor: Southgold Exploration (PTY) Ltd.US $47 million project finance term loanUS $25 million loan upsize
Great Basin Gold, Burnstone Gold Mine
Transaction highlights
� Loan proceeds used to complete construction of Burnstone Gold Mine in Witwatersrand Basin, South Africa
� US $47 million project loan, upsized to US $72 million
� Initial loan amount: US $47 million funded in April 2010
� Upsized loan amount: US $25 million funded in August 2010
� Maturity date: May 2014
� Rate: LIBOR + 4.00%
� Grace period: 9 months
� Security: First ranking charge over assets of the mine, pledge
over offtake contract, pledge of shares in Southgold,
US $25 million loan upsize Gold Hedging Facility
Sole Arranger
April 2010 & September 2010
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18
� Great Basin implemented hedging program consisting of 105,000 ounces using zero cost collar
� Offtake contract signed with Red Kite Explorers Trust for 3.5 million ounces over 10 year period
� 4 million ounce gold project with a 15-year mine life
� Average mine life cash cost below US $400 per ounce
� Rapid execution - Initial transaction ($47 million) from inception to financial close took 6 weeks
� Amortization sculpted to maximize Debt Service Coverage Ratio
Case study: Mineral Park Inc.
Transaction summary
Asset overview
� Copper / molybdenum mine located in Northwestern Arizona� Expansion of concentrator capacity from 30,000 tons/day to 50,000 tons/day
expected to be completed by Q1 2011
Transaction overview
� Financing:−$100million 6-year term loan and $30mm 4-year revolving facility−$100million 6-year term loan and $30mm 4-year revolving facility−Proceeds used to prepay existing $120mm notes (under the indenture of which
hedging was not permitted), associated penalties and transaction costs−Hybrid corporate / project covenant package providing operating flexibility to
borrower while mitigating single asset, partially operating project risk:− Full security in assets and typical PF financial covenants− No completion guarantee allowing listed parent to develop other
projects−Silver by-product had been pre-sold in Q1 2008 through stream loan from
Silver Wheaton� Hedge:
−145 million pounds copper 6-year forward swap executed within 10 days of financial close
−Structured to ensure repayment of debt with comfortable DSCRs under
US $100mm term loan
US $30mm revolving facility
145 million pounds copper hedge
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19
−Structured to ensure repayment of debt with comfortable DSCRs under conservative copper and molybdenum pricing scenarios
Highlights
� CS co-led and structured project financing and hedge, holding 25% of the transaction
� Fast execution in approximately 2 months � Funded out of CS’ dedicated commodity finance fund� Confirms Credit Suisse leadership in financing junior miners
Co-lead arranger and hedge provider
May 2010
Miller Argent Ffos-y-fran Land Reclamation Scheme
Summary terms and conditions
Project finance term loan
� Borrower: Miller Argent (South Wales) Limited
� Loan amount: GB £45 million
� Maturity date: 31 December 2014GB £45 million project finance term loanCoal hedging facility
Ffos-y-fran opencast mine and land reclamation scheme
� Rate: LIBOR + 4.50%
� Mandated Lead Arrangers: Caterpillar Financial, Credit Suisse
� Security over assets of the project including mining rights, processing plant, mining equipment, and ground leases
Transaction highlights
� Loan used to refinancing project and equipment capital expenditures
� 5-year project term loan underwritten by Credit Suisse and Caterpillar
� One-bank approach leveraging resources of the Private Bank and the Commodities Group
Coal hedging facility
Mandated Lead Arranger
March 2010
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20
� One-bank approach leveraging resources of the Private Bank and the Commodities Group
� API#2 swap for 1,160,000 tonnes of coal in aggregate for 2011 an 2012
� 240,000 tonnes of coal put swaptions for both 2013 and 2014
� 120,000 tonnes of coal call swaptions for both 2013 and 2014 to offset put swaption premiums
� RWE offtake agreement for 580,000 tonnes of coal in 2010 – 2012 with options to renew for 2013 and 2014
