Aon Plc · NYSE:AON
Aon — Investor Day (May 2005)
77 slides from Aon's investor day presentation, May 12, 2005
Slide 1: Building Shareholder Value - The Next Chapter
Building Shareholder Value - The Next Chapter Investor Day May 12, 2005 New York
Slide 2: Forward-looking statements
This presentation contains certain statements related to future results, or states aur intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statem
Slide 3: Building Shareholder Value - The Next Chapter
Building Shareholder Value - The Next Chapter Investor Day May 12, 2005 New York
Slide 4: Introduction
INTRODUCTION * Aon has a compelling and unique opportunity for value creation and we are committed to the change required to capture it * Risk management industry represents a sig that incumbents have failed to capture icant opportunity * In this context, Aon has underperformed, particularly conside
Slide 5: Topics
TOPICS 1. Industry view 2. Aon position 3. Beginning the next chapter
Slide 6: 1. Industry View - Summary
1. INDUSTRY VIEW - SUMMARY KEY POINTS Risk * Favorable demand/supply characteristics Management * Success requires distinctive assets and Brokerage superior capability * Change driven by regulatory pressure necessary but not sufficient * Winners will win big . .. average performance more challenging
Slide 7: Fundamental advice is crucial and highly leveraged
FUNDAMENTAL ADVICE IS CRUCIAL AND HIGHLY LEVERAGED CLIENT PROPERTY EXAMPLE Dollars rs Broker ; $3.5 million ~9,500x compensation Premium $44 million poverage $600 million $33 billion Assets covered* $11 billion Market capital * Physical assets and interruption exposure é
Slide 8: The insurable risks are expanding
THE INSURABLE RISKS ARE EXPANDING E&o Workers’ comp. Crime Marine Casualty Property ™ Internet security Terrorism D&O Employer liability
Slide 9: Longer-term additional opportunities exist
LONGER-TERM ADDITIONAL OPPORTUNITIES EXIST TRADITIONAL RISKS RISKS NON-TRADITIONAL ¢ Human capital Reputation Liquidity Regulatory Etc. Property Casualty E&o D&O Terrorism Etc. * Clients can manage their risks better ° Requires talent, information, technology, and intellectual capital
Slide 10: Regulatory-driven changes necessary but not sufficient
REGULATORY-DRIVEN CHANGES NECESSARY BUT NOT SUFFICIENT * Forces transparency ¢ Illuminates value vs. cost trade-off ¢ Average performance gets worse * Compliance is necessary and critical BUT do not confuse it with distinctive client value added
Slide 11: Winners will have distinctive assets and superior capability
WINNERS WILL HAVE DISTINCTIVE ASSETS AND SUPERIOR CAPABILITY * Focus on basics of client relationship * Deep talent across products, industries, geographies ¢ Global servicing platform and network * Technology and risk advice tools * Transparency and clarity for clients on value vs. cost * Efficient
Slide 12: Consulting is growing with success
CONSULTING IS GROWING WITH SUCCESS DRIVEN BY INNOVATION AND CAPABILITY * $13 billion HR consulting industry growing at 4% ¢ Growth in consulting, healthcare, executive compensation, and emerging practices * Clients more sophisticated and demand more value * Outsourcing has potential, but economics a
Slide 13: Specialized underwriting is an attractive segment
SPECIALIZED UNDERWRITING IS AN ATTRACTIVE SEGMENT * Less exposed to overall industry cycles * Acquisition cost management is critical ¢ Client relationships and persistency are key profit drivers * Best performers systematically drive down costs * Scale, sales force and expertise present effective e
Slide 14: 2. Aon Position - Summary
2. AON POSITION —- SUMMARY KEY POINTS ° Di ive assets Operating * Distinctive capability Performance * Disappointing execution ° Historical financial results unacceptable Improved 1Q 2005 results driven by discontinued operations and expense program Strong cash flow and balance sheet position Financ
