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ANNUAL REVIEW 2000

defining global leadership


The new CSFB is a
powerful investment bank
with the global platform,
private banking asset management Credit Suisse First Boston is a leading
global investment banking firm serving

resources and intellectual


Credit Suisse Private Banking is
one of the world’s leading private
Credit Suisse Asset Management
is a leading global asset manager
institutional, corporate, government
and individual clients. Its businesses
banks thanks to its strong market focusing on institutional, mutual include securities underwriting, sales
capital to rival any financial
presence both within and outside
Switzerland. It specializes in pro-
fund and private client investors,
providing investment products and
and trading, investment banking and
private equity, financial advisory services,

services firm in the world.


viding personal investment coun-
seling and professional asset
portfolio management advice in
five core markets around the world.
investment research, venture capital,
brokerage services for financial institu-
management for high-net-worth tions and on-line brokerage services.
With more than 28,000
individuals.
Investment Banking

employees and a presence in Private Equity


Equity
Fixed Income
every major financial market Financial Services
Support Services

worldwide, we are a leader in


all major business segments.
CREDIT SUISSE GROUP

PRIVATE BANKING ASSET MANAGEMENT INVESTMENT BANKING

Credit Suisse Private Credit Suisse Credit Suisse


Banking Asset Management First Boston
financial highlights of 2000

Important Advances
in Market Share

2000 (1)
CHANGE VS. 1999

CSFB CSFB CSFB CSFB


RANK SHARE RANK SHARE

Global Debt 4 9.1% — +2.1%


(2)
Global Equity 4 10.7% +1 +4.2%
(3)
Global M&A 3 27.0% +1 +11.6%
Equity Research
(4)
North America 1 56 +4 +16
(5) (4)
Europe 1 41 +3 +15

(1) Includes DLJ on a full-year pro forma basis


(2) Includes equity-linked securities.
(3) Based on announced transactions.
(4) Number of ranked analysts.
(5) As at February 2001, February 2000.

Sources: Thomson Financial Securities Data, Institutional Investor, Bondware, EquiDesk

PERCENT
DOLLARS IN MILLIONS (UNAUDITED) 2000 1999 CHANGE

FOR THE YEAR

Revenues $ 12,194 $ 9,753 25%


Operating expenses $ 9,368 $ 7,190 30%
Gross profit $ 2,826 $ 2,563 10%
(1)
Net income (loss) $ 1,412 $ 1,262 12%
AT YEAR-END

Allocated equity $ 10,000 $ 7,795 28%


To t a l a s s e t s $ 409,738 $ 275,224 49%
SELECTED RATIOS
(1)
Return on average equity 20% 19%
(1)
Pretax profit margin 16% 18%
Expense/revenues 81% 77%
Staff expense/revenues 59% 55%
(2)
T i e r 1 B I S-b a s e d c a p i t a l r a t i o 13.6% 9.9%
(2)
To t a l B I S-b a s e d c a p i t a l r a t i o 22.2% 17.9%
EMPLOYEES 28,122 15,185 85%

(1) Excludes extraordinary/exceptional items and minority interests.


(2) These ratios apply to the Bank.

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Credit Suisse Group is one of the financial services private banking ass
world’s leading global financial
services companies. In the area Credit Suisse Financial Services Credit Suisse Private Banking is Cred
of asset management and asset is one of the leading providers of one of the world’s leading private is a l
gathering, specialized business comprehensive financial services banks thanks to its strong market focus
units offer their clients — includ- in Europe and other selected presence both within and outside fund
ing private individuals, companies, markets. It is a market leader in Switzerland. It specializes in pro- provi
governments and institutions — developing innovative solutions viding personal investment coun- portf
investment products, financial advi- for customers’ financial require- seling and professional asset five c
sory services, life insurance, pen- ments in banking and insurance, management for high-net-worth
sion solutions and the full range through its e-business applica- individuals.
of other bank services, as well as tions and integrated distribution
non-life insurance solutions from and service channels.
Winterthur. In the area of invest-
ment banking, Credit Suisse First
Boston is one of the global lead-
ers, playing a major role in many
significant transactions.

Credit Suisse Group is headquar-


tered in Zurich and was founded
CREDIT SUISS
in 1856. Credit Suisse Group
shares (CSGN) are listed on the
Swiss Stock Exchange, in
Frankfurt and in Tokyo. The shares
are also traded in New York as FINANCIAL SERVICES PRIVATE BANKING A
American Depository Receipts
(ADRs), in London and in Paris. Winterthur Insurance Credit Suisse Private C
The Group employs approximately Banking A
80,000 staff worldwide. Winterthur Life and
Pensions

Credit Suisse
Banking

Credit Suisse
Personal Finance

Credit Suisse
e-Business
set management Credit Suisse First Boston is a leading
global investment banking firm serving
dit Suisse Asset Management institutional, corporate, government
eading global asset manager and individual clients. Its businesses
sing on institutional, mutual include securities underwriting, sales
and private client investors, and trading, investment banking and
ding investment products and private equity, financial advisory services,
folio management advice in investment research, venture capital,
core markets around the world. brokerage services for financial institu-
tions and on-line brokerage services.

Investment Banking
Private Equity
Equity
Fixed Income
Financial Services
Support Services

SE GROUP

SSET MANAGEMENT INVESTMENT BANKING

redit Suisse Credit Suisse


sset Management First Boston
m a n a g e m e n t ’s letter

CSFB enters 2001 in an


extremely strong competitive
position
2000 was an historic year • implemented a number of critical control
for Credit Suisse First initiatives, including a sophisticated new
Boston (CSFB), as our credit exposure system.
Firm recorded numerous
successes across our CSFB’s revenues reached a record $12.2
various global businesses billion in 2000, up 25% from 1999 totals.
and markets. During the Net income rose 12% from the prior year
year, we: to $1.412 billion, also a record. Our
Investment Banking Division experienced
• successfully completed our merger
strong revenue growth as our new combined
with Donaldson, Lufkin & Jenrette (DLJ),
M&A Group advised on more transactions
integrating the two businesses within
than any other firm. Meanwhile, our Equity
seven weeks;
Division, powered by strong results across
• made great progress in our equities and all its product clusters, had another out-
equity-linked businesses, where our rev- standing year, generating more revenue
enues have grown faster than any major than any other division. The year 2000 was
competitor during the past three years; a difficult one in the debt markets, and
• continued to expand our investment CSFB’s revenues from the fixed income
banking franchise, strengthened client area suffered as a result. But with the addi-
relationships and played a leading role in tion of DLJ’s award-winning high yield team
many of the most significant transactions and recent interest rate developments —
worldwide — including the acquisition of we expect to see improvement in perform-
Orange by France Telecom, the restruc- ance from the Fixed Income Division in 2001.
turing of AT&T, and the merger of
Texaco and Chevron; 2000 was also a year in which, once again,
we helped our clients capitalize on change.
• developed the best technology banking
It was a fairly volatile period for the financial
franchise in the industry, ranking first in
markets. CSFB succeeded in providing
the number of U.S. initial public offerings
the products and services and the extra
and also in the number of worldwide
attention that clients needed in order to
merger and acquisition transactions;
adjust to the constantly changing environ-
• further developed our leading emerging ment. We endeavored to ensure that our
markets businesses in fixed income and clients were not caught off guard or unduly
other areas, posting particularly strong affected by events taking place in the markets.
performance in our credit products
businesses; In addition, we sought to capitalize on change
• captured the number one position in by being increasingly entrepreneurial in our
the Brazilian and Swiss fixed income approach to all our various businesses. We
and equity markets and improved our enhanced our position as an industry leader
overall position in Japan, partly through by developing new products to tap potential
the purchase of Schroders Japanese and existing demand, expanding our global
cash equities business; and reach into the most promising emerging

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markets around the world, and utilizing One sad note: We mourn the loss of
technology to the fullest extent in all our Gordon Rich, CSFB’s former Co-Head of
businesses. Mergers and Acquisitions and of the Media
Group, who died tragically in an automobile
In 2001, we are implementing several accident in November 2000, at the age
important new projects and initiatives of 43. His contributions to our Firm, to his
that should generate value and help us family and his many friends, are impossible
achieve our goals, to further strengthen to measure and will be sorely missed.
CSFB’s competitive position and to main-
tain our leadership in key businesses. We are extremely grateful to all our employees
These include plans to: for their valuable contributions during the
past year — and to our clients and partners
• build on the $750 million of cost reduc- for their invigorating ideas and their continuing
tions identified for 2001, and on the confidence in us. We look forward to even
momentum of CSFB’s Business Process greater success in 2001.
and Technological Architecture program,
in order to improve productivity;
• take advantage of industry consolidation
and our deep commitment to our busi-
Joe L. Roby
nesses to attract and retain the best
Chairman
financial services professionals; and
• leverage the Firm’s enhanced global
platform — and, in particular, our strength
in virtually every major market and sector
— to provide an even higher level of Allen D. Wheat
service to clients around the world. Chief Executive Officer

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credit suisse first boston firm structure
Credit Suisse First Boston is a leading global
investment banking firm, that provides financial
advisory services, capital raising, sales and trading,
and financial products and services for users
and suppliers of capital around the world.
CREDIT SUISSE FIRST BOSTON

Joe L. Roby (right)


Chairman

Allen D. Wheat (left)


Chief Executive Officer

Investment Banking
Acquisition finance, asset finance, cor-
porate lending and syndicated finance,
equity and convertible securities under-
writing, general financial advisory, high
yield underwriting, investment-grade debt
and preferred stock underwriting, lever-
aged finance, mergers and acquisitions,
acquisition advisory, corporate sales and
divestitures, joint ventures, leveraged
buyouts, restructurings, takeover defense
advisory, private finance, privatizations,
project finance, share repurchase pro-
grams, structured products and supply
chain finance

Hamilton E. James
Co-Head of Investment Banking

Charles G. Ward III


Co-Head of Investment Banking

Private Equity
Privately negotiated direct investments on
a global basis, generally in unlisted and
illiquid equity and equity-linked securities,
from deal flow opportunities principally
generated by the proprietary network of
Credit Suisse First Boston and other
Credit Suisse Group business units.
Private Equity is a part of the Investment
Banking Division

Lawrence M. Schloss
Head of Private Equity

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Equity
Research, sales, trading, new issue
underwriting, stock loan/prime brokerage,
convertibles/warrants, listed/OTC deriv-
atives, program trading, index arbitrage
and risk arbitrage

Brady W. Dougan
Head of Equity

Fixed Income
Underwriting, sales, trading and research
in government and corporate fixed income
securities, emerging markets securities,
high yield securities, mortgage and asset-
backed securities, foreign exchange,
money markets, interest rate derivatives,
credit derivatives, fund-linked derivatives,
listed derivatives, real estate products,
precious metals and energy products,
and prime brokerage

Stephen A.M. Hester


Head of Fixed Income

Financial Services
Private client services, on-line brokerage, a
leading provider of execution, settlement,
clearance and a wide range of services and
technology solutions

Gates H. Hawn
Head of Financial Services

Support Services
Finance, operations, technology, risk
management, legal and compliance,
and administration

Richard E. Thornburgh
Vice Chairman of the
Executive Board and
Chief Financial Officer

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2000 deals of the year

MAJOR HOUSE AWARDS AWARD PUBLICATION

Credit Suisse First Boston - Best Debt House Central European


- Best Equity House Central European
- M&A House of the Year Insto
- Best Project Finance House Euromoney
- Best Technology House FinanceAsia
- Best Lead Manager of Emerging Market Bonds Euroweek
- Equity Derivatives House of the Year International Financing Review
- Swiss Franc Bond House of the Year International Financing Review
- US Equity-Linked House of the Year International Financing Review
- Best Underwriter of IPOs Euromoney
- Americas Project Finance Loan House of the Year International Financing Review
- Best Underwriter of Asset-Backed Securities Euromoney
- Best Lead Manager of Retail Targeted Bonds Euroweek

Donaldson, Lufkin & Jenrette - European High Yield Bond House of the Year International Financing Review
- US High Yield Bond House of the Year International Financing Review

TRANSACTION AWARD PUBLICATION

360networks - Highly Commended — High-Tech Issuer Corporate Finance

A l Ta w e e l a h A 1 - EMEA Power Deal of the Year Project Finance


- Power Deal of the Year, Europe/Middle East/Africa Project Finance International
- Project Finance Institutional Investor
Calpine Corporation - Americas Project Finance Loan International Financing Review
- Sponsor of the Year, Americas Project Finance International
Calpine Construction - North American Power Portfolio Deal of the Project Finance
Finance Company II of the Year
Cedar Brakes - North American Power Hybrid Deal of the Year Project Finance
Commonwealth Bank of - Deal of the Year Insto
Australia/Colonial Ltd. - M&A Deal of the Year, Australia/New Zealand Asiamoney
D e u t s c h e Te l e k o m A G / - Mergers & Acquisitions Institutional Investor
Vo i c e S t r e a m Wi r e l e s s
Corporation
FirstRand 2000 — - Best Securitisation of Emerging Market Assets Structured Finance International
A R e c e i v a b l e s Tr u s t (Joint Winner)
F r a n c e Te l e c o m - Borrower of the Year International Financing Review
- Capital Raiser of the Year Corporate Finance
- European Borrower International Financing Review
- European Loan International Financing Review
F r a n c e Te l e c o m / O r a n g e - Loan Deal of the Year, New Technology The Banker
- M&A Deal of the Year, Mobile Communications The Banker
- Mergers & Acquisitions Institutional Investor
Grohe Holding GmbH - Best High Yield Borrower Euroweek
- European High Yield Bond International Financing Review
Heartland Industrial Partners/ - Mergers & Acquisitions Institutional Investor
Mascotech
Innogy Holdings plc/ - Highly Commended — M&A (Demerger) Corporate Finance
National Power PLC
Ly c o s , I n c . / Te r r a N e t w o r k s - Best Deal for a High-Tech Issuer Corporate Finance
- Mergers & Acquisitions Institutional Investor
MetLife, Inc. - US Equity Issue of the Year Euromoney
MSF Funding LLC, - Best Securitisation of Emerging Market Assets Structured Finance International
Series 2000-1 (Joint Winner)
NiSource Inc./Columbia - US M&A Deal of the Year Euromoney
Energy Group
NRMA Insurance Group Limited - Equity Deal of the Year, Australia/New Zealand Asiamoney
O r a s c o m Te l e c o m - Best Equity Issue — Middle East, Africa Emerging Markets Investor
Pacific Century CyberWorks/ - Asia M&A Deal of the Year Euromoney
Cable & Wireless HKT Ltd. - Best M&A Deal FinanceAsia

