LLOYDS BANKING GROUP AT A GLANCE (1/2)

2

LOW RISK BUSINESS MODEL & PRUDENT RISK APPROACH(1)

CDS 5 year evolution from 2013 until today among UK peers

240

200

160

120

80

40

HSBC Bank PLC

The Royal Bank of

Scotland PLC

Standard

Chartered Bank

Barclays Bank PLC

Lloyds Bank PLC

04/2016 12/2015 12/2014

KEY FACTS & OPERATIONAL PERFORMANCE

in bps

RECENT PRESS & AWARDS

Euromoney 2015 Awards

for Operational Excellence Business Product

Innovation of

the Year 2015

Bank of the Year 2015

Business Bank of the

Year 2005 - 2015 Best Bank for Cash

Management in th UK 2016 Best Developed

Markets Bank 2015

EMEA Structured

Finance House of

the Year

Institution Market Cap Change vs.

31.12.2015 30.06.2015 31.12.2015* 30.06.2015°

1 1 HSBC 143,23 -5,1

2 3 Lloyds Bank 70,85 -14,3

3 4 UBS 67,77 0,9

4 2 Banco Santander 65,57 -26,8

5 5 BNP Paribas 64,99 -3,4

6 10 Intesa Sanpaolo 51,6 -4,8

7 6 Barclays 49,9 -15,8

8 8 ING 48,16 -15,9

9 7 Royal Bank of Scotland 47,53 -13,7

10 9 BBVA 42,71 -22,9

11 11 Nordea Bank 40,9 -9,8

12 13 Credit Suisse 39,13 0,8

13 18 Société Générale 33,91 1,7

14 14 Deutsche Bank 31,05 -16,5

15 16 Unicredit 30,66 -14,8

16 17 Crédit Agricole 28,67 -18,5

17 20 Sberbank of Russia 27,3 40

18 15 Standard Chartered 25,06 -26,8

19 19 Danske Bank 24,34 -6,8

20 22 KBC 24,11 -3,7

*) in EURbn °) in % - Source: SNL Financial

Ranking

Börsen-Zeitung excerpt, January 22nd 2016

Ratings (LT) Moody's S&P Fitch

Lloyds Bank Plc A1 A A+

Full Year 2015

CET-1 13.0%

CIR 49%

Leverage Ratio ~5%

(1) Source: Bloomberg as of April 1st, 2016

LLOYDS BANKING GROUP AT A GLANCE (2/2)

3

BR

AN

DS

K

PI 2

01

5

KE

Y F

AC

TS

INSURANCE

3.7m home

insurance customers

Total Income: £1,664m

Underlying Profit: £962m

Scottish Widows

Operating since 1815

Over 6m people hold a Scottish

Widows manufactured product

Pension Services

Colleys

Largest property valuation and

surveying business in the UK

430,000 instructions in 2014

COMMERCIAL BANKING

Banking >80%

of the FTSE 100

Total Income: £4,576m

Underlying Profit: £2,431m

Customer Deposits: £126.1bn

Lloyds Bank

UK Business Bank of the Year

for 11 consecutive years

Financial Markets

Capital Markets

Global Transaction Banking

LDC

Leading Mid Market Private

Equity House in the UK

CONSUMER FINANCE

UK’s top fleet

management provider

Total Income: £2,645m

Underlying Profit: £1,005m

Customer Deposits: £11.1bn

Lex Autolease

>40,000 customers - 290,000

unit vehicle fleet

Responsible for 1 in 28 of the

UK’s new car vehicles registered

Blackhorse

Network of 5,000 motor dealers

Financing 1m customers, worth

£ 1.7bn per annum

RETAIL BANKING

Halifax

Helped with purchase of over

130,000 homes in the UK (1 in

10) in 2014

Bank of Scotland

Second oldest bank in the UK

Lloyds Bank

>1,000 branches across the UK

250 years of history

>30m UK Customers

Total Income: £8,519m

Underlying Profit: £3,514m

Customer Deposits: £279.5bn

Die Kapitalstruktur wird zunehmend zu einer

kritischen Steuerungsgröße für das

Risikomanagement eines Unternehmens

Christian Leibl

Managing Director, Head of Capital Structure Advisory, Lloyds

Bank

UNTERNEHMENSPLANUNG

5

Zeit

Wert

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öp

fun

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Heutige Position

Ziel- erreichung

Traditioneller Ansatz

“EVENTS”-MANAGEMENT WIRD IMMER WICHTIGER

6

Vom traditionellen Risikomanagement… …zu (un)erwarteten Events

Preisverfall nur der Anfang? …

0

20

40

60

80

100

120

140

160

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

*Brent Crude (Denominierung: USD)

Öl-Preis*

Quelle: Bloomberg

Marktvolatilität – Zinsen, FX, Rohstoffe etc.