Slide 15: Aon strengths
AON STRENGTHS * We have some of the best product, placement, and client service talent in the industry * We have thousands of established client relationships * We have global reach with our leading network that allows us to find the best solutions/provide the best service to our clients * We have s
Slide 16: Aon is a leader
AON IS A LEADER + Risk management, insurance, and reinsurance brokerage — No. 2 global insurance broker — No. 1 global reinsurance broker — No. 1 global manager of captive insurance companies — Leader in Affinity insurance programs + Human capital consulting — No. 2 U.S. employee benefits consultant
Slide 17: Aon has a distinctive global business network
AON HAS A DISTINCTIVE GLOBAL BUSINESS NETWORK Antilies (Dutch) ga ua Banas satus Conagay Bermuda ean stands us. Dominican Rep. Yee Beare The El Salvador puerto Rico Guatemala St.Lucia Honduras Trinidad & Mexico Tobago Nicaragua turks & Caicos Is. Panama yirgin Istands (Br) Argentina Bolivia Brazil C
Slide 18: We have several growth engines - examples
WE HAVE SEVERAL GROWTH ENGINES = EXAMPLES REVENUE: $ Millions International Retail Captive Management || Affinity $2,237 $1,974 2001 02 O3 04 2001 02 O3 04 2001 02 O03 04 * Delivery of distinctive capal * Strong margins ° World-class talent 47
Slide 19: Aon challenges
AON CHALLENGES * Global company that does not consistently act globally * Need for greater operational discipline around cost and pricing * Need for greater clarity and accountability with linkage to compensation — Compelling opportunity, but will take time to improve 48
Slide 20: 2. Aon Position
2. AON POSITION KEY POINTS * Distinctive assets Operating * Distinctive capability Performance * Disappointing execution ° Historical financial results unacceptable Financial * Improved 1Q 2005 results driven by Performance discontinued operations and expense program ° Strong cash flow and balance s
Slide 21: Financial management - what you can expect
FINANCIAL MANAGEMENT — WHAT YOU CAN EXPECT * Continued discipline with respect to operating expenses and investment spending * Continued focus of resources on profitable and strategically core businesses * Continued movement to enhancing financial and business metric disclosures * More cash flow dir
Slide 22: Financial results have been disappointing
FINANCIAL RESULTS HAVE BEEN DISAPPOINTING... EARNINGS PER SHARE $1.90 $1.79 $1.64 $1.63 $0.53 2000 2001 2002 2003 2004
Slide 23: Even when adjusted for special items
... EVEN WHEN ADJUSTED FOR SPECIAL ITEMS... ADJUSTED EARNINGS PER SHARE* $1.83 $1.78 guzaSt.77 S186 2000 201 2002 2003 2004 * Excludes Transformation, WTC, NY and related settlements, spin-off costs, and corporate revenue 29.
Slide 24: Which is reflected in stock price performance
. WHICH IS REFLECTED IN STOCK PRICE PERFORMANCE TOTAL RETURN INDEXED TO 100 - JANUARY 1, 2000 S&P 500° 140 20 41 100 80 60 40 2B
Slide 25: First quarter 2005 EPS is up
FIRST QUARTER 2005 EPS IS UP DESPITE 3 months ended March 31 $ Millions (except EPS) 2005 2004 Revenue Expenses General expenses 1,702 177 Benefits to policyholders 393 383 Allother 103 104 Total expenses 249g 2.284 Income from continuing operations before tax 313 300 Provision for income tax (36% i
Slide 26: Expenses are down due to one-time and ongoing changes
EXPENSES ARE DOWN DUE TO ONE-TIME AND ONGOING CHANGES $ Millions 2% reduction $2,264 | $34 million og $50 $2,232 A2 ne (J _ 1Q2004 Acquisitions! Incentives Deposit FX 102004 rl reported divestitures accounting comparable reported net 26
Slide 27: Risk and insurance brokerage services
RISK AND INSURANCE BROKERAGE SERVICES $ Millions 3 months ended March 31 2005 2004 Operating revenue $ 1372 § 1,450, Investment income 27 14 Total revenue 1,399 1,464 Total expenses 1,156 1,224 Income from continuing operations before tax $ 243 $ 243 Margin 17.4% 16.6% Organic growth 5% 3% Organic g
