Rajnish Bharadwaj

EVP, Head of Cross Border Strategy & GovernanceMarch 30, 2015

Managing a Multinational Corporation

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Today’s Agenda

Wells Fargo’s Global Footprint and International Businesses

Managing MNC ─ with Wells Fargo Practices

o Strategy

o Organization and Governance

o Risk Management

o Talent Management

Project Assignment

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Mexico City

Guayaquil

Santo Domingo

SantiagoBuenos Aires

Bogotá

Sáo Paulo

LondonDublin

Paris

Madrid Istanbul

Johannesburg

Frankfurt

Milan

Dubai

Moscow

Jakarta

New Delhi

Dhaka

Chennai

Singapore

BangkokKuala Lumpur

Sydney

BeijingSeoul

Hanoi

TokyoShanghai

TaipeiHong Kong

Ho Chi Minh CityManila

United States Over 700 Wholesale offices

Cayman Islands

TorontoMontreal

New Providence

Calgary

Vancouver

Mumbai

Herzliya

Aberdeen

Wells Fargo Around the WorldGlobal Reach via Presence in 36 Countries

WF Bank Representative OfficesInternational BranchesOther WF Offices – Multiple BusinessesWFBI – EU Passport Bank

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Wells Fargo’s International Businesses

Global Financial Institutions

Global Banking

Global Transaction Banking

o Foreign Exchange / International Treasury Management

o Global Payment Services

International Trade Services

Wholesale Banking – International Group

Capital Finance

Commercial Banking

Commercial Real Estate

Corporate Banking

Norwest Venture Partners

Principal Investing

Specialized Lending, Servicing and Trust

Wells Fargo Asset Management

Wells Fargo Securities

Other Wholesale Banking Businesses

Consumer Lending:

o Strategic Auto Investments

Community Banking:

o Global Remittance Services

o Business Direct

Wealth, Brokerage and Retirement:

o Wells Fargo Institute (Research)

o Wells Fargo Advisors

o Wealth Management

Non-Wholesale Banking Businesses

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Managing a MNC: Some Challenges

Complexity of meeting varying local requirements

Risk of losing focus / depth, core competence and competitive advantage

Distraction via M&A

Difficulty in making long term commitment and investments

Not nimble and adaptable enough for local needs (inevitably rising complexity as MNC grows larger and more diverse)

Bureaucracy

Loss of market agility to adhere to standardized global processes

Different markets have different requirements, must be flexible and adjust to local requirements

Exposure to varied, often unfamiliar and hard-to-assess risks overseas:

o Geopolitical

o Local government influence

Some regulatory regimes less stable

Deploying and developing local talent

Obtaining local know-how

Keeping stability of local talent

Lack of appreciation for lives of team members in non-home countries

Strategy Organization / Governance

Talent ManagementRisk Management

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Wells Fargo's International Strategy

Build capabilities to meet international needs ofo U.S. based commercial and corporate customerso Foreign corporates with a U.S. presence

Global Banking Expansion

Infrastructure Build-out

Upgrade banking technology platform to enable us to serve our clients Obtain regulatory permissions and establish legal entities, as necessary Continue reinforcing regional / global governance to support strategy

Expand Other Select

Businesses

Leverage presence, market knowledge and customer relationships to selectively expand strong domestic businesses (relationship and product groups)

Deepening Global Financial

Institutions

Broaden / deepen existing relationships through expansion of cross-sell Develop / broaden relationships with select international non-bank

segments such as supranationals, sovereigns and agencies Proactive and preventive risk management that benefits our customers

Targeted Acquisitions for Further Growth

As we gain better understanding of markets and customer needs, make selective acquisitions for strengthening capabilities

Wells Fargo is building its international presence in alignment with its risk appetite and on the principles of its domestic U.S. business (relationship focus and risk discipline)

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Wells Fargo’s International Governance Model Global Cross Border Governance

APAC EMEA Canada LatAm

Country Managers

Regional CommitteesRegional

CommitteesRegional

Committees

Regional Leadership

Country Managers

Country Managers

Regional CommitteesRegional

CommitteesRegional Shared

Services

Emulates and links to top-of-the-house: Operating Branch Management Cross-sell / Pipeline / Revenue Driver New Initiative / Product Risk Compliance & Operational Risk Asset & Liability

Wholesale: Finance HR Risk

Enterprise: Audit Legal Corporate Risk Corporate Tax Corporate Properties Security

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For international client-facing business activities:

Represent One Wells Fargo

Advocate for the lines of business

Protect the brand / be reputation steward

Carry primary regulatory accountability outside the U.S.

Reinforce risk management standards

Lead international governance for new services, legal entities, licenses, etc.

