Sales from reported to like-for-like

1

2

SalesSalesfrom reported to like-for-likefrom reported to like-for-like

(in € millions)(in € millions) First half 2005/2006

First half 2006/2007

ChangeChange

SALES SALES (reported)(reported) 303.8303.8 365.7365.7 + 20.4 %+ 20.4 %

Currency translation impact ($ and £)Currency translation impact ($ and £) 0.80.8 16.016.0

Changes in consolidation scopeChanges in consolidation scope

SALES SALES

(like-for-like)(like-for-like)

304.6304.6 381.7381.7 + 25.3 %+ 25.3 %

Sales by companySales by company(reported)(reported)


First half 2006/2007 ChangeChange

FITCHFITCH GROUP GROUP 303.8303.8 365.7365.7 + 20.4 %+ 20.4 %

Fitch RatingsFitch Ratings 255.9255.9 313.3313.3 + 22.4 %+ 22.4 %

AlgorithmicsAlgorithmics 47.947.9 52.452.4 + 9.4 %+ 9.4 %

SALES SALES

(reported)(reported)

303.8303.8 365.7365.7 + 20.4 %+ 20.4 %

Sales by company Sales by company (like-for-like)(like-for-like)



FITCHFITCH GROUP GROUP 304.6304.6 381.7381.7 + 25.3 % + 25.3 %

Fitch RatingsFitch Ratings 256.3256.3 325.1325.1 + 26.8 %+ 26.8 %


SALES SALES

(like-for-like)(like-for-like)

304.6304.6 381.7381.7 + 25.3 %+ 25.3 %

First half 2005/2006 %%

First half

2006/2007 %%

11 USAUSA 154.2154.2 50.850.8 %% 178.5178.5 48.848.8 %%

22 UKUK 43.343.3 14.314.3 %% 53.253.2 14.614.6 %%

33 GermanyGermany 11.011.0 3.63.6 %% 13.813.8 3.83.8 %%

44 NetherlandsNetherlands 7.37.3 2.42.4 %% 10.410.4 2.82.8 %%

55 JapanJapan 5.75.7 1.91.9 %% 8.98.9 2.42.4 %%

66 ItalyItaly 7.37.3 2.42.4 %% 8.68.6 2.42.4 %%

77 SpainSpain 5.85.8 1.91.9 %% 8.38.3 2.32.3 %%

88 FranceFrance 6.16.1 2.02.0 %% 8.18.1 2.22.2 %%

99 SwitzerlandSwitzerland 6.56.5 2.12.1 %% 6.76.7 1.81.8 %%

1010 IrelandIreland 3.03.0 1.01.0 %% 6.76.7 1.81.8 %%

TOTAL SALES TOTAL SALES (reported)(reported) 82.482.4 %% 82.982.9 %%

Sales by geographic regionsSales by geographic regions (reported)(reported)

From sales From sales to recurring operating incometo recurring operating income

(in € millions)(in € millions)First half

2005/2006First half 2006/2007

ChangeChange

Sales Sales (reported)(reported) 303.8303.8 365.7365.7 + 20.4 %+ 20.4 %

Operating expensesOperating expenses - 255.2- 255.2 - 287.5- 287.5

Recurring operating income Recurring operating income (reported) (reported) 48.648.6 78.278.2 + 60.9 %+ 60.9 %

Currency translation impact ($ and £)Currency translation impact ($ and £) 2.92.9

Changes in consolidation scopeChanges in consolidation scope

RECURRING OPERATING INCOME RECURRING OPERATING INCOME (like-for-like)(like-for-like)

48.648.6 81.181.1 + 66.9 %+ 66.9 %



FITCHFITCH GROUP GROUP 54.754.7 84.384.3 ++ 54.1 %54.1 %

Fitch RatingsFitch Ratings 74.174.1 101.101.00 ++ 36.3 %36.3 %

AlgorithmicsAlgorithmics - 19.4- 19.4 - 16.7- 16.7 ++ 13.9 %13.9 %

Other (Parent company)Other (Parent company) - 6.1- 6.1 - 6.1- 6.1

RECURRING OPERATING RECURRING OPERATING INCOME INCOME (reported)(reported)

48.648.6 78.278.2 ++ 60.9 %60.9 %

Recurring operating income by companyRecurring operating income by company(reported)(reported)

