1

2

Chiffre d’affairesChiffre d’affairesdes données publiées aux données comparablesdes données publiées aux données comparables

(en M€)(en M€) 2005/2006(oct 05 – sept 06)

2006/2007(oct 06 – sept 07)

VariationVariation

Chiffre d'affaires Chiffre d'affaires (données publiées)(données publiées) 630,3630,3 744,8744,8 + 18,2 %+ 18,2 %

Effet de conversion ($ et £)Effet de conversion ($ et £) 0,70,7 34,134,1

Variation du périmètre (Korea Ratings)Variation du périmètre (Korea Ratings) - 19,2- 19,2

CHIFFRE D'AFFAIRESCHIFFRE D'AFFAIRES

(données comparables)(données comparables)

631,0631,0 759,7759,7 + 20,4 %+ 20,4 %

Chiffre d’affaires par société Chiffre d’affaires par société (données publiées)(données publiées)

(en M€)(en M€) 2005/2006 (oct 05 – sept 06)

2006/2007(oct 06 – sept 07) VariationVariation

FITCHFITCH GROUP GROUP

Fitch Ratings Fitch Ratings (hors Korea Ratings)(hors Korea Ratings) 534,3534,3 623,4623,4 + 16,7 %+ 16,7 %

Korea RatingsKorea Ratings 19,2 19,2 (*)(*)

AlgorithmicsAlgorithmics 99,499,4 105,1105,1 + 5,7%+ 5,7%

Eliminations internesEliminations internes - 3,4- 3,4 - 2,9- 2,9

CHIFFRE D'AFFAIRES CHIFFRE D'AFFAIRES

(donn(donnéées publiées)es publiées)

630,3630,3 744,8744,8 + 18,2 %+ 18,2 %

(*) (*) Répartition CA de Korea Ratings (6 mois) Répartition CA de Korea Ratings (6 mois) Notation : Notation : 8,9 M€8,9 M€ Divers : Divers : 10, 3 M€10, 3 M€

Chiffre d’affaires par société Chiffre d’affaires par société (données comparables)(données comparables)

(en M€)(en M€) 2005/2006 (oct 05 – sept 06)

2006/2007 (oct 06 – sept 07) VariationVariation

FITCHFITCH GROUP GROUP

Fitch RatingsFitch Ratings 534,7534,7 648, 9648, 9 + 21,4 %+ 21,4 %

AlgorithmicsAlgorithmics 99,799,7 113,8113,8 + 14,1 %+ 14,1 %

Eliminations internesEliminations internes - 3,4- 3,4 - 3,0- 3,0

CHIFFRE D'AFFAIRES CHIFFRE D'AFFAIRES

(donn(donnéées comparables)es comparables)

631,0631,0 759,7759,7 + 20,4 %+ 20,4 %

2005/2006 (oct 05 - sept 06) %%

2006/2007(oct 06 – sept 07) %%

11 Etats-UnisEtats-Unis 322,9322,9 51,251,2 %% 343,8343,8 46,246,2 %%

22 Royaume UniRoyaume Uni 85,785,7 13,613,6 %% 111,4111,4 15,015,0 %%

33 AllemagneAllemagne 25,625,6 4,14,1 %% 28,828,8 3,93,9 %%

44 Corée du SudCorée du Sud 1,11,1 0,20,2 %% 21,721,7 2,92,9 %%

55 Pays-BasPays-Bas 14,214,2 2,32,3 %% 20,320,3 2,72,7 %%

66 FranceFrance 14,614,6 2,32,3 %% 19,319,3 2,62,6 %%

77 EspagneEspagne 12,812,8 2,02,0 %% 16,616,6 2,22,2 %%

88 ItalieItalie 14,714,7 2,32,3 %% 14,314,3 1,91,9 %%

99 JaponJapon 10,310,3 1,61,6 %% 14,114,1 1,91,9 %%

1010 IrlandeIrlande 7,87,8 1,21,2 %% 13,913,9 1,91,9 %%

% du chiffre d'affaires% du chiffre d'affaires publié total publié total 80,980,9 %% 81,181,1 %%

Chiffre d’affaires publié par zone géographiqueChiffre d’affaires publié par zone géographique

Du chiffre d’affaires Du chiffre d’affaires au résultat opérationnel courantau résultat opérationnel courant

(en M€)(en M€) 2005/2006(oct 05 – sept 06)

2006/2007(oct 06 – sept 07)

