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BUILDING TOMORROW™ Introduction to Personal debt Capital Market segments Craig Rydqvist rbs. com/gbm Introduction My own background Finance sector focussed education and experience however, not ‘traditional’ IB route Education • • First degree – BSc in Management Research, Postgraduate – MSc Professionals in Financial (part-time). Job history • • • KPMG – Economic Sector Review and Talking to (ACA), Barclays Capital – Finance then Trading and Structuring, RBS – Financial followed by DCM Origination.

Current Role • • • •

Director – Channel Origination, Offer side origin, execution and structuring, Get side purchase analysis as RBS is ultimate gambler, Line Manager for Global Banking Analyst Programme. Fully developed version of Will in the Inbetweeners RBS00000 3 Xin Miao – 2nd 12 months Analyst, DCM Appears intended for Investment banking… didn’t really know what they were! Education , Job history • • • LSE BSc in Accounting , Finance RBS Easter internships (DCM) RBS Summer internship (FI DCM) Current Part •

RBS Graduate plan – Initially rotation: Investment grade corporate and business bond application – Second rotation (outside DCM): Energy , Methods sector RBS00000 4 RBS Investment Banking Model GBM GBM financial GBM markets Clients Equities Origination Company DCM and Risk solutions Syndicate FI DCM / FISF Sector and Corporate Finance Client Management Trading Sales Investors Company and FIG coverage Exploration and approach Origination GBM Operations Division RBS00000 5 DCM Products DCM Items are different and lie on a variety between marketplace facing and structured • • • • • Corporate Expense Grade You possess Financial Institution Financial debt High Deliver Debt The liability Management Financial loan Origination and Syndication Methodized Finance – Securitisation – Covered Provides – FI Hybrids – Structured Company Debt • • Private Placements Scores Advisory RBS offers the total package of DCM products RBS00000 6 What DCM Originators carry out Origination Romance Building Distribution Client pitches Beauty displays Market Insurance coverage Peer Group Benchmarking Charges Documentation Roadshows Investor get in touch with Best deal pertaining to client

Constant dialogue with clients • Pitching as well as responding to Demands for Proposal • A sign pricing and market comments • Delivery Development of a diverse skill-set • Analysis of market trends (historical and current) • Presentation abilities • Ability to work around teams Day by day job • Pricing research • Ongoing interaction with all the market – new concerns, market developments, demand drivers, rumours, and many others • Customer presentations/meetings harrassing for business • Transaction aide including offer roadshows / investor due diligence RBS00000 several

Current League Table Chic All Foreign currencies WE IG Corporate Provides 15 September 2011 YTD Bookrunner 1 Deutsche Bank 2 RBS 3 BNP Paribas 4 HSBC 5 JPMorgan Total Industry Supply: Dealogic Analytics Share Volume No . (%) (EURm) on the lookout for, 277 52 10. ’08 7, 150 49 7. 77 six, 294 39 6. 84 6, 203 39 six. 74 5, 951 21 6. 46 92, 054 180 100 2013 Target Position: Top rated 3 All Currencies ALL OF US Corp. , FI Syndicated Loans 15 September 2011 YTD Bookrunner ^ ^ ^ ^? 1 BNP Paribas SA 2 Credit rating Agricole CIB 3 Societe Generale 5 RBS 5 HSBC Coop�ration PLC Total Industry Supply: Thomson Reuters news agency Share Amount No . %) (EURm) nineteen, 092 hundratrettiofem 7. 60 18, 246 86 7. 20 of sixteen, 003 93 6. 31 15, 635 99 6. 20 13, 443 78 5. 30 252, 044 352 90 2013 Goal Position: Top 3 Almost all Currencies CEEMEA Corp. Synd. Loans 15 September 2011 YTD Bookrunner?? ^ ^ 1 Citi 2 Credit Agricole CIB 3 RBS 4 BNP Paribas SA 5 Barclays Capital Total Industry Origin: Thomson Reuters news agency Share Quantity No . (%) (EURm) 3, 217 27 9. 00 3, 052 19 almost 8. 60 a couple of, 561 15 7. 20 2, 541 16 several. 10 you, 961 6th 13. 00 35, 593 68 100 2013 Concentrate on Position: Top 5?? ^ Combination Border Exclusive Placements 15 September 2011 YTD

