Alexander Hamilton Best Practice Summit October 28, 2008 Tennecos - PowerPoint PPT Presentation

Tenneco’s Worldwide Automated Liquidity Management Solution Gary Silha, CTP Assistant Treasurer Tenneco Inc. Alexander Hamilton Best Practice Summit October 28, 2008

Tenneco’s Worldwide Automated Liquidity Management Solution Example Principal SUB SUB 1 SUB 2 SUB 3 SUB 4 Principal SUB SUB 1 SUB 2 SUB 3 SUB 4 Pool Acct Pool Acct Pool Acct Pool Acct Pool Acct Pool Acct Pool Acct Pool Acct Pool Acct Pool Acct + 1.0 Mil EUR + 2.0 Mil GBP - 3.0 Mil PLN - 4.0 Mil SEK USD Equiv. = + $3,969,000 = ($1,348,000) = ($673,000) = + $1,578,000 $3,526,000 Wire Wire Wire Wire Transfer Transfer Transfer Transfer SUB 1 SUB 2 SUB 3 SUB 4 SUB 1 SUB 2 SUB 3 SUB 4 Local Bank Local Bank Local Bank Local Bank Local Bank Local Bank Local Bank Local Bank Alexander Hamilton Best Practice Summit 2

Tenneco’s Worldwide Automated Liquidity Management Solution Automating the transfer of funds to / from the Tenneco subsidiary Notional Cash Pool accounts Alternative A Alternative B Alternative C Pool Bank Driven Subsidiary Bank Driven End of Day ZBA Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Pool Pool Pool Pool Pool Pool Account Account Account Account Account Account MT940 & MT101 Swift OR Swift MT101 Swift MT940 & End of End of 942 (Request 103 103 (Request 103 942 Day Day (Balance for Wire) Wires Wire for Wire) Wire Message (Balance Sweep Sweep OR s) Message Subsidiary Subsidiary Subsidiary s) Subsidiary Subsidiary Subsidiary Local Local Local Local Local Local Account Account Account Account Account Account Alexander Hamilton Best Practice Summit 3

Efficiencies Achieved Strategic intent delivered: • Built a state of the art global treasury operation through automation, paying down U.S. external debt daily with a “dollarized” view of global balances to make single funding / investment decisions, without subsidiary involvement Operational Efficiencies: • Increased visibility and control of the Company’s worldwide cash • Elimination of intercompany loan structure and administration, documentation requirements • Automation of multi-currency transfers to / from treasury centre • Reduction of daily FX activity, admin, spreads • Reduction in scope of outsourcing arrangement, fee reduction • Same day debt reduction in NA by 9:30 am Chicago time • Elimination of the daily subsidiary cash management function saving an estimated 58 man-hours per day Financial Efficiencies: • Consolidation of balance management with single bank providing lower transaction pricing • Reduced administrative and operational expense of $1.7 million annually Alexander Hamilton Best Practice Summit 4

Team Members Gary Silha Assistant Treasurer Tenneco Inc. Lesley Vogt Controller Tenneco Europe Limited Nitixa Patel Senior Treasury Analyst Tenneco Inc. Sharon Brouillette V.P. Transaction Banking The Royal Bank of Scotland (RBS) Group Vanessa Manning V.P. Client Advisory Group The Royal Bank of Scotland (RBS) Group Marco Reategui V.P. Global Treasury Advisory The Royal Bank of Scotland (RBS) Group Alexander Hamilton Best Practice Summit 5

Contacts Gary Silha Tenneco, Inc. Assistant Treasurer 500 North Field Drive Lake Forest, Illinois 60045 Tel: (847 482 5081) Email: gsilha@tenneco.com www.tenneco.com Alexander Hamilton Best Practice Summit 6