VariationVariation

Chiffre d’affaires Chiffre d’affaires (données publiées)(données publiées) 630,3630,3 744,8744,8 + 18,2 %+ 18,2 %

Autres produits et charges d’exploitationAutres produits et charges d’exploitation - 511,0- 511,0 - 595,7- 595,7

Résultat opérationnel courantRésultat opérationnel courant (données publiées) (données publiées)

119,3119,3 149,1149,1 + 25,0 %+ 25,0 %

Effet de conversion ($ et £)Effet de conversion ($ et £) 0,40,4 6,46,4

Variation du périmètre (Korea Ratings)Variation du périmètre (Korea Ratings) - 2,6- 2,6

  RÉSULTAT RÉSULTAT OPÉRATIONNEL OPÉRATIONNEL COURANTCOURANT (données comparables)(données comparables)

119,7119,7 152,9152,9 + 27,7 %+ 27,7 %

(en M€)(en M€) 2005/2006(oct 05 – sept 06)

2006/2007( oct 06 – sept 07) VariationVariation

FITCHFITCH GROUP GROUP 130,3130,3 159,1159,1 ++ 22,1 %22,1 %

Fitch Ratings ( Hors Korea Ratings)Fitch Ratings ( Hors Korea Ratings) 164,2164,2 190,4190,4 ++ 16,0 %16,0 %

Korea RatingsKorea Ratings 2,62,6

AlgorithmicsAlgorithmics - 33,9- 33,9 - 33,9- 33,9

Autres (société mère et holdings)Autres (société mère et holdings) - 11,0- 11,0 - 10,0- 10,0

RÉSULTAT OPÉRATIONNEL RÉSULTAT OPÉRATIONNEL

COURANTCOURANT (donn(donnéées publies publiéées)es)119,3119,3 149,1149,1 ++ 25,0 %25,0 %

Résultat opérationnel courant par société Résultat opérationnel courant par société (données publiées)(données publiées)

Résultat opérationnel courant par société Résultat opérationnel courant par société (données comparables)(données comparables)

Marge opérationnelle (ROC / CA)Marge opérationnelle (ROC / CA) 19,0 %19,0 % 20,1 %20,1 %

(en M€)(en M€) 2005/2006( oct 05 – sept 06)

2006/2007( oct 06 – sept 07) VariationVariation

FITCHFITCH GROUP GROUP 130,7130,7 162,9162,9 ++ 24,6 %24,6 %

Fitch RatingsFitch Ratings 164,7164,7 199,6199,6 ++ 21,2 %21,2 %

AlgorithmicsAlgorithmics - 34,0- 34,0 - 36,7- 36,7 -- 7,9 %7,9 %

Autres (société mère et holdings)Autres (société mère et holdings) - 11,0- 11,0 - 10,0- 10,0

RÉSULTAT OPÉRATIONNEL RÉSULTAT OPÉRATIONNEL

COURANTCOURANT (donn(donnéées comparables)es comparables)119,7119,7 152,9152,9 ++ 27,7 %27,7 %

Du résultat opérationnel courantDu résultat opérationnel courant au résultat opérationnel au résultat opérationnel (données publiées)(données publiées)

(en M€)(en M€) 2005/2006(oct 05 – sept 06)

2006/2007( oct 06 – sept 07)

VariationVariation

Résultat opérationnel courant Résultat opérationnel courant (données publiées)(données publiées)

119,3119,3 149,1149,1 + 25,0 %+ 25,0 %

Autres produits et charges Autres produits et charges opérationnelsopérationnels

3,73,7 15,915,9

RÉSULTAT OPÉRATIONNEL RÉSULTAT OPÉRATIONNEL ((donndonnéées publiéeses publiées))

123,0123,0 165,0165,0 + 34,1 %+ 34,1 %

Du résultat opérationnel au résultat netDu résultat opérationnel au résultat net (données publiées)(données publiées)

(en M€)(en M€) 2005/2006( oct 05 – sept 06)

2006/2007( oct 06 – sept 07)

VariationVariation

Résultat opérationnel Résultat opérationnel (données publiées)(données publiées)

123,0123,0 165,0165,0 + 34,1 %+ 34,1 %

Coût net de l’endettement financierCoût net de l’endettement financier - 10,7- 10,7 5,05,0

Autres produits et charges financiersAutres produits et charges financiers 7,67,6 2,52,5