Recurring operating income by company Recurring operating income by company (like-for-like)(like-for-like)

Operating margin (ROI / Sales)Operating margin (ROI / Sales) 16.0 %16.0 % 21.2 %21.2 %



FITCHFITCH GROUP GROUP 54.754.7 87.287.2 ++ 59.4 %59.4 %

Fitch RatingsFitch Ratings 74. 374. 3 105.3105.3 ++ 41.7 %41.7 %

AlgorithmicsAlgorithmics - 19.6- 19.6 - 18.1- 18.1 ++ 7.7 %7.7 %

Other (Parent company)Other (Parent company) - 6.1- 6.1 - 6.1- 6.1

RECURRING OPERATING RECURRING OPERATING INCOME INCOME (like-for-like)(like-for-like)

48.648.6 81.181.1 ++ 66.9 %66.9 %

From recurring operating incomeFrom recurring operating income to operating result to operating result (reported)(reported)



ChangeChange

Recurring operating income Recurring operating income (reported)(reported)

48.648.6 78.278.2 + 60.9 %+ 60.9 %

Other operating income and Other operating income and expenseexpense

6.86.8 26.426.4

OPERATING RESULTOPERATING RESULT(reported)(reported)

55.455.4 104.6104.6 + 88.8 %+ 88.8 %

From operating result to net earningsFrom operating result to net earnings (reported)(reported)



ChangeChange

Operating result Operating result (reported)(reported)

55.455.4 104.6104.6 + 88.8 %+ 88.8 %

Interest expenseInterest expense - 6.0- 6.0 8.18.1

Other financial income / (expense)Other financial income / (expense) 7.17.1 - 3.6- 3.6

TaxesTaxes - 13.8- 13.8 - 47.0- 47.0

Equity in net earnings of affiliated companiesEquity in net earnings of affiliated companies 0.50.5 0.30.3

Minority interestsMinority interests - 1.6- 1.6 - 8.5- 8.5

NET EARNINGS Groupe shareNET EARNINGS Groupe share((except Net earnings from discontinued operationsexcept Net earnings from discontinued operations))

41.641.6 53.953.9 + 29.6 + 29.6 %%

Net earnings from disposals Net earnings from disposals (20 % Fitch Group)(20 % Fitch Group)

384.1384.1

Net earnings from discontinued operations, Net earnings from discontinued operations, and in process of disposaland in process of disposal

78.478.4

NET EARNINGS NET EARNINGS Groupe share (reported) Groupe share (reported)

504.1504.1 53.953.9

Cash and cash equivalents / (net debt) by companyCash and cash equivalents / (net debt) by company

(in € millions)(in € millions) 09/ 30/ 2006 03/ 31/ 2007

Fitch GroupFitch Group - 273- 273 - 231- 231

Parent companyParent company + 413+ 413 + 367+ 367

Net cash position - FimalacNet cash position - Fimalac + 140+ 140 + 136+ 136

Fimalac share performance vs. Fimalac share performance vs. CAC 40CAC 40 and and SBF 120SBF 120 Decembre 1992 to May 10, 2007Decembre 1992 to May 10, 2007

CAC 40CAC 40

301301

FIMALACFIMALAC

1 4351 435

SBF 120SBF 120

337337

100

300

500

700

900

1100

1300

1500

1700

Dec-92

Dec-92

Dec-93

Dec-93

Dec-94

Dec-94

Dec-95

Dec-95

Dec-96

Dec-96

Dec-97

Dec-97

Dec-98

Dec-98

Dec-99

Dec-99

Dec-00

Dec-00

Dec-01

Dec-01

Dec-02

Dec-02

Dec-03

Dec-03

Dec-04

Dec-04

Dec-05

Dec-05

Dec-06

Dec-06

May

10-07

May

10-07

Fimalac share performance vs Fimalac share performance vs CAC 40 & SBF 120CAC 40 & SBF 120