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Pacific Century CyberWorks/ - Best M&A Issue The Asset
Cable & Wireless HKT Ltd. - Highly Commended — M&A (Takeover) Corporate Finance
(continued) - M&A Deal of the Year/Buyout of the Year Asiamoney
- Mergers & Acquisitions Institutional Investor
Petroleo Brasileiro S.A. - Corporate Finance Institutional Investor
- Latin America Equity Issue of the Year Euromoney
- Latin American Equity Issue International Financing Review
- Public-Sector Equity Latin Finance
Philip Morris Companies Inc./ - Best Strategic Deal of the Year Mergers and Acquisitions
Nabisco Holdings Corporation - Highly Commended — M&A (Agreed Merger) Corporate Finance
- Loan Deal of the Year, Consumer Products The Banker
- Mergers & Acquisitions Institutional Investor
Republic of Poland - Best Sovereign Issue — Emerging Europe Emerging Markets Investor
- Sovereigns Institutional Investor
Robert Walters Group - Best Initial Public Offering Shares
Singapore Airlines/ - Best Aircraft M&A Issue The Asset
Virgin Atlantic Airways
Te x a c o I n c . / C h e v r o n - Breakthrough Deal — Mergers & Acquisitions Investment Dealers’ Digest
Corporation - Deal of the Year: Energy Investment Dealers’ Digest
Thomson-CSF/Racal - M&A Deal of the Year, Electronics The Banker
Electronics Plc
United Mexican States - Latin American Sovereign Issue of the Year Euromoney
- Long-Dated Sovereign Bond Latin Finance
United Microelectronics - Deal of the Year, Taiwan Asiamoney
Corporation - Technology-Related Equity Issue of the Year Asiamoney
U . S . Tr u s t C o r p o r a t i o n / - Mergers & Acquisitions Institutional Investor
Charles Schwab
V E R I TA S S o f t w a r e C o r p o r a t i o n / - Best US Leveraged Buyout Euromoney
S e a g a t e Te c h n o l o g y - Breakthrough Deal — Mergers & Acquisitions Investment Dealers’ Digest
- Deal of the Year: Technology Investment Dealers’ Digest
- LBO of the Year Mergers and Acquisitions
- Mergers & Acquisitions Institutional Investor
- US Corporate Restructuring of the Year Euromoney

ADDITIONAL HOUSE AWARDS AWARD PUBLICATION

Credit Suisse First Boston - Best Arranger for North American Mortgage International Securitisation Report
Backed Securities — Runner-up
- Best Bank in Switzerland Euromoney
- Best Domestic Bond House in Switzerland Euromoney
- Best Domestic Equity House in Switzerland Euromoney
- Best Economic Research Central European
- Best Equity House — Australia The Asset
- Best Foreign Bond House in Austria Euromoney
- Best Foreign Equity House in Brazil Euromoney
- Best Foreign Equity House in France Euromoney
- Best Foreign Equity House in New Zealand Euromoney
- Best Foreign Investment Bank in Indonesia FinanceAsia
- Best Foreign M&A House in New Zealand Euromoney
- Best Foreign M&A House in Singapore Euromoney
- Best Foreign M&A House in the Czech Republic Euromoney
- Best Foreign Securities House in Greece Euromoney
- Best Global CBO/CLO Arranger — Runner-up International Securitisation Report
- Best Lead Manager of Bonds for Eastern Euroweek
European Borrowers
- Best Lead Manager of Bonds for Latin Euroweek
American Borrowers
- Best Lead Manager of High Yield Bonds – 3rd Place Euroweek
- Best Lead Manager of Swiss Franc Bonds – 2nd Place Euroweek
- Best Lead Manager of US Dollar Straight Bonds Euroweek
- Best M&A/Restructuring House — Malaysia The Asset
- Best M&A/Restructuring House — Singapore The Asset
- Best Overseas Share Dealing Service (DLJ direct ) Shares
- Best Principal Finance House — Runner-up International Securitisation Report
- Best Site for Exchange-Traded Euromoney.com
Derivatives Trading (PrimeTrade)

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a powerful investment bank

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25%

20%

15% GLOBAL MERGERS


& ACQUISITIONS
CSFB MARKET SHARE —
2000 INCLUDES FULL YEAR DLJ
10%

5%
‘98
‘99
‘00

The new CSFB is a powerful CSFB the top-ranked global advisor in


investment bank with the terms of number of M&A deals announced
global platform, resources in 2000. For the year, we ranked third
and intellectual capital to worldwide in dollar volume of M&A trans-
rival any financial services actions, with a market share of 27.0%, up
firm in the world. With more from fourth, with a market share of 15.4%,
than 28,000 employees and a presence in a year earlier. CSFB was named the best
every major financial market worldwide, we firm in M&A advice in Institutional
are a leader in every aspect of investment Investor’s most recent CFO Survey.
banking, mergers and acquisitions, private
equity, fixed income and equity underwriting, CSFB Private Equity, which is part of our
research, sales and trading, and private Investment Banking Division, is one of the
client services. largest merchant banking operations in the
world — and draws on the market knowl-
Our dramatically expanded global equity and edge of our entire Firm. During 2000, our
fixed income sales and trading capabilities 150 investment professionals invested
are now supported by an allocated equity assets totaling over $2 billion. At year-end,
base of $10 billion — as well as by what our global private equity group managed
are now the industry’s dominant equity and approximately $22 billion in committed
fixed income research franchises. capital. Our $1.6 billion DLJ Investment
Partners fund is the world’s largest mezza-
The addition of Donaldson, Lufkin & Jenrette nine fund.
also strengthened our Investment Banking
Division. CSFB was one of the first invest- Our Equity Division is another major
ment banks to create specialized global strength for the Firm. In 2000, the Equity
industry groups, and DLJ also excelled in Division generated more revenue for CSFB
working with clients in a wide variety of than any other division. For the year,
industries — from media and telecommuni- CSFB ranked first among investment
cations to energy. The new CSFB is better banks in terms of number of IPOs com-
equipped than ever before to advise com- pleted, as well as first in common stock
panies along industry sectors. offerings. Our equity market share gains
have exceeded our next closest competi-
The merger also enhanced our ability to tor’s, as we have continued to build our
provide tailored and innovative financing business by providing the highest possible
solutions and advisory services to our cor- level of service in key issuance sectors
porate clients. We now offer a broader range such as technology, telecommunica-
of capabilities in equity and equity-linked tions/media, health care, energy, business
underwriting, investment-grade and high services and the financial sponsor segment.
yield debt issuance, syndicated lending and According to Reuters, we rank second with
private placements than ever before, while respect to the quality of execution delivered
also providing complex structuring and to clients across all product categories.
financial advice. Our increased ability to
deliver multi-product solutions enables us to CSFB’s superior execution track record is
help our corporate clients take advantage of a direct result of building one of the most
challenging periods of change. powerful and widely recognized equity
research and trading and distribution plat-
For example, in the midst of a record year forms in the industry.
for M&A activity, the DLJ merger made
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a powerful investment bank
(continued)

In equity sales and trading, CSFB has high-grade credit research. In 2000, with
extremely strong market penetration and the aid of the DLJ merger, we doubled the
the largest institutional sales force of any number of ranked analysts in our fixed
firm. For the year 2000, our share in the income research group.
U.S. listed secondary market has improved
by almost twenty percent; and in the U.S. In addition, we are a major participant in
OTC secondary market, we have increased investment-grade capital raising, securitized
our market share for 2000 by thirty percent. products, government bonds, foreign
exchange and precious metals trading. We
CSFB is also a leader in structured equity have broad strength in the fixed income OTC
products. In 2000, CSFB was a leader in derivatives arena, ranging from the vanilla to
volume of private equity-linked transactions. the highly exotic. We are also at the forefront
We were also one of the most active of the fund-linked derivatives market, which
providers of equity and volatility swaps and provides critical principal protection to a
“vanilla” and “exotic” equity options. broad range of managed funds. Since con-
cluding our first transaction in early 1996,
Excellence in research has always been a CSFB has executed approximately $5 billion
hallmark of CSFB and DLJ. Our equity of fund-linked derivatives for clients with
research franchise is one of the strongest this special need.
in the world, with more than 350 analysts
following 3,000 companies in the Americas, Through our Financial Services Group,
Europe and the Pacific Rim. The strength which was created by the DLJ merger,
and momentum of the CSFB Equity CSFB now has new strength in individual
Research department are reflected in our and high-net-worth retail investment services,
Institutional Investor rankings. Post-merger, which complements our institutional offerings.
our U.S. and European research teams Our Private Client Services Group’s 600 pro-
have more I.I.-ranked analysts than any fessionals, located chiefly in the U.S., offer
other investment bank. CSFB research a full range of investment services to more
also is distinguished by our value-based than 80,000 clients with accounts totaling
approach to security analysis. CSFBEdge, a roughly $60 billion in assets.
proprietary, analytical framework for valuing
equities on a global basis, reflects our The backbone of the Financial Services
strong commitment to delivering innovative, Group is Pershing, our correspondent finan-
value-based research products to our clients. cial services business, with revenue in 2000
of $1.2 billion. Through CSFBdirect, our
Our Fixed Income Division is generally on-line brokerage operation, our products
recognized as one of the premier fixed are distributed to over one million accounts.
income groups in the world, delivering an
impressive breadth of capabilities across The Support Division facilitates the
geographic regions and products. CSFB is execution of our sales and trading divisions
ranked number one globally in terms of while assuring that all our businesses are
underwriting volume in high yield debt and operating in a controlled manner. Risk man-
is the leading investment bank in arranging agement activities, including credit, market
leveraged loans. Furthermore, we are and strategic, are housed within the
widely considered the top Firm in high Support Division.
yield research and one of the top four in

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I N T E R N AT I O N A L PA P E R :
I N T E G R AT E D M & A A N D F I N A N C I N G A D V I S O R Y A N D E X E C U T I O N

(LINE OF BUSINESS)

Investment Banking CSFB advised International Paper on its successful $9.6 billion unsolicited offer
Fixed Income for Champion International, which had planned on merging with a European
Equity company. The transaction, which further strengthens International Paper’s position
as the world’s leading paper and forest products company, is one of the largest
ever in the paper industry.

We acted as sole M&A advisor to International Paper and put together a compre-
hensive financing package to help the company achieve its objective. In addition,
we solely underwrote a $6 billion bank financing commitment to support the offer.
This commitment was innovative because it provided the acquirer with a guar-
antee of funds for its bid – without limiting its flexibility to tap multiple capital
markets in order to minimize the ultimate cost of funding the acquisition. To
complete the financing, CSFB acted as lead arranger and administrative agent
on a $3 billion credit facility for International Paper and as lead manager on an
issue of $3 billion in senior notes.

HUMAN GENOME SCIENCES:


S E C O N D - L A R G E S T P R I M A R Y B I O T E C H I S S U E T O D AT E

(LINE OF BUSINESS) As lead manager on a $950 million follow-on equity offering for Human Genome
Investment Banking
Sciences (HGS), we played an integral role in helping to complete the second-
Fixed Income largest primary share biotechnology issue ever. The transaction was highly suc-
Equity cessful in great part because of the effectiveness of our global marketing effort,
which helped to increase already high levels of investor interest in HGS, a leading
genomics and biopharmaceutical company. Ultimately, CSFB was able to under-
write 12.7 million shares for the client — 50% more than originally anticipated.
In addition, the stock enjoyed a successful first day of trading after the offering,
rising 17.5% by the market close.

The secondary equity issue was the fifth that CSFB had led since June 1999 for
Human Genome Sciences. The first four were sole managed convertible offerings
that raised a total of $850 million and together represented the largest-ever
volume for a series of convertible biotechnology financings. By raising substantial
amounts of capital for HGS, we are helping the company to remain at the fore-
front of its industry as it mines the human genome to yield novel and powerful
therapeutics for the treatment of significant diseases.

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REPUBLIC OF POLAND:
F I R S T I N T E R N AT I O N A L D E B T I S S U E S I N C E 1 9 9 7 A N D
MAIDEN EUROBOND ISSUE

(LINE OF BUSINESS) At €600 million, the debut 10-year bond issue joint lead-managed by CSFB for
Investment Banking the Republic of Poland made major headlines in the March 2000 financial press.
Fixed Income Not only was it Poland’s first international financing since 1997 — and its first-ever
Equity Euro-denominated Eurobond issue — but advance marketing in five European
capitals created such demand that the issue was oversubscribed more than 2.5
times. With indications of interest totaling almost €2 billion, the transaction was
comfortably increased by 50% from its original €400 million level, establishing a
new liquid benchmark in what was the longest-term Eastern European transaction
at the time. The pricing in relation with comparable issues for the region was highly
competitive. Many of the investors in the Baa1/BBB+-rated issue were institutions
had never before purchased Eastern European paper.

With its successful return to the international debt markets, Poland accomplished
its objective of broadening its investor base to include a high-quality, pan-
European audience, as well as buyers in the Middle East and Asia. Euromoney
named the deal the “Best Central and Eastern European Sovereign” transaction
of the year.

TEXACO:
C R E A T I O N O F F O U R T H - L A R G E S T P U B L I C LY T R A D E D
OIL COMPANY

(LINE OF BUSINESS)
We advised Texaco Inc. on its merger with Chevron Corporation for $43.3 billion in
stock and assumed debt. The transaction will create the world’s fourth-largest
Investment Banking
Fixed Income
publicly traded oil company in terms of reserves and production — and a U.S.-
Equity based, global enterprise that is highly competitive across all energy sectors.

Significantly, the merger should result in annual savings of at least $1.2 billion
for the new entity, ChevronTexaco, beginning six to nine months from the com-
pletion date. The transaction is expected to be accretive to the new company’s
earnings and cash flow once the savings start to be realized. Moreover, it fosters
improved capital efficiency — and, hence, improved returns on capital over time
— by funding the best growth opportunities available to the merged companies.
Investment Dealers’ Digest named the merger “Breakthrough M&A Deal” for 2000.

12
METLIFE:
L A R G E S T- E V E R G L O B A L D E M U T U A L I Z AT I O N I P O

CSFB acted as joint lead-manager for a simultaneous common stock IPO,


mandatory convertible offering and common stock private placement for the
demutualization of Metropolitan Life Insurance Company. The $5.2 billion trans-
action was the largest global demutualization IPO ever completed — and the
second-largest U.S. IPO when all three pieces of the deal were included. It was
selected as the best U.S. IPO of 2000 by Euromoney. In addition, it made
MetLife stock the most widely held equity security in the United States, with an
initial bearer market of nine million shareholders.

The primary purpose of the demutualization was to allow MetLife, the largest life
insurance company in the U.S., more efficient access to capital markets and
increased flexibility in making acquisitions in a rapidly consolidating industry.
The transaction’s innovative “Policyholder Trust” structure lessened market con-
cern over the deal’s large share overhang and substantially reduced MetLife’s
costs of shareholder maintenance.