Charge d’impôtCharge d’impôt - 41,3- 41,3 - 74,7- 74,7

Résultat net des sociétés mises en équivalenceRésultat net des sociétés mises en équivalence 1,31,3 0,50,5

Résultat net de cession, des activités arrêtées Résultat net de cession, des activités arrêtées ou en cours de cessionou en cours de cession (dont 20% Fitch Group et (dont 20% Fitch Group et 100% Group Facom)100% Group Facom)

461,9461,9

Intérêts minoritairesIntérêts minoritaires - 10,0- 10,0 - 18,8- 18,8

RÉSULTAT NET RÉSULTAT NET Part Groupe(Part Groupe(donndonnéées publiées)es publiées)

531,8531,8 79,579,5

L’évolution de l’actionnariat de FimalacL’évolution de l’actionnariat de Fimalac

30/09/2006 30/09/2007

Actionnaire majoritaireActionnaire majoritaire 65,7 %65,7 % 66,3 %66,3 %

AutocontrôleAutocontrôle 3,7%3,7% 6,9 %6,9 %dont autocontrôle réservé dont autocontrôle réservé (stock options)(stock options) 1,1 %1,1 % 1,1 %1,1 %

AutresAutres 30,6 %30,6 % 26,8 %26,8 %

100,0 %100,0 % 100,0 %100,0 %

Trésorerie / endettement net par sociétéTrésorerie / endettement net par société

(en M€)(en M€) 30/09/2006 30/09/2007

Fitch GroupFitch Group - 273- 273 - 160- 160

Société-mère et holdingsSociété-mère et holdings + 413+ 413 + 243+ 243

Trésorerie nette Trésorerie nette (hors immeuble)(hors immeuble) + 140+ 140 + 83+ 83

North Colonnade North Colonnade (immeuble Londres)(immeuble Londres) - 225- 225

Cours comparés – Fimalac, Cours comparés – Fimalac, CAC 40 & SBF 120CAC 40 & SBF 120 de Décembre 1992 au 15 novembre 2007 - Base 100de Décembre 1992 au 15 novembre 2007 - Base 100

CAC 40CAC 40

299299

FIMALACFIMALAC

1 2341 234

SBF 120SBF 120

412412

Déc-92

Déc-92

Déc-93

Déc-93

Déc-94

Déc-94

Déc-95

Déc-95

Déc-96

Déc-96

Déc-97

Déc-97

Déc-98

Déc-98

Déc-99

Déc-99

Déc-00

Déc-00

Déc-01

Déc-01

Déc-02

Déc-02

Déc-03

Déc-03

Déc-04

Déc-04

Déc-05

Déc-05

Déc-06

Déc-06

15 nov 07

15 nov 07100

300

500

700

900

1100

1300

1500

1700

1900

"Total Shareholder Return" sur 10 ans "Total Shareholder Return" sur 10 ans des sociétés du SBF120des sociétés du SBF120

Source FACTSET

Rang TSR

Sur 10 ans Annualisé En % En %

1 Beneteau 3 654,3% 43,7%

2 Vallourec 2 203,4% 36,8%

3 Eiffage 1 732,0% 33,7%

4 Areva 1 488,9% 31,9%

5 Vinci 1 245,2% 29,7%

6 Maurel Et Prom 943,9% 26,4%

7 Bouygues 862,4% 25,4%

8 Unibail Rodamco 771,1% 24,2%

9 Ubi Soft Entert. 657,0% 22,4%

10 Klepierre 560,1% 20,8%

11 Wendel 512,7% 19,9%

12 Pernod Ricard 502,3% 19,7%

13 Renault 437,6% 18,3%

14 Fimalac 429,3% 18,1%

15 Societe Generale 419,9% 17,9%

1 Beneteau 3 654,3% 43,7%

2 Vallourec 2 203,4% 36,8%

3 Eiffage 1 732,0% 33,7%

4 Areva 1 488,9% 31,9%

5 Vinci 1 245,2% 29,7%

6 Maurel Et Prom 943,9% 26,4%

7 Bouygues 862,4% 25,4%

8 Unibail Rodamco 771,1% 24,2%

9 Ubi Soft Entert. 657,0% 22,4%

10 Klepierre 560,1% 20,8%

11 Wendel 512,7% 19,9%

12 Pernod Ricard 502,3% 19,7%

13 Renault 437,6% 18,3%

14 Fimalac 429,3% 18,1%

15 Societe Generale 419,9% 17,9%

Au 15 nov. 2007

16

HistoryHistory

Fitch Group StructureFitch Group Structure

80% 20%

100%

100%

100%

Fitch Group Fitch Group (including Korea Ratings)(including Korea Ratings) Revenue GrowthRevenue Growth