Slide 28: Consulting
CONSULTING $ Millions 3 months ended March 31 2005 2004 Operating revenue $ 308. § 301 Investment income 1 : Total revenue 309 301 Total expenses 275 Income from continuing operations before tax $ 26 Margin 8.4% 8.6% Organic growth A% 1% Organic growth excl. contingent commissions 0% 2% Pra
Slide 29: Insurance underwriting
INSURANCE UNDERWRITING $ Millions 3 months ended March 31 2005 2004 Premiums and fees $ 753 750 Investment income 36 31 Total revenue 789 781 Expenses Benefits to policyholders 393 383 Other expenses 328 8H Total expenses tT Income from continuing operations before tax 53 Margin 8.6% 6.8% Organic gr
Slide 30: Building a track record of delivering on commitments
WE ARE BUILDING A TRACK RECORD OF DELIVERING ON COMMITMENTS ¢ Greater transparency of financial data — Subsegment revenue disclosure — Enhanced 10Q/10K disclosure — Today’s presentation * Divest low-margin, non-core businesses — Premier Portfolio (3Q 2003) — U.K. Claims Businesses (1Q 2004) — Proudf
Slide 31: Strong and sustained cash flow
STRONG AND SUSTAINED CASH FLOW... CASH FLOW FROM OPERATIONS: $ Millions $1,312 ; | ; 2002 2003 2004 30
Slide 32: Supporting significant business investments
. .. SUPPORTING SIGNIFICANT BUSINESS INVESTMENTS WHICH ARE LARGELY COMPLETE... NET CASH OUTFLOW FOR ACQUISITIONS AND CAPITAL EXPENDITURES: $ Millions $389 | Fr 5 2002 2003 | 4
Slide 33: As well as balance sheet deleveraging
...AS WELL AS BALANCE SHEET DELEVERAGING im Total debt and preferred stock -+ Debtiequity ratio DEBT AND PREFERRED: DEBT/EQUITY: $ Million Percent $2.8 $2.2 2001 2002 2003 2004 32
Slide 34: Increasing use of free cash flow for pension plans
INCREASING USE OF FREE CASH FLOW FOR PENSION PLANS... (-OVER)/UNDER FUNDED: $ Millions 2000 2001 2002 2003 2004
Slide 35: Pension plans drag on margins, particularly in brokerage
... WHICH HAVE CREATED A DRAG ON OUR MARGINS, PARTICULARLY IN BROKERAGE PENSION PLANS EXPENSE IMPACT — BROKERAGE SEGMENT: $ Millions $194 $155 $46 -$6 -$8 2000 2001 2002 2003 2004 Percent of brokerage 0.1% 0.2% 0.9% 2.8% 3.4% revenue 4
Slide 36: Financial management - what you can expect
FINANCIAL MANAGEMENT — WHAT YOU CAN EXPECT * Continued discipline with respect to operating expenses and investment spending * Continued focus of resources on profitable and strategically core businesses * Continued movement to enhancing financial and business metric disclosures * More cash flow dir
Slide 37: 3. Beginning the Next Chapter
3. BEGINNING THE NEXT CHAPTER KEY POINTS . © 7 high-impact opportunities to drive Immediate organic growth and margins Opportunities . ° 4 themes Operating — Delivering distinctive client value Game plan — Improving performance — Extending our position — Strengthening our foundation ° Rigorous measu
Slide 38: High-impact opportunities to drive organic growth and margins
WE HAVE 7 HIGH-IMPACT OPPORTUNITIES TO DRIVE ORGANIC GROWTH AND MARGINS o Build on momentum in operational excellence | e Improve performance in consulting businesses | fs] Improve performance in underwriting businesses | 8 Grow position in global reinsurance As J Improve U.S. retail performance G L
Slide 39: Operational excellence: understanding the opportunities
41, OPERATIONAL EXCELLENCE WE UNDERSTAND THE OPERATIONAL OPPORTUNITIES ... COST BREAKDOWN — 2004: 100% = $9.1 billion Travel and itertail Other ° Staff costs >50% ent fainment Premises and equipment IT services & depreciation Staff costs + Opportunities through tighter management + Opportunities thr
Slide 40: Early progress in expense reduction
. AND EARLY PROGRESS IS DEMONSTRATED IN EXPENSE REDUCTION... TOTAL AON: Percent reported expense growth vs. prior year* 10% 1Q 2Q 3Q 4Q 1Q 2004 2005 * Excludes Transformation, WTC, NY and related settlements 39