(LINE OF BUSINESS)

Investment Banking
Fixed Income
Equity

13
C M S E N E R G Y:
THE NEW CSFB’S FIRST HIGH YIELD BOND FINANCING

(LINE OF BUSINESS) Shortly after the merger between CSFB and DLJ was announced, the two Firms
Investment Banking
combined their platforms to help CMS Energy raise capital in the debt markets.
Fixed Income DLJ’s award-winning high yield team, now part of CSFB’s Fixed Income Division,
Equity lead-managed a $500 million high yield offering for the company. Simultaneously,
in order to maintain its debt ratings, CMS raised $300 million in equity in an
overnight transaction, lead-managed by CSFB. Both offerings were successfully
distributed.

“CEOs with the vision to


make a huge impact on their
business tend to be capital
users. As investment bankers,
our job is to find these people
and help them effect change
through capital.”

BENNETT GOODMAN
Global Head of Leveraged Finance

14
NEW POWER:
FIRST IPO FOR THE NEW CSFB

(LINE OF BUSINESS) The first equity new issue jointly lead-managed by CSFB and DLJ after the
Investment Banking announcement of the merger, the $504 million IPO of The New Power Company,
Fixed Income Inc., clearly benefited from the combination of the two Firms. DLJ’s team struc-
Equity tured the transaction for the company, which is a start-up business created by
Enron, and CSFB’s sales force distributed the issued shares, completing the
transaction under very difficult market conditions. New Power’s stock closed up
29% on its first day of trading after being 15 times oversubscribed. Beyond
bringing New Power public, we advised the start-up on the optimal capital
structure. And, through our Private Equity Group, we became an equity partici-
pant in the company, along with AOL and IBM.

L E A D E R S H I P I N P R I VAT E E Q U I T Y:

CSFB Private Equity, a part of CSFB’s Investment Banking Division, is one


of the largest private equity firms in the world, with approximately $22 billion of
capital commitment under management and offices in New York, Los Angeles,
London, São Paulo, Buenos Aires, Tokyo and Hong Kong. The new group
includes the impressive 15-year, pre-merger track record of DLJ Merchant
Banking — and the 31-year expertise of DLJ’s venture capital affiliate, Sprout
Group. Some of our largest funds under management are:

- DLJ Merchant Banking Partners


- DLJ Merchant Banking Partners II
- DLJ Merchant Banking Partners III
- Credit Suisse First Boston Equity Partners
- Credit Suisse First Boston International Equity Partners
- DLJ Investment Partners
- DLJ Investment Partners II
- DLJ Real Estate Capital Partners
- DLJ Real Estate Capital Partners II
- Sprout Capital VII
- Sprout Capital VIII
- Sprout Capital IX
- DLJ Private Equity Partners
- DLJ Private Equity Partners II
- Credit Suisse First Boston Garantia
- Credit Suisse First Boston Fund Investments VI
- Absolute Private Equity

15
a major global force

16
CSFB GLOBAL FOOTPRINT
GEOGRAPHIC BREAKDOWN —
BY REVENUE, 2000

51% North America

13% Latin America/


Asia

36% Europe

CSFB’s status as a truly Our European research team placed first


global investment bank is overall in Institutional Investor’s most recent
reflected in the geographic All Europe research poll. In addition, our
distribution of our revenue: European technology research team has
51% emanated from North extremely broad expertise, and many of our
America, 36% from Europe analysts are highly ranked winners of cov-
and 13% from the rest of eted, top pan-European awards.
the world.
CSFB is also a leading firm in equity under-
With two home markets in Europe — writing for clients in the Asia-Pacific region.
London and Switzerland — and an historic We were number one in market share in
stronghold in Eastern Europe, we have a large equity offerings in both Australia and
broader European footprint than any com- New Zealand. We also have one of the top
petitor. In 2000, our M&A Group advised Institutional Investor-ranked research teams
clients around the world on more transactions in Asia (excluding Japan), and our Asian
than any other investment bank. In equity technology team won the prestigious “First
underwriting for Continental Europe and Team” Award in I.I.’s All-Asia Research
the U.K., CSFB is the investment bank with Team rankings for 2000.
the most experience and the most consis-
tent performance record for clients across CSFB is a leader in equity issuance in Latin
geographic areas. America as well. We have been active on
behalf of clients in this region since the
In 1999-2000, we lead-managed offerings 1930s and have ranked number two in
originating in 18 different countries — terms of market share in the region since
including Germany, France, Sweden, Russia, 1993. Our research covers more than 200
Hong Kong, Israel, and Greece. We were the Latin American companies, more than any
leader in the Swiss IPO market, with more other Wall Street firm.
than a 40% market share and a superior
aftermarket performance record. We were Overall, approximately 10% of the invest-
also the leading foreign underwriter in ments made by our Private Equity group
German large- and small-cap equity issuance are international. Outside the Americas,
and the leading foreign underwriter in French CSFB’s private equity business invests
IPOs and Nouveau Marché issues. In the principally in Europe.
U.K., we ranked first in IPOs in 2000 and
were the only firm to claim a market share CSFB is also — and has perennially been
in excess of 20%. Finally, we maintained — a force outside the U.S. in the fixed
our long-standing 20% market share of income area. From developing the first
Central and Eastern European equity offer- Eurobond to offering the first high yield
ings, leading more such offerings than any issue in Spain and the first sterling high
other firm. yield Eurobond, CSFB’s list of firsts
17
a major global force
(continued)

has historically defined key portions of the European economists and global strategy
international debt market. groups recently achieved recognition in
key industry surveys.
We are among the top five firms in the
European debt markets, and we continue to In the high yield area, CSFB’s secondary
be a leader in the fixed income emerging and primary activities lead the European
markets. In both Brazil and Eastern Europe, bond market — and the Firm’s high yield
we hold a clear leadership position. Our unit now includes the DLJ group that won
emerging markets research team, spread International Financing Review’s “European
across various strategic locations world- High Yield Bond House of the Year” award
wide, is extremely strong. Also, our East for 2000.

“Excellence in research has


always been a hallmark of
CSFB. Our equity research
franchise is one of the
strongest in the world. Post-
merger, our U.S. and European
research teams have more
I.I.-ranked analysts than any
other research house on
Wall Street.”

AL JACKSON
Global Head of Equity Research

18
PACIFIC CENTURY CYBERWORKS:
L A R G E S T A S I A N M & A T R A N S A C T I O N T O D AT E

(LINE OF BUSINESS) CSFB advised 15-month-old Pacific Century CyberWorks (PCCW) on its success-
Investment Banking
ful $35.9 billion cash and shares acquisition of Cable & Wireless HKT, a 126-
Fixed Income year-old former telephone monopoly that was Hong Kong’s major, full-service
Equity communications provider. The takeover was the largest M&A transaction ever
completed in Asia and was named an Institutional Investor “International Deal of
the Year” as well as “Deal of the Year” by seven other publications.

Despite competition for the company from a consortium led by Singapore


Telecommunications and Rupert Murdoch’s News Corporation, CSFB persuaded
Cable & Wireless to accept PCCW’s offer and then raised capital for PCCW from
a diverse group of international equity investors. The result is a dynamic new
company that integrates media, telecommunications and Internet technologies.

DEUTSCHE TELEKOM:
COMPLEX $56 BILLION CROSS-BORDER ACQUISITION

(LINE OF BUSINESS) CSFB is currently advising Deutsche Telekom on its $56 billion acquisition of
Investment Banking
U.S.-based carrier VoiceStream Wireless, a global assignment originally man-
Fixed Income dated to DLJ in 2000. The enormous cross-border acquisition involves complex
Equity legal, tax, shareholder and financial issues.

The DLJ team, now part of CSFB’s Investment Banking Division, played a crucial
role in structuring and negotiating a transaction that facilitated the German telecom
leader’s entry into the U.S. market. First, the team secured voting and lockup
agreements from VoiceStream’s major shareholders to limit the likelihood of a
competing offer; then, it implemented a $5 billion convertible preferred stock
investment on Deutsche Telekom’s behalf to assist the target company in its
planned bidding for licenses and the build-out of its existing networks. After
announcing the acquisition, Deutsche Telekom hired DLJ to advise it on its
pending $6.7 billion acquisition of Powertel Inc.

19
LY C O S :
C R E A T I O N O F F I R S T T R U LY G L O B A L I N T E R N E T C O M P A N Y

CSFB advised Lycos on its $12.5 billion stock-for-stock sale to Terra Networks S.A.,
a cross-border transaction that created one of the largest global on-line media
networks with operations in 37 countries. We structured and negotiated a three-
level transaction: a share-for-share exchange between Terra and Lycos reflecting
close to a 100% premium to the Lycos shareholders; a $2 billion rights offering by
Terra with a funding guarantee from Telefonica (former Terra parent); and a
$1 billion, five-year commerce agreement between Terra Lycos and Bertelsmann
that eliminated a great deal of investment risk for the Lycos shareholders.

The acquisition positioned Terra Lycos as the first truly global Internet company
focusing on both access and content. It also created a company with a unique
convergence of services, content and distribution, making it the Internet’s
fourth-most-visited destination.

One of the most innovative features of the novel transaction structure was a
(LINE OF BUSINESS) symmetrical share-price collar, which guaranteed Lycos shareholders $97.55 per
Investment Banking share in Terra stock even if Terra’s stock price declined as much as 20% prior to
Fixed Income the closing date. Such a price protection provision is unusual for a technology
Equity
deal, and nearly unprecedented for a transaction of this size in any industry.

20
PETROBRAS (PETROLEO BRASILEIRO S.A.):
L A R G E S T L AT I N A M E R I C A N E Q U I T Y O F F E R I N G E V E R

(LINE OF BUSINESS) In the largest Latin American equity offering ever, the Brazilian government
Investment Banking
raised a total of $4 billion from the sale of 16.64% of the country’s national oil
Fixed Income company, Petrobras, including 71 million common shares that were sold in Brazil.
Equity CSFB Garantia acted as sole lead-manager and book-runner for the Brazilian
tranche, which was itself the largest-ever local tranche of an emerging markets
equity offering. The transaction was innovative because it marked the first time
the Brazilian government had allowed individuals to invest funds from their retire-
ment plans in equity securities, and it paved the way for the future use of retail
distribution in Brazilian privatizations.

C O M M O N W E A LT H B A N K O F A U S T R A L I A :
ACQUISITION OF COLONIAL
A U S T R A L I A’ S L A R G E S T- E V E R M & A T R A N S A C T I O N

(LINE OF BUSINESS) As sole advisor to the Commonwealth Bank of Australia (CBA), CSFB was a key
Investment Banking
participant in Australia’s largest-ever M&A transaction — the bank’s A$10.2 billion
Fixed Income acquisition of Colonial Group Holdings Ltd. The massive stock-swap transaction
Equity represented a move by Australia’s largest bank to obtain the operations and
assets of the country’s second-largest insurer. More significantly, it brought
together two of Australia’s most successful, innovative financial services com-
panies to create an international financial services force with leading market
positions in banking, asset management and life insurance. Also, the acquisition
will help CBA to accelerate growth and to diversify its revenue base both geo-
graphically and by product. The merger was selected as “M&A Deal of the Year”
by Asiamoney.

In 2000, CSFB ranked as the leading financial advisor in Australia for announced
M&A transactions involving an Australian target company. Overall, we advised on
a total of 21 Australian deals with a cumulative value of A$27.7 billion.

21
an innovative ally

22
$ 300

250

200
COMBINED FINANCING
AND M&A
150 $ BILLIONS

CSFB DLJ
100

50
‘98
‘99
‘00

300

250
Technology is, and will increased dramatically after May 2000, the
200 continue to be, a critical month following the market correction.
COMBINED FINANCING component of change in Our industry expertise, our depth of equity
AND M&A
150 NUMBER OF TRANSACTIONS
the business world. CSFB research, our corporate advisory services, and
is heavily involved with our focused, industry-specific sales and over-
CSFB DLJ
100
technological innovation on the-counter market-making skills enabled us
two levels. First, we enable innova- to serve our technology clients and investors
tion throughout the world by bringing tech- in the uneven market environment.
50
nology clients to market, helping them to
finance growth, and advising them on strategic Beyond the Technology Group, CSFB’s
‘98
‘99
‘00

transactions that help them position deployment of technology extends to our


themselves in a highly competitive business on-line brokerage unit and its technology
environment. Second, we work continually affiliate, iNautix, our financial services busi-
to take advantage of new ways of employ- ness, our institutional e-commerce effort,
ing technology within our own industry and and our internal risk management and tech-
within our Firm, so that we can serve nical support services.
clients better by being more productive.
CSFB has been at the forefront of institu-
In 1998-1999, we achieved our goal of tional electronic trading since 1998, when
building the world’s leading franchise in we launched our PrimeTrade family of
technology investment banking; in 2000, products for institutional fixed income cus-
our Firm sustained its number one market tomers. Moreover, the recent merger with
share position in this arena, establishing a DLJ added a new dimension to our web-
brand advantage that is being increasingly based trading capabilities, bringing us the
recognized. CSFB also placed first overall well-established on-line brokerage business
in the Reuters Survey of Fund Managers now called “CSFBdirect.” Through
for 2000, winning six individual voting CSFBdirect’s predecessor, DLJdirect, we
categories, including quality of new equity pioneered on-line investing in 1988 and,
issues, quality of research product and are servicing more than one million on-line
service in the aftermarket, and aftermarket customer accounts with nearly $23 billion
performance of equity issues. in assets. The addition of CSFBdirect gives
us on-line brokerage platforms in the U.S.,
Overall, the Technology Group’s performance London, Tokyo, Hong Kong and Dubai.
for the past year was even more exciting than More specifically, the acquisition enhances
in 1999. We pulled ahead of the pack as the our already powerful distribution network
clear leader in technology banking, leading and allows us to reach large numbers of
320 financing and M&A assignments valued new individual investors via the Internet,
at more than $341 billion. We also ranked while facilitating trading for our existing
number one in number of worldwide M&A retail clients. CSFBdirect and iNautix gen-
transactions and number of domestic IPOs, erated $358 million of revenues in 2000
primary issues and convertible offerings. and are growing, entrepreneurial activities.
Moreover, our market share in technology
23
(LINE OF BUSINESS)

Investment Banking
Fixed Income
Equity

PHONE.COM: MERGER WITH SOFTWARE.COM:


I N D U S T R Y- T R A N S F O R M I N G T E C H N O L O G Y M E R G E R

We advised Phone.com on its industry-transforming $7.0 billion merger with


Software.com to form Openwave Systems Inc. The stock-for-stock pooling of
interests combines the leading software and infrastructure providers to wireless
and wireline service companies, respectively — and thereby creates the world’s
leading enabler of e-mail, voicemail, unified messaging, and directory and wire-
less Internet access for IP-based networks. The new company has roughly 150
service provider customers worldwide that in turn serve more than 500 million
customers of their own and have more than 100 million licensed subscribers.
These service providers include AT&T, Sprint PCS, Nextel, Verizon Wireless,
British Telecom, KDD and DDI, Telecom Italia and Deutsche Telekom.

