WORLDWIDE SECURITIES SERVICES

J.P. Morgan Depositary Receipts

Asia-Pacific Year in Review 2010

DEPOSITARY RECEIPTS

CONTENTS
Key Highlights Themes to Watch in 2011 and Beyond 2 3

DR Trading and Liquidity Trends 4 DR Capital-Raising Trends Investments in DRs Legal and Regulatory Developments J.P. Morgan Innovation and Market Expansion in 2010 7 11 13 14 15 16

A word from Jamie Dimon, Chairman and Chief Executive Officer, J.P. Morgan
J.P. Morgan as a trusted advisor will remain committed to supporting our clients in the global markets as they work towards achieving their strategic business goals. We are seeing an improving IPO market which will positively impact the depositary receipt landscape for issuers looking to raise capital abroad or to identify expansion opportunities outside their home market. Momentum is building in both existing and emerging markets and we are confident that with our expertise and experience, we are ideally positioned to help our clients tap into opportunities developing in 2011 and beyond.

J.P. Morgans DR Thought Leadership in 2010 J.P. Morgan APAC DR Events in 2010

Contact Information

19

Jamie Dimon Chairman and CEO

DEPOSITARY RECEIPTS

2010 Key Highlights

Impacting the capital markets in 2010 were uncertainty surrounding sovereign concerns in Europe, policy tightening in emerging markets to curb foreign fund inflows and currency appreciation, uncertainty around withdrawal of monetary stimulus and mixed key economic data. Throughout these difficult market conditions, depositary receipts (DRs) remained popular as an instrument for issuers and investors in the APAC region. Issuers from China and India continued to dominate IPO capital raising with a record number of deals, while Hong Kong and India launched local variations of the DR product to tap into the growing liquidity in these capital markets. Trading value in APAC DRs grew double-digits to $882bn DRs, with a volume of 36bn, in 2010.
14.5% increase in DR trading value (from $770bn to $882bn) in 2010, compared with 2009. DR trading volume remained flat (36bn) in 2010 compared to that of 2009. U.S. holdings in foreign equities totaled $4.1tn as of Q3 2010, a more-than-$100bn increase from Q4 2009, according to U.S. Federal Reserve statistics. Global investment in DRs was estimated by J.P. Morgan to be $1.1tn as of the end of 2010. 121 issuers from 20 countries created new sponsored DR programs in 2010, bringing the global number of sponsored DR programs to 2,222. 91 issuers from 8 countries in the APAC region created new sponsored DR programs in 2010, bringing the number of sponsored DR programs from the APAC region to 1,032. $7.9bn was raised through primary and follow-on DR offerings by APAC issuers in 2010, compared with $9.2bn in 2009. India and China continued to dominate capital raising, and accounted for more than 90% of total capital raised by APAC issuers. 72 new APAC issuers raised $5.4bn through IPO listings in New York, Luxembourg, London and Singapore, versus 26 IPOs that raised $4bn in 2009. The DR IPO markets in China and India bounced back with 36 and 34 IPOs, respectively: a new record. 21 existing APAC issuers raised $2.6bn through follow-on offerings in 2010, a 50% decrease from 21 existing issuers raising $5.2bn in 2009. The U.S. remained the preferred location for DR capital-raising and was the source of 69% (or $5.5bn) of the $7.9bn total capital raised by APAC issuers in 2010. In June, Standard Chartered raised $530mm by launching the first-ever Indian Depositary Receipt (IDR). In October, the Singapore Exchange (SGX) introduced trading in U.S.-listed ADRs on its GlobalQuote board. The launch phase included 19 Asian issuers from Hong Kong and China (incorporated offshore). DR programs of issuers from other Asian markets are also expected to be introduced in the near future. December featured another landmark event: J.P. Morgan helped Vale of Brazil launch the first-ever Hong Kong Depositary Receipt (HDR).

J.P. Morgan continued to lead the DR Industry in 2010

2010 saw J.P. Morgan launch the first Hong Kong Depositary Receipt (HDR) for Vale of Brazil. This launch reinforced our legacy of innovation and brought the world's second-largest mining company, and the largest producer and exporter of iron ore, to the Hong Kong market. J.P. Morgan worked very closely with Vale, the Stock Exchange of Hong Kong, regulators and intermediaries in Hong Kong and overseas to make this happen. This listing is a testament to our global capabilities and long-held tradition of innovation as the creator of the DR instrument. With 53% market share, J.P. Morgan depositary bank continued to dominate global DR capital raising in 2010. Demonstrating strong loyalty, APAC clients Chunghwa Telecom and Wipro renewed their contracts with J.P. Morgan in 2010. J.P. Morgan was named Best DR Bank by The Asset magazine for the second-consecutive year, and also received The Assets Best ADR Bank award. DR programs managed by J.P. Morgan depositary bank, on average, continue to have higher trading volume and are more liquid than those managed by other depositary banks. J.P. Morgans sponsored DR programs in APAC see average annual trading value of $969mm (versus industry average of $851mm) on annual volume per program of 60mm DRs (versus industry average of 40mm DRs).

Themes to Watch in 2011 and Beyond

The stage is set for the global capital market recovery to develop, as quarterly earnings continue to impress and company guidance reveals strong growth prospects for 2011. We expect DR capital raising, trading and investment to grow at a steady pace in 2011, barring severe shocks to the global capital markets. IPO Capital Raising
A steady increase in DR capital raising from emerging markets is expected as companies continue to access capital in the U.S., Western Europe, and Asia to meet their funding requirements. APAC is expected to be the most active capital-raising region, with China and India continuing to lead through ADR and GDR offerings, respectively, followed by Taiwan and South Korea. Vietnam and Mongolia are expected to emerge as new DR markets over the next 12 to 24 months.

Unsponsored ADR Programs

52 new APAC unsponsored programs were created in 2010, compared with 77 in 2009. We expect the downward trend in the creation of unsponsored programs to continue as programs with the highest investor demand have already been created. Conversion of unsponsored to sponsored Level I ADR programs is expected to continue as companies see the benefits of taking control of their ADR programs.

Local DRs
In 2011, local DRs should continue to evolve. Local DRs are structured to better tap equity investors in new markets, providing local currency-denominated investment vehicles in markets such as Hong Kong, Brazil, India, Taiwan and Russia. HDRs should continue to emerge as an alternative to ADRs and GDRs, as multinational companies with large existing sales operations in Asia or those that would like to tap into the growing pool of liquidity in Asia seek to list on the Stock Exchange of Hong Kong. More issuers from China and Singapore are expected to list TDRs on the Taiwan Stock Exchange. Regulatory changes in China in the next 12 to 24 months may allow foreign companies to list on the China Stock Exchange.

