SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary proxy statement.
[ ] Confidential, for use of the commission only (as permitted by Rule
14a-6(e)(2)).
[ ] Definitive proxy statement.
[ ] Definitive additional materials.
[X] Soliciting material under Rule 14a-12.
J.P. Morgan & Co. Incorporated
(Name of Registrant as Specified in Its Charter)
N/A
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
Payment of filing fee (check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the form or schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
<PAGE>
Date: October 19, 2000
This filing contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements include, but
are not limited to, statements about the benefits of the merger between Chase
and J.P. Morgan, including future financial and operating results, Chase's
plans, objectives, expectations and intentions and other statements that are not
historical facts. Such statements are based upon the current beliefs and
expectations of J.P. Morgan's and Chase's management and are subject to
significant risks and uncertainties. Actual results may differ from those set
forth in the forward-looking statements.
The following factors, among others, could cause actual results to differ from
those set forth in the forward-looking statements: the risk that the businesses
of Chase and J.P. Morgan will not be combined successfully; the risk that the
growth opportunities and cost savings from the merger may not be fully realized
or may take longer to realize than expected; the risk that the integration
process may result in the disruption of ongoing business or the loss of key
employees or may adversely effect relationships with employees and clients; the
risk that stockholder or required regulatory approvals of the merger will not be
obtained or that adverse regulatory conditions will be imposed in connection
with a regulatory approval of the merger; the risk of adverse impacts from an
economic downturn; the risks associated with increased competition, unfavorable
political or other developments in foreign markets, adverse governmental or
regulatory policies, and volatility in securities markets, interest or foreign
exchange rates or indices; or other factors impacting operational plans.
Additional factors that could cause Chase's and J.P. Morgan's results to differ
materially from those described in the forward-looking statements can be found
in the 1999 Annual Reports on Forms 10-K of Chase and J.P. Morgan, filed with
the Securities and Exchange Commission and available at the Securities and
Exchange Commission's internet site (http://www.sec.gov) and in Chase's
Registration Statement on Form S-4 referred to below.
Chase has filed a Registration Statement on Form S-4 with the Securities and
Exchange Commission containing a preliminary joint proxy statement-prospectus
regarding the proposed transaction. Stockholders are urged to read the
definitive joint proxy statement-prospectus when it becomes available because it
will contain important information. The definitive joint proxy
statement-prospectus will be sent to stockholders of Chase and J.P. Morgan
seeking their approval of the proposed transaction. Stockholders also will be
able to obtain a free copy of the definitive joint proxy statement-prospectus,
as well as other filings containing information about Chase and J.P. Morgan,
without charge, at the SEC's internet site (http://www.sec.gov). Copies of the
definitive joint proxy statement-prospectus and the SEC filings that will be
incorporated by reference in the definitive joint proxy statement-prospectus can
also be obtained, without charge, by directing a request to The Chase Manhattan
Corporation, 270 Park Avenue, New York, NY 10017, Attention: Office of the
Corporate Secretary (212-270-6000), or to J.P. Morgan & Co. Incorporated, 60
Wall Street, New York, NY 10260, Attention: Investor Relations (212-483-2323).
Information regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security holdings or
otherwise, is contained in the materials filed with the SEC by J.P. Morgan and
Chase on September 13, 2000 and September 14, 2000, respectively.
<PAGE>
[The following slides were presented at a joint meeting and conference for the
investment community reviewing third quarter financial results and providing a
merger update.]
[JP MORGAN LOGO] [CHASE LOGO]
Third Quarter 2000
Financial Results
October 18, 2000
<PAGE>
This presentation contains statements that are forward-looking within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of Chase's and
J.P. Morgan's management and are subject to significant risks and
uncertainties. Actual results may differ from those set forth in the
forward-looking statements. These uncertainties include: the risk that the
businesses of Chase and J.P. Morgan will not be combined successfully; the risk
that the growth opportunities and cost savings from the merger may not be fully
realized or may take longer to realize than expected; the risk that the
integration process may result in the disruption of ongoing business or the
loss of key employees or may adversely affect relationships with employees and
clients; the risk that stockholder or required regulatory approvals of the
merger will not be obtained or that adverse regulatory conditions will be
imposed in connection with a regulatory approval of the merger; the risk of
adverse impacts from an economic downturn; the risks associated with increased
competition, unfavorable political or other developments in foreign markets,
adverse governmental or regulatory policies, and volatility in securities
markets, interest or foreign exchange rates or indices; or other factors
impacting operational plans. Additional factors that could cause Chase's and
J.P. Morgan's results to differ materially from those described in the
forward-looking statements can be found in the 1999 Annual Reports on Form 10-K
of Chase and J.P. Morgan and in the Registration Statement on Form S-4 filed by
Chase on October 5, 2000 with the Securities and Exchange Commission.
The proposed transaction will be submitted to Chase's and J.P. Morgan's
stockholders for their consideration. Such stockholders should read the
definitive joint proxy statement/prospectus regarding the proposed transaction
when it becomes available, because it will contain important information.
Stockholders will be able to obtain a free copy of the definitive joint proxy
statement/prospectus, as well as other filings containing information about
Chase and J.P. Morgan, without charge, at the SEC's internet site
(http://www.sec.gov). Copies of the definitive joint proxy statement/prospectus
and the SEC filings that will be incorporated by reference in the definitive
joint proxy statement/prospectus can also be obtained, without charge, by
directing a request to The Chase Manhattan Corporation, 270 Park Avenue, New
York, NY 10017, Attention: Office of the Corporate Secretary (212-270-6000) or
to J.P. Morgan, 60 Wall Street, New York, NY 10260, Attention: Investor
Relations (212-483-2323). Information regarding the participants in the proxy
solicitation and a description of their direct and indirect interest, by
security holdings or otherwise, is contained in the materials filed with the
SEC by each of J.P. Morgan and Chase on September 13 and 14, 2000,
respectively.