In $ MilIn $ Mil

$24 $43

$156 $169$222

$305$356

$455$511

$693

$774

$989

0

200

400

600

800

1000

1200

In $ Mil

Fitch Group Fitch Group (including Korea Ratings)(including Korea Ratings) Operating Income Growth (EBIT)Operating Income Growth (EBIT)

$5 $10

$29 $32 $37

$72$83

$113 $110

$150$160

$211

0

50

100

150

200

250

Fitch Group Fitch Group (including Korea Ratings)(including Korea Ratings) Sales to Operating IncomeSales to Operating Income

in US$ millionsin US$ millions 2005/2006 (Oct 05 – Sept 06)

2006/2007(oct 06 - sept 07)

% Change% Change

RevenueRevenue 774.0774.0 988.5988.5 ++ 27.7%27.7%

Personnel costsPersonnel costs 391.5391.5 492.3492.3 ++ 25.7%25.7%

External expensesExternal expenses 136.9136.9 169.4169.4 ++ 23.7%23.7%

Total chargesTotal charges 528.4528.4 661.7661.7 ++ 25.2%25.2%

EBITDAEBITDA 245.6245.6 326.8326.8 ++ 33.1%33.1%Profit sharing planProfit sharing plan 51.751.7 70.170.1DepreciationDepreciation 14.314.3 21.021.0Intangible assets amortizationIntangible assets amortization 19.519.5 24.524.5

Operating IncomeOperating Income 160.1160.1 211.2211.2 ++ 31.9%31.9%

Key Figures by CompanyKey Figures by Company

(in US$ millions)(in US$ millions)2005/2006

(Oct 05 – Sept 06)

2006/2007(oct 06 - sept 07)

% Change% Change

Revenue Revenue FITCH GROUPFITCH GROUP 774.0774.0 988.5988.5 ++ 27.7%27.7%

Fitch RatingsFitch Ratings 655.6655.6 827.4827.4 ++ 26.2%26.2%

Korea RatingsKorea Ratings -- 25.625.6

AlgorithmicsAlgorithmics 122.3122.3 139.4139.4 ++ 14.0%14.0%

Intercompany revenueIntercompany revenue - 3.9- 3.9 - 3.9- 3.9

EBITDA FITCH GROUPEBITDA FITCH GROUP 245.6245.6 326.8326.8 ++ 33.1%33.1%

Fitch RatingsFitch Ratings 264.6264.6 338.1338.1 ++ 27.8%27.8%

Korea RatingsKorea Ratings -- 5.25.2

AlgorithmicsAlgorithmics - 19.0- 19.0 - 16.5- 16.5

Operating Income Operating Income FITCH GROUPFITCH GROUP 160.1160.1 211.2211.2 ++ 31.9%31.9%

Fitch RatingsFitch Ratings 201.8201.8 252.8252.8 ++ 25.3%25.3%

Korea RatingsKorea Ratings -- 3.43.4

AlgorithmicsAlgorithmics - 41.7- 41.7 - 45.0- 45.0

23

Fitch Ratings (excl. Korea Ratings) Fitch Ratings (excl. Korea Ratings) Revenue growthRevenue growth

(in (in millions of US$)millions of US$)

$305$353

$448$502

$594

$656

$827

0

100

200

300

400

500

600

700

800

900

2001 2002 2003 2004 2005 2005/2006 2006/2007

Fitch Ratings (excl. Korea Ratings) Fitch Ratings (excl. Korea Ratings) Revenue by SegmentRevenue by Segment

(in (in US$ millions)US$ millions)

2005/2006 (Oct 05 – Sept 06)

2006/2007(oct 06 - sept 07)

% Change% Change

Structured FinanceStructured Finance 338.4338.4 422.9422.9

Corporate FinanceCorporate Finance 244.8244.8 315.0315.0 + 28.7%+ 28.7%

Subscriptions /TrainingSubscriptions /Training 72.472.4 89.589.5 + 23.6%+ 23.6%

TOTAL FITCH RATINGSTOTAL FITCH RATINGS 655.6655.6 827.4827.4 + 26.2%+ 26.2%

+ 25.0%+ 25.0%

Fitch Ratings (excl. Korea Ratings) Fitch Ratings (excl. Korea Ratings) Revenue by RegionRevenue by Region