Deregistration and Delisting

In the effort to reduce compliance costs and listing fees, in 2010, two APAC DR issuers delisted from a U.S. stock exchange to trade OTC. This trend is expected to continue in 2011, albeit at a slower pace.

Potential Obstacles to Growth

Potential DR market growth obstacles include rising inflation rates in emerging markets, start of policy normalization earlier than expected, further policy tightening in fast-growing emerging markets to curb the continued inflows of foreign funds and currency appreciation, and an uncertain outlook for commodities and sovereign concerns in Europe. These events could create high volatility and have a destabilising affect in equity markets.

DEPOSITARY RECEIPTS

DR Trading and Liquidity Trends

With the broad stock market recovery that began in the second half of 2009, DR trading value of APAC DRs in 2010 grew by double digits compared to 2009, reaching $882bn (up 14.5% from $770bn). APAC DR trading volume, on the other hand, remained flat compared with 2009 (36bn). The NYSE accounted for 59.7% of APAC DRs traded in 2010, followed by NASDAQ at 35.8%, OTC at 2.9% and LSE at 1.5%. The NYSE accounted for 51.9% of APAC DR trading value, followed by NASDAQ at 43.6%, the LSE at 2.5% and OTC at 2%. Semiconductors, alternative energy, internet and telecommunications were the most active sectors, representing 53.4% of trading value and 54.7% of trading volume for APAC DRs in 2010.

2010 APAC DR Trading Volume and Value

DR Trading Volume (bn DRs) DR Trading Value ($bn)

bn DRs 50 40 30 17 20 10 0 2001 2003 2004 2006 2008 2000 2009 2007 2002 2005 2010 3 5 6 11 11 38

$bn 1,400 1,200 36 36 1,000 800 600 400 200 0

Source: Bloomberg, January 2011.

2010 APAC DR Trading Volume and Value by Trading Venue

DR Trading Volume (bn DRs) DR Trading Value ($bn)

LSE

457

27

NYSE

OTC

385

NASDAQ

NASDAQ

13

22

LSE

NYSE
Source: Bloomberg, January 2011.

21

18

OTC

2010 APAC DR Trading Volume and Value by Sector

Electrical Comps Electronics Mining Software Banks Lodging Telecommunications
Internet Energy-Alternate Sources 1.2 1.7 1.7 1.8 1.8 1.9 2.2 5.2 5.6 6.8 6.4

DR Trading Volume (bn DRs)

Electronics Oil & Gas Auto Manufacturers Software Banks Telecommunications

Semiconductors

25 34 37 40 47 50 56 57 85

DR Trading Value ($bn)

Energy-Alternate Sources Mining Internet Other sectors

Semiconductors Other sectors

Source: Bloomberg, January 2011.

308 143

DR Trading and Liquidity Trends (continued)

Collectively, Chinese, Indian and Taiwanese markets accounted for 77.7% of the trading volume and 76.3% of the trading value for APAC DRs in 2010. These three markets trading value was $672.6bn on volume of 28.1bn shares. In 2010, Chinas DR programs led the market with 52.3% of APAC DR trading volume and 59.6% of trading value. Programs from Taiwan generated 17.5% of DR trading volume and 6% of value while DR programs from India produced 7.9% and 10.7% of APAC DR trading volume and value, respectively. Trading on the major DR exchanges remained concentrated in a few large programs. The ten-largest APAC DR programs listed on the NYSE accounted for 53.5% of total NYSE APAC DR trading volume and trading value during 2010 (see tables on following page). APAC DR programs managed by J.P. Morgan, on average, continue to be more liquid relative to those with other depositary banks (see chart at right).

Average Annual APAC DR Trading Volume per Sponsored Programs

DR Trading Volume (mm DRs)
51 60

27

24

BNYM
Source: Bloomberg, January 2011.

CITI

DB

JPM

2010 APAC DR Trading Volume and Value by Country

Singapore Indonesia New Zealand South Korea Australia Hong Kong Japan
India 0.04 0.09 0.14 1.3 1.6 2.0 2.7 2.9 6.3 18.9 0.01

DR Trading Volume (bn DRs)

Banglasdesh Philippines Indonesia Hong Kong South Korea Taiwan Japan Australia India China Other countries

1 2 3 22 40 53 60 79 94

DR Trading Value ($bn)

Taiwan China Other countries

525 2

Source: Bloomberg, January 2011.

DEPOSITARY RECEIPTS

DR Trading and Liquidity Trends (continued)

Most-Traded DR Programs in 2010 (volume in billions)
NYSE Company TSMC YINGLI GREEN ENERGY BHP BILLITON LDK SOLAR UMC SUNTECH POWER HLDG TRINA SOLAR AU OPTRONICS MITSUBISHI UFJ RENESOLA Grand Total No. of Programs Top 10 as % of Total Source: Bloomberg, January 2011. Volume 3.56 1.08 1.02 1.01 0.99 0.98 0.95 0.72 0.62 0.59 21.54 117 53.5% Company BAIDU JA SOLAR MELCO CROWN SOLARFUN CTRIP SILICONWARE FOCUS MEDIA INFOSYS SHANDA GAMES NETEASE.COM NASDAQ Volume 3.50 2.28 1.68 0.63 0.58 0.49 0.47 0.36 0.35 0.23 12.94 67 81.6% Company HON HAI RELIANCE IND REI AGRO BEXIMCO PHARMA MAHINDRA LARSEN & TOUBRO COMPAL ELECT AXIS BANK SAMSUNG ELECT SBI LSE Volume 0.14 0.09 0.06 0.04 0.04 0.03 0.03 0.02 0.02 0.01 0.55 76 86.2% Company NINTENDO SEGA SAMMY NISSAN MOTOR TELSTRA CORP JAPAN AIRLINES ESPRIT HOLDINGS FOSTER'S GROUP SUMITOMO TRUST NEWCREST MINING MS&AD INSURANCE OTC Volume 0.05 0.04 0.04 0.04 0.04 0.03 0.03 0.03 0.02 0.02 1.07 908 31.4%

Most-Traded DR Programs in 2010 (value in $ billions)