CSFB has had long-standing relationships with both Phone.com and Software.com
that include multiple financings and acquisition assignments for both parties.
We lead-managed the IPOs for both companies in June 1999.

24
H E W L E T T- PA C K A R D :
DEBUT GLOBAL BOND OFFERING

(LINE OF BUSINESS) CSFB jointly lead-managed Hewlett-Packard Company’s $1.5 billion debut global
Investment Banking
bond offering. HP’s first major foray into the debt markets after a long absence,
Fixed Income the transaction enabled the company to re-establish itself as an actively traded
Equity investment-grade credit and successfully positioned it for any future debt
issuance it may wish to pursue.

The HP offering reflected both impeccable timing and seamless execution.


Seizing on a relatively sudden reversal of sentiment in what had been a down-
beat fixed income market, CSFB launched the issue quickly, achieving a one-
day execution through the use of a well-orchestrated marketing plan. The offering
attracted more than $3 billion in demand, enabling the transaction size to be
increased 50% while attracting over 200 domestic and international investors.

A S M L L I T H O G R A P H Y H O L D I N G N . V. :
THE WORLD’S LARGEST REGISTERED SECONDARY
TECHNOLOGY OFFERING

(LINE OF BUSINESS) The €2.76 billion secondary offering of ASM Lithography shares by Philips is
Investment Banking
the world’s largest ever registered secondary offering for a technology company.
Fixed Income Acting as sole global coordinator and joint-bookrunning lead-manager, CSFB
Equity executed this offering against a difficult market backdrop characterized by high
volatility and a number of pulled and postponed transactions. From the expiry of
Philips’ lock-up in March to the launch of the transaction in June, CSFB main-
tained a high degree of readiness and a continuous dialog with Philips and ASML
to ensure the selection of the optimal market window. An intensive, but rapid,
marketing effort supported by an in-depth analysis of the investor base resulted
in a successful placement with the book being covered 2.4 times and a strong
aftermarket performance. The offering was the fourth CSFB-lead financing for
Philips and ASML since that company’s original IPO in 1995.

25
V E R I TA S :
ONE OF THE LARGEST TECHNOLOGY DEALS EVER COMPLETED AND
INSTITUTIONAL INVESTOR’S “TECHNOLOGY DEAL OF THE YEAR”

(LINE OF BUSINESS)
CSFB advised VERITAS on the acquisition of a 32% interest in VERITAS and other
assets held by Seagate Technology — one of the largest technology deals ever
Investment Banking
Fixed Income completed. VERITAS is a leading provider of enterprise-class application storage
Equity management software and one of the largest software companies in the world.
Seagate was the world’s largest manufacturer of disk drives and a leading devel-
oper of Business Intelligence software, and a major holder of VERITAS shares
(obtained through the sale of a portion of its software business to VERITAS in 1999).

The primary issue facing Seagate was that the value of its equity stake in VERITAS
alone exceeded its own market capitalization, and there was no straightforward
method to deliver this value to its shareholders without incurring a significant tax
bill. The solution was a unique, two-step transaction structured by CSFB, in which
an investor group first acquired the operating businesses of Seagate and then
VERITAS acquired the remainder of Seagate (consisting solely of VERITAS stock
and certain monetary assets). As a result of the transaction, VERITAS retired approxi-
mately 18.7 million VERITAS shares, a guaranteed value recapture of approximately
$3 billion based on share prices at announcement, and VERITAS freed itself of
any control by Seagate. Seagate, on the other hand, was able to unlock value
for its shareholders, who received both the value of VERITAS common stock in
a tax-efficient manner and value for Seagate’s core operating businesses.

A L C AT E L :
LARGEST EUROPEAN PURCHASE OF A NORTH AMERICAN
TECH COMPANY

(LINE OF BUSINESS)
CSFB acted as sole financial advisor to Alcatel on its $7.1 billion acquisition of
Investment Banking
Newbridge Networks — the biggest purchase at the time of a North American
Fixed Income technology company by a European suitor. This landmark transaction served as a
Equity cornerstone in Alcatel’s strategy to become a global leader in the next-generation
networking market by positioning Alcatel as a prime end-to-end telecom solutions
supplier and enhancing the company’s product offering to converged networks.
As one of the foremost technology leaders in Canada, Newbridge is the leading
manufacturer of telecommunications equipment for the carrier Wide Area Network.
The transaction was extremely well received by the market, and helped Alcatel
shares outperform the market over the months following the deal.

26
4.0

3.5

3.0

2.5
PERSHING —
T O TA L A C T I V E
2.0 CUSTOMER ACCOUNTS
(IN MILLIONS)

1.5

1.0
‘96
‘97
‘98
‘99
‘00

Pershing is our well-established custody, partnerships and networks. By blending a


settlement and general financial services business and technology focus in partner-
business. It is a leading provider of technol- ship with CSFB’s other departments,
ogy solutions and value-added products CSFBNext applies the global resources and
and services to its customers. Pershing is creativity of our people to lead change in
an important contributor to the overall prof- this emerging field.
itability of the new CSFB. It covers a net-
work of 1,000 financial intermediaries Finally, our risk control infrastructure and
servicing 100,000 investment professionals technical support services create value for
and four million active customers, with the entire Firm by employing and enhancing
accounts holding nearly $400 billion of total technology within CSFB. Our Firm has
assets. Pershing’s brand equity, developed employees dedicated to internal control,
over a period of 60 years, makes it an inte- service, risk management and efficiency.
gral part of CSFB’s participation in the
worldwide asset-gathering business. For In 2000, we installed a state-of-the-art global
2000, Pershing’s revenue was $1.2 credit risk management system called
billion. More than twelve percent of that “Insight,” which leverages the latest credit
revenue came from International business, risk measurement methodologies and
including Pershing Limited, in London, applies them to a base of more than 70,000
which is the dominant securities clearing counterparties. Insight allows us to monitor
enterprise in the U.K. potential exposure on our balance sheet
throughout CSFB’s worldwide operations.
CSFBNext, our Firm-wide institutional This system is helping us to analyze our
e-commerce effort, helps our clients antici- various businesses more accurately and to
pate and take full advantage of change in allocate the credit resource more efficiently
the e-financial markets. CSFB has a record Firm-wide. In addition, we have been working
of leadership in e-commerce, from being continually to enhance our process engi-
the first to offer electronic trading in fixed neering and technological infrastructure.
income products in the 1990s to more CSFB currently spends $1.4 billion on tech-
recently offering multi-product, web-based nology and technical-related support for
trading and clearing to clients. CSFBNext is our professionals. As a direct result, we
now enabling our salespeople and coverage have been experiencing a steady improve-
officers to bring customized electronically ment in our operating efficiency, with regard
delivered services to clients. We are also to number and types of transactions
helping shape the very development of the processed on a daily basis.
markets themselves through new products,

27
LEADERSHIP IN FINANCIAL E-COMMERCE

CSFBNext is putting the full power of a global investment bank in clients’ hands,
from smarter delivery of research and analysis, to on-line collaboration with
clients, to anytime-anywhere access to the markets. We strengthened our position
in these areas in 2000, driving the creation of FXall, the first multi-dealer pricing
and research platform for clients in foreign exchange, the world’s largest market.
CSFB took a lead role in the creation of Virt-x, the electronic pan-European
exchange for blue chip stocks. We also joined other industry-leading initiatives
such as MarketAxess, Swapswire, TheMarkets.com and Capital IQ. TradeWeb,
which CSFB helped launch, has achieved a number one on-line market share in
electronic trading of U.S. government securities. Our own single-dealer system
for clients, PrimeTrade, was named winner of “Best Site for Exchange-Traded
Derivatives Trading” in Euromoney’s Internet Awards 2000. The Firm is now
expanding and integrating our on-line trading, issuance, tools and research
capabilities into a one-stop financial network for clients.

“We are a Firm of entrepreneurs


– everyone has to have a stake.
To really get things done, the
whole Firm is participating in
this technology drive.”

PHILIP VASAN
Global Head of CSFBNext

28
Credit Suisse First Boston
Firm Management

BOARD OF DIRECTORS EXECUTIVE BOARD

LUKAS MÜHLEMANN (2)


JOE L. ROBY RICHARD E. THORNBURGH
Chairman Chairman Vice Chairman of the Executive Board,
Chief Executive Officer of Chief Financial Officer and Head of
Credit Suisse Group ALLEN D. WHEAT Support
Chairman of the Executive Board,
PETER BRABECK-LETMATHE (2)
President and CHARLES G. WARD III
Vice Chairman Chief Executive Officer Co-Head of Investment Banking
Chief Executive Officer of Nestlé S.A.
PAUL CALELLO
THOMAS W. BECHTLER (1)
Head of Equity Derivatives and
Chairman of the Board of Zellweger Luwa Convertibles JOSEPH T. MCLAUGHLIN
Executive Vice President Legal and
MARC-HENRI CHAUDET (1)
CHRISTOPHER CARTER Regulatory Affairs
Lawyer Head of European Investment Ex-Officio
Banking and Global Chairman of
GERALD CLARK (1) Equity Capital Markets DAVID P. WALKER
Vice-Chairman of the Board and Head of Strategic Planning
Chief Investment Officer of ANTHONY F. DADDINO Secretary
Metropolitan Life Insurance Company, Chief Administrative Officer
New York
BRADY W. DOUGAN
WALTER B. KIELHOLZ (1)
Head of Equity
Chief Executive Officer of Swiss Re
BENNETT J. GOODMAN
DANIEL L. VASELLA (2)
Head of Leveraged Finance
Chairman and Chief Executive Officer of
Novartis International AG, Basle GATES H. HAWN
Head of Financial Services

JAMES P. HEALY
Head of Emerging Markets

STEPHEN A. M. HESTER
Head of Fixed Income

HAMILTON E. JAMES
Co-Head of Investment Banking

DAVID S. MOORE
Deputy Head of Equity

DAVID C. MULFORD
Chairman – International

JOHN F. NELSON
Chairman – Europe

TREVOR PRICE
Head of Developed Markets – Rates

STEPHEN E. STONEFIELD
Chairman – Pacific

(1) Member of Audit Committee


(2) Member of Compensation Committee

29
managing directors

MANAGING William R. Battey, Jr. John G. Burke James Collier Debora Del Favero
DIRECTORS Carl Bautista Joseph P. Bzezinski Joseph A. Coneeny Anthony M. Deluise
Ted W. Baxter Paul W. Caan Michael J. Connelly Chris DeMarco
Osama S. Abbasi Guillaume Bébéar Marc A. Cabi David M. Connors Kenneth P. Dengler
Osmar Abib, Jr. Anthony Belinkoff Martin P. Caffrey Thomas A. Connors David A. DeNunzio
David M. Abrams Andrew S. Benjamin Carlo M. Calabria Brian M. Cook Sameh M. Derosa-Farag
Niso Abuaf Jeremy J. Bennett Peter E. Calamari Kevin D. Cook Jean-Manuel P. Dersy
Bartolomeo Acquaviva Thomas M. Benninger John P. Callahan Adrian R.T. Cooper Philip F. Desantis
Marc J. Adam Donald R. Benson Craig R. Callen Eldad Coppens Jeffrey S. Detwiler
Harry Adamopolous Walter Berchtold Andrea Camp Omar Martin Cordes Donald J. Devine
John K. Adams, Jr. Barry Bergman Michael J. Campbell Raymond J. Cosman Edward W. Devine
Joseph P. Adams, Jr. Pedro Beroy Lloyd E. Campbell Bertrand X. Cothier Jerry A. Devito
William D. Addas Robert M. Berry Stephen H. Can Julie A. Craddock John M. Diamantis
Mark A. Adley Jeffrey A. Bersh Najib Canaan W. John Craven Stephen M. Diamond
Jon M. Africk K.R. Bharat Dominic A. Capolongo Justin Crookenden Thomas Dicker
Tom Ahearne Benjamin A. Bisconti Gregory W. Cappelli Michael V. Crooks Robert E. Diemar, Jr.
Nasser A. Ahmad Leo P. Blackford Richard B. Carey Andrew C. Cross Marc K. Dien
Benedict Aitkenhead Peter B. Blanton Richard G. Carl James T. Crowley Katherine E. Dietze
James L. Alexandre Benjamin R. Bloomstone David K. Carlson Ernesto Cruz Jack J. DiMaio, Jr.
Isauro Alfaro Jeffrey F. Blum Wayne F. Carr Tamas Csonka Alec D’Janoeff
Kristin M. Allen Rhodes R. Bobbitt Christopher R. Carter Christopher G. Nichola H. Dobinson
Emmanuel Allier Timothy D. Bock Pamela Carter Cunningham Paul J. Doelger
Guilherme Amaral Harold W. Bogle Angela M. Casciato Robert A. Curley, Jr. Joseph D. Donnelly
James L. Amine Patrick J. Boland Carlos E. Soares Robert E. Curry Joseph M. Donovan
James W. Ancey Julia Bond Castanho Edmond J. Curtin Raymond J. Dorado
David L. Anderson Patrick J. Boroian Andrew J. Cattle David R. Curtis Isabel H. Doverty
Duff P. Anderson Willem G. Bosch John A. Cavalier Philip Cushmaro Greg Dowling
Eric A. Anderson George C. Boudouris Robert F. Cavanaugh Terrence E. Cuskley Brian S. Doyal
Mark C. Anderson George F. Boutros Christopher M. Chambers Paul N. D’Addario William B. Drewry
Clifford S. Andrews Anthony C. Bowe Phillippe O. Chambon Rodd A. Dalinka Jean-Francois Dreyfus
Nicholas Andrews Andrew J.L. Bracey Charlie Wai Kheong Chan Michael S. Dana Michael A. Duca
Nicole S. Arnaboldi Sean Thomas Brady Lap W. Chan James A. D’Aquila Catherine Duffy
Rome G. Arnold William J. B. Brady, III William W. Chandler Eugene Darconte Robert J. Duffy
Michael W. Arpey Tor R. Braham Pierre A. Chao K. Blake Darcy Michael P. Dugan
Bernardo Attolico Jonathan D. Bram Richard J. Char Joseph J. Dattolo Patrick J. Durkin
Roger Bach Oren Bramson J.C. Cheysson Hoyt L. Davidson Andrew Durnford
Peter A. Bacon Perry H. Braun Anthony R. Chidoni Mark J. Davies Timothy M. Dwyer
Liza Bailey Robert P. Brennan, Jr. Pedro Chomnalez Allen M. Davis Charles B. Edelstein
Ted H. Baker Paul St. J. Brine Meirav Chorav Thomas Davis Stuart C. Eden
Michael G. Baker David M. Brodsky Andrew H. Christie Gael de Boissard Brian J. Edmonds
Robert F. Baker Robert I. Brody John C. Chrystal Adam F. de Courcy Ling Charles P. Egerton-
Alessandro A. Baldin James M. Broner James F. Clark Gilles de Dumast Warburton
David A. Ballard Adam H. Brown Michael W. Clark Vincent De Giaimo Michael Eggleton
Susan Balloch Douglas V. Brown David H. Clayton Adam de Jong J. Anthony Ehinger
Gary J. Balter Edward M. Brown Thomas P. Clerkin Jean De Skowronski Mark A. Ellman
Marcelo Barbara H. Andrew Brownfield III Robert H. Clymer III Manuel B. de Souza- Rusty G.C.S. Elvidge
Thomas K. Barber Richard F. Brueckner Peter C. Cohan Girão Amy E. Emanuel
Steven K. Barg John Brydson Benjamin H. Cohen Lodewijk de Vink D. Wilson Ervin
Keven A. Barnum Louis P. Buck III Robert A. Cohen Thompson Dean Joaquin Eslava
Richard J. Barrett Paul D. Buckley John C. Colao James D. Deasy Michael B. Exstein
Janos Bartha Jeffrey H. Bunzel Lee R. Cole Giacomo DeBenedetto Jonathan Ezrow
Kasper Bartholdy Van V. Burger, Jr. George W. Coleman Ronald DeCicco Bertrand Facon
David C. Basile Colleen A. Burke Patrick D. Coleman Frank J. DeCongelio Magnus Falk

