Press Conference Frontline Technologies Corporation Limited 30% Investment in

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The Development Bank of Singapore
Corporate Finance Division
Peter Chan December 15th, 2003
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Singapore Based - Universal Banking Model

• Growing into other Asian Regions

• Traditional consumer and commercial banking
  contribute stable source of income
• Advisory Fees from Investment Banking, Market
  Making Trading Revenues provide upside
• Key Player in Singapore Capital Markets

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Specific Issues For the Corporate Finance Division

• IPOs / plain vanilla bond origination in
  Singapore is extremely competitive.
• Strong Retail Investor distribution, but
  Institutional Investor distribution is key
• Acquisition of Commercial Banks in the region
  present cross selling opportunities for corporate
  finance services
• Asset Securitization
• M A advisory services
• Performance measured at 2 levels
• Department Market Share / League Tables, Revenue
  Targets
• Individuals Relative to peers Relative to
  individual performance targets
• Productivity is secondary as long as the job
  gets done by the deadline
• Quality Control measures adopted
• Internal Presentation Material (pitch-books),
  Legal Counsel
• External Subsequent Referrals from Clients for
  advice
• Processes vulnerable to operational risk
• People Risk miscommunication with Sales Desk,
  Credit, absenteeism
• Process Risk financial legal due diligence,

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Recommendations / Suggestions for Change

• Balanced Scorecard Approach
• Financial (Shareholders Perspective)
• Risk-Return approach in undertaking
  commoditized ECM / DCM deals
• Headcount could have been reduced
• Customer
• Expand Institutional distribution capabilities in
  regional countries
• Leverage securitization expertise
• Use balance sheet capability selectively for more
  profitable transactions
• Expand client coverage as foreign investment
  banks have downsized
• People / Learning Growth
• Hire key bankers sales people from foreign
  banks
• key bankers sales people from foreign banks
• Internal Business Processes
• Foster better communication between all internal
  parties involved