NYSE Company BHP BILLITON TSMC ICICI BANK TRINA SOLAR TOYOTA MOTOR CHINA MOBILE YINGLI GREEN ENERGY CHINA LIFE INSURANCE PETROCHINA POSCO Grand Total No. of Programs Top 10 as % of Total Source: Bloomberg, January 2011. Value 74.46 36.70 23.77 21.67 20.85 20.83 12.25 11.50 11.37 11.34 457.49 117 53.5% Company BAIDU CTRIP INFOSYS JA SOLAR FOCUS MEDIA NETEASE.COM MELCO CROWN PERFECT WORLD SOLARFUN SHANDA INTERACT NASDAQ Value 254.72 23.35 21.88 14.25 9.07 8.27 7.92 5.67 5.57 5.32 384.52 67 92.6% Company GEEC SAMSUNG ELECT RELIANCE IND SBI BEXIMCO PHARMA LARSEN & TOUBRO HON HAI AXIS BANK MAHINDRA GAIL INDIA LSE Value 5.83 5.00 3.91 1.56 1.40 1.11 1.10 0.70 0.55 0.19 22.21 76 96.1% Company NINTENDO NEWCREST MINING NISSAN MOTOR TELSTRA CORP MITSUBISHI CORP SEVEN & I HOLDINGS FANUC FUJIFILM HOLDINGS KOMATSU A&Z BANKING OTC Value 1.90 0.76 0.64 0.52 0.46 0.41 0.36 0.36 0.33 0.33 17.60 908 34.5%

DR Capital-Raising Trends
Total DR capital raising by APAC issuers was $7.9bn in 2010, while $9.2bn was raised in 2009.

APAC DR Capital Raising ($bn)

IPO
23.3

Follow-on

$5.4bn was raised via IPO offerings in 2010. By comparison, $4bn was raised via IPOs during 2009. Existing APAC DR issuers raised $2.6bn in additional capital from the equity capital markets in 2010. By comparison, in 2009, $5.2bn was raised via follow-on offerings. 72 new APAC issuers raised $5.4bn in capital through DRs in 2010, compared with 26 new issuers raising $4bn in 2009, evidencing a decline in average deal size of IPOs, most likely due to market volatility. New issuers from China, India and Taiwan completed IPOs. 36 new Chinese issuers raised $4.1bn; 34 new Indian issuers raised $959.3mm; 2 new Taiwanese issuers raised $298.8mm. The majority of APAC DR IPO capital raising in 2010 was completed on the NYSE. Twenty-two Chinese issuers raised capital through ADR IPOs on the NYSE. Fourteen Chinese new issuers raised capital via ADR IPO on the NASDAQ, the second-most popular venue for DR IPO capital raising in 2010. Thirty-three new issuers raised capital via Regulation S (Reg S) listings on the Luxembourg Stock Exchange, the third-most popular venue for IPO capital raising in 2010. Thirty-four Indian and two Taiwanese companies issued capital for the first time. One Indian issuer raised capital through a Reg S GDR offering on the Singapore Exchange (SGX) in October. As was the case in 2009, APAC DR issuers did not raise any funds on the London Stock Exchange in 2010.
10.5 3.9 6.6 4.9 2.8 2.1 5.5 2.9 2.6 9.4 3.7 5.7 6.5 2.6

14.8 10.7

16.9 7.1

11.0 9.2

3.1 5.4 2.2 4.0 0.9 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3.9 4.1
Source: J.P. Morgan, other depositary banks, Bloomberg, stock exchanges, January 2011.

9.8

12.3

5.2

7.9 2.6

2010 APAC DR Capital Raising by Venue ($mm)

Singapore
79 16 595 1,104 636 1,277 728 2,826

IPO

Follow-on

Lux

NASDAQ

NYSE

Source: J.P. Morgan, other depositary banks, Bloomberg, stock exchanges, January 2011.

2010 APAC DR Capital Raising by Country ($mm)

Hong Kong

0.05

Taiwan

0.7

India

1.7

China

5.4

Source: J.P. Morgan, other depositary banks, Bloomberg, stock exchanges, January 2011.

DEPOSITARY RECEIPTS

DR Capital-Raising Trends (continued)

As was the case in 2009, 21 existing APAC DR issuers raised capital in the U.S. or Europe through follow-on offerings in 2010. Secondary capital-raising was generated by issuers in China ($1.1bn, 7 issuers), India ($3bn, 8 issuers), Taiwan ($830.5mm, 3 issuers), and Hong Kong ($310mm, 2 issuers). Looking ahead to 2011, DR issuance activity in China and India is expected to continue and some DR IPO activity may be seen from South Korea in the first half of 2011.

2010 APAC Number of DR Capital-Raising Issuers by Country

IPO
Hong Kong Taiwan India China 0 10 20 30 1 2 2 34 36 40 6 10 50

Follow-on

Source: J.P. Morgan, other depositary banks, Bloomberg, stock exchanges, January 2011.

The premier site for the global investor adr.com

Since its launch in 1998, J.P. Morgan's adr.com has become the internets leading source for international equities information. This award-winning site has been recognized by the financial media as one of the best for depositary receipt issuers, investors, brokers and intermediaries. J.P. Morgan created the first depositary receipt in 1927. Since then, the firm has continued to innovate, to invest in its technology, people and infrastructure, to ensure that it provides issuers and their investors with the leading depositary receipt services, including adr.com. In January 2011, J.P. Morgan formally launched a new release of adr.com, which includes: A cleaner look and feel that enhances navigation. Improved reporting, including a program dashboard, for J.P. Morgans depositary receipt issuers to enhance the real-time information required to manage their DR programs. A simplified user experience that provides easier access to the information most commonly viewed by adr.com visitors.