30
Patrick Fallon Joel Glodowski Peter Herrmann Alton C. Jones Valérie Landon
Frank J. Fanzilli, Jr. David P. Goldman John D. Hervey Trevor Jones Mark W. Lanigan
Michael A. Feder Robert F. Goldrich Janet A. Hickey Gary Jones Karim Lari
Andrew B. Federbusch Nicholas Gordon-Smith Alan G. Highet Thomas L. Jones Robert S. LaRue
Peter J. Ferres Matthew W. Gorman Eric P. Hime Timothy M. Joyce Curtis N. Launer
James E. Fields David C. Gottlieb D. Scott Hinchman Daniel S. Jurkowitz Lawrence N. Lavine
Mark W. Filipski John Graham John F. Hindelong Steven L. Kantor Stephen M. Lazarus
James S. Finch Marc D. Granetz Herman C. Hintzen Malik Karim Karsten le Blanc
Mark L. Finerman Peter T. Grauer F. Perkins Hixon, Jr. Andrew R. Kassoy Thomas F. Leddy
Lori B. Finkel Michael D. Greenspan David R. Hodes Nagi R. Kawkabani Bryce W. Lee
Robert N. Finney Jill A. Greenthal John C. Hodge Remy R. Kawkabani John Eng Lee
Robert Finzi Steven S. Greenwald Michael Hodgson Philip Kay Sung Jin Lee
Steven L. Fisch, M.D. Robert C. Grien James B. Hoesley Francois Kayat Edgar Legaspi
David C. Fisher Robert E. Griffith Michael J. Hogan Brendan J. Keane James H. Leigh-
H. Andrew Fisher Mark L. Grotevant Frank Hohmann III Giles B. Keating Pemberton
Patrick M. Flaherty Michael S. Grunwald Lindsay Hollister Martin L. Keating K. Adam Leight
Daniel K. Flatley Jonathan P. Grussing Mark A. Holmes Robert A. Kellan Philip H. Lenon
Robert S Fleischer Thomas K. Guba Stanley W. Holtz Andreas I. Keller Sarmiento Stephanie M. Léouzon
John L. Fleming Thomas F. Guinan Michael K. Hooks Gerard J. Keneally Richard M. Lerner
Bryan C. Fletcher Marek Gul Stephen W. Hopkins Patrick T. Kennedy George M. Levin, Jr.
Jeremy P. Fletcher Sanjeev Gupta Wendy A. Horn Patrick P. Kerrigan Mitchell E. Levine
Steven R. Foland Jonathan J. Gurnsey Christopher G. B. Horne Richard A. Kersley Mark L. Levitt
Victor Fontana Martin Gut George R. Hornig James D. Kiggen Barry Lewis
Simon J.H. Ford George G. Guthrie Alan E. Howard Susan S. Kilsby Thomas H. Lindberg
Jean-Marc Forneri Michael B. Guy Alan H. Howard Andrew A. Kimura Bruce W. Ling
Thomas B. Fox, Jr. Francis J. Hager Kevin W. Hudson Donald S. Kinsey David B. Lippman
Reginald O. Frazier Michael George Keith Humfress Charles E. Kinzer Andrew A. Lipsky
Alan H. Freudenstein Hajialexandrou John W. Hurley Thomas Kirkpatrick Samuel G. Liss
Herbert Friedman Mark Hallock Sung June Hwang John V. Kirnan Grant F. Little III
Michael P. Friezo Lawrence A. Hamdan Peter M. Hyde Charles P. Kirwan-Taylor Hong Henry Liu
Anthony M. Fry Neil Robert Hammer Per Otto Hyland Thomas Klamka Genghis L. Lloyd-Harris
Yukio Fukuda Sheldon Hanau Harris Hyman IV M. Kristin Klein Campbell M. Lobb
Michael F. Furman A. Robert Harker Marco M. Illy Robert A. Klugman Charles A. Locastro
Koji Fusa Marisa J. Harney Adam Inselbuch Colin Knudsen Gerald M. Lodge
Anand N. Gajjar Matthew C. Harris Debra E. Isenberg Cary A. Kochman Caitlin F. Long
Leandro S. Galban, Jr. Spencer H. Hart Alfred G. Jackson Jaw Sheng Kong David J. Loo
Richard W. Gallant Mark R. B. Harvey Henry D. Jackson Dominic Konstam Ann F. Lopez
Thomas M. Galvin Neil A. S. Harvey Philippe L. Jacob Grace J. Koo Frank H. Lopez
John G. Gans Thomas E. Hassen John W. Jacobs Richard J. Kradjel Roland Lorenzo
Carlos J. Garcia Mark Hassenberg Richard S. Jaffe J. Steven Kraus Geoffrey D. Love
Edward P. Garden Edward R. Hatfield III David L. Jaffe James E. Kreitman Timothy Q. Lu
Steven H. Garnett Thomas P. Havranek Robert Jain Robert S. Kricheff Christian Lubicz
Seth D. Garrett Hugo Heath Spencer Jakab Richard E. Kroon Joseph M. Luciano
Andrew Garthwaite Judith R. Heicklen Benoit Jamar Kenneth Kulju Alexander M. Lyall
Keith Geeslin Gerhard Heinrich John B. Jardine Suresh Kumar Ralph Lynch
Christian Gell Colin H. Hely-Hutchinson Robert A. Jeffe Paul Kuo Robin R. Macdonald
John C. Getzelman Paul S. Henderson Ian S. Jenkins Raymond S. Kuramoto Rod Maclean
Surojit Ghosh Wallace C. Henderson Erik M. Jensen Adam S. Kurzer George M. Maddison
Richard D. Gillingwater Thomas C. Hendrick Matthijs J.M. Jochems Chester Tun Ho Kwok Bernardo Maia
Paul M. Gimson Ingrid Hengster Daniel J. Johnson Kathleen D. La Porte John B. Maier II
Alan J. Ginsberg Ciaran P. Henry Robert K. Johnson Douglas M. Ladden Francois Maisonrouge
James T. Glerum, Jr. Larry L. Henry Leslie Johnston Mark C. Lamarre G. David M. Maletta II
Steven L. Glick David A. Hermer Gerald Joiner Mark B. Landis Vikram Malhotra

31
Guillaume Malle Terran A. Miller Carlos Onis Frank P. Quattrone John J. Romanelli
Lee F. Mallett Ben E. Mingay Stephen L. Oplinger James A. Quella Alexander Rosen
Robert G. Mann Charles Minter Moshe Orenbuch Kathryn M. Quigley Mark A. Rosen
Jason P. Manske Barry B. Mione Crispin M. Osborne Matthew W. Quigley Robert Rossman
Mark Manson Jonathan I. Mishkin Eoin O’Shea Jeffrey Quinn Susan L. Roth
R. Aldo Mareuse Robert W. Mitchell Douglas I. Ostrover Kieran P. Quinn Jonathan K. Rouner
Nels V. Marin Robin Mitra Daniel Otth Antonio C. Quintella Barry R. Rundle
Michael A. Marriott Jun Miyazaki John S. Owen Adam L. Raboy Matt J. Ruppel
Ian Marsh Phil Moineau J. Craig Oxman D. Neil Radey Andrew H. Rush
Jeremy Marshall J. Ronald Morgan Phillip Z. Pace Stephen M. Raeber Kevin R. Rush
Christopher G. Martin John M. Moriarty, Jr. Craig W. Packer Robert I. Rafford, Jr. David Russell
Keith T. Martin Lawrence A. Morillo Robert L. Padala Lawrence D. Raiman Joseph L. Russell
Laura A. Martin Christopher R. Morin Luc P. Pajot William L. Raincsuk, Jr. Fernando Russo
Michael E. Martin Kevin J. Morley Richard P. Palmieri Michael W. Ranger Olivier Sachs
Cyril Martinez Christopher E. Morris James P. Parmelee Jagdish G. Rangwani Michael D. Safko
Janelle Matharoo Harold D. Moseley Adam P. Parten Evan B. Ratner Jason J. Safriet
David R. Mathers Neil Moskowitz Thomas V. Pascale Steven Rattner Klaus Said
David J. Matlin Richard H. Moulder Massimo Paschetto Russell T. Ray John M. Sallay
Peter R. Matt Theodore B. Muftic Gordon R. Paterson Hugh E. Reams, Jr. Jeffrey J. Salzman
Michael J. Mauboussin Alastair W. Muirhead Mark J. Pattinson Robert Reback Karim Samii
David A. Mayes Brian Mullen Ricardo Paulo Thomas M. Reid Thomas J. Sands
Timothy Mayopoulos Yasushi Murofushi Sarah Pearson Richard W. Reinemann Edward J. Santoro
Arthur U. Mbanefo Thomas C. Murphy Peer T. Pedersen Daniel P. Reingold Olivier P. Sarkozy
John M. McAvoy Peter J. Murray Tod D. Perkins Norbert Reis Guglielmo Sartori di
Claire M. McCarthy Ramaswamy Nagappan Reid Perper Michael Remington Borgoricco
Kevin A. McCarthy Allan W. Nalder Clayton T. Perry Philip J. Remnant Noriaki Sasaki
Rosemary T. McFadden Stefano Natella Anthony M. Pesco Edward J. Resch Robert J. Scanlon
Patrick J. McGarvey Laurence J. Nath A. Markman Peters François Reyl Frank C. Scheuer
Rosemary S. McGee Wendy B. Needham Jake C. Peters Douglas A. Reynolds Paul G. Scheufele
Michael J. McGhee David C. Nelson George Petrides John N. Reynolds Daniel V. Schleifman
John E. McGinty Thomas L. Newberry Anthony M. Petrilli Thomas G. Rice Federico Schlesinger
Jonathan F. McHardy Martin J. Newson Dang T. Phan Eric Richard Lawrence M. Schloss
Patricia J. McLaughlin Nils Nilsen Carlos Pinheiro, Jr. Melanie J. Richmond Michael Schmertzler
Christopher C. McMahon Andrew Norman Harry C. Pinson Gregory P. Richter John E. Schmidt
W. Patrick McMullan III Pedro M. Nunes Steven M. Plag Andrew P. Rifkin Peter H. Schmuki
Robert McMullan George A. Nunn Kenneth E. Plageman Guy P. Rigden Susan C. Schnabel
John F.X. McNally James D. O’Brien Masha M. Plotnitsky Nick Riley J. Christopher Schoen
Jeremy S. Mead Kathleen D. O’Brien Donald E. Pollard M. Roderick Rivera Michael H. Schoen
Scott F. Meadow Robert C. O’Brien Philip B. Pool, Jr. Robert R. Rivett Maurits S. Schouten
Sharon M. Meadows Marc A. Odendall David A. Popowitz Kenneth A. Rivkin George A. Schreiber, Jr.
Simon L. Meadows Scott D. O’Donnell Christian W. Porath Joseph S. Rizzello Mark J. Schroeder
Marcelo Medeiros Fiachra T. O’Driscoll David F. Posnick Philippe Robert Steven R. Schuh
Chris Megalou William S. Oglesby Grant E. Pothast Patricia A. Roberts Chad S. Schultz
Michael Meinhardt Adebayo O. Ogunlesi Jennifer L. Powers John C. Robertshaw Diane Schumaker Krieg
Donald Meltzer Timothy P. O’Hara Fernando Prado Nancy A. Rochford Scott W. Seaton
Simon Menneer Peder Oien Joseph M. Prendergast Carolynn H. Rockafellow Steven E. Seltzer
Alan H. Mentle David C. O’Leary Townes G. Pressler, Jr. G. Davide Rodrigues John C. Sesko
Dena J. Merson James A. Oliverio Malcolm K. Price Luis Alberto Rodrigues Vikas Seth
Janice L. Meyer David D. Olson Simon E. Prior-Palmer Antonio Rodriguez-Pina A. Lee Seward III
Michael G. Meyers Wayne C. Olson Craig A. Puffenberger Peter Roemer Howard Shams
Costas Michaelides Thomas F.X. O’Mara Thomas W. Pulley Matthew S. Roeser David J. Shannon
Peter S. Milhaupt Susumu Omori Zhi Zhong Qiu Douglas E. Rogers William C. Sharpstone
Rodney M. Miller Yoshinori Onaka Charles L. Quaintance Hartley R. Rogers Steven Shaw

