Value Management Group International, LLC:

Product Control File Review

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Discussion Items

• Overview and Qualifications: Value Management Group International LLC (“VMGI”)

• Product Control File– Importance of the Product Control File

– Product Control File Review

• Next Steps

• VMGI Contact Information

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Overview and Qualifications: Value Management Group International, LLC (“VMGI”)

• We assist card issuers in the realization of performance improvement through superior strategy, operations, and financial management.

• VMGI possesses the requisite experience and skills needed to be successful…those skills include:

– Strong analytical competence– Broad exposure to front and back office environments– The right balance between creativity and practicality– Deep industry insights and knowledge

• VMGI’s Mission: To offer the most in-depth and insightful advice to improve the financial performance of credit card issuers.

• VMGI personnel have experience working with a number of the leading U.S. card issuers, including:

* Wells Fargo Bank * First USA * GE Capital

* American Express * Citibank * USAA

• VMGI has experience in many different kinds of projects with card issuers such as:* Systems and Operational Performance Improvement * Strategy Development and Implementation

* System Conversion Assistance * Vendor Services Review

* Budget Management * Competitive Assessments

* Contract Negotiations * Revenue Enhancement

• VMGI personnel have assisted a number of card issuers in the identification and realization of third party processor performance improvement opportunities. We possess in-depth knowledge of First Data Resources (FDR) and Total System Services (TSYS) and the associated costs of doing business with these organizations.

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Overview and Qualifications: VMGI’s unique approach to management consulting has delivered outstanding results for our clients

• VMGI strives to deliver projects in which:– The measurement of relative success is clear– The client is fully aligned with the project goals and objectives– There is frequent communication and consensus regarding project progress and results

• VMGI Staffing-Our relatively small project teams are comprised of highly experienced and smart consultants that quickly diagnose the situation and then develop and manage the best solution.

• Post Project Management-We typically provide post-project support from the same VMGI project personnel in an effort to provide consistent post-project support and maximize benefit realization.

• The benefits from our unique approach to Management Consulting have been outstanding:

– A recent project is projected to yield a five year return that is approximately 80 times greater than VMGI’s Professional Fees.

– A recent project identified annual performance improvement opportunities of approximately 20 times greater than VMGI’s Professional Fees.

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Importance of the Product Control File

• For Credit Card Issuers that process with First Data Resources (FDR) the Product Control File (PCF) is the life blood of revenue generation and product management

• The PCF controls mission critical functions such as        • Pricing, including fees, finance charges, introductory rates and penalty pricing

• Rewards and/or transaction-based pricing programs (ALP/TLP)

• Plastics generation and the mailing of plastics

• Report production

• The PCF is complex, allowing management literally thousands of choices when setting up a portfolio. The differentiated products within a portfolio are all made distinct by PCF settings

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Product Control File Review

• Due to the sensitive nature of the functions involved in the PCF it is of tantamount importance that the settings are reviewed periodically for consistency and accuracy

– Inaccurate file settings can be responsible for impaired interest and fee revenue. Errors in the PCF can lead to systematic undercharging of fees and interest

– Inaccurate PCF settings can also lead to overcharging of fees and interest. Because many of the functions controlled by the PCF are publicly disclosed there is legal liability

– Examples of problems caused by inaccurate PCF settings include but are not limited to:

• Paying for transaction level pricing (TLP) flap balances after the TLP balance has been paid down by customer

• Not charging appropriate fees, or not at the correct rates

• Not charging interest on certain accounts

• Introductory rates not expiring as intended

• Internal Operations are impacted by the Product Control file as well, for example:– Operations such as risk policy associated with plastics re-issuance can be impacted by inaccurate settings

– FDR generated management reports are controlled by the PCF. Settings that are not periodically reviewed can lead unnecessary reports expense

• Other Opportunities– Simply having a outside “fresh look” review current PCF setting decisions can lead to operational improvements and

innovation within the portfolio

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VMGI would like to meet with your organization to accomplish the following objectives

• Personally introduce VMGI– Our qualifications

– Our experience

• Discuss potential project structures, approaches, and compensation alternatives

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VMGI Contact Information

VMGI Contact

• Scott Smith, Executive Director, VMGI

P.O. Box 406

Chesterfield, MO 63006-0406

Phone: 314 409-2476

Email: sesmith@vmgillc.com