Slide 41: FTE reduction
... FTE REDUCTION... Number of FTEs (© Managed 51,579 = 7 926 csc ols es 50,133 -2,061 $83 p18? 39286 —_art98 =— =- Dispositions Dispositions 40
Slide 42: Operational excellence: compensation
1, OPERATIONAL EXCELLENCE ... AND COMPENSATION * Aggressively managing head count through attrition and hiring discipline * Modifications to incentive programs — Better alignment with performance and growth — All plans have an overall Aon component — 20% of significant awards paid in 3-year restrict
Slide 43: Rationalizing all expense categories
41, OPERATIONAL EXCELLENCE WE ARE RATIONALIZING ALL EXPENSE CATEGORIES. ... TECHNOLOGY EXAMPLE IT EXPENSE - 2004: TOTAL EXPENSES: / $Millions 100% = $9.1 billion é > oe x sg 8 International 150 16 6 : 172 ‘$836 yu) UK. 158 16 1 - 185 NorthAmerica 262 116 76 2 454 Corporate 2 3 3 2 (5 Total 870 148 9
Slide 44: Operational excellence: making progress
1, OPERATIONAL EXCELLENCE ... AND ARE MAKING PROGRESS * Infrastructure outsourcing: U.K. successful, U.S. in process * Exploring outsourcing/offshoring of certain application support and development activities * Leverage applications across businesses and geographies — Client-facing technology being
Slide 45: Operational excellence: actions going forward
1. OPERATIONAL EXCELLENCE ACTIONS GOING FORWARD TO DRIVE ORGANIC GROWTH AND MARGINS Improving performance Delivering distinctive client value Extending our position Strengthening our foundation ° Further opportunity in: — Sourcing/procurement -IT — Real estate — Tax — Compensation * Optimize opportu
Slide 46: Our consulting business is strong
OUR CONSULTING BUSINESS IS STRONG BECAUSE OUR VALUE ADDED IS DISTINCTIVE AON TOTAL REVENUES - 2004: 100% = $10.2 billion + Range of consulting services Consulting + Global presence $1.2 billion < * Changing industry and demand * Promising “next level” practices + Strategic focus 45
Slide 47: Consulting has many practices with significant opportunities
CONSULTING HAS MANY PRACTICES WITH SIGNIFICANT OPPORTUNITIES REVENUE - 2004: §$ Millions OPPORTUNITY H&w Medium Retirement Medium/low Outsourcing High/competitive Compensation High/medium Communication High Management " Consulting Megiumilow, HR Consulting High Other 46
Slide 48: Consulting: actions going forward
ACTIONS GOING FORWARD TO DRIVE ORGANIC GROWTH AND MARGINS Improving performance Delivering aIctinchive Extending our position client value Strengthening our foundation Continue to expand service lines — Employee benefits — Compensation — Communication — HR consulting Further develop new services Off
Slide 49: Underwriting: warranty business
3. UNDERWRITING WE ARE CONTINUING TO DRIVE VALUE IN OUR WARRANTY BUSINESS * Diversified warranty products — extended warranties for consumer goods: — Autos — Electronics — Personal computers AON TOTAL REVENUES - 2004: 100% = $10.2 billion * Distribute and market with warranty sale: - Specialty credi
Slide 50: Warranty business geographic diversification
3. UNDERWRITING OUR WARRANTY BUSINESS HAS GEOGRAPHIC DIVERSIFICATION PERCENT OF 2004 REVENUES Asia/Pacific Latin America (1%) 49
Slide 51: Combined Insurance Company
3. UNDERWRITING © WE ARE CONTINUING TO DRIVE VALUE IN COMBINED INSURANCE COMPANY AON TOTAL REVENUES - 2004: 100% = $10.2 billion Combined Insurance Company $17 billion Supplemental insurance market - Accident, health and life Mainly in rural markets Sells through exclusive/captive agents to middle-i
Slide 52: Combined Insurance geographic diversification
3. UNDERWRITING OUR COMBINED INSURANCE COMPANY HAS GEOGRAPHIC DIVERSIFICATION PERCENT OF 2004 REVENUES Asiaf Pacific 51
Slide 53: Actions in Combined Insurance Company