2
<PAGE>
Agenda
___________________________________________________________
I. J.P. MORGAN 3Q00 FINANCIAL REVIEW - DAVID SIDWELL
II. CHASE 3Q00 FINANCIAL REVIEW - DINA DUBLON
III. MERGER UPDATE - MARC SHAPIRO
3
<PAGE>
-------------------------------------------------------------------------------
J.P. MORGAN
3Q00 FINANCIAL REVIEW
<PAGE>
Summary of third quarter results
------------------------------------------------------------
<TABLE>
<CAPTION>
$ MILLIONS, EXCEPT PER SHARE % CHANGE
3Q00 2Q00 3Q99
------------------------------------------------------------
<S> <C> <C> <C>
Net income $ 514 (5%) 16%
EPS $ 2.77 (4%) 25%
EVA (after-tax) $ 227 (12%) 170%
ROCE 18.2%
Total revenues $2,322 (6%) 17%
Total expenses $1,609 (3%) 20%
------------------------------------------------------------
<CAPTION>
3Q00 2Q00 3Q99
------------------------------------------------------------
<S> <C> <C> <C>
Comp. expense to revenue 48% 44% 45%
Non-comp. expense to revenue 21% 23% 23%
Total expense to revenue 69% 67% 68%
------------------------------------------------------------
</TABLE>
5
<PAGE>
CLIENT-FOCUSED SEGMENTS RESULTS
===============================================================================
<TABLE>
<CAPTION>
$ MILLIONS
REVENUE
---------------------
3Q00 $ CHANGE PRE-TAX INCOME PRE-TAX EVA
-------------- -------------- -----------
2Q00 3Q99 3Q00 3Q00
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$390 ($19) $40 Asset management $88 $60
$426 $0 $60 Investment banking $58 $22
$448 ($56) $196 Equities $185 $152
$426 $42 $105 Interest rate markets $144 $64
$346 ($2) ($79) Credit markets $157 $6
--------------------------------------------------------------------------------
$2,036 ($35) $322 Total $632 $304
--------------------------------------------------------------------------------
</TABLE>
- REVENUES INCREASED 19% YOY AND WERE FLAT TO SECOND QUARTER, DRIVING CHANGES
IN PRE-TAX INCOME AND EVA
- BALANCED BUSINESS BASE DELIVERED SOLID RESULTS
6
<PAGE>
PROPRIETARY SEGMENTS RESULTS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
REVENUE
----------------------
3Q00 $ CHANGE PRE-TAX INCOME PRE-TAX EVA
--------------- -------------- -----------
2Q00 3Q99 3Q00 3Q00
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$14 ($131) ($327) Equity investments ($14) ($115)
$310 $27 $304 Proprietary positioning $238 $235
-------------------------------------------------------------------------------
$324 ($104) ($23) Total $224 $120
-------------------------------------------------------------------------------
</TABLE>
- Decrease in unrealized gains drove equity investments results, offsetting
solid realized gains
- Proprietary positioning results continued this year's strong trend, with
lower required capital
7
<PAGE>
SUMMARY OF YEAR-TO-DATE RESULTS
<TABLE>
<CAPTION>
% CHANGE
$ MILLIONS YTD 2000 FROM YTD 1999
----------------------------------------------------------------------
<S> <C> <C>
Net income $1,684 9%
EPS $ 9.05 17%
EVA (after-tax) $ 843 49%
ROCE 20.4% 180 bps
Total revenues $7,637 15%
Total expenses $5,124 18%
</TABLE>
----------------------------------------------------------------------
<TABLE>
<CAPTION>
YTD 2000
----------------------------------------------------------------------
<S> <C>
Comp. expense to revenue 46%
Non-comp. expense to revenue 21%
Total expense to revenue 67%
</TABLE>
----------------------------------------------------------------------
8
<PAGE>
CREDIT RISK EXPOSURES(1)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
$ BILLIONS 9/30/00
--------------------------------------
CARRYING VALUE NET OF COLLATERAL
-------------------------------------------------------------------------
<S> <C> <C>
Loans 26.6 18.8
Derivatives 35.5 30.2
--------------------------------------
Total on balance sheet exposure(2) 62.1 49.0
</TABLE>
<TABLE>
<CAPTION>
COUNTER PARTY CREDIT QUALITY(3) DERIVATIVES LOANS & COMTS.