− Option to increase volume by an additional 120,000 tonnes for 2010 - 2012
Mirabela Nickel LTDFinancing case study
Summary terms and conditions
Project finance term loan� Borrower: Mirabela Mineração do Brasil Ltd� Loan amount: $190 million� Maturity date: September 2015� Rate: LIBOR + 5.75% pre-completion
LIBOR + 5.25% post-completion� Mandated Lead Arrangers: Barclays Capital, Caterpillar
US $190 million project finance term loanUS $80 million bridge facility
Mirabela Nickel, Santa Rita Nickel Project
� Mandated Lead Arrangers: Barclays Capital, Caterpillar Financial Credit Suisse, UniCredit, WestLB
Bridge facility� Borrower: Mirabela Mineração do Brasil Ltd� Facility amount: $80 million� Maturity: June 2009 (extended from December 2008)� Mandated Lead Arrangers: Barclays Capital, Credit Suisse
Transaction highlights
� Loan proceeds used to complete construction of Santa Rita nickel sulfide mine in Bahia, Brazil
� $80 million bridge facility arranged in July 2008 to provide interim capital pending closing of takeout project financing
− Facility repaid from proceeds of project term loan
US $80 million bridge facility Nickel Hedging Facility
Joint Mandated Lead Arranger and Underwriter
April 2009
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21
− 2% extension fee for extending bridge for 6 month
� Mirabela sold/hedged 17,000 tonnes of nickel and 9,000 tonnes of copper forward to support bridge debt service
− Credit Suisse and Barclays acted as hedge banks
� Closed US $190 million project finance term loan in the wake of credit market crisis in April 2009, supported by positive hedge MTM
� Votorantim and Norilsk are offtake counterparties for 100% of Nickel concentrate production. Offtakers provided $100 million of subordinated debt during construction of Santa Rita
Confidential
Risk Management
PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATIONThese materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Credit Suisse.
Risk Management: General Topics
► Risk Management should not be a financial product-driven process but rather an
analytical, consistent, recurrent and rational decision-based part of any Risk Assessment
and Mitigation Analysis
� Analytical: considers a complete analysis and understanding of the different exposures and their � Analytical: considers a complete analysis and understanding of the different exposures and their
relationships.
� Consistent: it is part of a Risk Management Policy and decisions are not one-off events.
� Recurrent: it recognizes and addresses the dynamic nature of the financial exposures.
� Rational: decisions are not made randomly.
� Discussion of financial risk mitigation products and their advantages/disadvantages will be part of the
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2323
last stage of the Risk Management Policy (and not vice versa)
At Credit Suisse we emphasize the full understanding of the different exposures before recommending any derivative product for risk mitigation purposes.
Establishing a Consistent Hedge Policy
Determining factors for weightings
� Leverage
Consumption exposure composition
Baseline hedging� Swaps
Floating portion
� Leverage
� Industry
� Competitive landscape
� Equilibrium point
� Diversification in product lines
� Client diversification
� Financial sophistication
� Financing needs
Tactical Hedging� More sophisticated products� Exotics
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2424
� Swaps� Collars� Options
� Financing needs
� Investment projects - CAPEX
Multiple combinations of volumes, tenors, products and rebalancing frequencies may be implemented.
Standard Producer Hedging Strategies Comparison
Swap Collar 3-Way Collar
� Appropriate for client
seeking to fix the sale price of
Commodity.
� Appropriate for client willing
to secure a range for future
Commodity sale price.
� Combination of purchased
put and sold call.
� Appropriate for client willing to
secure a better range (relative to
two- way collar) for future
Commodity sale price.
� Combination of a 2-way collar
with an additional sold put with a
Put
� Appropriate for client
seeking to insure a minimum
price for Commodity sale price,
and not limit upside.
Considerations
� Provides certainty in future
sale price.