Plan and execute select international business and infrastructure initiatives

Provide international lens to all M&A activities with an international component

Wells Fargo's International Governance ModelWF’s international governance platforms have been established to ensure a cohesive and coordinated approach to all activities across all lines of business across the enterprise and the globe

Cross Border Governance Mandate

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Wells Fargo's International Risk Management

1st Line of Defense

(Lines of Business, Control & Support Groups)

2nd Line of Defense

(Corporate Risk)

3rd Line of Defense

(WF Audit Services)

Relationship Focus

Competitive Advantage

Reputation

Price for Risk

Conservatism

Dual Control

Take only as much risk as necessary to efficiently, effectively and prudently serve our customers

Take risks when we understand them Avoid / minimize risk where we have no competitive advantage

Our reputation is paramount Don’t engage in activities or business practices that could

cause permanent or irreparable reputational damage

Price the business to cover risk to capital Retain risk only if priced for sufficient risk adjusted return

Significant bias for conservatism

Business decision makers have primary accountability for risk Corporate risk functions provide oversight, enterprise view, and

appropriate “challenge”

Same enterprise robust discipline being applied in all international businesses

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Talent Management – Wells Fargo’s Vision & Values

“We want to satisfy all our customers’ financial needs and help them succeed financially.”

Our Vision

Our vision is about building lifelong relationships, one customer at a time.

The reason we wake up in the morning is to help our customers succeed financially and to satisfy all their financial needs.

The result is we make money because of our focus on serving customers, not the other way around.

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People As a Competitive Advantage

Our Values

We say “team members” not “employees” because our people are a treasured resource to be invested in, not expenses to be managed — and because teamwork is essential to our success in helping customers.

Ethics

Honesty, trust and integrity are essential for meeting the highest standards of corporate governance. They’re not just the responsibility of our senior leaders and our board of directors. We’re all responsible.

What’s Right for Customers

Our customers — external and internal — are our friends. We advocate for their best interests and we want them to feel as if they’re part of Wells Fargo — that we’re their company.

Diversity and Inclusion

Our commitment to diversity and inclusion is key to being one of the world’s great companies. We value and promote diversity and inclusion in every aspect of our business and at every level of our organization.

Leadership

Good leaders inspire teams to have confidence in their leadership; great leaders inspire team members to have confidence in themselves.

Talent Management – Wells Fargo’s Vision & Values

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Managing a MNC: Some Best Practice Perspectives

Clear, well-articulated, well-understood strategy and shared vision

Clear commitment from the top

Ability to invest for the long term

Matrix of business based management and geography based management

Bridge and advocate: Explain the parent and advocate for the regions

Transferring lessons learned

Consistency and alignment with global framework

Balancing local and global

Earning your stripes and degrees of freedom

Robust hiring, retention, training, development, rotation programs, talent management

Ensuring multiple paths to success for local talent

Evolving beyond an expat reliant model

Empathy for lives of team members in non-home countries

Strategy Organization / Governance

Talent ManagementRisk Management

Varies with individual company’s history, strategy, nature of business, and footprint

Wells Fargo ─ Project Assignment

Managing a Multinational Corporation

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Two Mini Projects

What are the best market opportunities in the following

areas for Wells Fargo? How can we capture them?

(1) Retail Wealth Management in Europe and Asia

(2) Trade Finance in Latin America and Asia

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Overview of Wells Fargo Asset Management’s International Business

Target Customer Segments

Products

Geographic Focus

Institutional investors include retirement plans, foundations, insurance companies, central banks, sovereign wealth funds and asset managers

Intermediary access to Retail investors via family offices, private banks, wealth managers and manager-of-manager programs

WFAM is comprised of autonomous investment teams covering U.S. long-only equity and fixed income strategies (short-term, core, high yield, European and EMEA emerging market focused credit). The firm also has international, global, emerging, quantitative, stable value and hedge fund-of-funds capabilities

Clients access these products via segregated accounts, registered and private placement UCIT SICAVS and SICAV-SIFS domiciled in Luxembourg

EMEA, APAC and Canada

o In-country presence – Sales teams are based in London, Paris, Frankfurt, Dubai, and Hong Kong. Service teams are based in London and San Francisco. Investment teams are based in the US, London, Singapore, and Nassau (Bahamas)

o Location of customers (including cross-border) – Current clients are domiciled in over 40 countries with assets concentrated in the UK, Germany, Saudi Arabia, Japan, Denmark, France and South Korea

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Overview of WF’s International Trade Services

Customer Base

Geography

Products

Financial institutions and corporations globally

Sales and product coverage team in all regions (APAC, EMEA and Americas)

Full range of trade products, such as documentary and standby letters of credit, open account solutions, trade payables financing and insourcing of trade processing

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Thank You

Merci

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