--------------------------------------------------------------------------
<S> <C> <C>
Investment grade 95% 89%
Non-investment grade 5% 11%
--------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
$ MILLIONS 9/30/00 6/30/00 9/30/99
--------------------------------------------------------------------------
<S> <C> <C> <C>
Total Impaired Loans $128 $140 $169
--------------------------------------------------------------------------
</TABLE>
(1) Preliminary
(2) Net of allowance for credit losses and credit valuation adjustment
(3) Based on internal credit ratings and exposure after benefit of netting
arrangements, collateral and purchased credit protection
9
<PAGE>
_______________________________________________________________________________
CHASE
3Q00 FINANCIAL REVIEW
10
<PAGE>
3Q00 KEY THEMES
---------------------------------------------------------------------------
- Private equity unrealized mark to market write-downs
- Investment Banking results driven by revenue/expense imbalance
-- not a credit or market issue
- Record earnings in Wealth Management, Global Services and National
Consumer
- Long term business outlook unchanged
11
<PAGE>
PRIVATE EQUITY GAIN (LOSS)
--------------------------------------------------------------------------------
($ in millions)
<TABLE>
<CAPTION>
3Q00 2Q00 3Q99 9MOS00 9MOS99
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Realized $538 $350 $250 $1,229 $883
Unrealized gain (loss) (563) (52) 127 (456) 332
--------------------------------------------
Total $(25) $298 $377 $773 $1,215
----------------------------------------------------------------------
</TABLE>
12
<PAGE>
Private Equity Public Portfolio*
___________________________________________________
($ in billions)
<TABLE>
<CAPTION>
At 9/30/00
____________________________________________________
Quoted Carrying
Cost Value Value
____________________________________________________
<C> <S> <S> <S>
Total Public $0.8 $3.1 $2.1
____________________________________________________
</TABLE>
Public Securities are 20% of total portfolio
* Includes Chase Capital Partners and Chase H&Q investment portfolios
13
<PAGE>
Chase Capital Partners
Excellent Returns: By Crop Year
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Crop Year
----------------------------------------------------------
Pre-1989 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Returns on Liquidated
Direct Investments 52% 22% 30% 45% 36% 49% 19% 30% 112% 77% 44%
</TABLE>
Inception to date: 43% IRR
14
<PAGE>
INVESTMENT BANK RESULTS
($ IN MILLIONS)
<TABLE>
<CAPTION>
3Q 9 MOS
-- -----
00 O(U)99 00 OU99
<S> <C> <C> <C> <C>
Revenue $1,870 16% $5,989 14%
Cash Earnings 384 (9) 1,531 (1)
</TABLE>
<TABLE>
3Q00 3Q99 9 MOS 00 9 MOS 99
---- ---- -------- --------
<S> <C> <C> <C> <C>
SVA $46 $139 $628 $681
Cash Overhead Ratio 67% 53% 58% 48%
Cash ROCE 15 20 22 24
</TABLE>
-- Softer trading volumes and leveraged finance activity
-- Revenue and market share gains in other investment banking products
-- Management committed to more disciplined spending
15
<PAGE>
INVESTMENT BANK REVENUE GROWTH
_______________________________________________________________________________
($ in millions)
<TABLE>
<CAPTION>
%O(U) %O(U)
3Q00 2Q00 3Q99 9 MOS 00 9 MOS 99
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Trading (incl. NII) $680 (19%) 0% $2,566 14%
Investment Banking Fees 613 (4%) 26% 1,900 37%
Securities Gains 96 68% NM 167 4%
-------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
COMMERCIAL CREDIT COSTS
----------------------------------------------------------------------------
($ in millions)
<TABLE>
<CAPTION>
3Q00 2Q00 3Q99
---- ---- ----
<S> <C> <C> <C>
Domestic $ 62 $ 74 $ 66
Foreign 3 18 36
------ ------ ------
TOTAL COMMERCIAL $ 65 $ 92 $ 102
YTD Charge-off ratio* 33bp 36bp 42bp
----------------------------------------------------------------------------
Nonperforming Assets(1) $1,816 $1,899 $2,015
</TABLE>
* Annualized for quarterly data and based on average commercial loan
outstandings
(1) Includes consumer loans of $396 million (3Q00), $401 million (2Q00) and
$416 million (3Q99)
17
<PAGE>
WEALTH MANAGEMENT
----------------------------------------------------------------------------
PRIVATE BANKING ASSET MANAGEMENT
- OVER $180 B IN CLIENT ASSETS - COMPLETED FLEMINGS ACQUISITION
-- 20% growth from 12/99 AUGUST 1, 2000
- 36% REVENUE GROWTH - OVER $300B AUM
-- Strong in every geography -- Positive net cash flow
-- Strong in broker & investment -- Efficiencies & consolidations
related revenues drive income growth
-- Increase in equity for goodwill
- 16% EARNINGS GROWTH drive ROE & SVA decline
-- Investments in technology,
internet, and talent
18
<PAGE>
GLOBAL SERVICES
--------------------------------------------------------------
($ in millions)
<TABLE>
<CAPTION>
3Q | 9MOS
-- | ----
00 O(U) 99 | 00 O(U) 99
-- ------- | -- -------
<S> <C> <C> <C> <C> <C>
Revenue $875 9% | $2,604 13%
Cash Earnings 183 24 | 495 26
|
3Q00 3Q99 | 9MOS 00 9MOS 99
---- ---- | ------- -------
SVA $93 $51 | $227 $104
|
Cash Overhead Ratio 67% 71% | 70% 73%
Cash ROCE 27 20 | 24 18
</TABLE>
- Record earnings driven by both trust and custody
- Expense discipline leads to double digit earnings growth
19
<PAGE>
National Consumer Services Growth
<TABLE>
<CAPTION>
------------------------------------------------------------
Growth vs. Prior Year
3Q00
---------------------------
REVENUE EARNINGS
------------------------------------------------------------
<S> <C> <C>
CARD 0% 14%
REGIONAL BANKING 7% 36%
HOME FINANCE 13% 21%
DIVERSIFIED CONSUMER ------------ 5% 24%
MIDDLE MARKETS 4% 13%
------------------------------------------------------------
</TABLE>
20
<PAGE>
NATIONAL CONSUMER SERVICES
===============================================================================
($ in millions)
===============================================================================
<TABLE>
<CAPTION>
3Q 9MOS
-- ----
00 O(U)99 00 O(U)99
-- ------ -- ------
<S> <C> <C> <C> <C>
Revenue $2,587 3% $7,487 1%
Cash Earnings 492 13 1,287 3
3Q00 3Q99 9MOS 00 9MOS 99
---- ---- -------- -------
SVA $227 $175 $487 $482
Cash Overhead Ratio 50% 51% 52% 50%
Cash ROCE 24 22 21 21
===============================================================================
</TABLE>
[Arrow] Record earnings driven by contributions from all 5 businesses
21
<PAGE>
Operating Earnings Per Share
<TABLE>
<CAPTION>
---------------------------------------------------------------------
3Q00 O/(U)99 9MOS 00 O/(U)99
---------------------------------------
<S> <C> <C> <C> <C>
Operating EPS $ 0.68 ($0.24) $2.68 ($0.15)
Chase Capital Partners (0.09) 0.23 0.19 (0.30)
Operating EPS (excl. CCP) $ 0.77 ($0.01) $2.49 $0.15
Amortization 0.11 0.05 0.24 0.07
---------------------------------------
CASH EPS (EXCL. CCP) $ 0.88 $0.04 $2.73 $0.22
</TABLE>
OPERATING BASIS: EXCLUDES NON-RECURRING ITEMS, EPS SHOWN ON A DILUTED BASIS.