January 2006 to May 10, 2007January 2006 to May 10, 2007

CAC 40CAC 40

124124

FIMALACFIMALAC

144144

SBF 120SBF 120

125125

100

105

110

115

120

125

130

135

140

145

150

Jan-

06

Jan-

06Fe

b-06

Feb-

06M

ar-0

6

Mar

-06

Apr-0

6

Apr-0

6M

ay -0

6

May

-06

Jun-

06

Jun-

06Ju

l-06

Jul-0

6Aug

-06

Aug-0

6Se

pt-0

6

Sept

-06

Oct-06

Oct-06

Nov-0

6

Nov-0

6Dec

-06

Dec-0

6Ja

n-07

Jan-

07Fe

b-07

Feb-

07M

ar-0

7

Mar

-07

Apr-0

7

Apr-0

7M

ay 1

0-07

May

10-

07

"Total Shareholder Return" over 10 years "Total Shareholder Return" over 10 years SBF120 companiesSBF120 companies

Source JCF Group

Ranking

1 Beneteau 3 582,8% 43,4%

2 Vallourec 2 619,6% 39,1%

3 Eiffage 1 819,3% 34,4%

4 CFF Recycling 1 545,1% 32,3%

5 Vinci 1 452,7% 31,6%

6 Areva 1 213,2% 29,4%

7 Unibail 1 090,0% 28,1%

8 Bouygues 965,5% 26,7%

9 Wendel Investissement 798,7% 24,6%

10 Klepierre 792,7% 24,5%

11 Societe Generale 737,8% 23,7%

12 Maurel et Prom 732,2% 23,6%

13 Fimalac SA 616,8% 21,8%

14 Ciments Français 588,8% 21,3%

15 BNP Paribas 543,4% 20,5%

TSR Over 10 yearsOver 10 years AnnualizedAnnualized in %in % in % in %

16

HistoryHistory

Fitch Group StructureFitch Group Structure

80% 20%

100%

100%

100%

Fitch Group Fitch Group Revenue Growth (fiscal year)Revenue Growth (fiscal year)

$43

$156 $169$222

$305$356

$455

$511

$693

$483

$565

$366

$474

0

100

200

300

400

500

600

700

800

1997 1998 1999 2000 2001 2002 2003 2004 2005 NineMonthsEndedSept 05

NineMonthsEndedSept 06

1H06 1H07

Fiscal year-end December 31Fiscal year-end September 30

(in

US

$ m

illi

ons)

Fitch Group Fitch Group Sales to Operating IncomeSales to Operating Income

(in US $ millions) 1H1H2005/2006 2005/2006

1H 1H 2006/20072006/2007 % Change% Change

RevenueRevenue 365.9365.9 473.6473.6 + 29.4%+ 29.4%

Personnel costsPersonnel costs 190.8190.8 231.6231.6 + 21.4 %+ 21.4 %

External expensesExternal expenses 59.659.6 75.175.1 + 26.0 %+ 26.0 %

Total chargesTotal charges 250.4250.4 306.7306.7 + 22.5 %+ 22.5 %

EBITDAEBITDA 115.5115.5 166.9166.9 + 44.5 %+ 44.5 %

Profit sharing planProfit sharing plan 31.931.9 37.937.9 + 18.8 %+ 18.8 %

DepreciationDepreciation 8.88.8 8.58.5 - 3.4 %- 3.4 %

Intellectual propertyIntellectual property 9.19.1 11.411.4 + 25.3 %+ 25.3 %

Operating IncomeOperating Income 65.765.7 109.1109.1 + 66.1 %+ 66.1 %

Key Figures by CompanyKey Figures by Company

(in US $ millions) 1H 1H 2005/20062005/2006

1H 1H 2006/ 20072006/ 2007

% % ChangeChange

Revenue Revenue FITCH GROUPFITCH GROUP 365.9365.9 473.6473.6 + 29.4 %+ 29.4 %

FitchRatingsFitchRatings 308.0308.0 405.7405.7 + 31.7 %+ 31.7 %


Intercompany revenueIntercompany revenue-0.7-0.7 -2.2-2.2

EBITDA FITCH GROUPEBITDA FITCH GROUP 115.5115.5 166.9166.9 + 44.5 %+ 44.5 %


AlgorithmicsAlgorithmics - 12.6- 12.6 - 8.2- 8.2

Operating Income FITCH GROUPOperating Income FITCH GROUP 65.765.7 109.1109.1 + 66.1 %+ 66.1 %


AlgorithmicsAlgorithmics - 23.5- 23.5 - 21.7- 21.7

22

Fitch Ratings Fitch Ratings Revenue Growth (fiscal year)Revenue Growth (fiscal year)

(in

US

$ m

illi

ons)

$305$353

$448

$502

$594

$419

$481

$308

$406

0

100

200

300

400

500

600

700

2001 2002 2003 2004 2005 NineMonthsEnded

Sept 05

NineMonthsEnded

Sept 06

1H06 1H07

Year-end December 31Year-end March 31

Fitch Ratings Fitch Ratings Revenue Growth (pro-forma)Revenue Growth (pro-forma)

(in

US

$ m

illi

ons)

$305$353

$448$502

$594

$703

$308

$406

0

100

200

300

400

500

600

700

800

2001 2002 2003 2004 2005 2006* 1H06 1H07

*Calendar year 2006 presented proforma.