APAC DR Capital Raising by New Issuers in 2010

Issuer Name China Ming Yang Wind Power Group E-Commerce China Dangdang Inc Youku.Com Inc Sino-American Silicon Products Inc Sinotech Energy Ltd Mecox Lane Ltd Xueda Education Group Camelot Information Systems Inc Soufun Holdings Ltd iSoftStone Holdings Ltd Tal Education Group Bitauto Holdings Ltd China Lodging Group Ltd Autonavi Holdings Ltd Pegatron Corp Noah Holdings Ltd Ambow Education Holding Ltd Le Gaga Holdings Ltd JSW Steel Ltd Bona Film Group Ltd Chinacache International Holdings China Hydroelectric Corp Country Style Cooking Restaurant China Xiniya Fashion Ltd IFM Investments Ltd Daqo New Energy Corp Shangpharma Corp Hisoft Technology International Ltd China Kanghui Holdings Inc RDA Microelectronics Inc Global Education & Technology Charm Communications Inc Farmax India Ltd Syswin Inc Cox & Kings Ltd Jinkosolar Holding Co Ltd Sky-Mobi Ltd-Adr Resurgere Mines & Minerals Lentuo International Inc Kemrock Industries China New Borun Corp SE Investments Ltd Jindal Cotex Ltd Teledata Technology Chromatic India Ltd Bilcare Limited Nectar Lifesciences Ltd Nu Tek India Ltd Rainbow Papers Ltd Aksh Optifibre Ltd Surya Pharmaceutical Ltd Birla Cotsyn India Ltd Nakoda Ltd Zenith Birla India Ltd Ossen Innovation Co Ltd Nissan Copper Ltd Jupiter Bioscience Ltd Country China China China Taiwan China China China China China China China China China China Taiwan China China China India China China China China China China China China China China China China China India China India China China India China India China India India India India India India India India India India India India India China India India Sector Electrical Components & Equipment Internet Internet Semiconductors Oil & Gas Services Internet Commercial Services Computers Internet Commercial Services Commercial Services Internet Lodging Software Electronics Diversified Financial Services Commercial Services Agriculture Iron/Steel Entertainment Internet Electric Retail Apparel Real Estate Chemicals Commercial Services Software Healthcare-Products Semiconductors Commercial Services Advertising Household Products/Wares Real Estate Leisure Time Miscellaneous Manufacturing Retail Mining Retail Miscellaneous Manufacturing Beverages Diversified Financial Services Textiles Computers Textiles Pharmaceuticals Pharmaceuticals Telecommunications Forest Products & Paper Telecommunications Pharmaceuticals Textiles Textiles Miscellaneous Manufacturing Building Materials Mining Biotechnology Type NYSE IPO NYSE IPO NYSE IPO LUX IPO NASDAQ IPO NASDAQ IPO NYSE IPO NYSE IPO NYSE IPO NYSE IPO NYSE IPO NYSE IPO NASDAQ IPO NASDAQ IPO LUX IPO NYSE IPO NYSE IPO NASDAQ IPO Private Placement NASDAQ IPO NASDAQ IPO NYSE IPO NYSE IPO NYSE IPO NYSE IPO NYSE IPO NYSE IPO NASDAQ IPO NYSE IPO NASDAQ IPO NASDAQ IPO NASDAQ IPO LUX IPO NYSE IPO LUX IPO NYSE IPO NASDAQ IPO LUX IPO NYSE IPO LUX IPO NYSE IPO LUX IPO LUX IPO LUX IPO LUX IPO Private Placement LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO NASDAQ IPO LUX IPO LUX IPO Capital Raised $mm 350 313 233 177 168 149 147 147 143 141 138 127 127 124 122 116 107 103 102 100 97 96 95 88 87 87 87 85 79 78 77 74 72 67 65 64 58 54 52 50 40 39 39 37 36 35 35 29 27 25 25 25 24 23 23 22 21 Month Oct Dec Dec Sep Nov Oct Nov Jul Sep Dec Oct Nov Mar Jun Aug Nov Aug Nov Dec Dec Oct Jan Oct Nov Feb Oct Oct Jun Aug Nov Oct May June Nov Aug May Dec June Dec Apr June Mar June Mar Oct Jan Feb Aug Jan Sep Oct Mar Nov May Dec May Jul

Source: J.P. Morgan, Bloomberg, stock exchanges, January 2011.

DEPOSITARY RECEIPTS

APAC DR Capital Raising by New Issuers in 2010 (continued)

Issuer Name Syncom Healthcare Ltd Birla Power Solutions Ltd Silverline Animation BAG Films & Media Ltd Karuturi Global Ltd Kingtone Wirelessinfo Tulsi Extrusions Ltd Beckons Industries Ltd Bhoruka Aluminium Ltd Southern Ispat Ltd Hiran Orgochem Ltd Birla Shloka Edutech Ltd Ashco Niulab Industries Ltd Glory Polyfilms Ltd KBS Capital Management Ltd Hiran Orgochem Ltd Birla Shloka Edutech Ltd Ashco Niulab Industries Ltd Nu Tek India Ltd Rainbow Papers Ltd Aksh Optifibre Ltd Surya Pharmaceutical Ltd Glory Polyfilms Ltd KBS Capital Management Ltd Total: 72 issuers Source: J.P. Morgan, Bloomberg, stock exchanges, January 2011. Country India India India India India China India India India India India India India India India India India India India India India India India India Sector Pharmaceuticals Machinery-Diversified Media Media Agriculture Software Miscellaneous Manufacturing Energy-Alternate Sources Mining Commercial Services Pharmaceuticals Software Healthcare-Products Miscellaneous Manufacturing Diversified Financial Services Pharmaceuticals Software Healthcare-Products Telecommunications Forest Products & Paper Telecommunications Pharmaceuticals Miscellaneous Manufacturing Diversified Financial Services Type LUX IPO LUX IPO LUX IPO LUX IPO SGX IPO NASDAQ IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO LUX IPO Capital Raised $mm 21 20 18 17 16 16 14 11 10 10 10 10 10 4 2 10 10 10 29 27 25 25 4 2 5,361 Month Sep Jan Apr Feb Oct May Aug June Dec Aug May Aug Apr Feb May May Aug Apr Aug Jan Sep Oct Feb May