� No upfront premium.
� Client has set a floor on
Commodity sale prices while
keeping a certain amount of
upside.
� May be structured to be
zero cost.
with an additional sold put with a
lower strike.
� Client has achieved a higher
floor and/or cap on Commodity
sale prices while keeping a certain
amount of upside.
� May be structured to be zero
cost.
� Client has set a floor on
Commodity sale prices.
� Client participates fully on
the upside.
� No future payment
obligations.
Pros
Confidential
2525
� Potential future payment
obligations.
� No upside participation.
� Potential future payment
obligations.
� Client has set a cap on
Commodity sale prices.
� Potential future payment
obligations.
� Client exposed to prices falling
below the lowest strike (sold put),
but still better than Spot.
� Client has set a cap on
Commodity sale prices.
� Client must pay a premium
upfront or deferred to purchase
the put.
Cons
Plain Vanilla Swap
Unhedged
Plain Vanilla Swap
Revenue
Clients establishes fixed price for commodity sales by selling a swap to Credit Suisse
Benefits
� Producers are able to lock-in a fixed price for future commodity sales, providing cash flow stability
� If a percentage of total production is hedged via swaps, producers still retain the upside participation on the unhedged production
Market swaps are zero-cost at inception
Average Market Price
Swap Level
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26
Considerations
� Market swaps are zero-cost at inception
� Producer gives up the potential upside of higher prices on this percentage of production hedged
Purchased Put Option
Unhedged
Hedged with Put Option
Revenue
Clients establishes a floor on commodity sales by buying a put with Strike K from Credit Suisse
Benefits
Average Market Price
K
� Producers are able to establish a price floor on future commodity sales, protecting margins on hedged production
� Producers retain upside participation on both hedged and unhedged production
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27
Considerations� Producer pays upfront or deferred premium for Put option
Producer Collar
Unhedged
Hedged with Collar
Revenue
Client establishes a floor and cap on commodity sales prices by selling a collar (buy put, sell call)
Benefits
� Producers are able to establish a price floor on future commodity sales, helping to protect margins
� Generally structured to be zero-cost
� Producer participates in price increases up to the cap (call strike) on hedged volumes
� If a percentage of total production is hedged, producers still retain the full upside participation on the unhedged
Average Market Price
KPut KCall
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28
Considerations
� If a percentage of total production is hedged, producers still retain the full upside participation on the unhedged production
� Producer establishes a maximum sale price on hedged volumes, through the sale of a call
Producer 3-Way Collar
Unhedged
Hedged with 3-way
Revenue
Client establishes improves floor and/or cap on two-way collar through the sale of an OTM Put (strike Put2)
Benefits
� Producers are able to enhance the levels on a two-way collar, and maintain zero-cost structure
� Producer participates in price increases up to the cap (call strike) on hedged volumes
� If a percentage of total production is hedged, producers still retain the full upside participation on the unhedged
Average Market Price
KPut KCallKPut2
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29
Considerations
� If a percentage of total production is hedged, producers still retain the full upside participation on the unhedged production
� Producer establishes a maximum sale price on hedged volumes, through the sale of a call
� Producer exposed to price falls below KPut2, but still better than Spot
Confidential
Credit Suisse Global Commodities
PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATIONThese materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Credit Suisse.
Credit Suisse Global Commodities Group
� Credit Suisse has a fully integrated commodities business offering OTC and listed products across base and precious metals, oil and refined products, coal and freight, iron ore, emissions, agricultural commodities, power and gas
� The business provides risk management, financing and investment solutions to Credit Suisse’s corporate and institutional client base
� Credit Suisse has become a counterparty of choice given its strong credit rating and capital position and its ability to come up with innovative solutions for both corporate and institutional clients
� Credit Suisse continues to expand its Commodities business and has the advantage of leveraging its trading partner Glencore, one of the largest physical commodity traders, giving CS an information and liquidity edge
� This combination of physical and financial expertise means that Credit Suisse is uniquely placed to assist clients with every aspect of their business, from acquiring or disposing, to funding, hedging, investing or even physical off-take
� Credit Suisse has been at the forefront of developing new commodity markets including thermal seaborne
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31
� Credit Suisse has been at the forefront of developing new commodity markets including thermal seaborne coal, iron ore, alumina and minor metals
� This business includes a highly developed structured investor products capability which delivers sophisticated instruments across all commodities and indices, wrapped in a wide variety of formats e.g. certificates, senior notes, funds, warrants etc.