Six Year CAGR = 18%

Year-end December 31Year-end September 30

$3.9

$5.0 $5.3

$7.0

$2.0

$6.2

0

2

4

6

8

2002 2003 2004 2005 2006 Jan-Mar 07

Global Debt Issuance Global Debt Issuance ($ Volume)($ Volume)

Source: Thomson Financial Source: Thomson Financial

(US

$ tr

illi

ons)

Quarterly Global Debt IssuanceQuarterly Global Debt Issuance

Source: Thomson Financial Source: Thomson Financial

$25

$43 $42$48 $50

$69

$108

$125

$139

$178

$158

0

20

40

60

80

100

120

140

160

180

200

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07

$72

$52

$25

$43 $42$48 $50

$69

$108

$125

$139

$178

$158

0

20

40

60

80

100

120

140

160

180

200

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07

$72

$52

Global CDO Market IssuanceGlobal CDO Market Issuance

CDO Market Issuance includes Cash Flow and Hybrid, Synthetic Funded and Market Value CDOs. CDO Market Issuance includes Cash Flow and Hybrid, Synthetic Funded and Market Value CDOs. Unfunded Synthetic Tranches are not included. Unfunded Synthetic Tranches are not included.

(US

$ b

illi

ons)

Source: Securities Industry and Financial Markets AssociationSource: Securities Industry and Financial Markets Association

Fitch Ratings Fitch Ratings Market Share Market Share

53%

89%

65%

53%

89%

67%

0%

20%

40%

60%

80%

100%

Structured Finance Financial Institutions Non-Financial Corporates

Twelve Months ended Dec 05 Twelve Months ended Dec 06

53%

89%

65%

53%

89%

67%

0%

20%

40%

60%

80%

100%

Structured Finance Financial Institutions Non-Financial Corporates

Twelve Months ended Dec 05 Twelve Months ended Dec 06

Market ShareMarket Share by Dollar Volumeby Dollar Volume

Fitch Ratings Fitch Ratings Revenue by SegmentRevenue by Segment

(in US $ millions) 1H 1H 2005/20062005/2006

1H 1H

2006/2002006/20077

% Change % Change

Structured FinanceStructured Finance 162.8162.8 215.0215.0 + 32.1%+ 32.1%

Corporate FinanceCorporate Finance 110.0110.0 147.4147.4 + 34.0%+ 34.0%

Subscriptions /TrainingSubscriptions /Training 35.235.2 43.343.3 + 23.0%+ 23.0%

TOTAL FITCH RATINGSTOTAL FITCH RATINGS 308.0308.0 405.7405.7 + 31.7%+ 31.7%

Fitch Ratings Fitch Ratings Revenue by RegionRevenue by Region

(in US $ millions) 1H 1H 2005/20062005/2006

1H 1H 2006/2002006/200

77

% Change % Change

North AmericaNorth America 174.1174.1 216.4216.4 + 24.3%+ 24.3%

Europe, Middle East & Europe, Middle East & AfricaAfrica

110.7110.7 159.4159.4 + 44.0%+ 44.0%

Latin AmericaLatin America 12.612.6 15.515.5 + 23.0%+ 23.0%

Asia PacificAsia Pacific 10.610.6 14.414.4 + 35.8%+ 35.8%

TOTAL FITCH RATINGSTOTAL FITCH RATINGS 308.0308.0 405.7405.7 + 31.7%+ 31.7%

Fitch Ratings Fitch Ratings EBITDA and Operating Income EBITDA and Operating Income