(in (in US$ millions)US$ millions)

2005/2006 (Oct 05 – Sept 06)

2006/2007(oct 06 - sept 07)

% Change% Change

North AmericaNorth America 364.8364.8 429.4429.4 + 17.7%+ 17.7%

Europe, Middle East & AfricaEurope, Middle East & Africa 241.3241.3 332.5332.5 + 37.8%+ 37.8%

Latin AmericaLatin America 26.626.6 34.834.8 + 30.8%+ 30.8%

Asia PacificAsia Pacific 22.922.9 30.730.7 + 34.1%+ 34.1%

TOTAL FITCH RATINGSTOTAL FITCH RATINGS 655.6655.6 827.4827.4 + 26.2%+ 26.2%

Fitch Ratings (excl. Korea Ratings) Fitch Ratings (excl. Korea Ratings) EBITDA and Operating Income EBITDA and Operating Income

(in (in US$ millions)US$ millions) 2005/2006 (Oct 05 – Sept 06)

2006/2007(oct 06 - sept 07)

% Change% Change

Revenue Revenue 655.6655.6 827.4827.4 + 26.2%+ 26.2%

EBITDA EBITDA 264.6264.6 338.1338.1 + 27.8%+ 27.8%

EBITDA MarginEBITDA Margin 40.4%40.4% 40.9%40.9%

Profit sharing planProfit sharing plan 51.751.7 70.070.0Depreciation & AmortizationDepreciation & Amortization 11.111.1 15.315.3

Operating Income Operating Income 201.8201.8 252.8252.8 + 25.3%+ 25.3%

Operating Income MarginOperating Income Margin 30.8%30.8% 30.6%30.6%

Fitch Ratings (excl. Korea Ratings) Fitch Ratings (excl. Korea Ratings) Investment in Human CapitalInvestment in Human Capital

13501447

1617

1827

20642214

0

500

1000

1500

2000

2500

Dec 31 02 Dec 31 03 Dec 31 04 Dec 31 05 Sept 30 06 Sept 30 07

13501447

1617

1827

20642214

0

500

1000

1500

2000

2500

Dec 31 02 Dec 31 03 Dec 31 04 Dec 31 05 Sept 30 06 Sept 30 07

Hea

dco

un

tH

ead

cou

nt

Fitch Ratings Fitch Ratings Investment in Korea RatingsInvestment in Korea Ratings

In April 2007, Fitch acquired 53% of Korea Ratings Corporation, the In April 2007, Fitch acquired 53% of Korea Ratings Corporation, the leading Korean credit rating agencyleading Korean credit rating agency Fitch and Korea Ratings first entered into a strategic alliance in 1999 Since then, Fitch and Korea Ratings have collaborated on the provision of

credit ratings and risk management services, as well as hosting joint conferences and seminars.

Fitch made its first equity investment in Korea Ratings in 2001.

Korea aspires to become Northeast Asian financial hub.Korea aspires to become Northeast Asian financial hub. 2006 Domestic bond issuance – USD18.2 BN 2006 International bond issuance – USD16.8BN

Expands Fitch’s footprint in the regionExpands Fitch’s footprint in the region 15 offices throughout Asia in 11 countries 230 professionals in the region

Important Trends in 2007Important Trends in 2007

Strong market volumes through JuneStrong market volumes through June

Emerging credit issues in subprime Residential Mortgage Backed Securities Emerging credit issues in subprime Residential Mortgage Backed Securities evident in late 2006 began to accelerateevident in late 2006 began to accelerate

Extension of subprime weakness into Structured products (CDOs, SIVs, Asset Extension of subprime weakness into Structured products (CDOs, SIVs, Asset Backed Commercial Paper) and Corporates (Financial Institutions and Backed Commercial Paper) and Corporates (Financial Institutions and Monolines)Monolines)

Significant deterioration in Structured Finance market volumesSignificant deterioration in Structured Finance market volumes

High grade Corporate issuance strong due to bank funding / capital needs, High grade Corporate issuance strong due to bank funding / capital needs, reduction of commercial paper, flight to quality by investorsreduction of commercial paper, flight to quality by investors