APAC DR Follow-On Capital Raising in 2010

Issuer Name Essar Oil Walsin Lihwa Corp Ctrip.Com International Ltd Essar Oil Trina Solar Ltd Mindray Medical International Camelot Information Systems Inc Hisoft Technology International Ltd Wintek Corp Cninsure Inc Duoyuan Global Water Inc Vanceinfo Technologies Inc Solarfun Power Holdings Co Ltd Bombay Rayon Fashions Ltd Birla Power Solutions Ltd City Telecom Ltd SELManufacturing Co Ltd Nu Tek India Ltd SELManufacturing Co Ltd LDK Solar Co Ltd Glory Polyfilms Ltd Total: 21 follow-on offerings Source: J.P. Morgan, Bloomberg, stock exchanges, January 2011. Country India Taiwan China India China China China China Taiwan China China China China India India Hong Kong India India India China India Sector Oil & Gas Electrical Components & Equipment Internet Oil & Gas Energy-Alternate Sources Healthcare-Products Computers Software Electronics Insurance Environmental Control Software Energy-Alternate Sources Textiles Machinery-Diversified Telecommunications Textiles Telecommunications Textiles Semiconductors Miscellaneous Manufacturing Market Private Placement LUXEMBOURG NASDAQ Private Placement NYSE NYSE NYSE NASDAQ LUXEMBOURG NASDAQ NYSE NYSE NASDAQ SINGAPORE LUXEMBOURG NASDAQ LUXEMBOURG LUXEMBOURG LUXEMBOURG NYSE LUXEMBOURG Capital Raised $mm 293 290 236 225 184 176 161 150 122 115 105 92 83 79 54 52 47 44 35 12 4 2,556 Month Apr Nov Mar May Mar Mar Dec Dec Apr Jul Jan Nov Nov Oct Jul Apr May Dec Sep Jan Aug

10

Investments in DRs
J.P. Morgan estimates the total investment in APAC DR programs at approximately $208bn with investment in ADRs at $177bn and investment in GDRs at $31bn, confirming the continued popularity of DRs. According to Q3 2010 data published by the U.S. Federal Reserve, U.S. investments in foreign equities stood at $4.1tn, 19% of U.S. investors portfolio. This investment value was up more than $100bn from year-end 2009. J.P. Morgan estimates the value of investments in DR programs from China to be the highest of all APAC countries at $53bn (26%). Investments in DRs in other major APAC countries are estimated as follows: India at $43bn (21%), Japan at $33bn (16%), South Korea at $30bn (15%), Taiwan at $23bn (11%) and Australia at $14bn (7%). Based on J.P. Morgan estimates, APAC DR investments in the banking sector reached $23bn, accounting for 13% of all DR investments in APAC. Telecommunications, semiconductors, mining and software were the other key sectors attracting investment in APAC DRs. Among the top 20 APAC DR programs by estimated investment value, Indian programs represented $27bn, or 25% of investment. South Korea had $19bn (18%), Japan had $17bn (16%), Taiwan had $13bn (13%), China had $12bn (12%), Australia had $12bn (11%) invested in DR programs. Hong Kong and the Philippines each had $3bn (3% of investment).
6 5 4 3 2 1 0

U.S. Holdings in Foreign Equities

Value ($tn) 5.3 4.3 3.3 2.6 1.9 3.9 2.9 4.2 3.5 4.1 % of Portfolio 25 20 15 10 5 0

Q1 2010

Q2 2010

2006

2007

2008

2009

2003

Source: U.S. Federal Reserve as of Q3 2010.

Top 10 APAC DR Investments by Issuer's Country ($bn)

Sri Lanka Indonesia Philippines Hong Kong Australia Taiwan South Korea Japan India China 1 2 3 4 14 23 30 33 43 53

Top 20 APAC DR Programs by Investment Value

Company Taiwan Semiconductor Mnft. BHP Billiton Infosys Technologies Ltd ICICI Bank Ltd Samsung Electronics Co Ltd Mitsui & Co Ltd Posco HDFC Bank Ltd SK Telecom Co Ltd China Mobile Ltd Toyota Motor Corp New Oriental Education Essar Oil Philippine Long Distance Telephone Sony Corp CNOOC Ltd Reliance Industries Ltd Honda Motor Co Ltd Ctrip.Com International Ltd NetEase.Com Country Taiwan Australia India India South Korea Japan South Korea India South Korea China Japan China India Philippines Japan Hong Kong India Japan China China Exchange NYSE NYSE NASDAQ NYSE NASDAQ NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NASDAQ NASDAQ Industry Semiconductors Mining Software Banks Electrical Comp. Distribution Iron/Steel Banks Telecommunications Telecommunications Auto Manufacturers Commercial Serv. Oil & Gas Telecommunications Electronics Oil & Gas Chemicals Auto Manufacturers Internet Internet DR Value ($bn) 13.8 11.9 8.4 7.9 7.8 7.7 7.1 4.4 4.1 3.7 3.3 3.2 3.1 3.1 3.0 3.0 3.0 2.7 2.7 2.7

Source: Stock Exchanges, Bloomberg, J.P. Morgan program balances or J.P. Morgan estimates, January 2010. DR program values calculated by multiplying the current DR price with publicly available, or J.P. Morgan estimated, outstanding balance.

Top 15 APAC DR Investments by Sector ($bn)

Banks Telecommunications Semiconductors Mining Software Internet Electrical Comp & Equip Oil & Gas Auto Manufacturers Electronics Distribution/Wholesale Iron/Steel Energy-Alternate Sources Commercial Services Chemicals 3 5 5 7 8 8 9 10 11 13 14 16 18 23 22

Source: Stock Exchanges, Bloomberg or J.P. Morgan estimates, January 2010. DR program values calculated by multiplying the current DR price with publicly available, or J.P. Morgan estimated, outstanding balance.

Source: Stock Exchanges, Bloomberg, J.P. Morgan program balances or J.P. Morgan estimates, January 2010. DR program values calculated by multiplying the current DR price with publicly available, or J.P. Morgan estimated, outstanding balance.

Q3 2010

2004

2005

11

DEPOSITARY RECEIPTS

Investments in DRs (continued)

Top 10 Institutional Holders of APAC DRs by Investment Value
Company
BlackRock Institutional Trust Company, N.A. Lazard Asset Management, L.L.C. Fidelity Management & Research Tradewinds Global Investors, LLC Dodge & Cox Fisher Investments Dimensional Fund Advisors, LP Vanguard Group, Inc. Brandes Investment Partners, LP

Top 10 Mutual Fund Holders of APAC DRs by Investment Value

Company
iShares MSCI Emerging Markets Index Fund Vanguard Emerging Markets Stock Index Fund (USD) Scout International Fund Dodge & Cox Stock Fund Fidelity Diversified International Fund Dodge & Cox International Stock Fund iShares MSCI All Country Asia Ex Japan Index Fund Lazard Emerging Markets Equity Portfolio DFA Emerging Markets Value Fund Inc. Oppenheimer Developing Markets Fund

Style
Index Core Value GARP Core Value Deep Value Core Value Deep Value Index Core Value

Current $mm
7,188 3,061 3,055 2,562 2,491 2,272 2,129 2,010 1,977 1,808

Equity Assets ($mm)

749,746 61,562 566,064 21,432 108,788 32,566 120,565 646,287 272,028 28,465

% of portfolio
0.96% 4.97% 0.54% 11.95% 2.29% 6.98% 1.77% 0.31% 0.73% 6.35%

Change on previous filing $mm

-254 15 60 117 -283 -101 158 313 -150 203

Style
Index Index Core Value Deep Value International Core Value Index Emerg. Mkts. Core Value Emerg. Mkts.