(in US $ millions) 1H 1H 2005/20062005/2006

1H 1H 2006/20072006/2007

% Change% Change

Revenue Revenue 308.0308.0 405.7405.7 + 31.7%+ 31.7%

EBITDA EBITDA 128.1128.1 175.1175.1 + 36.7 %+ 36.7 %

EBITDA MarginEBITDA Margin 41.6%41.6% 43.2%43.2%

Profit sharing planProfit sharing plan 31.831.8 37.737.7 + 18.6 %+ 18.6 %

Depreciation & AmortizationDepreciation & Amortization 7.17.1 6.66.6 - 7.0 %- 7.0 %

Operating Income Operating Income 89.289.2 130.8130.8 + 46.6 %+ 46.6 %

Operating Income MarginOperating Income Margin 29.0%29.0% 32.2%32.2%

Fitch Ratings Fitch Ratings Investment in Human CapitalInvestment in Human Capital

2 0852 105

1 827

1 617

1 4471 350

0

300

600

900

1 200

1 500

1 800

2 100

12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 03/31/07

2 0852 105

1 827

1 617

1 4471 350

0

300

600

900

1 200

1 500

1 800

2 100

12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 03/31/07

HeadcountHeadcount

Investment in Korea RatingsInvestment in Korea Ratings

Founded in 1983, Korea Ratings is the largest domestic Founded in 1983, Korea Ratings is the largest domestic rating agency in Korearating agency in Korea Rates 386 Korean companies and has a strong presence in structured

finance Employs 170 people with annual revenues in 2006 of $34m.

Long successful working relationship Long successful working relationship 1999 – Strategic alliance between Fitch Ratings and Korea Ratings 2001 – Fitch Ratings makes investment in 8% of Korea Ratings 2007 – Fitch Ratings increases investment to 53% of Korea Ratings for

over $60m

Korean government is committed to developing a long-term Korean government is committed to developing a long-term bond marketbond market

Areas of Focus in 1H 2007 Areas of Focus in 1H 2007

Structured Finance Structured Finance

Credit concerns in Sub-prime Markets and CMBS Release and implementation of new models:

ResiLogic, new US RMBS model New US CMBS model

Derivative Fitch Continued focus on EMEA expansion and emerging

markets securitization growth

Areas of Focus in 1H 2007 Areas of Focus in 1H 2007 (cont’d)(cont’d)

Corporate Finance Corporate Finance Continued expansion into rapidly growing new markets

Corporate loan ratings Emerging markets Covered bonds

Continued expansion in existing markets The high yield and loan markets

Introduction of new analytical tools and procedures including new quantitative models and analytics

Focused effort at servicing the burgeoning infrastructure financing market

Regulatory UpdateRegulatory Update

GlobalGlobal Fitch has received ECAI (External Credit Assessment Institution) Fitch has received ECAI (External Credit Assessment Institution)

recognition in all markets for which a decision on international rating recognition in all markets for which a decision on international rating agencies has been taken.agencies has been taken.

IOSCO (International Organization of Securities Commissions) IOSCO (International Organization of Securities Commissions) taskforce published a draft report with positive comments regarding taskforce published a draft report with positive comments regarding codes of conduct adopted by global rating agencies, now reviewing codes of conduct adopted by global rating agencies, now reviewing the role of rating agencies in the development of structured finance the role of rating agencies in the development of structured finance transactions. transactions.

EMEA EMEA Review of implementation of codes of conduct by Committee of Review of implementation of codes of conduct by Committee of

European Securities Regulators (CESR) returned positive feedback European Securities Regulators (CESR) returned positive feedback on the quality of implementation of agency codes, however concerns on the quality of implementation of agency codes, however concerns were noted with ancillary services, disclosure of initiation and were noted with ancillary services, disclosure of initiation and participation, and fee negotiation policies. participation, and fee negotiation policies.

Regulatory UpdateRegulatory Update (cont’d)(cont’d)

Asia/PacificAsia/Pacific The Japanese Financial Services Authority (FSA) plans to bolster The Japanese Financial Services Authority (FSA) plans to bolster

oversight of credit rating agencies to improve the quality of oversight of credit rating agencies to improve the quality of information provided to investors. The FSA will designate credit rating information provided to investors. The FSA will designate credit rating agencies as investment information providers to the marks and draft agencies as investment information providers to the marks and draft new rules for them. new rules for them.

