00April 20061Recognized leader in each major asset class$847 billion in assets under management*– $403 billion in fixed income– $283 billion in equity– $86 billion in asset allocation– $74 billion in real estate and alternativesClient segments include:n Defined Benefitn Defined Contribution n Non-ERISA qualifiedn Endowments and foundationsn Cash and reservesn Private wealthn Sub-advisoryn Sovereigns and supranationalsn Insurance companiesEquity: A JPMorgan core competency for more than 50 years*Represents assets under management as of December 31, 20052Asset & Wealth ManagementRetail27%Private Client Services18%Private Bank30%2005 Revenue by Business Segmentn$1.1T of assets under supervisionn$847B of AUMn$377B of mutual fund assetsn12,127 employees1Key Statistics1(12/31/05)2005 Proforma Operating Results ($mm)2005Revenue 5,664Pre--tax Margin 33%ROE 51%Institutional25%1Annual comparison3JPMAM – US Equity Investment styles• Multi-factor model designed to eliminate or minimize human interface• Statistical measures determine buy/sell decisions• Use optimizer to assist in portfolio constructionBehavioral Driven• Buy/Sell decisions primarily based on dedicated industry analyst insights captured by DDR rankings• PM constructs portfolios based on rankings within risk tolerance• PM uses discretion on based on conviction and timing• Largely sector neutral • PM has complete discretion over all decisions in portfolio (timing, industries, stocks)• PM chooses valuation metrics (DDM, P/E, P/B, etc.)• PM utilizes quantitative tools• PM accesses company research via JPMAM analysts and Wall Street consensus viewsResearch DrivenManager DrivenU.S. Large Cap4Investment Philosophy and Process5A clear and concise philosophy drives investing: Fair Value vs. Stock PriceFair valueActual Stock PriceValuationTimen Stock prices ultimately reflect future earnings and cash flowsn Stocks are frequently mispriced by the market relative to their true long-term valuen A disciplined investment processthat exploits mispricings can deliver superior investment results6Disciplined Disciplined PortfolioPortfolioConstructionConstructionInformation Information AdvantageAdvantageSystematicSystematicValuationValuationOur philosophy is implemented through a unique and robust investment processFundamental Research§ U.S. analyst team of buy-side, sector-specialists§ Global network of analysts expands our information sourcesDividend Discount Model§ Proprietary earnings and cash flow estimates drive DDR§ Stocks ranked into quintiles based on DDRsStock Selection Focused§ Investment decisions driven by DDR rankings and PM insights7The AmericasNew York – 48 analystsBuenos Aires – 1 analystColumbus – 7 analystsEuropeLondon – 33 analystsMoscow – 2 analystsAsia PacificBangkok – 9 analystsHong Kong – 17 analystsMelbourne – 8 analystsSeoul – 1 analystShanghai – 4 analysts Singapore – 6 analystsTaipei – 18 analysts Tokyo – 29 analysts*As of 12/31/05. Includes dedicated analysts and combined portfolio managers/analystsOur global presence creates an information advantage for our clientsGlobal reach – 183 equity research analysts based out of 13 cities work directly with local businesses and local economies, offering a global understanding and investment insight few firms can match*.JPMorgan equity research:§ Has an annual global research expenditure of approximately $100 M § Has dedicated large, mid and small cap research teams§ Dedicates their time to “on the ground” research and one-on-one company visits – totaling over 5000 company visits each year§ Teams specializing in quantitative research located in Columbus and New York.8U.S. Large Cap Equity Research: a team of 22 skilled investors with an average of 14 years of experienceHelge Skibeli, MDDirector of Research19 yrs. of experience16 yrs. with the firmDr. Scott Braunstein, MDPharma/Med-Tech 15 yrs. of experience4 yrs. with the firmAllison Adler, VPHealth Svcs/ Bio-Tech12 yrs. of experience4 yrs. with the firmScott Blasdell, MDREITs12 yrs. of experience7 yrs. with the firmKay Herr, VP REITs12 yrs. of experience7 yrs. with the firmRobert Bowman, MDTechnology13 yrs. of experience13 yrs. with the firmLuke Szymczak, VPNetwork Tech/Telecom19 yrs. of experience6 yrs. with the firmNitin Bhambhani, VPSoftware and Services12 yrs. of experience10 yrs. with the firmJacqueline Flake, MDCapital Markets15 yrs. of experience9 yrs. with the firmUrmas Wompa, MDFinance23 yrs. of experience20 yrs. with the firmNishesh Kumar, VPEnergy9 yrs. of experience8 yrs. with the firmSteven Lee, VPAutos and Transport13 yrs. of experience2 yrs. with the firmTerry Shu, MDInsurance/Utilities31 yrs. of experience31 yrs. with the firmDavid Pasquale, VPConsumer Cyclicals9 yrs. of experience<1 yr. with the firmLisa S. Sadioglu, VPConsumer Cyclicals6 yrs. of experience6 yrs. with the firmJames Brown, MDBasic Materials22 yrs. of experience19 yrs. with the firmChristopher Carlucci, VPIndustrial Cyclicals12 yrs. of experience12 yrs. with the firmCyclicalsFinance, Utilities and PropertyConsumerTechnologyMediaKathleen Stack, MDConsumer Stable28 yrs. of experience25 yrs. with the firmBruce Williams, VPRetail11 yrs. of experience11 yrs. with the firmAnne-Marie Fink, VPMedia11 yrs. of experience11 yrs. with the firmNote: MD = Managing Director; VP = Vice President, Assc = AssociateAs of February 28, 2006HealthcareEdward Yoon, Assc.Eye Care/Life Sciences4 yrs. of experience4 yrs. with the firmJason Ko, Assc.Specialty Finance4 yrs. of experience4 yrs. with the firmGregory Fowlkes, VPRetail12 yrs. of experience<1 yr. with the firm9Disciplined Disciplined PortfolioPortfolioConstructionConstructionInformation Information AdvantageAdvantageSystematicSystematicValuationValuationOur philosophy is implemented through a unique and robust investment processFundamental Research§ U.S. analyst team of buy-side, sector-specialists§ Global network of analysts expands our information sourcesDividend Discount Model§ Proprietary earnings and cash flow estimates drive DDR§ Stocks ranked into quintiles based on DDRsStock Selection Focused§ Investment decisions driven by DDR rankings and PM insights10Systematic ValuationLong term earnings powerActual ForecastedActual near term earningsTodayEarningsTime• Stock prices should reflect expectations of future earnings and cash flows• “Normalized,” sustainable earnings reflect true investment