Current $mm
5,270 1,785 1,147 1,009 791 734 651 631 589 430

Equity Assets ($mm)

39,260 51,986 6,093 39,466 31,408 38,812 2,015 12,643 9,550 14,208

% of portfolio
13.42% 3.43% 18.83% 2.56% 2.52% 1.89% 32.30% 4.99% 6.17% 3.03%

Change on previous filing $mm

-10 456 3 -87 -100 -144 193 180 -2 -60

Wellington Management Company, LLP Core Value

Top 10 Institutional Buyers of APAC DRs in 2010 by Investment Value

Company
Vedanta Resources Plc eBay Inc Rydex Security Global Investors, LLC BlackRock Asset Management Ireland Limited Vanguard Group, Inc. NTT DoCoMo, Inc. Allianz Global Investors Kapitalanlagegesellschaft Skagen AS T. Rowe Price Associates, Inc. Brandes Investment Partners, LP

Top 10 Mutual Fund Buyers of APAC DRs in 2010 by Investment Value

Company
Vanguard Emerging Markets Stock Index Fund (USD) iShares MSCI All Country Asia Ex Japan Index Fund Lazard Emerging Markets Equity Portfolio Vanguard FTSE All-World ex-US Index Fund Skagen Kon-Tiki American Funds Insurance Series International Fund Uni Asia Pacific Allianz NFJ International Value Fund Matthews Asian Growth and Income Fund CREF Stock Account

Style
Strategic Entity Corp. Strategic Entity Corp. Hedge Fund Index Index Strategic Entity Corp. GARP Core Value GARP Core Value

Current $mm
754 639 647 408 2,010 284 314 350 387 1,808

Equity Assets ($mm)

16,365 1,061 17,098 14,659 646,287 2,631 49,013 14,125 274,376 28,465

% of portfolio
4.61% 60.26% 3.78% 2.78% 0.31% 10.81% 0.64% 2.48% 0.14% 6.35%

Change on previous filing $mm

754 639 599 408 313 284 253 224 214 203

Style
Index Index Emerg. Mkts. Index International International International Core Value Growth Index

Current $mm
1,785 651 631 170 296 159 85 365 245 79

Equity Assets ($mm)

51,986 2,015 12,643 11,308 7,056 8,554 733 1,645 2,526 99,344

% of portfolio
3.43% 32.30% 4.99% 1.51% 4.20% 1.85% 11.61% 22.20% 9.70% 0.08%

Change on previous filing $mm

456 193 180 170 157 138 81 76 62 57

Top 10 Institutional Sellers of APAC DRs in 2010 by Investment Value

Company
Morgan Stanley & Co. International Limited BlackRock Advisors (UK) Limited Van Eck Associates Corporation CPP Investment Board Artisan Partners Limited Partnership Dodge & Cox Artio Global Management, L.L.C. BlackRock Institutional Trust Company, N.A. Bright Garnet, Ltd. Thornburg Investment Management, Inc.

Top 10 Mutual Fund Sellers of APAC DRs in 2010 by Investment Value

Company Style Current $mm
155 0 12 734 791 67 75 1,009 139 44

Style
BrokerDealer Index Core Value Core Value GARP Deep Value Core Growth Index Strategic Entity Corp. Core Value

Current $mm
368 217 70 213 146 2,491 251 7,188 5 984

Equity Assets ($mm)

5,091 185,955 22,561 33,802 41,298 108,788 25,758 749,746 5 28,573

% of portfolio
7.23% 0.12% 0.31% 0.63% 0.35% 2.29% 0.97% 0.96% 100.00% 3.44%

Change on previous filing $mm

-768 -514 -375 -361 -348 -283 -262 -254 -242 -181

Equity Assets ($mm)

36,298 7,405 195 38,812 31,408 3,919 1,112 39,466 1,938 10,770

% of portfolio
0.43% 0.00% 6.15% 1.89% 2.52% 1.72% 6.77% 2.56% 7.16% 0.41%

Change on previous filing $mm

-362 -351 -198 -144 -100 -96 -92 -87 -85 -83

Canada Pension Plan Investment Board Index Market Vectors ETF Trust-Gold Miners ETF BMO Emerging Markets Fund Dodge & Cox International Stock Fund Fidelity Diversified International Fund BMO Dividend Fund Direxion Monthly Emerging Markets Bull 2X Fund Dodge & Cox Stock Fund Nuveen Tradewinds Value Opportunities Fund Fidelity Funds Sicav European Growth Fund Index Emerg. Mkts. Core Value International Yield Index Deep Value Core Value Core Value

Source: Thomson Reuters, January 2011, reported ownership data.

12

Legal and Regulatory Developments

In 2010, a number of new regulations and amendments were enacted or proposed that impact DR issuers and/or investors. U.K. Bribery Act
The U.K. Bribery Act of 2010, which will come into force in April 2011, is designed to replace the U.K.s previous bribery laws with a broader, more comprehensive code. Notably, the new clause that deems failure of commercial organizations to prevent bribery an offense applies to any overseas entity that carries on a business or part of a business in the U.K. (which potentially may include listing a DR on a U.K. stock exchange.) The act will apply to all companies with a U.K. presence, including banks, and both public and private companies. More specifically, under the clause, a commercial organization will be considered to have committed an offense if an associated person performing services on its behalf commits bribery in order to obtain or retain either business or a business advantage for the commercial organization. Further guidance on what constitutes adequate procedures to prevent such an occurrence is expected to be published in January 2011. Under the act, a commercial organization which fails to prevent bribery is subject to unlimited fining powers.

U.K. Listing Regime Modifications

Effective April 6, 2010, the Financial Services Authority (FSA) modified the U.K.s Listing Regime to re-classify U.K.-listed securities into Premium and Standard, the second of which includes GDRs. As a result, GDR issuers must comply with the FSAs Disclosure and Transparency rule, requiring them to provide a corporate governance statement describing the main features of internal control and risk management systems related to financial reporting, and a description of the composition and operation of the issuers administrative, management, and supervisory bodies and the committees of each.