Regulatorisches Umfeld

Politische Lage – Brexit Referendum, Wahlen in USA

Wirtschaftslage in China

UNTERNEHMENSPLANUNG

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Zeit

Wert

sch

öp

fun

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Heutige Position

Ziel- erreichung

Was nun?

UNTERNEHMENSPLANUNG

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Zeit

Wert

sch

öp

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Heutige Position

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Mit wem?

Neuer Ansatz gefragt

FLEXIBILITÄT IST WICHTIGER DENN JE

9

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Wert

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Current Position

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Agilität

Bewusstsein “Big Data” Umsetzung

“Be prepared…” “Be quick…”

Worauf kommt’s an?

+ =

DIE ROLLE DES TREASURY

10

“Das Treasury ist eine der wenigen Unternehmensfunktionen, die neben dem Vorstand das Unternehmen aus der

Vogelperspektive sehen.”

…verstehen… …analysieren… …entscheiden…

Unterstützen Sie den Vorstand dabei systematische Risiken (besser) zu verstehen, fördern Sie die

Zusammenarbeit mit anderen Bereichen und steigern Sie dadurch die Wertschöpfung

Währungen, Zinsen, Volatilität der

Berichterstattung

Stärken und Schwächen der

Wettbewerbsposition

KPIs, Reaktionszeit,

Risikobereitschaft

MARKTUMFELD GESCHÄFTSMODELL RISIKOMANAGEMENT

KAPITALSTRUKTUR – WAS SOLL OPTIMIERT WERDEN?

11

Barmittel Kredit-Rating Verschuldungsgrad

Flexibilität Kapitalquellen Liquidität

Airbag gegen “Events” – operativ &

finanziell

Zugriff auf unterschiedliche

Finanzierungsvarianten

Free Cash Flow, Kreditlinien,

Barmittel

Sub-IG Investment Grade

Ø Rating

Quelle: S&P Capital IQ

Note: (1) Verschuldung = Total Debt / EBITDA (2) Barmittel (kumulativ) und durschnittl. Verschuldungsgrad basieren auf 1842 von S&P gerateten Unternehmen in Europa und den USA (Ratings: AAA to B-)

2.9x

3.5x 3.6x

3.8x

2006 2007 2008 2009 2010 2011 2012 2013 2014 20152006 2007 2008 2009 2010 2011 2012 2013 2014 2015

€1

.2b

n

€1

.7b

n

€2

.3b

n

Ø Rating

heute Vor 15 Jahren

AKTUELLE REAKTIONEN AUF “EVENTS”

12

Beispiel: Rohstoff-Sektor

Investitionen Anlagenverkäufe Dividenden Aktienrückkäufe &

Weiteres

USD 3 – 5bn (per year to 2017)

USD 2 – 3bn (ongoing basis)

Unverändert

30% (Shell-BG in FY16)

USD 30bn (over next 3 years)

Unverändert USD 25bn (2017 – 2020)

25% (FY16 vs. FY15)

Erhöht (Up 6.7% in FY15)

24% (FY16 vs. FY15)

USD 5 – 10bn (over next 2 years)

Erhöht (FY15 vs. FY14)

Beendet (in FY15)

Glencore USD 0.5 – 1bn (FY16 vs. FY15)

USD 4- 5bn (over next 1 to 2 years)

Ausgesetzt (FY15 and H1 16)

USD 2.5bn Kapitalerh. (in FY15)

Quelle: Bloomberg, S&P Capital IQ, Ad-Hoc Meldungen der Unternehmen, Unternehmensreporte, O&G Journal

bp

Note: Ölpreis Entwicklung im Hintergrund zeigt den Zeitraum vom 01.01.2012 bis zum 27.04.2016

DIE OPTIMALE KAPITALSTRUKTUR

13

Unternehmen Heineken N.V. Holcim Ltd.