Global Commodities Presence
Singapore
Sales and trading
� Oil and Refined Products
� Precious Metals
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32
Sydney
Sales
� Base and Precious Metals� Oil and Gas
New York, Stamford
Sales and Trading, Structuring
� Oil and Refined Products� North American Natural Gas� Emissions� Base and Precious Metals� Agricultural Commodities
London
Sales and Trading, Structuring
� Base and Precious Metals� Coal and freight� Emissions� UK Natural Gas� Oil and Refined Products� Indices
Zurich
Sales and Trading, Structuring
� Precious Metals� Exotics� Cross commodities
Products - We offer a full range of commodity underlyings
Oil and
refined products
Precious &
minor metalsSoftsIndustrial metalsCoal & freight
� WTI Crude oil
� Brent Crude oil
� Heating oil
� Fuel oil
� Unleaded gasoline
� IPE gasoil
� Corn
� Sugar
� Wheat
� Soybeans
� Coffee
� Cotton
� Cocoa
� API #2
� API #4
� NEWC FOB
� Capesize TC
� Panamax TC
� Supramax TC
Base Metals
� Aluminium
� Aluminium Alloy
� Copper
� Zinc
� Nickel
� Lead
� Tin
Precious Metals
� Gold
� Silver
� Platinum
� Palladium
� Physical
Minor Metals
� Cobalt
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� IPE gasoil
� Jet fuel
� Naphtha
� Crack spreads
� Urals crude
� Cocoa
� Orange Juice
Distinctive illiquid offerings
� Tin
� NASAAC
Bulks
� Alumina
� Iron Ore
� Steel
� Cobalt
� Molybdenum
� Vanadium
14.2 12.1 10.8 13.0 10.0 10.5 10.3 9.5 9.9 7.6 8.5 8.4 8.5
2.5 4.6 5.7 2.73.2 2.3 2.2 2.4 1.6 3.9 2.7 2.2 1.2
UBS Credit Suisse Morgan Stanley Goldman
Sachs
Barclays RBS Citigroup JPM Chase HSBC Deutsche Bank Bank of
America
BNP Paribas Santander
Core tier 1 capital Other tier 1 capital
Tier 1 capital ratios 3Q 10 – Basel II (European Banks) / Basel I (US Banks)
Credit Suisse Institutional Strength = Capital Strength
(in %)
(1) (2) (1)(1) (1)
–
10%
20%
30%
UBS Credit Suisse Santander Goldman Sachs JPM Chase Citigroup Deutsche Bank Bank of America
Core tier 1 capital Other tier 1 capital
Sound profitability and leading return on equity – 9M 2010
Source: 3Q10 company financial statements, as reported.
Source: Per 3Q10 company financial statements, as reported; other tier 1 capital includes hybrid capital.(1) Per 2Q10 company financial statements, as reported.(2) Includes Postbank.
CDS spreads
Net income 9M10 5.5 4.0 8.0 5.5 12.5 9.3 2.2 (2.0)(US$ in billions)
18% 16%12% 12% 10% 8% 6%
(neg)
Return on equity
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6691 94 95 96 100 111
142 155 161 162 170 197
38 45 55 71 10050495028 46 43 46 67
HSBC BNP Paribas JPM Chase Credit Suisse UBS Deutsche Bank Barclays Goldman
Sachs
Santander RBS Citigroup Morgan Stanley Bank of
AmericaOctober 20, 2010 Year-end 2007
CDS spreads
(in basis points)
Source: Reuters, as of October 20, 2010, except for RBS, as of October 7, 2010.