Bookrunner 1 RBS 2 BAS 3 Barclays 4 HSBC 5 CBA Total Industry Source: PP Monitor Amount (EURm) 4, 543 3, 994 1, 902 one particular, 775 you, 528 No . 22 19 12 on the lookout for 7 Share (%) 3. 80 20. 90 on the lookout for. 90 being unfaithful. 30 eight. 00 All Currencies WE HY Corporate Bonds 12-15 September 2011 YTD Bookrunner??? All Values CEEMEA Corporate Bonds 12-15 September 2011 YTD Bookrunner ^ ^ ^ ^ ^ you Barclays Capital 2 RBS 3 Goldman Sachs 5 BNP Paribas 5 Citi Total Market 2013 Goal Position: Top rated 3 1 Deutsche Traditional bank 2 Goldman Sachs several Citi four Credit Suisse 9 RBS Total Market Source: Dealogic Analytics

Volume Share No . (EURm) (%) 4, 161 35 11. 11 several, 518 twenty-three 9. 40 2, 922 18 several. 80 2, 909 20 7. seventy seven 1, 820 16 5. 86 thirty seven, 441 88 100 2013 Target Position: Top 5 Volume (EURm) a couple of, 398 one particular, 360 you, 335 you, 300 one particular, 095 12-15, 638 No . 13 being unfaithful 8 9 6 37 Share (%) 15. 34 8. 70 8. fifty four 8. 23 7. 00 100??? Source: Dealogic Analytics 2013 Goal Position: Top 5 RBS is known as a market leader in all the key DCM items RBS00000 almost 8 Major variations between DCM and …. Corporate Finance • • • • • • • • • Company Finance offers lower execution volume Because of this lots of time spent itching strategic ideas DCM much more transaction concentrated DCM bankers have more esteem for your non-public life Marketplaces Markets covers, sales, trading, research and other areas therefore it is a little hard to generalise Markets function more driven by market psychology and sort-term tendencies and family member value DCM generally even more macro-economic target so interaction is with the consumer C-suite Collateral Capital Market segments DCM bankers are pessimists, ECM lenders are optimists DCM involves more ‘definite’ maths – bond maths is less ‘speculative’ RBS00000 on the lookout for Why may I choose to work in DCM at RBS? • • • • • • •

In case you are interested in how businesses work – most likely at a rather more detailed level You like maths that ‘works’ – significantly less need to speculate on progress rates and uncontrollable elements DCM is considered the most successful franchise within RBS GBM and carries that kudos over the organisation The DCM expert programme presents lots of range with a minimum of 6 rotations, of which at least some will be within DCM Should you still want to find out – we take analyst expansion very significantly If you want to work alongside great persons DCM bankers have admiration for your personal life DCM is a great place to learn and develop

RBS00000 10 Lifestyle of a DCM analyst Fast-learner Creative and innovative thinker Attention to details Work well under pressure • • 7. 30-8. 30am start Daily jobs: – Morning meetings – Market updates/reports – Different updates elizabeth. g. company pricing • • • Building types, producing sales pitches Collaboration: conversing with traders, syndicate desks, Relationship Managers, different teams in DCM… Analysts events: teaching, networking lunch time Positive Attitude RBS00000 11 Pop Questions Should these types of client inquiries be directed to DCM, ECM, Corporate Financial, Markets or somewhere else? • • • • • • • • • •

Organization CFO interested in divesting a non-core division, Institutional buyer seeking to consider risk in Greek sovereign default, Firm CFO wanting to renew a syndicated bank loan facility, Bank of England seeking information on RBS exposure to Italian FIs, Company CFO seeking to be familiar with impact on his company credit history of redeeming outstanding provides, Company CFO seeking tips on total capital restructure, Same CFO following up to know how much capital she may raise by way of a rights issue and the associated with such a rights concern, Institutional buyer seeking to show up at a roadshow for the next securitisation deal, Same investor seeking to swap his direct exposure in mortgage loan securitisation to exposure in auto securitisation, CFO of the identical investment firm seeking to raise capital inside the private positioning market. Cooperation is Key – we provide clients greatest when we leveraging the breadth of our business RBS00000 12 Questions? RBS00000 13

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