MOVING WITH PURPOSE AND

CONSIDERATION

The integration of Wells Fargo and Norwest

Start moving

What are the most critical action steps for Wells Fargo in the integration?

Before

merger

•Decide on corporate leadership•Leadersh

ip and decision authority will be key to making the important decisions that come with a merger

•Must project a united image to the investor community via the Board and Executive team

Before/

During

merger

•Decide on layoffs/closures, then move quickly to implement•Norwest’

s disinclination for layoffs could deter cost synergies

•Reduce the uncertainty that will be on everyone’s minds

Keep moving

What are the most critical action steps for Wells Fargo in the integration?

During

integration

•Deciding whose information systems to use and transitioning to those systems in an orderly fashion•Begin

leveraging an important source of cost synergies

During

integration

•Deciding on pushing which products to new clients•Don’t

lose an opportunity to show clients what the merger will do for them

•Don’t begin pushing new products until the support structure is in place – it is difficult to recover from errors committed early in the integration

During

integration

•Rolling out Wells Fargo branding across Norwest territory•How

soon the name will be deployed

•What kind of campaign will educate customers about the new branding

How fast are you moving? Should Wells Fargo proceed quickly or slowly?

Move quickly

Quick integrations allow a new firm’s culture and image to quickly “gel”

Realize cost synergies quicker

Begin moving towards revenue

synergies sooner

Remove uncertainty

for employees, customers,

and investors

How fast are you moving? Move with purpose, but also with

considerationDo not sacrifice quality for speedDamage to customer relationships would be

difficult to repair○ Especially while we convince them that the

merger is in their interestQuality of service will dictate merger

success or failure

Wells Fargo should pursue a quick integration, but not at all costs

Let others know where you’re moving What communications should be prioritized

and why?

Extent of layoffs and when implemented

• The organization will not be able to focus until layoffs are implemented

External communications

• Customer contacts at Wells Fargo/Norwest are exactly the same

• Soon will be bringing the customer an improved product portfolio to better meet their needs – all across the U.S.

Extent of divestments – if any

• Likely none – Wells Fargo’s and Norwest’s businesses are largely complementary and will coexist

Motion creates friction What negative reactions should be

anticipated and how should management preempt these issues?

Mutual cultural skepticism

Combined executive teams affirm “banking excellence”

Intention to remain the best bank in the U.S., with exceptional customer focus

Neither bank could achieve alone the lofty goals that we have set for the coming years, and they belong together

Motion creates frictionGeneral skepticism towards merger

First Interstate hangover at Wells Fargo

Threat of layoffs

Management response: Merger has been carefully considered by both management teams

Extensive lessons learned have been, and will continue to be, incorporated into the merger plan

Complementary portfolio will lessen impact and allow us to retain more staff

Motion creates friction

Customer reactionNorwest customer reaction:

Expecting less

personal service

Wells Fargo customer reaction:

Already impersonal service

gets worse

Everybody’s reaction:

“What’s this going to do for

me?”Maintain external

focus

Don’t sacrifi

ce quality

of service for

speed of

integration

Launch new

products across Wells Fargo

Offer value

to customers by expand

ing product offering

s

Begin improving customer service

Norwest culture

will prevail

once the hard

decisions have been made

Management response

Moving forward Integrating Wells Fargo and Norwest will not be

easy – but nothing worth doing ever is

The synergies envisioned are not a leap of faith and will be achieved with diligent effort and persistence

Wells Fargo will be a stronger bank better able to compete, and the employees, customers, and shareholders of Wells Fargo will reap the benefits