1. THE ROLE OF BANKS IN SUPPORT OF MANUFACTURING RICHARD HOLDEN HEAD OF MANUFACTURING, LLOYDS TSB COMMERCIAL WEBSITE: www.lloydstsb.com/manufacturingwww.lloydstsb.com/manufacturing TEL: 0800 681 6078 / 07802 324018

2. 2 WHY SUPPORT MANUFACTURING IN THE UK?  Britain has a manufacturing sector to be proud of  UK is the World’s 9 th largest manufacturing economy  Manufacturers are driving the recovery – In last 2 years the sector has accounted for a fifth of all UK economic growth  Manufacturing contributes around half of Britain’s exports  The UK Manufacturing sector employs 2.5 million people OUR RESEARCH  Banks do not understand manufacturing or the supply chains within which manufacturers operate  There is a need for knowledgeable Relationship Managers and well informed credit sanctioners  The main finance challenges were around access to export and asset backed finance  The bank’s risk appetite should reflect a deeper understanding of sector economic cycles within Manufacturing and the main drivers of successful businesses

3. 3 BANKS SUPPORT TO MANUFACTURERS  Good understand and knowledge of manufacturing including Lean, Six Sigma & 5S  Someone who can make decisions and add value to the manufacturer’s business  Access to financial solutions and practical guidance on external funding options (Pera / BGF)  Bank Manager who works with external suppliers to support their manufacturing customers  Access to competitive lending terms - Funding for Lending Scheme  Finance solutions – Factoring, Invoice Discounting, Debt Protection, Working Capital  Exporting guidance to help manage risk and provide capital – FX, Hedging, Export Finance Schemes  Asset backed finance solutions for machinery, tooling, equipment etc.  Credit appetite