U.S. SEC Approves New FINRA Rule

The Financial Industry Regulatory Authority (FINRA), which regulates the U.S. OTC market, received SEC approval for FINRA Rule 6490, which became effective September 2010. The rule clarifies FINRAs authority and responsibilities under Rule 10b-17 of the U.S. Securities Exchange Act of 1934, which requires that OTC-traded companies notify FINRA 10 days in advance of certain corporate action record dates, including those for cash and stock distributions, stock splits and rights. For announcements pertaining to ADRs, the depositary bank provides the requisite notice to FINRA based on information provided by the company or other sources in the companys home market. Under Rule 6490, FINRA will assess a statutory $200 per-announcement charge. Higher fees may be assessed for late announcements provided to FINRA less than 10 days prior to record date and for notices provided after the record date.

U.S. Cost Basis

Beginning in 2011 and continuing through 2013, the U.S. Internal Revenue Service will implement new rules regarding cost basis reporting in the U.S. These new rules look to provide complete transparency to investors regarding any investment gain or loss experienced. This objective requires increased effort by financial industry participants (i.e., brokers, transfer agents, investment managers) to prepare for the 2011 regulations and will continue over the next several years. Securities issuers will also be subject to new rules, including public disclosure and information filing requirements.

U.S. Concept Release on Proxy Processing

On July 14, 2010, the U.S. Securities and Exchange Commission (SEC) issued a long-awaited Concept Release on U.S. Proxy Processing, requesting comments from the public regarding potential reforms to the U.S. proxy system. Among other topics, the Concept Release focused on over and under voting, proxy distribution fees and competition, issuer communication with shareholders and the role of proxy advisory firms. Approximately 200 comment letters were received by the SEC expressing overwhelming support for reform of the U.S. Proxy System. The SEC is expected to submit a new set of proposed rules for public comment in 2011.

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DEPOSITARY RECEIPTS

J.P. Morgan Innovation and Market Expansion in 2010

J.P. Morgan issued the first ADR in 1927, creating an innovative financial instrument allowing investment in foreign equities without the need for foreign currency exchange or foreign brokerage. In subsequent decades, and especially in todays 24 / 7 borderless global markets, J.P. Morgan continues to innovate the DR, and invest in technology, people and infrastructure to help issuers and their investors maximize value and utility of the DR instrument. Innovation and investment reflect our long-term commitment to all DR market participants.
J.P. Morgans depositary bank continued to lead the DR market in innovation in 2010, including: Launching the first Hong Kong Depositary Receipt (HDR) for Vale of Brazil Developing a unique solution for investors in Russian ADR programs, after several months of consultation with the Ministry of Finance in Russia. These investors now benefit from the double-tax treaty between Russia and the investors home markets and receive relief-at-source from dividend withholding taxes Introducing Venezuelan currency dividend payments to DR investors in Venezuela. J.P. Morgan extended its depositary bank product and market reach in 2010 by: Expanding ADRMax crossbook capabilities to enable ADR / ordinary share crossing for securities from Spain and Russia Entering new markets in Bahrain, Egypt and Finland.

14

J.P. Morgans DR Thought Leadership in 2010

During another challenging year in the financial markets and the regulatory environment, J.P. Morgans depositary bank provided exceptional thought leadership and guidance to issuer clients and prospects alike. Through small and large events, J.P. Morgan helped issuers keep abreast of a myriad of changes impacting DR programs. As regulatory structures and capital markets continue to evolve, J.P. Morgan remains committed to helping issuers navigate various challenges and changes while maintaining best practices for DR programs. Asia-Pacific
Financing corporate Indias global growth and raising capital on the Indian and London markets, Mumbai, Hyderabad & Delhi, March 10-11 The seminar, sponsored by the London Stock Exchange, highlighted capital-raising opportunities in London for Indian companies, informed India-based advisors of developments in the London markets and sought to facilitate broader interaction between India-based and international advisors and listing prospects. Ninth Taiwan DR Issuers Conference, Taipei, November 11 The proprietary conference, which was held for more than 80 key Taiwanese DR clients and other guests, shared information regarding global and regional trends in DRs and the latest updates for raising capital via a depositary receipt program. Third Annual Greater China CEO / CFO Summit, Japan, April 7-10 J.P. Morgans two-day summit focused on insights and trends in the depositary receipt market in Japan, post-financial crisis. Sessions included market developments, economic updates and suggestions on how investors can further mitigate risk as the new decade begins. Panel discussions were led by participants who shared knowledge and experience to help firms navigate through the post-recession period and identify future areas of focus.

J.P. Morgans proprietary Ninth Taiwan DR Issuers Conference, Taipei, November 11.

J.P. Morgans Depositary Receipts Execution (DRX) Team

New York, London, Hong Kong The Depositary Receipt Execution (DRX) team of J.P. Morgans depositary bank comprises of highly experienced capital markets professionals. The extensive technical skills of J.P. Morgans DRX team members are valued by brokers and investors, who always seek best trade execution. The DRX team can help issuers create a closer bond with institutional investors and broker-dealers to promote the benefits of DR ownership and conversion. The DRX desk also has access to 2,200 global buy-side contacts, which can be beneficial for promoting issuers' DR programs. The DRX team is also highly committed to finding new measures to increase program liquidity through innovative tools such as I&C Lock, which responds to broker-dealer pricing needs in a challenging market environment.

J.P. Morgans Investor Relations (IR) Advisory Services

New York, London, Singapore J.P. Morgans IR Advisory Services team comprises highly experienced investor relations professionals who advise and support J.P. Morgans DR issuers around the world. Their overarching goal is to help clients enhance their investor relations to attract more DR investors and grow their DR programs. In 2010, the IR Advisory Services team completed over 400 IR projects, ranging from IR strategy development to investor targeting to retail IR. Additionally, 120 clients advertised on J.P. Morgans market-leading DR website, adr.com, which is used by millions of individual and institutional investors in the U.S. and other major equity markets. The IR Advisory Services team is also behind many of the depositary banks educational materials and events. Alerts, abstracts and whitepapers help keep clients abreast of regulatory developments and other topics relevant to DR programs. Publications in 2010 included: SEC Updates Guidance for the Use of Non-GAAP Financial Measures SEC Seeks Public Comment on U.S. Proxy System and Potential Regulatory Responses SEC Issues Interpretive Guidance on Climate Change Disclosure Crisis Communications: Is your company crisis-prepared or crisis-prone? Global Capital Flows in Asia The team also publishes a quarterly newsletter rich in information about investor relations best practices and maintaining effective DR programs. All publications, other than the newsletter, are available on adr.com. 15