32
Brian T. Shea Robert B. Stevens Edward T. Van Tassel Gary H. Yablon H. Elliott Rogers, Jr.
Gillian Sheldon Ewen J. Stevenson George Varughese Steven M. Yanez Clayton J. Rohrbach III
Alan R. Sheriff John E. Stevenson Eric M. Varvel Neil M. Yaris Anne C. Schaumburg
Fred Sherrill Robert T. Stewart Philip S. Vasan Simon D. Yates J. Curtis Shambaugh
Hyun Joe Shin Adam Sticpewich Joseph W. Vencil Edward M. Yorke Alan H. Smith
Tony L. Shiret Andrew G. Stock Matty Vengerik Yvonne Young Neal M. Soss
Eraj Shirvani Thomas D. Stoddard Karen Vernamonti Margaret A. Young Marc H. Steglitz
Barry A. Sholem Carsten H.A. Stoehr Kenneth A. Viellieu Kashif Zafar Peter Thomas
Andrew Shores Charles G. Stonehill Joachim von Schorlemer John Zafiriou Clark R. Van Nostrand
David M. Shriver Rebecca F. Stones Justin J. Vorwerk Ronald F. Zampolin, Jr. Pote P. Videt
Craig S. Sim Kevin Studd James H. Vos Gail S. Zauder John C. Wilson
Hong Boon Sim Stephan Sturm Richard J. Vossler Jr. Ivy L. Zelman William R. Young
James T. Sington Thomas E. Sullivan David M. Wah Arthur Zuckerman
John A. Sipp G.T. Sweeney Thaddeus J. Walkowicz VICE CHAIRMEN
Matthew I. Sirovich Paul T. Sweeney John J. Walsh MANAGING
Lauri A. Sivaslian Jay Kent Sweezey Alastair J. M. Walton DIRECTOR — Richard H. Bott
John A. Sivright, Jr. Marc Tabah Maryann Wasik SENIOR ADVISORS Jonathan R. Davie
Peter O. Skoglund Satoru Tagami Steven A. Webster Simon M. De Zoete*
Dan M. Skolds Mavis B. Taintor David R. Weil Allan J. Baum Honorable Ernie Eaves
David C. Slade Robert E. Tanner Douglas M. Weill Juerg Brand Charles Hale
Bruce H.Slater Joshua B. Tanzer Jamie W. Welch Nicholas O. Brigstocke Steven Koch
Mason C. Sleeper Andrew R. Taussig Henry Wendt Norman H. Brown, Jr. Christopher Lawrence
Robert S. Sloan Colin A. Taylor Benjamin C. Weston Alan P. Budd D. Scott Lindsay
Geoffrey T. Smailes Mark J. Tecotzky Mary L. Whalen Patrick J. Callahan, Jr. Ken Miller
J. Albert Smith Luther L. Terry, Jr. Graham R. Whaling Diana W. Chazaud Robert S. Murley
Allerton G. Smith Sudip V. Thakor Thomas F. Whayne Edward F. Comeau Mark R. Patterson
Edward R. Smith James R. Thomas David P. Wheeler John D. David-Jones Douglas L. Paul
Eric J. Smith Paul Thompson III Robert C. Wheeler Raymond Davis Didier M. Pineau-
Frederick M. R. Smith Daniel W. Thompson R. Alicia Whitaker Jaime De Marichalar Valencienne
Gerard L. Smith David J. Thompson Marc A. White, Jr. Richard B. Dubusc Jonathan Plutzik
Kevin S. Smith William N. Thompson Stewart L. Whitman II Stuart S. Flamberg Luis Rinaldini
Steven D. Smith Roger J. Thomson John N. Whitman Michael M. Fortier Hector W. Sants
Stuart F. Smith Kevin S. Tice Richard H. Whitney Charles B. Gates Mark D. Seligman*
Thomas L. Smith Simon D.T. Till Ashley A. Whittome Gordon T. Hall George B. Weiksner
Vaughn F. Smith Carey H. Timbrell Michael A. Wildish David Han
James R. Socas Earnswell T. Tiu Brendan H. Williams John P. Harriman CHAIRMAN EMERITUS
Marko Soinimaki Glenn H. Tongue Lloyd Williamson John S. Harrison Donaldson, Lufkin
Anatol Sokolov Ethan M. Topper Robert L. Willoughby William W. Higgins & Jenrette, Inc.
Joan S. Solotar Nicholas J. Tortorella Jonathan J. Wilmot Joseph F. Huber
Rakesh Sood Paul Tregidgo Robin W.G. Wilson Thomas W. Keaveney John S. Chalsty
Elon D. Spar William R. Trotter Ronald Kent Wilson Hans Albert Keller
Alison W.M. Sparks David D. Trude William Wilson William J. Kimmel SENIOR ADVISORS
David B. Spaughton Andrew Tuckey Richard K. Winckles Frederick C. Lane
Lawrence D. Sperling Bruce A. Tuckman Richard D. Winter Dennis H. Leibowitz Richard H. Jenrette
Matthew N. Spicer George Twill Lewis H. Wirshba Hamish Leslie Melville John M. Hennessy
Hansruedi Stadler John J. Twomey David M. Wittels Stephen T. Long
Jean-Michel M. Steg Alan L. Tyson Mark Wolfenberger Josiah O. Low III
Maarten G. Stegwee Scott J. Ulm Theodore Wong William P. Melchionni
David R.W. Stephen Andrew S. Umbers Raymond S. Wood Thomas John Moore
Mark Stephens Richard A. Vaccari Peter M. Woodbury Andrea A. Morante
Lee S. Stettner Rajendra J. Vakharia Steven E. Wootton Robert A. Nau
Michael G. Steuerer Bas van Rhijn Roger Wright William S. Pitofsky
Peter J. Stevens John W. Van Poznak Karl R. Wyss Anthony Rebello

* Deputy Chairman, Credit Suisse First Boston (Europe) 33


financial statements

Income Statements
of the Business Unit
Ye a r E n d e d D e c e m b e r 3 1 , 2 0 0 0
a n d Ye a r E n d e d D e c e m b e r 3 1 , 1 9 9 9

PERCENT
DOLLARS IN MILLIONS (UNAUDITED) 2000 1999 CHANGE

Revenue
FID $ 2,91 9 $ 4,464 -35%
Equity 5,07 6 3,212 58%
IBD 3,68 1 2,318 59%
FSG 26 8 — N/A
Other 25 0 (241) N/A

Total Revenue 12,194 9,753 25%


Expenses
Personnel Expense 7,192 5,368 34%
Execution, Clearing and Brokerage 283 293 -3%
Other Operating Expenses 1,893 1,529 24%

Total Expenses 9,368 7,190 30%


Gross Profit 2,826 2,563 10%
Depreciation and Amortization 538 294 83%
Write-downs, Provisions & Losses 322 527 -39%
Pretax Income before Extraordinary /
Exceptional Items and Minority Interest 1,966 1,742 13%
I n c o m e Ta x e s 554 480 15%
Net Income before Extraordinary /
Exceptional Items and Minority Interest $ 1,412 $ 1,262 12%
Extraordinary/Exceptional Items, net — — —
Net Profit before Minority Interest $ 1,412 $ 1,262 12%

(1) The income statements are for the Credit Suisse First Boston global investment banking business unit. They are
based on Swiss accounting rules for banks as modified for revenue presentation and the treatment of execution,
clearing and brokerage costs as an expense rather than as a contra-revenue.
(2) Certain 1999 amounts have been reclassified to conform to the 2000 presentation.

34
Balance Sheets of
the Business Unit

PERCENT
DOLLARS IN MILLIONS (UNAUDITED) 2000 1999 CHANGE

Assets
Cash $ 809 $ 727 11%
Money market papers 16,129 14,327 13%
Due from banks 150,095 105,782 42%
of which securities lending and
reverse repurchase agreements 127,306 84,114 51%
Due from other business units 1,903 1,551 23%
Due from customers 55,810 33,877 65%
of which securities lending and
reverse repurchase agreements 14,124 14,884 -5%
Mortgages 11,970 4,601 160%
Securities and precious metals trading portfolios 117,643 76,874 53%
Financial investments 6,487 3,976 63%
Non-consolidated participations 711 640 11%
Fixed assets 2,337 1,574 48%
Intangible assets 10,637 706 N/A
Accrued income and prepaid expenses 5,583 3,644 53%
Other assets 29,624 26,945 10%
of which replacement value of derivatives 26,904 24,665 9%
To t a l A s s e t s $ 409,738 $ 275,224 49%
L i a b i l i t i e s a n d S h a r e h o l d e r ’s E q u i t y
Liabilities in respect of money paper $ 18,692 $ 18,848 -1%
Due to banks 226,988 139,434 63%
of which securities borrowing and
repurchase agreements 80,595 42,024 92%
Due to other business units 6,011 5,968 1%
Due to customers, in savings and investment deposits 30 69 -57%
Due to customers, other deposits 62,664 43,526 44%
of which securities borrowing and
repurchase agreements 23,163 19,624 19%
Bonds and mortgage-backed bonds 27,804 21,577 29%
Accrued expenses and deferred income 13,805 6,515 112%
Other liabilities 33,621 30,013 12%
of which replacement value of derivatives 30,369 25,436 19%
Valuation adjustments 2,037 1,479 38%
To t a l l i a b i l i t i e s 391,652 267,429 46%
To t a l s h a r e h o l d e r ’s e q u i t y 18,086 7,795 132%
To t a l L i a b i l i t i e s a n d S h a r e h o l d e r ’s E q u i t y $ 409,738 $ 275,224 49%

(1) The above balance sheets are based on Swiss accounting rules for banks. They include allocations from the real
estate units within Credit Suisse Group.

35
management’s discussion
and analysis of
Financial condition
and results of operations

Introduction Market Environment

Credit Suisse First Boston is a leading global investment The equity markets faced many shifts during 2000. The early
banking firm serving institutional, corporate, government and part of the year saw great demand for technology stocks.
individual clients. Its businesses include securities underwriting, During the summer, the stocks of more traditional industries
sales and trading, investment banking and private equity, gained favor only to give way to a rebound in the technology
financial advisory services, investment research, venture sector in the third quarter. By year-end, however, many of
capital, brokerage services for financial institutions and on- the key market indices around the world had declined as
line brokerage services. CSFB is a business unit of Credit compared to 1999. The Dow Jones Industrial Average fell
Suisse Group (“CSG”). 6.2%, the NASDAQ 36.8% and the FTSE 10.2%. The
slowdown of the technology share price expansion, the
CSFB operates primarily within the legal entity Credit Suisse unanticipated increase in fuel prices and indications of weak-
First Boston (the “Bank”), a Swiss bank and a subsidiary ness in the U.S. economy all contributed to the falling markets.
of CSG. The Bank also contains the activities of the Despite the volatility of the markets, primary equity issuances
Credit Suisse Asset Management business unit of CSG. expanded globally both in volume and dollar terms in 2000
Shown herein is financial data for the CSFB business unit, versus 1999. Equity markets, including new issues, were gen-
which constitutes substantially all of the assets and liabilities erally robust throughout 1999, notwithstanding volatility
of the Bank as of December 31, 2000 and 1999, respectively. caused by inflation fears and higher short-term rates.
The results of the CSFB business unit also reflect certain
transactions recorded within CSG subsidiaries other than the The fixed income market was difficult in 2000, impacted by
Bank. More detailed financial information on the Bank and several adverse factors including lower volumes, increased
related unqualified audit opinion is contained in the Annual volatility and the widening of credit spreads. The issuance of
Report of the Bank. high yield securities also fell sharply as compared to 1999.
In 1999, the market environment for CSFB’s fixed income
On November 3, 2000, CSFB merged with Donaldson, products was strong, particularly in the first third of 1999,
Lufkin & Jenrette (“DLJ”). After the merger date and except but slowed considerably thereafter as interest rates rose
for results of the DLJ Asset Management business, the DLJ in response to inflation fears. Y2K concerns also served
results are included in CSFB’s activities. to contract the market towards the end of 1999.

CSFB operates in a highly competitive environment and its


activities are subject to various risks including fluctuations in Results of Operations
trading markets, currency risk, national economic and political
risk and in the volume of market activity. Consequently, CSFB’s CSFB achieved record revenues of $12.2 billion in 2000,
earnings may be subject to fluctuations. While the legal 25% higher than 1999’s revenues of $9.8 billion. Revenues
reporting currency of the Bank is the Swiss franc, CSFB increased substantially in all divisions with the exception of FID,
primarily manages its businesses based on a U.S. dollar which recognized significantly lower revenues due to the diffi-
functional currency, as presented herein, which is consistent cult markets and relative underperformance.
with its earnings and asset mix.
The sources of divisional revenues are primarily realized and
CSFB’s strategic plans contemplate continued investment unrealized net trading gains, net interest income resulting
in its businesses through organic growth and, if appropriate, from trading and lending activities, fee-based earnings from
selective acquisitions. capital markets activities, and commissions on customer
transactions and advisory services. Divisional revenues are
based on Swiss accounting rules for banks as modified for
revenue presentation by the classification of execution, clearing
and brokerage costs as an expense as opposed to a contra-
revenue, and CSFB’s internal management reporting process
in which revenues, including capital markets revenues and
interest costs, are allocated to divisional results. Capital markets
36
revenues and related costs are shared among IBD and FID 1999 reflects reduced results in the fixed income distressed
and Equity, respectively. Divisional revenues for the years markets, which in 1999 included the rebound effect after the
ended December 31, 2000 and 1999 are as follows and 1997 Asia crisis. Additionally, the 1999 Latin America results
include the reclassification of Private Equity from Other to were particularly strong.
IBD and the reclassification of the discontinued real estate
investment group from FID to Other:
Fixed Income
($ MILLIONS) 2000 1999 % CHANGE
FID revenue declined 35% from 1999 reflecting unfavorable
FID $ 2.919 $ 4,464 -35%
Equity 5,076 3,212 58% fixed income markets, characterized by lower volumes,
IBD 3,681 2,318 59% increased volatility and the widening of credit spreads, and the
FSG 268 — n/a impact of risk reduction policies established in 1998. However,
Other 250 (241) n/a
the division adopted a new strategic plan in 2000 emphasizing
$ 12,194 $ 9,753 25%
growth in customer businesses. The emerging-markets results
dropped significantly versus 1999 mostly due to the approxi-
mately $400 million decline in revenue from Latin America.
The geographic distribution of revenues and employees for the CSFB, however, did reduce its risk profile in emerging markets
years ended December 31, 2000 and 1999 are as follows: by 14%. The division’s distressed trading activity suffered one
of the largest fall-offs, accounting for approximately one-third
of the division’s year-to-year decline, whereas 1999 had par-
2000 REVENUES ticularly strong results in distressed trading activity due to the
Asian rebound. The money market and foreign exchange busi-
51% North America nesses also experienced revenue erosion, with both segments
dropping approximately 35% from their 1999 levels. But, more
13% Latin America/Asia
positively, the credit product, interest rate product, listed deriv-
36% Europe
atives and precious metal segments all had strong results
approximately equal to 1999, and the fund-linked derivatives
group increased its revenue by approximately 50%. Significantly,
CSFB retained its number four ranking in global debt
2000 EMPLOYEES issuances and increased its market share modestly. In the high
yield sector, for 2000, the Firm ranks number one with a
64% North America 21% market share (pro forma basis).