Kredit Rating (S&P / Moody’s / Fitch)

A- / A3 / A BBB+ / Baa1 / NR BBB / Baa2 / BBB BBB- / Baa3 / NR BB+ / Ba1 / NR

Geschäfts-

profil2

‘Strong’

(A)

‘Strong’

(A)

‘Strong’

(A)

‘Satisfactory’

(BBB)

‘Satisfactory’

(BBB)

Industrie Pharma Konsumgüter Baustoffe Medien Rohstoffe

Beispiel: 3.0x Debt / EBITDA1

Note: (1) As at 31st December 2014; S&P; figure is rounded (2) As per S&P’s classification

Quelle: S&P, Moody’s, Fitch

“Es gibt keine magische Zahl…Das Geschäftsmodell is der Schlüssel.”

AUF, ZU NEUEN “EVENTS”!

14

Kapitalstruktur als Risiko Management-Tool

Zusammenarbeit: Unternehmensbereiche bilden Ökosystem

Entscheidung: Risikoabsicherung vs. Risikoakzeptanz

Unternehmerisches Lebenselexir: Liquidität

IMPORTANT NOTICE

15

This presentation, its contents and any related communication (altogether, the “Presentation”): (i) does not constitute or form part of any offer to sell or an invitation to subscribe for, hold or

purchase any securities or any other investment; (ii) shall not form the basis of or be relied on in connection with any transaction, contract or commitment whatsoever; (iii) is provided for

information purposes only and is not intended to form, and should not form, the basis of any investment decision; (iv) is not and should not be treated as investment research, a research

recommendation, an opinion or advice; (v) is confidential and has been prepared by, and is subject to the copyright of, Lloyds Bank plc or its affiliates (together, “Lloyds Bank”); (vi) is based on

public information, and is in summary form and therefore may not be complete; (vii) may refer to future events which may or may not be within the control of Lloyds Bank, and its group

companies, and its or their directors, officers, employees, associates and Lloyds (altogether, “Lloyds Persons”), and no representation or warranty, express or implied, is made as to whether or not

such an event will occur; (viii) is subject to change at any time and Lloyds Bank is under no obligation to inform any person of any such change; (ix) may only be sent to recipients who may lawfully

receive it in accordance with applicable law, regulation and rule of regulatory body (“Laws”); and (x) is not being distributed to and must not be passed on to the general public in the U.K., and may

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“Order”), or are persons falling within Article 49(2)(a) to (d) of the Order (all such persons being “Relevant Persons”), is directed only at Relevant Persons and must not be acted on or relied on by

persons who are not Relevant Persons.

Securities services offered in the United States are offered by Lloyds Securities Inc. (“LSI”), a broker-dealer registered with the U.S. Securities and Exchange Commission and a member of the U.S.

Financial Industry Regulatory Authority. LSI services are provided only in the United States.

Lloyds Bank has exercised reasonable care in preparing this Presentation (and in confirming that where any information or opinion in this Presentation is from or based on a third party source, that

the source is accurate and reliable), however, no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of the facts contained in this Presentation by

Lloyds Persons. This Presentation may refer to future events which may or may not be within the control of Lloyds Persons, and no representation or warranty, express or implied, is made as to

whether or not such an event will occur. To the fullest extent permitted by Laws, Lloyds Persons accept no responsibility for and shall have no liability for any loss (including without limitation

direct, indirect, consequential and loss of profit), damages, or for any liability to a third party however arising in relation to this Presentation (including without limitation in relation to any

projection, analysis, assumption and opinion in this Presentation). Lloyds Bank reserves the right to terminate discussions with any recipient in its sole and absolute discretion at any time and

without notice.

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contents of this important notice; (b) you are a person that may lawfully receive this Presentation in accordance with Laws applicable to you including those of the jurisdiction in which you are

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enquiries and advice, your own knowledge and experience, and on the basis of the documents that relate specifically to that transaction; (h) you will keep this Presentation strictly confidential and

will not transmit or distribute this Presentation, or any reproduction or translation it, in whole or in part, of this Presentation, to any person without Lloyds Bank’s prior written consent; and (g) you

will not use this Presentation to the detriment of Lloyds Bank or for any matter other than in relation to the transaction contemplated in this Presentation.

Lloyds Bank may engage in transactions in a manner inconsistent with any opinion in this Presentation. Lloyds Bank trades or may trade as principal in the securities or related derivatives included

in this Presentation (“Relevant Securities”), and may have proprietary positions in, and/or may make markets in, Relevant Securities. Lloyds Persons may have an interest in any securities or

financial product mentioned in this Presentation.

Lloyds Bank and Lloyds Bank Commercial Banking are trading names of Lloyds Bank plc. Lloyds Bank and Lloyds Bank Commercial Banking are trading names of Bank of Scotland plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration numbers 119278 & 169628, respectively