Strong Market Volumes Through June Strong Market Volumes Through June

Source: Thomson Financial

Emerging Credit Issues in Subprime Residential Mortgage Emerging Credit Issues in Subprime Residential Mortgage Backed Securities Evident in Late 2006 Begin to AccelerateBacked Securities Evident in Late 2006 Begin to Accelerate

Rapidly growing subprime market in 2006 fueled by aggressive underwritingRapidly growing subprime market in 2006 fueled by aggressive underwriting

High combined loan-to-value ratios / piggyback seconds

Higher number of loans with limited documentation

Deterioration fueled by declines in home prices, rising interest rates, and lenders Deterioration fueled by declines in home prices, rising interest rates, and lenders failingfailing

Losses will exceed the expectations inherent in our ratings, necessitating a total Losses will exceed the expectations inherent in our ratings, necessitating a total portfolio review and criteria / model changesportfolio review and criteria / model changes

Re-rated all 2006 and 2007 vintage subprime deals Re-rated all 2006 and 2007 vintage subprime deals

Over 250 transactions comprised of almost 4,000 tranches

We have affirmed 88% (in $ volume) or 66% of the rated tranchesWe have affirmed 88% (in $ volume) or 66% of the rated tranches

A small portion of AAAs have been downgraded or put on Rating Watch A small portion of AAAs have been downgraded or put on Rating Watch Negative, mostly comprised of second-lien loans, some 2007 first liensNegative, mostly comprised of second-lien loans, some 2007 first liens

Extension of Subprime Weakness into Structured Products Extension of Subprime Weakness into Structured Products (CDOs, SIVs, and ABCP)(CDOs, SIVs, and ABCP) and Corporates and Corporates (Banks and Monolines)(Banks and Monolines)

Downgrades of subprime RMBS have reverberated through the market as that Downgrades of subprime RMBS have reverberated through the market as that collateral was prevalent in recent vintage CDOs, SIVs, and other market funded collateral was prevalent in recent vintage CDOs, SIVs, and other market funded vehiclesvehicles

Credit concerns were exacerbated by the market disruption which created Credit concerns were exacerbated by the market disruption which created pricing dislocationspricing dislocations

Fitch reviewed all rated Structured Finance CDOsFitch reviewed all rated Structured Finance CDOs 431 transactions with current outstandings of US$ 300 billion 150 have been placed on Rating Watch Review to be concluded by mid-November, including projected downgrades of

AAA tranches Fitch reviewed all ratings in Market Value Conduits, SIVs, and Asset Backed Fitch reviewed all ratings in Market Value Conduits, SIVs, and Asset Backed

Commercial PaperCommercial Paper A few downgrades, but we have a small presence in this market

Losses reported at commercial banks and investment banks have merited select Losses reported at commercial banks and investment banks have merited select downgrades and renewed scrutiny of risk-management processes and appetitesdowngrades and renewed scrutiny of risk-management processes and appetites

Fitch announced a review of the monoline insurance industry upon completion Fitch announced a review of the monoline insurance industry upon completion of the September 30 capital modelof the September 30 capital model

Significant Deterioration in Significant Deterioration in Structured Finance Market VolumesStructured Finance Market Volumes

0

20

40

60

80

100

120

140

160

180

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Subprime MBS - US

Prime / Alt A MBS - US

0

20

40

60

80

100

120

140

160

180

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Subprime MBS - US

Prime / Alt A MBS - US

Source: Inside Mortgage Finance

US

$ B

illo

ns

US

$ B

illo

ns

Worldwide CDO IssuanceWorldwide CDO Issuance

CDO Issuance Volume in Past 14 Months

47,0

28,6

52,350,7

18,4

63,765,9

46,844,3

60,9

34,3

21,0

10,913,5

0

10

20

30

40

50

60

70

80

90

S O N D J F M A M J J A S O

CDO Issuance Volume in Past 14 Months

47,0

28,6

52,350,7

18,4

63,765,9

46,844,3

60,9

34,3

21,0

10,913,5

0

10

20

30

40

50

60

70

80

90

S O N D J F M A M J J A S O

Source: Asset-Backed Alert

US

$ B

illo

ns

US

$ B

illo

ns

Volatility in ABS and CMBS Market VolumesVolatility in ABS and CMBS Market VolumesUS Securitized Asset IssuanceUS Securitized Asset Issuance