Credit Suisse Ideas that Lead in Fixed Income
� Our Commodities team provides market insights into financial flows, physical market fundamentals as well as offering innovative commodities indices.
� Our relationship with Glencore provides unique insights and market leading investment and hedging solutions.
�Credit Suisse Commodity Benchmark (CSCB): Recently selected as designated benchmark for PIMCO CommoditiesPLUS Strategy Fund
� Our Credit team has one of the largest, most accomplished credit franchises in the business.
� They provide a full spectrum of products, are recognized for their top ranked distribution platform and provide liquidity andcapital solutions for both cash and derivatives markets
�The Credit Suisse Global Credit Products Conference in September is one of the biggest in the industry
Credit Suisse continues to garner awards for best performance as recognized by Euromoney 2010 Awards for Excellence: Best GlobalBank, Best Emerging Markets Investment Bank, and Best Investment Bank 2009. IFR Awards 2009: Bank of the Year.
Commodities
Credit�The Credit Suisse Global Credit Products Conference in September is one of the biggest in the industry
� Top Tier ranking in the 1H 2010 league tables
� Our Emerging Markets team has extensive experience with unlocking new opportunities in fast growing markets.
� Our risk management expertise and customized solutions have been widely recognized within the industry and have resulted in a number of accolades.
�Continuing to top league tables in Emerging Markets: #1 Emerging Markets High Yield Issuance YTD 2010
� The Foreign Exchange team is a pioneer in providing complete trading solutions for our clients.
� They deliver online analytics, indices, modeling, trading and provide unparalleled speed and scalability for our clients.
�Credit Suisse is the First bank to offer live, dealable FX option prices on the iPhoneTM
�Merlin won Best FX Platform for the second year in 2010.
� The Rates team has been a leading flow franchise with key partner clients for cash and derivatives for years.
� Most recently, the team is delivering electronic trading solutions that give clients access to liquidity as well as innovative algorithmic and index capabilities.
� The team has a global view with regionally dedicated teams.
EmergingMarkets
FX
Rates
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� Recently launched interest rate swap trading on Bloomberg in the Fall of 2010
� Recently partnered with Dow Jones on launch of new Inflation Indexes
� Direct electronic and algorithmic access to Credit Suisse trading liquidity across cash and OTC Rates products
� Our Structured Products business has been a gold star performing team through the crisis up to today.
� They offer a full spectrum of private label, government guaranteed and agency trading.
� The team provides transaction management, structured client solutions and mortgage servicing.
� Launching the MBS Monitor on our eAnalytics platform
� They won The Banker’s Deal of the Year in 2010 for structured finance and are First in MBS pass-throughs for the past 4 consecutive years.
Structured Products
Credit Suisse recognized in LatinFinance’s 20 years of excellence
CREDIT SUISSE NAMED BEST INVESTMENT BANK OF THE PAST 20 YEARS
“The best of the last 20 years in Latin financial markets have a combination of skill, tenacity, commitment, execution and innovation…Credit Suisse wins for its meteoric rise over the last eight years…Many of those who have been present for 20 years were left in the dust by the Swiss shop. Some of its competitors have
LatinFinance: Investment Bank – Credit Suisse
OF THE PAST 20 YEARS 20 years were left in the dust by the Swiss shop. Some of its competitors have come and gone, others are far less relevant now than they used to be.”
Credit Suisse’s head of Brazil Investment Banking, José Olympio, “having weathered the vicissitudes of Latin capital markets,” took the sell-side LatinFinancier award. Olympio led the “glory year [of] 2007, when Credit Suisse appeared to own the Brazil equity boom.”