22
<PAGE>
3Q00 KEY THEMES
_______________________________________________________________________________
- Private equity unrealized mark to market write-downs
- Investment Banking results driven by revenue/expense imbalance
- not a credit or market issue
- Record earnings in Wealth Management, Global Services and National Consumer
- LONG TERM BUSINESS OUTLOOK UNCHANGED
23
<PAGE>
_______________________________________________________________________________
MERGER UPDATE
24
<PAGE>
MERGER UPDATE
_______________________________________________________________________________
- PRICING OF THE TRANSACTION
- SYNERGIES DRIVEN BY EFFICIENCY & COMPLEMENTARY STRENGTHS
-- geographic strengths
-- product strengths
-- client coverage
- EXPERIENCE DRIVES EXECUTION AND INTEGRATION
25
<PAGE>
ACCRETIVE TO EPS AS SYNERGIES REALIZED
--------------------------------------------------------------------------------
J.P. Morgan fully diluted shares 186 million
Exchange 3.7x
Chase Shares Issued ----
688 million
Chase 2001 consensus EPS(1) $4.45
Required earnings from J.P. Morgan $3.1 billion
J.P. Morgan 2001 consensus earnings(1) 2.2 billion
Required break even synergies ----
$0.9 billion
--------------------------------------------------------------------------------
BASELINE SYNERGIES (AFTER-TAX) $1.2 billion
--------------------------------------------------------------------------------
Note:
(1) As published by First Call (9/00). J.P. Morgan 2001 consensus estimate
of $12.06 per share. For analytical purposes only.
Does not constitute endorsement of, or concurrence with, any of the
estimates by J.P. Morgan or Chase
26
<PAGE>
MERGER UPDATE
--------------------------------------------------------------------------------
[ARROW] PRICING OF THE TRANSACTION
[ARROW] SYNERGIES DRIVEN BY EFFICIENCY & COMPLEMENTARY STRENGTHS
-- geographic strengths
-- product strengths
-- client coverage
[ARROW] EXPERIENCE DRIVES EXECUTION AND INTEGRATION
27
<PAGE>
MERGER SAVINGS
-------------------------------------------------------------------------------
* $1.5 billion expense savings
* 11% of total relevant combined expenses
* Fully in place by end of year 2
* Business by business review under way
28
<PAGE>
COMPLEMENTARY STRENGTHS -- REVENUES
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pro forma
Product Revenue Contribution(1)
------- -----------------------
<S> <C>
Equity Derivatives 90% J.P. Morgan
Syndication 80% Chase
Credit Derivatives 80% J.P. Morgan
Commodity Derivatives 80% Chase
Futures/Options Derivatives 100% J.P. Morgan
</TABLE>
(1) based on September 2000 YTD numbers
29
<PAGE>
COMPLEMENTARY STRENGTHS
-------------------------------------------------------------------------------
- PRELIMINARY OVERLAP OF PRIMARY INVESTMENT BANKING CLIENTS:
<TABLE>
<S> <C>
GENERAL INDUSTRIES 12%
FINANCIAL INSTITUTIONS 10%
TMT 9%
</TABLE>
30
<PAGE>
EXECUTION AT A FAST PACE IS ON TRACK
-------------------------------------------------------------------------------
- FRAMEWORK FOR MANAGING THE INTEGRATION IN PLACE
- UNIFORM TRACKING TOOLS DESIGNED TO MEASURE SYNERGIES
- MAJOR U.S. REGULATORY APPLICATIONS FILED
- SYSTEMS AND REAL ESTATE INVENTORIES UNDER WAY
- 250 TOP JOBS AT INVESTMENT BANK NAMED
- CORPORATE STAFF ANNOUNCEMENTS IN PROCESS
- STRONG CULTURAL FIT
31
<PAGE>
-------------------------------------------------------------------------------
J.P. MORGAN
SUPPLEMENTAL INFORMATION
32
<PAGE>
Globally integrated business segments
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT INTEREST RATE AND CREDIT ASSET MGMT. EQUITY PROPRIETARY
BANKING EQUITIES CURRENCY MARKETS MARKETS SERVICES INVESTMENTS POSITIONING
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Strategic advisory, Market making Market making and Market making, Portfolio Private equity Market risk
underwriting, and and research research research, and management, investment position
relationship credit risk relationship taking
management portfolio management management
----------------------------------------------------------------------------------------------------------------------------------
-Advisory/M&A -Equity -Gov't bond -Investment- -Defined benefit -Acquisitions -Proprietary
securities grade and high- and defined positioning,