United StatesUnited States The Credit Rating Agency Reform Act of 2006 was signed into law on The Credit Rating Agency Reform Act of 2006 was signed into law on

September 29, 2006.September 29, 2006. SEC given authority to implement registration, recordkeeping, SEC given authority to implement registration, recordkeeping,

financial reporting, and oversight rules with respect to registered credit financial reporting, and oversight rules with respect to registered credit rating agencies.rating agencies.

SEC published proposed rules which received public comment by Fitch SEC published proposed rules which received public comment by Fitch and other participants in the industry.and other participants in the industry.

Final rules to be issued no later than June, 2007.Final rules to be issued no later than June, 2007.

Fitch Ratings Fitch Ratings 2007 Goals 2007 Goals

Create and maintain reputation for highest quality Create and maintain reputation for highest quality ratings and research ratings and research

Maintain and grow market share across all key Maintain and grow market share across all key segments and regionssegments and regions

Enhance pricing flexibilityEnhance pricing flexibility

Continue consistent long-term investment planContinue consistent long-term investment plan

Fitch Ratings secular revenue growth: 10Fitch Ratings secular revenue growth: 10––12%12%

US: 8–10%

International: 15–20%

39

IntroductionIntroduction

Algorithmics is a leading provider in the development Algorithmics is a leading provider in the development

and delivery of enterprise risk solutions that enable and delivery of enterprise risk solutions that enable

growth, innovation and the efficient use of risk capital. growth, innovation and the efficient use of risk capital.

Financial organizations from around the world rely on Financial organizations from around the world rely on

our software, content,our software, content, delivery and advisory services to delivery and advisory services to

make risk aware business decisions and meet make risk aware business decisions and meet

regulatory requirements.regulatory requirements.

Revenue by RegionRevenue by Region

(in (in US$ millions)US$ millions) 1H 1H 2005/20062005/2006

1H 1H 2006/20072006/2007

% Change % Change

North AmericaNorth America 17.717.7 18.718.7 + 5.6%+ 5.6%

Europe, Middle East & AfricaEurope, Middle East & Africa 31.131.1 36.236.2 + 16.4%+ 16.4%

Latin AmericaLatin America 2.82.8 3.03.0 + 7.1%+ 7.1%

Asia PacificAsia Pacific 7.07.0 12.212.2 + 74.3%+ 74.3%

TOTAL ALGORITHMICSTOTAL ALGORITHMICS 58.658.6 70.170.1 + 19.6%+ 19.6%

(1) Includes inter-company revenue of $0.7M(1) Includes inter-company revenue of $0.7M


(1)(1) (2)(2)

Pro-forma EBITDA &Pro-forma EBITDA &Operating Income Operating Income

(in (in millions of US$)millions of US$) 1H 1H 2005/20062005/2006

1H 1H 2006/20072006/2007

% change% change

RevenueRevenue 58.658.6 70.170.1 + 19.6%+ 19.6%

EBITDAEBITDA - 12.6- 12.6 - 8.2- 8.2

Profit sharing planProfit sharing plan 0.10.1 0.20.2

DepreciationDepreciation 1.71.7 1.91.9

Intellectual propertyIntellectual property 9.19.1 11.411.4

Current Operating IncomeCurrent Operating Income - 23.5- 23.5 - 21.7- 21.7



(1)(1) (2)(2)

369 software solution clients (39 net new in 1H) 369 software solution clients (39 net new in 1H)

122 data and content clients (2 net new in 1H)122 data and content clients (2 net new in 1H)

69 of the world’s top 100 banks 69 of the world’s top 100 banks 11

726 professionals in 19 global offices726 professionals in 19 global offices

1 1 Top 100 banks according to “The Banker”. Changed from 70 in September 2006 to 69 in March 2007 as a result of revisions to the top 100 list.

Highlights Highlights

GrowthGrowth 51 new license orders in 1H 2006/200751 new license orders in 1H 2006/2007

19.6 % revenue growth vs. 1H 2005/2006 (comparable numbers)19.6 % revenue growth vs. 1H 2005/2006 (comparable numbers)

Investment in Human CapitalInvestment in Human Capital Maintaining current level of product development Maintaining current level of product development

Expanding services, sales and marketingExpanding services, sales and marketing

Media and Analyst Recognition Media and Analyst Recognition Risk Technology rankings: #1 in 6 categories (December 2006)Risk Technology rankings: #1 in 6 categories (December 2006)