LatinFinancier: Sell side – José Olympio
“The fifth largest IPO globally in 2007 and the most substantial to date from any exchange was an exercise in brand creation and public relations that demanded flawless execution
Best Equity Transaction: Bovespa’s 2007 US$3.2BN IPO
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was an exercise in brand creation and public relations that demanded flawless execution from start to finish.” Credit Suisse led the transaction.
“For sheer size and audacity, as well as lasting value for Vale shareholders, the blowout transaction is not just the biggest acquisition so far – it is the best.” Credit Suisse led the transaction, as well as the US$3.75BN CVRD international bond offering and a BRL local offering to finance the transaction
Best M&A Transaction: US$19.2BN acquisition by CVRD of Inco
Credit Suisse – “IFR’s Bank of the Year 2009”
“Those in charge of CS in the last few years have, in fact, done something pretty remarkable: they’ve changed the entire culture of the institution”
“Changing an investment bank’s culture can be a slow, painful and fraught endeavour. Driving fundamental change in the midst of a cataclysmic market dislocation and in the absence of a transformational merger is no mean feat. One bank did just that without sacrificing business execution, at the same time as pre-empting regulatory outcomes on compensation and generating one of the highest ROEs in the business”
IFR Awards won by Credit Suisse in 2009:
Bank of the year
Structured equity house of the year
Asia-Pacific Structured equity house of the year
Equity derivatives house of the year
Issuer of the year 2009: Roche
“CS emerged from the financial crisis with just about the best financial ratios in the industry. Its Tier 1 ratio as of the end of the third quarter 2009, for example, was 16.4%, while its core capital number at the same point was 11.3%”
“That more careful attitude combined with the decisiveness with which the bank reacted to the onset of the crisis had one vital effect: CS has not taken any government investment, nor did it need to issue any government-supported debt”
“Reducing risk and exiting businesses is easy if no thought is paid to the financial consequences. The real trick is to do both without also slashing profitability. That CS has been able to do that – while also maintaining potentially profit-sapping capital ratios – is perhaps its most impressive achievement. At 21.8% for the first three quarters of this year
“In the DCM arena, the bank helped reopen the markets and re-established issuer benchmarks to take into account changed circumstances. It was, for instance, at the forefront of the mega M&A financings that got done through the bond markets in the US, with roles on Roche (US$33bn), Pfizer (US$24bn) and Verizon (US$14bn)”
Corporate Issuer of the year 2009: Roche
USD Investment Grade bond of 2009: Roche, USD16.5bn
Swiss Franc bond of 2009: Roche, CHF4bn
Emerging EMEA bond of 2009: Qatar, USD7.0bn
Leveraged Loan of 2009: Warner Chilcott, USD4.15bn
Senior financial bond of 2009: Rabobank, EUR5bn
State of
Sub. financial bond of 2009: Standard Chartered, USD1.5bn
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with roles on Roche (US$33bn), Pfizer (US$24bn) and Verizon (US$14bn)”
“The high-yield highlight was the €2.7bn issue for Wind, the largest ever European high-yield note, while the bank can also claim to have reopened the Swiss franc markets for the supranationals, with deals for the World Bank, Inter-American Bank and African Development Bank”
USD16.5bn offering
Joint Bookrunner
EUR9.75bn offering
GBP1.25bn offering
CHF4.0bn offering
Joint Bookrunner
EUR5.0bn offeringUSD4.15bn leveraged loan
Joint underwriterJoint Bookrunner
USD1.7bn high-yield offering
Joint Bookrunner
State of Qatar
USD7.0bn offeringUSD1.5bn perpetual hybrid Tier1
Joint Bookrunner
“The Credit Suisse Group can plausibly claim to have come through the biggest downturn in 80 years not just intact, but even with its reputation and its business enhanced” - IFR
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federal income tax treatment of the transaction and the tax structure of a transaction is any fact that may be relevant to understanding the purported or claimed U.S. federal income tax treatment of the transaction.
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