11% Latin America/Asia

25% Europe
Equity

For the first time, Equity was the highest revenue generating
division in the Firm. With revenue in excess of $5.0 billion,
1999 REVENUES the division reported an increase of 58% versus the prior year.
Every region and business line in the division exceeded its
42% North America 1999 result. The cash businesses, principally through com-
mission and market-making activity, generated a 65% increase
23% Latin America/Asia versus 1999. The U.S. sector was the standout contributing
an increase of approximately $750 million, but Europe’s
35% Europe
increase of 50% and Latin America’s doubling of prior year
results are also noteworthy. Market share in both U.S. listed
and OTC secondary securities have increased by almost
1999 EMPLOYEES 20%, and 30% respectively. Additionally, the U.S. equity
research team is ranked number one on a pro forma basis.
38% North America
The division’s derivatives business has also performed
17% Latin America/Asia exceedingly well with revenues increasing by approximately
55% versus 1999 and contributing approximately one-third
45% Europe
of the division’s year-to-year increase. The index arbitrage
area profited from large volatilities in the market and the
convertible securities and OTC derivatives businesses gained
from strong customer demand.
The DLJ merger and particularly strong U.S. equity capital
markets and M&A results in 2000 have contributed to the Equity revenue, including gross capital markets revenue,
increased prominence of the North America region. The exceeded $5.8 billion and $3.7 billion for the years ended
decline in the 2000 Latin America/Asia revenues versus December 31, 2000 and 1999, respectively.
37
Financial Services Other

The Financial Services Group became part of CSFB following In 1999, CSFB restructured the real estate investment group
the merger with DLJ and is comprised of three businesses. and initiated a strategy to substantially reduce risk concentra-
Pershing is a leading provider of execution, settlement, clear- tions. The activity from this discontinued business has been
ance and a wide range of services and technology solutions transferred from FID to Other with 1999 now reflecting a
to financial institutions worldwide. On average, Pershing loss as a result of recorded reserves. In 2000, economic
cleared over 200,000 trades per day during 2000 for more risk capital allocated to real estate is down approximately
than 3.9 million active customers. Private Client Services 40% from 1999 levels. The other division also includes
delivers a full range of wealth management services to high- corporate items and certain treasury activities.
net-worth individuals. CSFBdirect provides on-line Internet
brokerage services to self-directed investors. CSFBdirect Expenses
also includes a technology group, iNautix, which designs,
develops and hosts e-commerce solutions. CSFBdirect has Total operating expenses have increased 30% versus 1999.
over 520,000 active customer accounts worldwide, with Approximately two months of costs associated with DLJ are
nearly $23 billion in assets, and averaged 21,800 trades per included in CSFB’s results.
day in the period after the merger.
CSFB, which operates in an industry with very competitive
Investment Banking pay practices, has increased staff costs by 34% over the
preceding year. The rise in personnel costs reflects an increase
IBD’s 2000 revenues increased by 59% over 1999 with in headcount, an increase in incentive compensation awards
approximately 70% of the increase attributable to M&A and and the associated payroll taxes commensurate with the
equity capital markets, particularly in the American region. year’s greater contribution, particularly in Equity and IBD, and
The M&A team increased their revenue by nearly 70% versus a continued commitment on the part of the Firm to invest in
1999 and expanded their market share from 15.4% one select key areas. By October 2000, or prior to the DLJ
year ago to 27.0%. In terms of announced deals CSFB, on acquisition, headcount had increased 9% from year-end 1999.
a pro forma basis, is number three globally and number two in After the completion of the DLJ acquisition, the number of
the U.S. The Firm earned credit for participating in more CSFB employees rose to over 28,000, an increase of over
deals, over 700, than any of our competitors. On a year-to- 85% from 1999. CSFB’s staff costs as a percent of revenues
year basis, revenue generated from primary equity issuances was 59% for 2000, which is slightly higher than its com-
has risen by over 50%. Once again, results in the U.S. were petitors and reflects the impact of the FID revenue decline
extremely encouraging, rising over 75% from 1999 levels. and the investment in building our customer businesses.
CSFB’s share of equity capital market issuances globally and
in the U.S. is number four and number two, respectively. Other operating expenses include costs for communications
and equipment, professional services, occupancy and busi-
IBD revenues, inclusive of gross debt and equity capital ness development. The distribution of operating expenses for
markets revenues, exceeded $4.6 billion and $3.0 billion for 2000 and 1999 was as follows:
the years ended December 31, 2000 and 1999, respectively.
2000 1999
Although accounting for lesser percentages of the division’s Communication and Equipment 22% 21%
results, CSFB’s private placement business has more than Professional Services 31% 31%
Occupancy 13% 17%
doubled its 1999 results. The Firm maintained its number
Business Development 17% 16%
four rank in the debt sector and increased its market share All Other 17% 15%
from 7.0% to 9.1%. Revenues from leasing and lending
activities declined in 2000 versus 1999.
These costs have increased 24% from the preceding year,
Additionally, the division includes CSFB’s Private Equity much of it in response to increased pressures from expanded
business. The $262 million revenue for the Private Equity business activity. Volume-sensitive costs such as travel, com-
segment is primarily the result of the sale of a strategic munications and technology reflect the influence of increased
investment and the disposition of fund investments. The users and deal flow. 2000 also included advertising costs
breadth of this business has increased significantly as a associated with CSFB’s rebranding initiative. With the theme
result of the DLJ merger. Through a variety of funds, the of “Empowering Change,” CSFB launched a campaign
group invests generally in unlisted and illiquid equity and designed to differentiate the Firm in the global marketplace
equity-linked securities, in venture capital endeavors and in and provide a platform from which to communicate the Firm’s
leveraged buyouts. At year-end, Private Equity had committed leadership position in the industry. Additionally, CSFB continued
capital under management of approximately $22 billion. to invest in infrastructure projects.

38
Write-Downs, Provisions and Losses A restructuring charge of approximately $865 million, primarily
associated with severance payments to employees, elimination
Although provisions for the restructured real estate investment of redundant office facilities and write-off of related assets, is
group have increased from 1999, write-downs, provisions reflected in the financial statements of the Bank.
and losses in total decreased due to the release of a number
SCHRODERS ACQUISITION
of credit provisions related to the 1998 economic collapse of
During 2000, CSFB completed the acquisition of the
Russia. Specifically, credit provisions had been made against
Japanese cash equities division of Schroders. The key
forward contracts, loans, reverse repurchase agreements, and
employees of the acquired business agreed to join CSFB.
other assets and derivative contracts involving Russian prod-
The acquired business employed over 100 people largely in
ucts and/or Russian counterparties. At December 31, 2000
Tokyo, with related separate teams in London, Zurich and
and 1999, CSFB’s credit provisions related to Russia totaled
New York. The transaction has facilitated the growth of
approximately $166 million and $790 million, respectively.
CSFB’s Japanese equities business.
At December 31, 2000 and 1999, CSFB’s credit provision
balances related to the real estate investment group totaled GARANTIA ACQUISITION
approximately $450 million and $100 million, respectively. Pursuant to a retention plan established with the 1998 pur-
chase of Banco de Investimentos Garantia S.A., and certain
CSFB also has substantial credit provisions related to loans of its affiliates (collectively “Garantia”), additional consideration
outstanding in Asia. CSFB’s credit provisions related to Asia may become payable, principally to continuing employees of
totaled approximately $310 million and $410 million at Garantia, should Garantia meet certain performance targets.
December 31, 2000 and 1999, respectively. If the performance targets are met, additional goodwill of
$135 million will be recognized in June 2001.
Also contained in write-downs, provisions and losses are vari-
ous litigation provisions as well as amounts relating to other
credit-sensitive trading operations. Additional information on Liquidity and Capital Resources
write-downs, provisions and losses, and related exposures is
contained in the Bank’s and CSG’s Annual Reports. Assets and Leverage

Income Taxes CSFB maintains a liquid balance sheet with a majority of the
Firm’s assets consisting of marketable securities inventories,
CSFB’s effective tax rate in both 2000 and 1999 was other trading positions and collateralized financing agree-
approximately 28%. CSFB’s significant geographic diversifi- ments. Collateralized financing agreements consist of resale
cation results in widely dispersed income tax expense on agreements and securities lending predominantly secured by
earnings. Consequently, this rate represents a blended tax government and corporate obligations. Levels of trading
rate of the various jurisdictions in which CSFB operates. inventory and collateralized financing agreements are depend-
ent on market conditions, volume of activity and customer
needs. Accordingly, CSFB’s total assets and financial leverage
Acquisitions and Investments can fluctuate significantly.
DLJ ACQUISITION

On November 3, 2000, DLJ became an indirect wholly CSFB, as part of its investment banking and fixed income
owned subsidiary of CSG and changed its name to Credit emerging-market activities, also maintains a loan portfolio. In
Suisse First Boston (USA), Inc. (“USA”). Total consideration addition, as part of CSFB’s fixed income activities, trading
paid to AXA, S.A. and certain affiliates, the former ultimate inventories include emerging-markets positions, whole loans,
parent of DLJ, included (i) 25,727,167 newly issued shares leveraged funds and high yield securities. CSG and its sub-
of CSG and (ii) approximately $2.4 billion in cash. AXA, S.A. sidiaries also make private equity investments through the
subsequently sold its shares of CSG. Additionally, approxi- Private Equity segment of Investment Banking.
mately $5.0 billion of cash consideration was paid to public
shareholders pursuant to a tender offer of $90.00 per share. Total assets at December 31, 2000 had increased when
As a result of the acquisition, approximately $9.0 billion of compared with total assets at December 31, 1999, reflecting
goodwill and intangible assets, net of deferred taxes, were increases in trading positions and securities lending and repo
added to CSFB’s balance sheet. businesses as well as the DLJ merger. CSFB’s ability to
support increases in total assets is a function of its ability to
In connection with the acquisition, a retention plan has been obtain short-term secured and unsecured funding and to
established for certain DLJ employees. The retention plan access long-term capital markets.
provides for grants of CSG shares, which vest over a three-
year period, for future services above current compensation
levels. Additionally, a certain amount of employee loans will
be forgiven over a four-year period. The cost of these one-
time items is approximately $1.3 billion and will be expensed
over these designated periods within personnel expenses.

39
Funding and Capital Strategy The Bank’s access to external financing is dependent on the
short- and long-term credit ratings of the Bank and certain of
FUNDING its subsidiaries. The cost and availability of external funding is
The Bank has a broad-based worldwide funding franchise. generally a function of the ratings. As of the date hereof, the
Global short-term funding is managed by a centralized Bank’s debt ratings were as follows:
financing unit, which oversees local funding operations. This
global funding function provides coordination and control of
LONG-TERM
pricing and funding tactics, while the local market presence
SHORT- Senior Junior
provides for investor diversity and access to unique market TERM Senior Subordinated Subordinated
opportunities. The Bank aims to continually broaden its funding M o o d y ’s P-1 A1 A2 A2
base by geography, investor and instrument type. S&P A-1+ AA AA- A+
F i t c h /B a n k Wa t c h F-1+ AA AA- AA-
The Bank’s funding sources include interest-bearing and non-
interest-bearing deposits, commercial paper, certificates of
deposit, federal funds purchased, medium-term notes, long- Following the completion of the DLJ merger, the long-term
term debt, capital securities and shareholder’s equity. The existing debt of USA was upgraded by all the rating agencies
Bank places particular emphasis on a large base of well- and the short-term ratings were upgraded by Moody’s and
diversified and historically stable fiduciary deposits for its day- S&P and affirmed by Fitch and BankWatch. The chart below
to-day funding needs. Notwithstanding the historic stability of shows these changes:
the Bank’s unsecured funding sources, CSFB has a secondary
source of liquidity flowing through its broker/dealer businesses.
CSFB can access significant liquidity through the secured PRE-MERGER P O S T- M E R G E R

funding markets (repurchase agreements and other collater- Short- Long- Short- Long-
Te r m Te r m Te r m Te r m
alized arrangements), which have proven reliable in high-stress
M o o d y ’s P-2 A3 P-1 A1
environments. This secondary source of liquidity is an important
S&P A-2 A- A-1+ AA-
means of ensuring availability of alternative funding for the pur- Fitch IBCA Ltd. F-1 A F-1 A+
pose of meeting business plans and commercial commitments. B a n k Wa t c h T B W- 1 A+ T B W- 1 AA-

Finally, CSFB’s liquidity (i.e., unsecured and secured sources)


is continually monitored to ensure that the Firm can meet its
In 2001, the Bank intends to pay a dividend of 10 million
business objectives through various high-stress scenarios.
Swiss francs to its shareholder. In 2000, the Bank paid a
dividend of 1,322 million Swiss francs to its shareholder.
To provide back-up liquidity, the Bank, through its subsidiaries,
has a number of committed revolving credit facilities with var-
The Bank and its subsidiaries are subject to various capital
ious banks that, if drawn upon, would bear interest at short-
requirements imposed by various regulatory bodies around
term rates. These facilities are for general corporate purposes.
the world, including the Swiss Banking Commission. At
This facility provides for borrowings of up to $4.295 billion
December 31 2000, the Bank was in compliance with these
during 2001. As of the date hereof, there were no amounts
requirements. At December 31, 2000, the Bank had a BIS
outstanding under these facilities.
Tier 1 and total capital ratio of 13.6% and 22.2%, respectively,
CAPITAL STRATEGY compared with 9.9% and 17.9% at the end of the prior year.
The Bank and its subsidiaries issue long-term debt through
various U.S. and Euro Medium-Term Note Programs as well Risk Management
as syndicated and privately placed offerings around the
world. To satisfy Swiss and local regulatory capital needs of GENERAL APPROACH

its regulated subsidiaries, the Bank raises subordinated long- The general risk management policy of CSG serves as the
term borrowings. At December 31, 2000, the Bank had basis for CSFB’s risk management programs. The primary
long-term debt (including the current portion) of $28 billion, responsibility for risk management lies with CSFB’s senior
with $9 billion representing subordinated debt. The Bank business line managers. They are held accountable for all
expects to continue to access the capital markets to support risks associated with their businesses, including credit risk,
the Bank’s existing businesses, as well as any new business market risk, liquidity risk, legal risk, reputational risk and
initiatives and their capital and funding requirements. operating risk, and are responsible for supplementing CSFB’s
independent controls by maintaining adequate internal control
During 2000, the Bank issued $643 million of subordinated systems. The risk management programs are designed to
debt and $555 million of qualified Tier 1 capital. ensure that there are sufficient independent controls to monitor
all risks properly.
In selecting the most appropriate funding sources at any point
in time, such factors as market conditions, interest rate levels, The CSG Board of Directors is responsible for determining
liquidity needs and maturity profile objectives are considered. the general risk policy and risk management strategy of
Further, in order to manage interest rate, currency and other CSFB. The Board of Directors approves the overall market
risks associated with the above borrowings, the Bank has risk ceiling, reviews risk exposure on a quarterly basis, and
entered into various derivative transactions. approves country limits and other risk ceilings.
40
MANAGEMENT OF OTHER RISKS Country Management serve as an additional line of control
Other business-specific risks are managed primarily through and concentrate on regulatory and reputational issues, super-
designated groups and committees within the different divi- vise legal entities and support management in efforts to
sions. These committees include groups that address improve the control environment. This oversight function works
Investment Banking and Private Equity transactions and new with business and Finance, Administration and Operations
business initiatives. In addition, to supplement its control executives to monitor and enhance CSFB’s controls.
environment, CSFB has an oversight function that is structured Various control committees act as clearinghouses for certain
regionally to complement CSFB’s functional organization. control issues. The Legal and Compliance department advises
The oversight functions consists of (i) selected Executive CSFB on how to conduct its businesses and other activities
Board members who have overall responsibility for oversight in compliance with applicable laws, rules and regulations and
in their respective regions, (ii) regional oversight managers assists in setting compliance policies and ethical standards.
who assist the Executive Board members with this responsi-
bility and (iii) a country manager in each country who Additional disclosure on CSFB’s risk management practices
manages local oversight issues. Regional Oversight and is contained in the Bank’s Annual Reports.