-Debt and equity -U.S. gov't yield debt contribution -Privatizations incl. asset,
origination -Equity agencies and plans liability
derivatives munis -Structured -Recaps and and
-ADRs finance -Mutual funds expansion liquidity
-Equity -Swaps and other financings management
-Client derivative underwriting interest rate -Emerging -Private banking
revenues (portion) derivatives market debt services
(portion)
-Local currencies -Local currencies
and gov't debt - and gov't debt -
Asia/E. Europe Latin America
-Futures and -Credit
options derivatives
brokerage
-Debt
-Spot currencies underwriting
(portion)
-Currency
derivatives
-Commodities
</TABLE>
33
<PAGE>
SUMMARY OF YEAR-TO-DATE RESULTS
_______________________________________________________________________________
<TABLE>
<CAPTION>
$ MILLIONS, EXCEPT PER SHARE
REVENUES SEPT-00 SEPT-99 % CHANGE $ CHANGE
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment banking $1,304 $1,102 18% $202
Equities 1,536 892 72% 644
Interest rate markets 1,299 1,530 (15%) (231)
Credit markets 1,244 1,752 (29%) (508)
Asset mgmt. services 1,206 1,002 20% 204
Equity investments 312 333 (6%) (21)
Proprietary positioning 781 156 401% 625
Total revenues $7,637 $6,667 15% 970
Total expenses $5,124 $4,325 18% 799
Net income $1,684 $1,546 9% 138
EPS $ 9.05 $ 7.76 17% $1.29
ROE 20.4% 18.6%
Efficiency ratio 67% 65%
Comp./revenue 46% 44%
Non-comp./revenue 21% 21%
</TABLE>
-------------------------------------------------------------------------------
34
<PAGE>
Equity investment securities
-------------------------------------------------------------------------------
$ MILLIONS
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SBIC
MARKETABLE(1) NONMARKETABLE(2) SECURITIES(3) TOTAL
<S> <C> <C> <C> <C>
Cost $198 $774 $303 $1,275
Net unrealized gains 24 75 185 $284
Fair value 222 849 488 $1,559
Carrying value on balance
sheet 222 774 488 $1,484
</TABLE>
(1) Accounting: Fair value through equity
(2) Accounting: Cost. Net unrealized gains includes Morgan Capital Corporation
only
(3) Accounting: Fair value through earnings
35
<PAGE>
-------------------------------------------------------------------------------
CHASE
SUPPLEMENTAL INFORMATION
36
<PAGE>
SOURCES & USES OF TIER 1 CAPITAL
-------------------------------------------------------------------------------
($ in billions)
<TABLE>
<CAPTION>
3Q00 9 MOS 00 FY99
<S> <C> <C> <C>
Sources of Tier 1 Capital:
Cash Operating Earnings Less Dividends $ 0.6 $ 2.5 $ 4.3
Plus: Preferred/Non-recurring 0.1 (0.3) 0.2
[Arrow] Less: Capital for Internal Growth (1.3) (1.9) (1.0)
----- ----- ------
Free Tier 1 Capital (0.6) 0.3 3.5
Uses of Tier 1 Capital:
Increases (Decreases) in Capital Ratios (3.7) $(3.2) 0.1
Acquisitions 6.9 6.9 1.1
[Arrow] Net Repurchases (3.8) (3.4) 2.3
----- ----- ------
Total $(0.6) $ 0.3 $ 3.5
TIER 1 RATIO 7.9%* 7.9%* 8.4%
</TABLE>
* ESTIMATED
37
<PAGE>
COMMON SHARES OUTSTANDING: 3Q00
--------------------------------------------------------------------------------
(Shares in millions)
<TABLE>
<CAPTION>
AVERAGE SHARES
--------------------------
Basic Diluted
Shares Dilution Shares
------- -------- -------
<S> <C> <C> <C>
2Q00 1,217.8 41.7 1,259.5
Full Impact of second quarter 2000 daily activity 1.2 -- 1.2
Other Changes third quarter 2000 due to:
Stock Price Impact -- 0.8 0.8
Restricted Stock Impact 0.1 2.3 2.4
Shares Issued 46.8 -- 46.8
Options Exercised 1.4 (0.3) 1.1
Repurchases -- -- --
------- ---- -------
3Q00 1,267.3 44.5 1,311.8
3Q00 PERIOD END SHARE COUNT 1,291.0 38.9 1,329.9
</TABLE>
38
<PAGE>
REPORTED NET INCOME -- QUARTERLY
-------------------------------------------------------------------------------
($ in millions)
[BAR CHART]
<TABLE>
<CAPTION>
3Q99 4Q99 1Q00 2Q00 3Q00
<S> <C> <C> <C> <C> <C>
Excluding CCP $1,011 $ 888 $1,118 $ 961 $ 990
CCP 176 804 239 127 (112)
------ ------ ------ ------ -----
Total $1,187 $1,693 $1,360 $1,091 $ 884
====== ====== ====== ====== =====
EPS (Diluted) $ 0.92 $ 1.32 $ 1.06 $ 0.85 $0.66
ROCE 21.7% 30.4% 24.0% 18.9% 13.2%
</TABLE>
39
<PAGE>
TOTAL OPERATING REVENUE*
--------------------------------------------------------------------------------
($ in millions)
[BAR CHART]
<TABLE>
<CAPTION>
3Q99 4Q99 1Q00 2Q00 3Q00
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Excluding CCP $5,110 $5,134 $5,730 $5,550 $5,678