ACTIONS TO DRIVE ORGANIC GROWTH AND MARGINS IN COMBINED INSURANCE COMPANY Delivering distinctive Extending our position Improving performance client value | | Strengthening our foundation Increase cross-sell in domestic market which is more mature ° Expand in international markets that provide great
Slide 54: Reinsurance is among our strongest businesses
. REINSURANCE AND RELATED SI ICES REINSURANCE IS AMONG OUR STRONGEST BUSINESSES AON TOTAL REVENUES - 2004: 100% = $10.2 billion Reinsurance and Related Services $861 million 8% Captives $102 million World’s largest reinsurance broker World’s largest manager of captive insurance companies Strong pres
Slide 55: Strong market position supports financial results
4. REINSURANCE AND RELATED SERVICES ) STRONG MARKET POSITION SUPPORTS FINANCIAL RESULTS REVENUE: $ Millions $873 $861 $765 ; 7: | 2000 2001 2002 2003 2004 54
Slide 56: Expansion opportunity in European reinsurance market
. REINSURANCE AND RELATED SI ICES EXPANSION OPPORTUNITY EXISTS IN THE EUROPEAN REINSURANCE MARKET EUROPEAN COUNTRY EXAMPLE — SHARE OF MARKET — MARKET BREAKDOWN 60 Direct Source: Campany estimates se
Slide 57: Expansion opportunity in Asian market
|. REINS| ICE AND REL: D ICES EXPANSION OPPORTUNITY EXISTS IN THE ASIAN MARKET ASIAN COUNTRY EXAMPLE — SHARE OF MARKET — MARKET BREAKDOWN Others 100% Aon Source: Campany estimates a
Slide 58: Reinsurance balance of power shifting
. REI ICE AND REL: D ICES REINSURANCE BALANCE OF POWER SHIFTING Es Hm 2002 CAPITAL BASE OF LARGEST 25 REINSURANCE GROUPS: $ Billions 50 40 30 U.S. Lloyd’s Bermuda Europe 87
Slide 59: Our core strengths
|. REINS| ICE AND RELATED ICES OUR CORE STRENGTHS Leading reinsurance player in many Reinsurance | Markets Long-standing distinctive relationships Outstanding talent Analytical services and tools * World’s leading captive manager — 26% share Captive ° Alternative capacity * Transfer price containmen
Slide 60: Reinsurance: actions going forward
|. REINS| ICE AND RELATED ACTIONS GOING FORWARD TO DRIVE ORGANIC GROWTH AND MARGINS Delivering distinctive client value Improving performance Extending our position Strengthening our foundation ICES Continue/increase global coordination Align expense structures Client advisory services Actuarial ser
Slide 61: U.S. Retail: refocusing to deliver value
§.U.S. RETAIL WE ARE REFOCUSING TO DELIVER VALUE AON TOTAL REVENUES - 2004: 100% = $10.2 billion Rest of Brokerage — Americas 4 billion US Retail $1.2 billion + Good performance in selected units, but overall underperformance + Second largest retail broker in U.S. with >18,000 commercial clients + L
Slide 62: We have selected growth engines
WE HAVE SELECTED GROWTH ENGINES U.S, PRACTICE GROUP REVENUE: $ Millions EXAMPLES Financial Services Group. Construction Services Group sia S188 $224 $233 arn * Delivery of distinctive capabi * Strong margins * World-class talent 61
Slide 63: U.S. Retail: refining our segmentation
§.U.S. RETAIL WE ARE REFINING OUR SEGMENTATION - Global Large Corporate (GLC) * Strategic Risk Offices (SROs) -—12 SROs — Predominately accounts > $250 thousand in Aon revenue + Commercial Risk Offices (CROs) — 40 smaller offices — Predominately mid-market accounts — Blended office approach with Aon
Slide 64: U.S. Retail: actions going forward
. U.S. RETAIL, ACTIONS GOING FORWARD TO DRIVE ORGANIC GROWTH AND MARGINS Improving performance Deliverin ® dist clive eenand aur client value pesition Strengthening our foundation Segmentation Revitalize sales Reduction of any redundant/ inefficient expense Large Global Corporate strategy Closer lin
Slide 65: Asia-Pacific is among our fastest growing geographies
ASIA- PACIFIC IS AMONG OUR FASTEST GROWING GEOGRAPHIES AON TOTAL REVENUES - 2004: 100% = $10.2 billion * Fastest growing economies which attract the world’s highest foreign direct Asia-Pacific investment $630 million * Ahistory of success — 5 years of profitable growth * No. 1 broker in the region w
Slide 66: Asia-Pacific: Japan