0

5

10

15

20

25

30

35

40

45

50

April May June July Aug Sept

CMBS

ABS

0

5

10

15

20

25

30

35

40

45

50

April May June July Aug Sept

CMBS

ABS

US

$ B

illo

ns

US

$ B

illo

ns

Source: Inside Mortgage Finance

Resilient Demand for High Grade CorporatesResilient Demand for High Grade Corporates

Record year (over US$ one trillion) for US investment grade Record year (over US$ one trillion) for US investment grade bonds, the “flight to simplicity”bonds, the “flight to simplicity”

Growing capital needs for financial institutions, stable economic Growing capital needs for financial institutions, stable economic environment, and contraction in commercial paper underlie the environment, and contraction in commercial paper underlie the strong supplystrong supply

Growing demand from new emerging economiesGrowing demand from new emerging economies

Continuing to invest in this business despite slowdown in Continuing to invest in this business despite slowdown in structured financestructured finance

Noninvestment grade issuance hurt by decline in CLO activityNoninvestment grade issuance hurt by decline in CLO activity

Key Issues for 2008Key Issues for 2008

Balancing the short term business impact against longer term Balancing the short term business impact against longer term challenges and opportunitieschallenges and opportunities Dichotomy between Structured and Corporates, US and the rest

of the world Ever increasing demand for quality due to the complexity of the

capital markets and market volatility Longer term opportunity to distinguish ourselves

Reputational and regulatory challenges to the industryReputational and regulatory challenges to the industry Market confidence in rating agencies has been shaken Numerous regulatory bodies are interested in “fixing” the credit

problems

Reacting without overreactingReacting without overreacting Organizational changes Introducing new products to fill market voids Acquisitions to complement the business

Regulatory IssuesRegulatory Issues

Credit Rating Agency Reform Act passed by US Congress in Credit Rating Agency Reform Act passed by US Congress in September 2006September 2006 Fitch was officially recognized as one of seven NRSROs under

new guidelines in June of 2007

IOSCO (International Organization of Securities Commissioners) IOSCO (International Organization of Securities Commissioners) will release a report in late 2007 on compliance with their Code of will release a report in late 2007 on compliance with their Code of Conduct Fundamentals, and in spring 2008 regarding issues Conduct Fundamentals, and in spring 2008 regarding issues specific to structured finance ratingsspecific to structured finance ratings

Recent market turmoil has led to increased attention from Recent market turmoil has led to increased attention from securities regulators globally, the European Commission, the US securities regulators globally, the European Commission, the US Congress, and Certain US States’ Attorneys-GeneralCongress, and Certain US States’ Attorneys-General

We remain open and constructive in the dialogue, eager to find We remain open and constructive in the dialogue, eager to find solutions to help restore market confidence in ratingssolutions to help restore market confidence in ratings

Greater regulation seems inevitableGreater regulation seems inevitable

ConclusionConclusion

The entire organization has rallied around the urgency The entire organization has rallied around the urgency of the credit challenges, aiming to be timely and of the credit challenges, aiming to be timely and transparent with our research and ratingstransparent with our research and ratings

Visibility into the months ahead is limitedVisibility into the months ahead is limited We do expect that corporate ratings will continue on a

growth trend Less sure about the timing and extent of structured

markets recovery

41

AlgorithmicsAlgorithmicsIntroductionIntroduction

Algorithmics is a leading provider in the development Algorithmics is a leading provider in the development

and delivery of enterprise risk solutions that enable and delivery of enterprise risk solutions that enable

growth, innovation and the efficient use of risk capital. growth, innovation and the efficient use of risk capital.

Financial organizations from around the world rely on Financial organizations from around the world rely on

our software, content,our software, content, delivery and advisory services to delivery and advisory services to

make risk aware business decisions and meet make risk aware business decisions and meet

regulatory requirements.regulatory requirements.

AlgorithmicsAlgorithmicsHighlightsHighlights

Notes: 1 1 Top 100 banks according to “The Banker”

101 New License Orders101 New License Orders

390 Software Solution clients (22 new)390 Software Solution clients (22 new)

169 Content and Data clients (47 new)169 Content and Data clients (47 new)

727211 of the world’s 100 largest financial institutions of the world’s 100 largest financial institutions

724 professionals in 19 global offices724 professionals in 19 global offices

AlgorithmicsAlgorithmicsRevenue by RegionRevenue by Region

(in (in millions of US$)millions of US$)2005/2006

(Oct 05 – Sept 06)

2006/2007(oct 06 - sept 07)