CCP 319 1,310 450 249 (88)
------ ------ ------ ------ ------
Total $5,429 $6,444 $6,179 $5,799 $5,590
====== ====== ====== ====== ======
</TABLE>
* Excludes special items
40
<PAGE>
NET INTEREST INCOME*
--------------------------------------------------------------------------------
($ in millions)
[BAR CHART]
<TABLE>
<CAPTION>
3Q99 4Q99 1Q00 2Q00 3Q00
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Retained $2,176 $2,170 $1,968 $1,973 $1,999
Securitization 332 335 328 300 353
------ ------ ------ ------ ------
Total $2,508 $2,505 $2,296 $2,273 $2,352
====== ====== ====== ====== ======
Net Interest Margin 2.97% 2.82% 2.59% 2.48% 2.47%
Adjusted for
Securitization: 3.24% 3.07% 2.85% 2.76% 2.75%
</TABLE>
* Operating Basis; excludes $62MM prior years' tax refunds in 4Q99
41
<PAGE>
Average Earning Asset Mix
--------------------------------------------------------------------------------
($ in billions)
<TABLE>
<CAPTION>
3Q00 2Q00 3Q99
------------ ------------- -------------
$ % $ % $ %
----- --- ----- --- ----- ---
<S> <C> <C> <C> <C> <C> <C>
Commercial Loans 96.3 30 92.0 30 87.8 30
Consumer Loans 91.0 28 87.1 28 85.4 29
Securities 64.7 20 63.3 20 53.0 18
Liquid Assets 70.0 22 69.2 22 64.0 23
----- --- ----- --- ----- ---
Total 322.0 100 311.6 100 290.2 100
Net Interest Margin 2.47% 2.48% 2.97%
Adjusted for Securitization 2.75% 2.76% 3.24%
</TABLE>
42
<PAGE>
AVAILABLE-FOR-SALE (AFTER-TAX)
--------------------------------------------------------------------------------
($ in millions)
<TABLE>
<CAPTION>
9/30/00 6/30/00 [Delta Graphic]
------- ------- ---------------
<S> <C> <C> <C>
Securities $(1,026) $(1,338) $312
Loans 0 1 (1)
-----------------------------------
Total $(1,026) $(1,337) $311
</TABLE>
43
<PAGE>
NONINTEREST REVENUE*
-------------------------------------------------------------------------------
($ IN MILLIONS)
[BAR CHART]
<TABLE>
<CAPTION>
3Q99 4Q99 1Q00 2Q00 3Q00
<S> <C> <C> <C> <C> <C>
Excluding CCP $2,608 $2,636 $3,441 $3,145 $3,449
CCP 319 1,310 450 249 (88)
------ ------ ------ ------ ------
Total $2,927 $3,946 $3,890 $3,394 $3,361
</TABLE>
* Operating basis; excludes special items
44
<PAGE>
MARKET-SENSITIVE REVENUES*
--------------------------------------------------------------------------------
QUARTERLY (1Q96-3Q00)
($ in millions)
[LINE GRAPH]
<TABLE>
<CAPTION>
1Q96 2Q96 3Q96 4Q96 1Q97 2Q97 3Q97 4Q97 1Q98 2Q98 3Q98 4Q98
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Actual 983 1,014 834 860 1,003 1,136 1,262 814 1,417 1,413 719 1,478
Trendline 918 952 987 1,022 1,059 1,098 1,138 1,179 1,222 1,266 1,312 1,360
</TABLE>
<TABLE>
<CAPTION>
1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00
----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Actual 1,635 1,836 1,541 2,380 2,207 1,835 1,364
Trendline 1,409 1,460 1,513 1,569 1,762 1,830 1,899
</TABLE>
* Includes Trading (NII and Noninterest Revenue), Investment Banking Fees,
Securities Gains and Private Equity Gains; does not include Flemings or Beacon
45
<PAGE>
Market-Sensitive Revenues*
___________________________________________________________________________
Proforma Chase H&Q (CAGR = 16%)
<TABLE>
Actual Market Logarithmic Regression of
Sensitive Revenues 1988-1999 Revenues
____________________________________________________________________________
<C> <S> <S>
1988 1521 1233
1989 1508 1433
1990 1373 1665
1991 1660 1934
1992 2209 2247
1993 3122 2611
1994 2574 3034
1995 2996 3525
1996 3691 4095
1997 4215 4758
1998 5027 5529
1999 7392 6424
</TABLE>
* Includes Trading (NII and Noninterest Revenue), Investment Banking Fees,
Securities Gains and Private Equity Gains
46
<PAGE>
TRADING REVENUE*
_______________________________________________________________________________
($ in millions)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Trading Revenue:
Interest Rate Contracts $118 $283 $ 346 $165 $119
FX Revenue 217 267 292 201 203
Equities and Commodities 150 161 213 49 84
Debt Instruments and Other 118 113 170 116 56
---- ---- ------ ---- ----
Sub-Total $603 $824 $1,021 $531 $462
Trading NII 77 17 24 102 217
-------------------------------------------------------------------------------
Total Trading Revenue $680 $841 $1,045 $633 $679
</TABLE>
* Charge-offs for risk management instruments are netted against trading
revenue.