Op Risk and Compliance Magazine rankings: #1 for Regulatory Op Risk and Compliance Magazine rankings: #1 for Regulatory and Economic Capital (May 2007)and Economic Capital (May 2007)

Recent AchievementsRecent Achievements

SolutionsSolutions End Sept. 2006End Sept. 2006 End March 2007End March 2007

Credit and capitalCredit and capital

Market riskMarket risk

Operational risk Operational risk

Collateral managementCollateral management

108108

128128

8989

6868

117117

151151

9393

7373

Client GrowthClient Growth

Executing our Growth Executing our Growth Strategy for 2006/2007Strategy for 2006/2007

Expanding sales and services to support revenue growthExpanding sales and services to support revenue growth Advisory mandate for top Japanese bank on Basel II IRB strategyAdvisory mandate for top Japanese bank on Basel II IRB strategy

Successfully completed major Basel II implementations for global banks Successfully completed major Basel II implementations for global banks Establishing presence in new geographical marketsEstablishing presence in new geographical markets

Enterprise risk solutions for major banks in Turkey and the GulfEnterprise risk solutions for major banks in Turkey and the Gulf

Transforming the credit related business processes of a leading Asian bankTransforming the credit related business processes of a leading Asian bank Investing in managed service solutions for asset managers and hedge Investing in managed service solutions for asset managers and hedge

fundsfundsClient wins include a large commodities broker dealer, several primeClient wins include a large commodities broker dealer, several prime

brokers, premier asset managers and a global multi-strategy fundbrokers, premier asset managers and a global multi-strategy fund Developing broader risk solution for the insurance industryDeveloping broader risk solution for the insurance industry

Integrated management of assets and liabilities for global insurers Integrated management of assets and liabilities for global insurers Continued focus on core solutionsContinued focus on core solutions

Leading banks in EMEA and Asia are leveraging and broadening their Leading banks in EMEA and Asia are leveraging and broadening their

usage of our solutionsusage of our solutions

Outlook for 2006/2007 Outlook for 2006/2007 Market Drivers Market Drivers

Adoption of ‘risk aware’ business applications in financial servicesAdoption of ‘risk aware’ business applications in financial services

Large regional banks in EMEA – full credit approval solution

Large NA asset manager – one solution for portfolio and risk managers

Increasingly complex financial markets and products which require Increasingly complex financial markets and products which require more sophisticated toolsmore sophisticated tools

Valuation and hedging of Variable Annuity Products for top NA insurer Regulation for banks (more countries adopting Basel II), asset Regulation for banks (more countries adopting Basel II), asset

managers and insurance companies (e.g. Solvency II)managers and insurance companies (e.g. Solvency II)Leading bank won FST Compliance Project of the Year Award (Basel II)

Full enterprise risk management and Basel II solutions for regional banks Financial institutions’ increasing use of external vendors for risk Financial institutions’ increasing use of external vendors for risk

solutionssolutions

Integrated value based management for large regional banks in Integrated value based management for large regional banks in EMEAEMEA

Adoption of our solutions in mission-critical trading environmentsAdoption of our solutions in mission-critical trading environments

Algorithmics Algorithmics in the News 1H 2006/7in the News 1H 2006/7

• Pension Insurance Corporation Pension Insurance Corporation Selects Risk Platform from Algorithmics to Manage Assets and Liabilities

• Danske BankDanske Bank Completes First Phase of Economic Capital Project with Algorithmics

• Algorithmics Awarded PatentAlgorithmics Awarded Patent for Innovative Portfolio Performance Measurement Methodology

• CannizaroCannizaro Signs on to Algorithmics' Leading-Edge Managed Service Platform

• Algorithmics Hosts Credit Risk Management Forum with the Chinese Chinese Banking Regulatory CommissionBanking Regulatory Commission

• Marex FinancialMarex Financial Live with a Managed Risk Service Hosted by Algorithmics

• TD Securities Prime BrokerageTD Securities Prime Brokerage Now Live with a Managed Risk Service Hosted by Algorithmics

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AppendixAppendix

Fitch RatingsFitch RatingsGlossary of TermsGlossary of Terms

Asset Backed Security (ABS)Asset Backed Security (ABS) - - A financial security backed by a loan, lease or A financial security backed by a loan, lease or receivables against assets other than real estate and mortgage-backed securities.receivables against assets other than real estate and mortgage-backed securities.