% Change% Change

North AmericaNorth America 39.6 37.0 - 6.6%

Europe, Middle East & AfricaEurope, Middle East & Africa 64.764.7 81.1 + 25.3%

Latin AmericaLatin America 5.65.6 4.5 - 19.6%

Asia PacificAsia Pacific 12.412.4 16.8 + 35.5%

TOTAL ALGORITHMICSTOTAL ALGORITHMICS 122.3*122.3* 139.4*139.4* + 14.0%+ 14.0%

* Includes inter-company revenue of $3.9 million* Includes inter-company revenue of $3.9 million

AlgorithmicsAlgorithmicsEBITDA and Operating Income EBITDA and Operating Income

(in (in millions of US$)millions of US$) 2005/2006 (Oct 05 – Sept 06)

2006/2007(oct 06 - sept 07)

% Change% Change

RevenueRevenue 122.3122.3 139.4139.4 + 14%+ 14%

EBITDAEBITDA - 19.0- 19.0 - 16.5- 16.5

Profit sharing planProfit sharing plan 0.10.1 0.10.1

DepreciationDepreciation 4.04.0 5.75.7

Intangible assets amortizationIntangible assets amortization 18.618.6 22.722.7

Recurring Operating Recurring Operating IncomeIncome

- 41.7- 41.7 - 45.0- 45.0

* Includes inter-company revenue of $3.9 Million in 2005-2006 and 2006-2007* Includes inter-company revenue of $3.9 Million in 2005-2006 and 2006-2007

(*)(*) (*)(*)

Credit and Capital SolutionsCredit and Capital Solutions 125 clients (108 in 2006)125 clients (108 in 2006)

Market Risk SolutionsMarket Risk Solutions 161 clients (128 in 2006)161 clients (128 in 2006)

Operational Risk SolutionsOperational Risk Solutions 104 clients (89 in 2006) 104 clients (89 in 2006)

Collateral Management SolutionsCollateral Management Solutions 70 clients (68 in 2006)70 clients (68 in 2006)

AlgorithmicsAlgorithmicsSolution Achievements Solution Achievements

AlgorithmicsAlgorithmicsRecognized LeadershipRecognized Leadership

2007 Chartis Research: Credit Risk Management Systems2007 Chartis Research: Credit Risk Management SystemsWorld’s most complete Credit Risk Management solutionsWorld’s most complete Credit Risk Management solutions

2007 OpRisk & Compliance Magazine: Technology Rankings2007 OpRisk & Compliance Magazine: Technology RankingsAlgorithmics voted top for Regulation and Economic Capital ModellingAlgorithmics voted top for Regulation and Economic Capital Modelling

2007 Synergy Award for Innovation2007 Synergy Award for InnovationRecognized by the Canadian Federal Government, Department of Natural Sciences and Recognized by the Canadian Federal Government, Department of Natural Sciences and Engineering for innovation in partnership with the University of TorontoEngineering for innovation in partnership with the University of Toronto

2007 – Awarded a patent for "System and Method for Trading Off Put and 2007 – Awarded a patent for "System and Method for Trading Off Put and Call Values of a Portfolio" methodologyCall Values of a Portfolio" methodology. An innovative framework for ranking investment funds on a risk-adjusted basis.An innovative framework for ranking investment funds on a risk-adjusted basis.

2007 Media and Analyst Recognition2007 Media and Analyst Recognition

AlgorithmicsAlgorithmicsMarket Drivers Market Drivers

Adoption of ‘risk aware’ business applications in financial Adoption of ‘risk aware’ business applications in financial services, coupled with increased risk awareness.services, coupled with increased risk awareness.

Increasingly complex financial markets and products which Increasingly complex financial markets and products which require more sophisticated toolsrequire more sophisticated tools

Regulation for banks (more countries adopting Basel II), Regulation for banks (more countries adopting Basel II), asset managers and insurance companies (e.g. Solvency II)asset managers and insurance companies (e.g. Solvency II)

AlgorithmicsAlgorithmicsInvestment FocusInvestment Focus

Expanding sales and services to support revenue growthExpanding sales and services to support revenue growth Establishing presence in new geographical marketsEstablishing presence in new geographical markets

Investing in managed service solutions for asset managers and hedge Investing in managed service solutions for asset managers and hedge fundsfunds

Developing broader risk solution for the insurance industryDeveloping broader risk solution for the insurance industry

Continued focus on core solutionsContinued focus on core solutions