47
<PAGE>
PROVISIONS
================================================================================
($ in millions)
<TABLE>
<CAPTION>
3Q99 4Q99 1Q00 2Q00 3Q00
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
[BAR CHART]
$398 4Q99 1Q00 2Q00 3Q00
Retained Net Charge-offs $395 $570 $342 $332 $305
Managed Net Charge-offs $633 $810 $596 $574 $541
</TABLE>
48
<PAGE>
NONPERFORMING ASSETS
--------------------------------------------------------------------------------
($ IN MILLIONS)
[BAR CHART]
<TABLE>
<CAPTION>
9/30/99 12/31/99 3/31/00 6/30/00 9/30/00
------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Assets Acquired as Loan Satisfactions $ 105 $ 102 $ 106 $ 94 $ 81
Nonperforming Assets 1,905 1,694 1,597 1,805 1,735
------ ------ ------ ------ ------
$2,015 $1,796 $1,703 $1,899 $1,816
====== ====== ====== ====== ======
NPA/Assets: 0.54% 0.44% 0.44% 0.48% 0.43%
Allowance/NPL: 190% 208% 221% 197% 207%
</TABLE>
49
<PAGE>
NET CHARGE-OFFS
_______________________________________________________________________________
($ in millions)
<TABLE>
<CAPTION>
3Q00 (%)* 3Q99 (%)* 2Q00 (%)*
---- ------- ---- ------- ---- -------
<S> <C> <C> <C> <C> <C> <C>
CREDIT CARD (MANAGED) $409 (4.97) $454 (5.53) $415 (5.09)
OTHER CONSUMER 67 (0.35) 77 (0.36) 67 (0.36)
COMMERCIAL LOANS 65 (0.27) 102 (0.46) 92 (0.40)
---- ---- ----
TOTAL $541 $633 $574
</TABLE>
* % is annualized for quarterly data and based on average outstandings
50
<PAGE>
Risk Profile
Total Credit Card Loans
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Managed Portfolio 90+ Days
Average Average Delinquency
Loans Loss Ratio Ratio
------- ---------- -----------
<S> <C> <C> <C>
1992* $15.7Bn 5.59% N/A%
1993* 15.9 4.91 2.41
1994* 17.3 4.30 2.47
1995* 21.0 4.05 2.37
1996* 23.7 4.87 2.38
1997 27.4 5.58 2.33
1998 32.0 6.02 2.16
1999 32.7 5.66 1.95
1999** -1Q 32.1 6.11 1.95
-2Q 32.6 5.80 1.80
-3Q 32.9 5.53 1.80
-4Q 33.3 5.24 1.92
2000** -1Q 33.3 5.41 1.76
-2Q 32.6 5.09 1.68
-3Q 32.9 4.97 1.85
</TABLE>
* Does not include international card portfolio
** Annualized
51
<PAGE>
RISK PROFILE
TOTAL CREDIT CARD LOANS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> E<C> <C> <C> <C> <C>
Managed Receivables:
Average Loans ($Bn) $32.9 $32.6 $33.3 $33.3 $32.9
Net Chargeoffs ($MM) 409 415 450 436 454
Loss Ratio* 4.97% 5.09% 5.41% 5.24% 5.53%
Balance Sheet Receivables:
Average Loans ($Bn) $14.0 $12.9 $15.1 $15.3 $15.6
Net Chargeoffs ($MM) 174 173 195 196 216
Loss Ratio* 4.99% 5.36% 5.19% 5.12% 5.54%
</TABLE>
* Annualized
52
<PAGE>
NET IMPACT OF CREDIT CARD SECURITIZATIONS
--------------------------------------------------------------------------------
($ in billions)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Interest Income $(353) $(349) $(328) $(335) $(332)
Fees, Commissions &
Other Revenue 117 107 74 95 94
Total Revenue (236) (242) (254) (240) (238)
Decrease in Provision for
Possible Loan Losses 236 242 254 240 238
</TABLE>
53
<PAGE>
RISK PROFILE
DOMESTIC 1-4 FAMILY RESIDENTIAL MORTGAGE
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Average Loans ($Bn) $48.9 $46.4 $44.5 $43.3 $42.5
Net Chargeoffs ($MM) 7 10 9 10 9
Loss Experience (%)* 0.06 0.09 0.08 0.09 0.08
</TABLE>
* Annualized
54
<PAGE>
RISK PROFILE
AUTO FINANCE*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Managed Receivables:
Average Loans ($Bn) $23.9 $23.6 $24.1 $24.1 $24.3
Net Chargeoffs ($MM) 23 26 26 28 26
Loss Ratio** 0.38% 0.44% 0.43% 0.46% 0.43
Balance Sheet Receivables:
Average Loans ($Bn) $22.1 $21.3 $21.4 $20.8 $20.6
Net Chargeoffs ($MM) 20 22 21 24 19
Loss Ratio** 0.36% 0.41% 0.39% 0.46% 0.37%
</TABLE>
* Includes loans and leasing
** Annualized
55
<PAGE>
LINE OF BUSINESS RESULTS*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3Q00 3Q99
------------------------- ------------------------
($MM) ($B) ($MM) ($B)
Cash Avg. Cash Cash Avg. Cash
Earnings Assets ROCE Earnings Assets ROCE
-------- ------ ---- -------- ------ ----
<S> <C> <C> <C> <C> <C> <C>
Investment Bank $384 $230.6 14.8% $420 $209.8 19.6%
Chase Capital Partners (106) 12.4 NM 176 8.6 15.9
Wealth Management 95 21.8 10.4 44 13.4 19.9
Global Services 183 16.2 26.7 148 16.4 19.9
National Consumer Services 492 148.2 24.2 435 131.0 22.0
Total** $1,054 $432.9 15.8% $1,257 382.0 23.0%
</TABLE>
* Excludes non-recurring items; operating basis
** Includes corporate results
56
<PAGE>
INVESTMENT BANK
KEY FINANCIAL MEASURES
-------------------------------------------------------------------------------
($ IN MILLIONS, OPERATING BASIS)
<TABLE>
<CAPTION>
3Q00 3Q99
----------------------------- ----------------------------
Cash Cash
Cash Overhead Cash Overhead
Revenue Earnings Ratio Revenue Earnings Ratio
