1. Financial Markets - Credit Markets Niall Cameron, MD - Global Head of Credit Markets VC 11December 2003

2. 0 2 All Credit products are now under one roof...  Our differentiated product offering in …  Loan Markets  Debt Capital Markets  Asset Securitisation  Structured Capital  Emerging Markets  Project Finance  Credit Trading ...Allows us to provide a competitively advantaged client offering under one roof, e.g  Cross sell maximisation  One CDO group  Combined product pitches  Single execution points  Combined credit trading desks  FMA links products for solutions  Headcount efficiency

3. 0 3 …..With a greater focus on clients….  Best in class approach by individual product groups  Product groups seamlessly integrated with client coverage  Products linked to provide clients with one-stop solutions  FMA group provides share of mind advice and solutions  Client service differentiation through product innovation Client vs. non-client revenue Sept ytd 2003

4. 0 4 …. The results of which have led to improved performance….. Regional revenue breakdown  Significant increase in revenues in 2003  Headcount neutral  Decreased direct costs (2%)  Significant revenue increase in 2004 targeted Western Europe 61% LatAm 1% CEMA 1% Australia/NZ 6% North America 26% Asia 5%

5. 0 5 The changes made in 2003 will further improve our positioning...  Loan Products / GFM Merger  Introduction of FMA  Establishment of “Sterling plc”  Development of Credit Index (iBoxx) products  Market leading position in Covered Bonds  Execution of US Growth plan (Part I)  Reinvigorated Emerging Markets  Leading position in Infrastructure Capital Australia

6. 0 6 …. Resulting in an improved market share Sources: SDC Platinum/IFR; Dealogic/Euroweek  Our ranking for key products and market share continues to improve

7. 0 7  Complete trading suit  Complete Loan/DCM offer  Increase focus on two major markets  Higher client service level InitiativesComments Enhancing our Mature Credit Market Businesses  Emerging Markets CDS  Build out MTN Platform  ABS UK / Italy  Cash Trading growth

8. 0 8 Building Material New Growth Spikes  Structured Credit Derivatives /CDO  Infrastructure Capital Europe  High Yield Europe  Develop top-tier client position and deliver enhanced credit index and structured product range  Replicate success in Australian market in selected European markets  Complement leveraged finance business with select high-yield offering InitiativesComments