41
office locations
The Americas
Atlanta Chicago Montreal São Paulo
Georgia Pacific Center AT&T Corporate Center 1250 Rene Levesque Boulevard Avenida Brigadeiro Faria
133 Peachtree Street N.E. 227 West Monroe Street West Lima, 3064
40th Floor Chicago, IL 60606-5016 Suite 3935 01451 000 São Paulo, SP
Atlanta, GA 30303-1841 USA Montreal H3B 4W8 Brazil
USA phone 312 750 3000 Canada phone 55 11 3841 6000
phone 404 656 9500 phone 514 933 8774
200 West Madison Street To r o n t o
One Atlantic Center Chicago, IL 60606 Nassau One First Canadian Place
1201 West Peachtree Street, N.E. USA Bahamas Financial Centre Suite 3000
Atlanta, GA 30309 phone 312 345 6000 4th Floor P.O. Box 301
USA Charlotte & Shirley Street Toronto, Ontario M5X 1C9
phone 404 897 3300 Dallas P.O. Box N 4928 Canada
2900 Texas Commerce Tower Nassau phone 416 352 4500
Bala Cynwyd 2200 Ross Avenue Bahamas
401 City Line Avenue Dallas, TX 75201 phone 242 356 8100 Washington, DC
Bala Cynwyd, PA 19004 USA The Franklin Tower
USA phone 214 979 4000 N e w Yo r k 1401 Eye Street NW
phone 610 660 8900 Eleven Madison Avenue Suite 910
Houston New York, NY 10010 Washington, DC 20005
Baltimore 600 Travis Street, Suite 3030 USA USA
First Union Signet Tower Houston, TX 77002-3003 phone 212 325 2000 phone 202 354 2600
7 Saint Paul Street USA
Suite 500 phone 713 220 6700 277 Park Avenue
Baltimore, MD 21202 New York, NY 10172
USA Wells Fargo Plaza USA
phone 410 223 3000 1000 Louisiana Street phone 212 892 3000
Houston, TX 77002
Harborplace Tower USA Palo Alto
111 South Calvert Street phone 713 652 6000 2400 Hanover Street
Suite 1810 Palo Alto, CA 94304
Baltimore, MD 21202 Los Angeles USA
USA 2121 Avenue of the Stars phone 650 614 5000
phone 410 659 8800 Los Angeles, CA 90067
USA 1510 Page Mill Road
Boston phone 310 282 6100 Palo Alto, CA 94304-1135
100 Federal Street USA
30th Floor Mexico phone 650 614 1600
Boston, MA 02110-1802 Campos Eliseos #345
USA Piso 9 Pasadena
phone 617 556 5500 Edificio Omega Two North Lake Avenue
Col. Chapultepec Polanco Suite 860
One Boston Place 11560 Mexico, D.F. Pasadena, CA 91101
30th Floor Mexico USA
Boston, MA 02108 phone 52 5 283 89 00 phone 626 395 5100
USA
phone 617 854 7100 Miami Philadelphia
One Biscayne Tower 11 Penn Center
75 State Street
Two South Biscayne Boulevard 10th Floor
Boston, MA 02109
Miami, FL 33131 Philadelphia, PA 19103-2929
USA
USA USA
phone 617 342 8000
phone 305 347 2000 phone 215 851 1000

Buenos Aires
Monterrey San Francisco
Esmeralda 130
Ave. de la Industria #555-B 201 Spear Street
Piso 22
Piso 5 San Francisco, CA 94105
1035 Buenos Aires
Fracc. Santa Engracia USA
Argentina
Garza Garcia, N.L. 66267 phone 415 836 7600
phone 54 11 4131 2700
Mexico
phone 528 335 4024 600 California Street
Avenida Bouchard #547
San Francisco, CA 94108
Piso 11
USA
1106 Buenos Aires
phone 415 904 4510
Argentina
phone 54 11 4312 3505
650 California Street
San Francisco, CA 94108
USA
phone 415 249 2100

42
Africa, Europe and
Middle East
Amsterdam Limassol Warsaw
Honthorststraat 19 100 Christodoulou Hadjipavolou FIM Tower, XIII Floor
1071 DC Amsterdam Avenue Al Jerozolimskie 81
The Netherlands P.O. Box 57530 02 001 Warsaw
phone 31 20 5754 890 3316 Limassol Poland
Cyprus phone 48 22 695 0050
Budapest phone 357 534 12 44
Nagy Jeno U.12 Zug
H 1126 Budapest London Bahnhofstrasse 17
Hungary One Cabot Square P.O. Box 234
phone 36 1 202 2188 London E14 4QJ CH 6301 Zug
United Kingdom Switzerland
Cairo phone 44 20 7888 8888 phone 41 41 727 97 00
21 Charles de Gaulle Street
Nile Tower, Floor #24, Giza Lugano Zurich
P.O. Box 224 El Dokki Via Canova 15 Uetlibergstrasse 231
Egypt P.O. Box 2836 P.O. Box 900
phone 202 567 7600 CH 6900 Lugano CH 8070 Zurich
Switzerland Switzerland
Frankfurt phone 41 91 802 6000 phone 41 1 333 55 55
MesseTurm
60308 Frankfurt am Main Madrid
Germany Ortega y Gasset 22-24
phone 49 69 75 38 0 28006 Madrid
Spain
Geneva phone 34 91 423 1600
59 Route De Chancy
P.O. Box 900 Milan
CH 1211 Geneva 70 Via Turati 9
Switzerland 20121 Milano
phone 41 22 394 70 00 Italy
phone 39 02 7702 1
67 rue du Rhone
CH 1024 Geneva Moscow
Switzerland 5 Nikitsky Pereulok
phone 41 22 718 1500 Moscow 103 009
Russia
Istanbul phone 7 501 967 8200
Buyukdere Caddesi
Ali Kaya Sokak Paris
Polat Plaza B Blok 21 Boulevard de la Madeleine
No. 4 Kat 13 F-75038 Paris
80840 Levent, Istanbul Cedex 01
Turkey France
phone 90 212 278 2500 phone 33 1 40 76 88 88

Johannesburg 21/25 Rue Balzac


Sandton City Office Tower F-75008 Paris
9th Floor Cedex 08
5th Street, Corner Rivonia Road France
2196 Sandton phone 33 1 53 75 86 00
Republic of South Africa
phone 27 11 505 00 00 Prague
Staromestske Nam. 15
Ground/1st Floor 110 00 Prague 1
Jan Smuts Office Park Czech Republic
Rosebank Corner phone 420 2 210 83111
Jan Smuts Avenue
Parktown North Vienna
Republic of South Africa Palais Corso
phone 27 11 343 22 00 Mahlerstrasse 12/15
1010 Vienna
Kiev Austria
34 Chervonoarmiyska Street phone 43 1 512 3023
01004 Kiev
Ukraine
phone 380 44 247 1900

43
Asia/Pacific
Auckland Mumbai
The ANZ Centre 35/39 Free Press House
23-29 Albert Street 3rd Floor
Level 20 215 Free Press Journal Marg
Auckland Naiman Point
New Zealand Mumbai 400 021
phone 64 9 302 5500 India
phone 91 22 230 6333
Bangkok
Abdulrahim Place, 27th Floor Seoul
990 Rama IV Road Hanwha Building, 13th Floor
Kwaeng Silom, Khet Bangrak 100 Sokong Dong
Bangkok 10500 Chung Ku
Thailand Seoul 100 070
phone 66 2 614 6000 Korea
phone 82 2 3707 3700
Beijing
Silver Tower, 31st Floor Shanghai
2 Dong San Huan Bei Road South Tower, 17th Floor
Beijing 100027 Stock Exchange Building
People’s Republic of China 528 Pudong South Road
phone 86 10 6410 6611 Pudong, Shanghai
People’s Republic of China
Hong Kong phone 86 21 6881 8418
Two Exchange Square
45th Floor Singapore
8 Connaught Place One Raffles Link
Central, Hong Kong #03-01
People’s Republic of China Singapore 039393
phone 852 2101 6000 phone 65 212 2000

Jakarta Sydney
Danamon Aetna Life Building Gateway Level 31
24th Floor 1 Macquarie Place
Jalan Jenderal Sudirman Kav. 45 Sydney, New South Wales 2000
Jakarta 12930 Australia
Indonesia phone 61 2 8205 4400
phone 62 21 577 0762
Ta i p e i
Kuala Lumpur Union Enterprise Plaza
Menara Keck Seng 6th Floor
Suite 27-02, 27th Floor No. 109, Section 3
203 Jalan Bukit Bintang Min Sheng East Road
55100 Kuala Lumpur Taipei
Malaysia Taiwan
phone 60 3 242 5199 phone 886 2 2715 6388

Labuan 260 Tun Hwa North Road


Main Office Tower 3rd Floor
Level 10 B Taipei
Financial Park Labuan Taiwan
87000 Labuan F.T. phone 886 2 8712 5222
Malaysia
phone 60 87 425 381 To k y o
Shiroyama Hills, 26th Floor
Manila 4-3-1 Toranomon
The Enterprise Center Minato Ku
18th Floor, Tower 2 Tokyo 105-6002
Ayala Avenue Corner Japan
Paseo de Roxas phone 81 3 5404 9000
Makati City
Philippines Wellington
phone 63 2 886 5670 Caltex Tower
282-292 Lambton Quay
Melbourne Level 10
101 Collins Street, 27th Floor Wellington
Melbourne, Victoria 3000 New Zealand
Australia phone 64 4 474 4400
phone 61 3 9280 1666

44
CSFBdirect/Pershing/
Sprout
CSFB DIRECT London PERSHING San Francisco
DLJdirect 505 Sansome Street
Charlotte Capstan House Charlotte San Francisco, CA 94111
2105 Water Ridge Parkway East India Dock 2105 Water Ridge Parkway USA
Suite 300 London E14 2BH Suite 310 phone 415 398 3565
Charlotte, NC 28217 United Kingdom Charlotte, NC 28217
USA phone 44 20 7864 8000 USA London
phone 704 423 9898 phone 877 413 3368 Pershing Limited
DLJdirect Capstan House
One Lake Point Moorgate Hall Chicago East India Dock
4235 South Stream Boulevard 155 Moorgate 3rd Floor 111 West Jackson Boulevard London E14 2BH
Charlotte, NC 28217 London EC2M 6XB Chicago, IL 60604 United Kingdom
USA United Kingdom USA phone 44 20 7864 8000
phone 704 423 4898 phone 44 20 7866 3550 phone 312 322 1850
Pershing Limited
Delray Beach Dubai Florham Park Maritime House
16950 Jog Road, Suite 111 DLJdirect-eUnion 6 Vreeland Road 1 Linton Road
Delray Beach, FL 33446 Dubai Internet City Florham Park, NJ 07932 Barking
USA Building 1, Office 304 USA IG11 8HG
phone 561 638 5889 Dubai phone 973 360 3001 United Kingdom
United Arab Emirates phone 44 20 7864 8000
Jersey City phone 971 4 391 2030 19 Vreeland Road
Harborside Financial Center Florham Park, NJ 07932 To k y o
Plaza II To k y o USA Toyosu Center Building
Jersey City, NJ 07311 DLJdirect SFG Securities phone 973 360 3001 3rd Floor
USA Takebashi Yasuda Building 8F 3-3-3 Toyosu
phone 201 308 2525 -13 Kanda Nishikicho, Chiyoda-ku Jersey City
Koto-sku
Tokyo 101-0054 One Pershing Plaza
N e w Yo r k Japan Tokyo 135-6003
Jersey City, NJ 07399
300 Park Avenue phone 813 5282 7510 USA Japan
New York, NY 10022 phone 201 413 2000 phone 813 5548 7810
USA Hong Kong
phone 212 750 8023 Hutchinson CSFBdirect, Ltd Harborside Financial Center SPROUT
Suites 1705-11, 17th Floor Plaza III
Sandy Cityplaza One Jersey City, NJ 07311 Chicago
150 West Civic Center Drive 1111 King’s Road USA 200 West Madison
Sandy, UT 84070 Taikoo Shing, Hong Kong phone 201 536 5400 5th Floor
USA People’s Republic of China
Chicago, IL 60606
phone 801 617 5222 phone 852 2121 0088 Los Angeles
USA
777 South Figueroa
phone 312 345 8275
Los Angeles, CA 90017
USA
Menlo Park
phone 213 624 6100
3000 Sand Hill Road
Mt. Prospect Building 3, Suite 170
Menlo Park, CA 94025
1331 Business Center Drive
USA
Mt. Prospect, IL 60056
phone 650 234 2700
USA
phone 847 391 6300
N e w Yo r k

Oak Brook 277 Park Avenue


New York, NY 10172
1515 West 22nd Street
USA
Suite 1000
phone 212 892 3600
Oak Brook, IL 60523
USA
phone 630 472 7400

The terms “Credit Suisse First Boston,” “CSFB,” “Firm,” “we” and “our” in this Annual Review typically refer to the business
unit (versus the legal entity, which has the same name but also includes Credit Suisse Asset Management and certain real
estate assets and which is referred to herein as the “Bank”).

This Annual Review was prepared by the Corporate Communications Department of Credit Suisse First Boston and includes
the most current information through April 1, 2001. Additional copies and/or additional information can be obtained on the
Internet at www.csfb.com or through Corporate Communications in New York, London or Hong Kong.

© Copyright 2001, Credit Suisse First Boston


Issued in the United Kingdom by DESIGN Russell Design Associates, NYC
Credit Suisse First Boston (Europe) Ltd: regulated by SFA. EDITORIAL Jamieson Witty Associates, NYC
Uetlibergstrasse 231
P.O. Box 900
CH-8070 Zurich
Switzerland

One Cabot Square


London E14 4QJ
United Kingdom

Eleven Madison Avenue


New York, NY 10010-3629
USA

w w w. c s f b . c o m