-------- -------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Global Markets $880 $170 73% $914 $263 56%
Global Investment Banking 623 74 80 404 87 64
Corporate Lending &
Portfolio Mgmt. 389 143 26 387 137 28
Other Global Bank (22) (3) NM (86) (67) NM
--------------------------------------------------------------
Total $1,870 $384 67% $1,619 $420 53%
</TABLE>
57
<PAGE>
GLOBAL MARKETS
KEY FINANCIAL MEASURES*
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue $880 $996 $1,227 $879 $914
Cash Earnings 170 294 416 242 263
Cash Overhead Ratio 73% 55% 47% 57% 56%
</TABLE>
58
<PAGE>
GLOBAL INVESTMENT BANKING
KEY FINANCIAL MEASURES
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue $623 $653 $662 $436 $404
Cash Earnings 74 121 121 69 87
Cash Overhead Ratio 80% 68% 69% 73% 64%
</TABLE>
59
<PAGE>
CORPORATE LENDING & PORTFOLIO MANAGEMENT
KEY FINANCIAL MEASURES
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue $389 $359 $367 $387 $387
Cash Earnings 143 123 132 130 137
Cash Overhead Ratio 26% 30% 28% 32% 28%
</TABLE>
60
<PAGE>
Chase Capital Partners
Key Financial Measures
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
($ in millions, operating basis)
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue (88) $249 $449 $1,310 $319
Cash Earnings (106) 130 242 805 176
Cash Overhead Ratio NM 20% 17% 4% 14%
</TABLE>
61
<PAGE>
WEALTH MANAGEMENT
KEY FINANCIAL MEASURES
-------------------------------------------------------------------------------
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue $470 $322 $375 $282 $267
Cash Earnings 95 53 77 38 44
Cash Overhead Ratio 72% 72% 66% 77% 72%
</TABLE>
62
<PAGE>
GLOBAL SERVICES
KEY FINANCIAL MEASURES
($ in millions, operating basis)
3Q00 2Q00 1Q00 4Q99 3Q99
Revenue $875 $878 $850 $806 $800
Cash Earnings 183 163 149 130 148
Cash Overhead Ratio 67% 71% 73% 76% 71%
63
<PAGE>
GLOBAL SERVICES REVENUES
-------------------------------------------------------------------------------
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q 9MOS
-- ----
00 %O(U)99 00 %O(U)00
---- ------- ----- -------
<S> <C> <C> <C> <C>
Treasury Solutions $322 2% $950 4%
Global Investor Services 403 14% 1,214 19%
Capital Markets Fiduciary 143 20% 419 20%
</TABLE>
64
<PAGE>
NATIONAL CONSUMER SERVICES
KEY FINANCIAL MEASURES
_______________________________________________________________________________
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q00 3Q99
------------------------------------------------------------------------------
Cash Cash
Cash Overhead Cash Overhead
Revenue Earnings Ratio Revenue Earnings Ratio
------- -------- ---------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Cardmember Services $ 943 $141 36% $ 940 $124 34%
Regional Banking Group 771 139 64 719 102 70
Chase Home Finance 354 94 56 312 78 56
Diversified Consumer Services 160 36 49 153 29 56
Middle Markets 274 70 52 264 62 54
Other NCS 85 12 NM 126 40 NM
----------------------------------------------------------------------------
Total $2,587 $492 50% $2,514 $435 51%
</TABLE>
65
<PAGE>
CARDMEMBER SERVICES
KEY FINANCIAL MEASURES
--------------------------------------------------------------------------------
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue $943 $890 $886 $918 $940
Cash Earnings 141 119 89 130 124
Cash Overhead Ratio 36% 35% 36% 33% 34%
</TABLE>
66
<PAGE>
Regional Banking Group
KEY FINANCIAL MEASURES
================================================================================
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue $771 $763 $743 $745 $719
Cash Earnings 139 129 123 118 102
Cash Overhead Ratio 64% 66% 66% 67% 70%
</TABLE>
67
<PAGE>
CHASE HOME FINANCE
KEY FINANCIAL MEASURES
--------------------------------------------------------------------------------
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue $354 $318 $325 $345 $312
Cash Earnings 94 75 70 85 78
Cash Overhead Ratio 56% 60% 61% 56% 56%
</TABLE>
68
<PAGE>
DIVERSIFIED CONSUMER SERVICES
KEY FINANCIAL MEASURES
-------------------------------------------------------------------------------
($ in millions, operating basis)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
Revenue $160 $166 $77 $164 $153
Cash Earnings 36 34 (18) 34 29
Cash Overhead Ratio 49% 52% NM 50% 56%
</TABLE>
69
<PAGE>
MIDDLE MARKETS
KEY FINANCIAL MEASURES
--------------------------------------------------------------------------------
($ IN MILLIONS, OPERATING BASIS)
<TABLE>
<CAPTION>
3Q00 2Q00 1Q00 4Q99 3Q99
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
REVENUE $274 $270 $267 $263 $264
CASH EARNINGS 70 64 63 59 62
CASH OVERHEAD RATIO 52% 54% 54% 56% 54%
</TABLE>
70
