Wachovia Corp.

1
Wachovia Corp.

• WEI-JET HEW
• October 26
• Finance Club

2

• History and Background Info
• Business Segments
• Strength and Opportunity
• Risk Governance and Management
• Valuation
• Conclusion

3
Company

• Formed in 1911
• Chairman, President CEO G. Kennedy Thompson
• 500 billion in assets
• Fourth largest bank holding company in the U.S
• Four Business Segments General Bank, Capital
  Management, Wealth Management, Corporate and
  Investment Bank.
• Focus expense control, credit quality and
  productivity improvements.

4
Critical Success Factor

• Revenue Growth
• Expense Efficiency
• Customer Loyalty
• Employee Engagement
• Corporate Governance
• Merger Integration

5
Overview of Business Segments
6
General Bank

• Customer Individuals, small businesses,
  commercial enterprises, and governmental
  institutions
• Value Proposition
• Checking, lending and investing products and
  services for customers at every stage of life
  
• Knowledgeable and reliable guidance
• Specialized financial needs of businesses
• Strategic Focus
• Long-term customer relationship
• Customers at multiple services

7
Capital Management

• Proprietary nonproprietary investment products
  services to retail and institutional clients
• Value Proposition
• Achieve lifetime financial goals
• Emphasis on disciplined investing and unbiased
  advice
• Strategic focus
• Creates a growing and diversified business with
  balanced mix of products

8
Wealth Management

• Private banking, trust and investment management,
  financial planning and insurance services to high
  net worth individuals, families and businesses
• Value Proposition
• Fully integrated and objective approach
  incorporates all disciplines
• Strategic partnerships with all other segments
• Strategic Focus
• Clients relationship, leveraging opportunity
• Sophisticated, leading-edge solutions

9
Corporate and Investment Bank

• Domestic and global corporate and institutional
  clients in 10 key industry sectors
• Value Proposition
• Focus on client needs, combined with capital
  raising capability and a leading treasury
  services platform
• Integrated team approach, breadth of products
  services, deep industry expertise
• Strategic focus
• Growing economic value for Wachovia shareholders

10
Strength and Opportunity

• Modest economic growth and rising interest rates
• Diversified business model to drive revenue
  growth through cross-business partnership
• Strengthened banking market through acquisition
  and expansion
• Strong credit quality and commercial loan growth
• Diversified revenue mix

11
Risk Management Strategy

• Business Units
• Independent risk management function joined by
  other corporate staff functions Legal, Finance,
  HR and Technology
• Internal Audit
• Risk committee

12
Valuation

• Shares yielded 3.5
• 14 discount to SP 12-month target price of 58
• One-year-return of 17 outperformed banking
  industry indices
• Earning growth of 22 in 2004
• Forecast EPS of 4.30 for year 2005

13
Conclusion

• 4 Star Recommendation
• BUY