DEPOSITARY RECEIPTS

J.P. Morgan APAC DR Events in 2010

If you would like to hear about future DR events please e-mail adr@jpmorgan.com.
DATE March 10 & 11 REGION/COUNTRY Mumbai, Hyderabad, Delhi TOPIC Financing corporate Indias global growth Raising capital on the Indian and London markets Third Annual Greater China CEO/CFO Summit DESCRIPTION This seminar sponsored by the London Stock Exchange highlighted capital-raising opportunities in London for Indian companies, informed India-based advisors of developments in the London markets and sought to facilitate broader interaction among Indian issuers, international advisors and listing prospects. J.P. Morgans two-day summit focused on insights and trends in the depositary receipt market in Japan, post-financial crisis. Sessions included market developments, economic updates and ways for investors to further mitigate risk as the new decade begins. Panel discussions were led by participants who shared knowledge and experience to help firms navigate through the post-recession period and identify areas of focus. The workshop focused on insider-related discussions, including regulation updates, financial reporting and deal structuring. Procomp was used as an example to illustrate problems related to these topics. Speakers included Lee & Lee (law firm), Deloitte (accountant) and HuaNan Entrust Securities (underwriter). Part of the IREducation Series, these seminars offered IR managers the opportunity to interact and share insights and ideas on industry trends and challenges. J.P. Morgan invited Brunswick, a crisis communication agency, and two different sets of legal counsels (one for Beijing and one for Shanghai) to offer opinions why crisis communications should be considered part of investor relations. Issuer clients were keen to discuss what steps they might take to help manage or pre-empt a crisis. Part of the IREducation Series, issuers learned more about the types of funds that invest in ADRs. J.P. Morgan invited market intelligence firm Ipreo to join this sharing session, and also invited Ogilvy Financial Beijing to talk about how their clients utilize analyst days and other investor outreach activities. The IREducation Series was delivered in Indonesia and Malaysia for the first time. During these seminars, corporate issuers learned about the assets under management for companies from Indonesia and Malaysia, and how fund managers construct their portfolios. During this IREducation Series course, corporate issuers were able to understand the capital fund flow into Taiwan and how investors view Taiwanese companies. J.P. Morgan IR Advisory also presented a segment on how Taiwanese companies can benchmark their IR strategies and programs. This was the first time J.P. Morgan offered the IREducation Series in these two cities. The depositary receipts group partnered with J.P. Morgan Asset Management to engage corporate issuers on developing investor relations strategies and on benchmarking against best practices in IR. A workshop held for Japanese DR clients with Riskmetrics to help issuers understand proxy issues/ concerns for 2010 and planning for 2011 proxy season. Roundtable co-hosted with FinanceAsia, a leading financial publication in Asia. Participants included recently listed issuers, prospects, intermediaries and J.P. Morgan representatives. Proprietary conference held for more than 80 key Taiwanese DR clients and prospects to share information regarding global and regional trends in DRs and the latest updates in tools and solutions for raising capital via a depositary receipt program.

April 7-10

Japan

May 7

Taipei

Insights into Procomp (dubbed Taiwans Enron) and Regulations on Insider Trading Crisis Management & Legal Implications for Listed Companies

May 12 & 14

Beijing & Shanghai

August 4

Beijing

Global Capital Flows and Investor Outreach for China ADR Issuers & How to Maximize Investor Outreach through Analysts Days Global Capital Flows and Investor Outreach for Southeast Asian Issuers Global Capital Flows and Investor Outreach for Issuers & IR Benchmarking Investor Relations Benchmarking IR

August 11 & 12

Jakarta & Kuala Lumpur

August 18

Taipei

August 19 & 20

Taichung & Kaoshiung, Taiwan Tokyo Beijing Taipei

September 7 October 13 November 11

Japan Proxy Workshop FinanceAsia Depositary Receipts Roundtable Ninth Taiwan DR Issuers Conference

Publications Co-Authored with External Organizations

J.P. Morgans depositary bank is proud to have worked with a host of industry-leading organizations and institutions to produce insightful documents throughout 2010. J.P. Morgan continually seeks to develop and foster strong relationships with peers in the depositary receipt environment as well as to provide informative materials for clients, prospects and intermediaries alike.

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Contact Information
If you would like to discuss our offering with one of our experts or for more information on any of our products please contact:

Corporate Issuers
APAC Kenneth Tse Tel: +852-2800-1859 kenneth.k.tse@jpmorgan.com EMEA Alex Hickson Tel: +44-207-777-2805 alex.h.hickson@jpmorgan.com LatAm Joseph Dooley Tel: +1-212-622-9225 dooley_joseph@jpmorgan.com

Broker-Dealers
New York James Proctor Tel: +1-212-622-2885 james.n.proctor@jpmorgan.com London Simon Harris Tel: +44-207-779-2045 simon.p.harris@jpmchase.com Hong Kong Olly Arthey Tel: +852-2800-1570 olly.pw.arthey@jpmorgan.com

J.P. Morgans award-winning web site, with new release to formally launch in January 2011: adr.com J.P. Morgans Depositary Receipts Bloomberg page: ADRJ <GO>

Disclosures and important information For market information on Depositary Receipts (DRs) and international equities, go to J.P. Morgans award-winning Web site adr.com. For more information on J.P. Morgans Depositary Receipt services, go to jpmorgan.com/visit/adr. About JPMorgan Chase & Co. JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com Important disclosures We believe the information contained in this material to be reliable but do not warrant its accuracy or completeness. The opinions, estimates, strategies and views expressed in the document constitute our judgment as of the date of this material and are subject to change without further notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. JPMSI or its broker-dealer affiliates may hold a position, trade on a principal basis or act as market maker in the financial instruments of any issuer discussed herein or act as an underwriter, placement agent, advisor or lender to such issuer. In the United Kingdom (U.K.) and European Economic Area: Issued and approved for distribution in the U.K. and the European Economic Area by J.P. Morgan Europe Limited (JPMEL). In the U.K., JPMorgan Chase Bank N.A., London Branch and J.P. Morgan Europe Limited are authorized and regulated by the Financial Services Authority. Additional information is available upon request. Copyright 2011 JPMorgan Chase & Co. All rights reserved.