Commercial Mortgage Backed Security (CMBS)Commercial Mortgage Backed Security (CMBS) - - A type of mortgage-A type of mortgage-backed security that is secured by the loan on a commercial property. backed security that is secured by the loan on a commercial property.

Residential Mortgage Backed Security (RMBS)Residential Mortgage Backed Security (RMBS) - - A type of A type of security whose cash flows come from residential debt such as mortgages, home-security whose cash flows come from residential debt such as mortgages, home-equity loans and sub-prime mortgages.equity loans and sub-prime mortgages.

Sub-prime Mortgage - Sub-prime Mortgage - LLoans made to borrowers unable to qualify under oans made to borrowers unable to qualify under traditional, more stringent criteria due to a limited or blemished credit history traditional, more stringent criteria due to a limited or blemished credit history and limited capacity for repayment. Because sub-prime borrowers are and limited capacity for repayment. Because sub-prime borrowers are considered at higher risk to default, sub-prime lenders require a higher interest considered at higher risk to default, sub-prime lenders require a higher interest rate and fees than they would require from a traditional borrower with good rate and fees than they would require from a traditional borrower with good credit terms.credit terms.

Covered BondCovered Bond – A – A Covered bond is a security issued by financial institutions, Covered bond is a security issued by financial institutions, secured against pools of mortgages or public-sector loans. secured against pools of mortgages or public-sector loans.

Fitch RatingsFitch RatingsGlossary of TermsGlossary of Terms

Collateralized Debt Obligation (CDO) Collateralized Debt Obligation (CDO) - - An investment-grade security backed by a An investment-grade security backed by a pool of bonds, loans and other assets. A CDO is unique in that it is comprised of pool of bonds, loans and other assets. A CDO is unique in that it is comprised of different tranches, each with a different maturity and risk associated with it. different tranches, each with a different maturity and risk associated with it.

Cash Flow CDO – Cash Flow CDO – A CDOA CDO structured to pay off liabilities with the interest and structured to pay off liabilities with the interest and principal payments (cash flows) of its collateral. These expose investors to credit principal payments (cash flows) of its collateral. These expose investors to credit risk by actually holding collateral that is subject to default. risk by actually holding collateral that is subject to default.

Synthetic CDOSynthetic CDO – A CDO that sells credit protection via credit default swaps – A CDO that sells credit protection via credit default swaps rather than cash assets. Synthetic CDOs use credit default swaps to synthetically rather than cash assets. Synthetic CDOs use credit default swaps to synthetically replicate a cash flow CDO.replicate a cash flow CDO.

Hybrid CDO - Hybrid CDO - A CDO that utilizes the funding structures of both cash and A CDO that utilizes the funding structures of both cash and synthetic CDOs.synthetic CDOs.

Market Value CDOMarket Value CDO – A CDO structured to pay off liabilities by generating cash – A CDO structured to pay off liabilities by generating cash from trading assets and from interest on invested assets.from trading assets and from interest on invested assets.

Fitch RatingsFitch RatingsGlossary of Terms (cont’d)Glossary of Terms (cont’d)

RAP CD RAP CD - - Fitch’s Risk Analytics Platform for Credit Derivatives is a breakthrough global Fitch’s Risk Analytics Platform for Credit Derivatives is a breakthrough global market-risk assessment service that helps investors understand how their CDO investments market-risk assessment service that helps investors understand how their CDO investments trade by tracing price movements back to the changes in the CDOs underlying portfolio from trade by tracing price movements back to the changes in the CDOs underlying portfolio from which they stem. which they stem.

VECTOR Default Model (VECTOR)VECTOR Default Model (VECTOR) - - Fitch Ratings’ main quantitative tool for evaluating Fitch Ratings’ main quantitative tool for evaluating default risk in credit portfolios backing CDOs. The main outputs of VECTOR are the rating default risk in credit portfolios backing CDOs. The main outputs of VECTOR are the rating default rate, rating loss rate and the rating recovery rate corresponding to each rating tier within default rate, rating loss rate and the rating recovery rate corresponding to each rating tier within a security. a security.

MatrixMatrix – Fitch Ratings’ financial guarantee capital model which provides a stochastic – Fitch Ratings’ financial guarantee capital model which provides a stochastic assessment of a financial guarantor’s capital adequacy position. assessment of a financial guarantor’s capital adequacy position.

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