soe AON JAPAN @ Market position REVENUES FOR 2) + Japan is headquarters to 254 of the ALL PRODUCTS: largest 1,500 companies in the world $ Millions $62 + Largest non-life insurance market outside of U.S. + Significant opportunity for value-added broker + Key elements of strategy — Leveraging Aon’s J
Slide 67: Asia-Pacific: China
6. ASIA-PACIFIC CHINA Market position © Very high FDI will continue to drive growth ... these are our clients and they are doing business here * Domestic Chinese corporations also growing rapidly and in turn are increasingly investing overseas * Aon is 1* foreign broker licensed in China © Dominant
Slide 68: Asia-Pacific: actions going forward
6. ASIA-PACIFIC ACTIONS GOING FORWARD TO DRIVE ORGANIC GROWTH AND MARGINS Improving ° Ensure global support for large performance multi-national/domestics — design and placement expertise Deliverin: e i distinctive [Extending our coe focus as growth client value | | Position ° Will invest for profit
Slide 69: Global Large Corporate: large segment is a major opportunity
7. GLOBAL LARGE CORPORATE LARGE SEGMENT IS A MAJOR OPPORTUNITY TOP 1,500 GLOBAL COMPANIES BY SALES * 60%+ penetration of the top 1,500 companies * High penetration in some major countries ¢ Establishment of Global Large Corporate unit ° Key enablers - Strategic Account Management - Global Business U
Slide 70: Integrated account planning and client relationship management
7. GLOBAL LARGE CORPORATE INTEGRATED ACCOUNT PLANNING AND CLIENT RELATIONSHIP MANAGEMENT CRITICAL * Increasingly broad relationships with clients — Multi-product — Multi-country * Integrated account planning and structured client relationship management should allow Aon to capture the increased oppo
Slide 71: We also have the necessary assets
. GLOBAL LARGE CORPORATE WE ALSO HAVE THE NECESSARY ASSETS STRATEGIC ACCOUNT MANAGEMENT (SAM) GLOBAL BUSINESS UNIT (GBU) GLOBAL PRACTICE GROUPS (GPG) * Focused on large global segment = Model offers: — Knowledgeable professionals — Client coordination — Innovative solutions — Access to Aon’s capabi
Slide 72: Increasingly broad relations: multi-country
GLOBAL LARG| IRPORA’ INCREASINGLY BROAD RELATIONS: MULTI- COUNTRY REVENUE: Cerone Country Actual 2004 Budget 2005 (Gemany a a tea nga ‘a Ea [Company] Actual 2004] Budget 2005 Pete ee aS a Fierce 403 cy y Bast 7530) Fes ‘a Ea B 3,008 3007] pean ‘ea 8 E ar iat Tivtey “ed ios Saud Araia 7 ‘aa ID 5,280
Slide 73: Increasingly broad relations: multi-product
7. GLOBAL LARGE CORPORA INCREASINGLY BROAD RELATIONS: MULTI- PRODUCT REVENUE: $ Thousands Product Budget 2005, [company | Actual2004] Budget 2005] Fetal Property wy [Motorcars (incl. Auto Fleet Handling) 738) A Other retail products 7A B 3,008 3,007| Hull | LiabilityiCasuatty 1 fe aa areas Financial
Slide 74: Global Large Corporate: actions going forward
’. GLOBAL LARGE CORPORATI ACTIONS GOING FORWARD TO DRIVE ORGANIC GROWTH AND MARGINS Improving + Global Large Corporate unit performance + Expansion of SAM model * Structured global account management mal Extending our ° Advice-based insight client value position * Global design and placement Strengt
Slide 75: 3. Beginning the Next Chapter
3. BEGINNING THE NEXT CHAPTER KEY POINTS ° 7 high-impact opportunities to drive Immediat: organic growth and margins Opportunities . ° 4 themes Operating — Delivering distinctive client value Game plan — Improving performance — Extending our position — Strengthening our foundation ° Rigorous measure
Slide 76: Focus over next years
FOCUS OVER NEXT 3 YEARS Improve performance Focus on - client value Reposition Aon Strengthen the foundation 76
Slide 77: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ LOG O] [GRAPHIC] Building Shareholder Value – The Next Chapter Investor Day May 12, 2005 New York Thi s presentation contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the futu