1. Securing the investment your business needs Presented by Nick Taylor 2 nd October 2013

2. Lombard has been working with UK businesses large and small for over 150 years It is the UK’s largest asset finance provider We are part of The Royal Bank of Scotland Group We have specialist knowledge of the manufacturing sector Committed to providing innovative manufacturing solutions that enable businesses to effectively source, acquire and manage assets Moneyfacts Best Leasing & Asset Finance Provider 2009-2013 Security may be required and product fees may apply Lombard: who we are

3. 34% of businesses have the desire to invest in IT/technology/telecoms 32% have maintained their capex when compared to previous years 62% finance capex via bank loans and overdraft 17% plan to increase investment What are the current investment trends? Sources: Lombard Capex Survey 2013, EEF Manufacturing Outlook 2013

4. What asset finance offer Releases tied-up cash Releases vital cash when you need to acquire business-critical assets Sale and Leaseback can unlock money already spent Fixed costs, eliminates uncertainty Rentals and interest payments are fixed Provides you with certainty of the cost of the asset throughout the contract Security may be required and product fees may apply

5. The key reasons why businesses invest are: Improve productivity Adopt new technology Develop new products/services Replace/upgrade existing assets Make investments abroad Sales/market growth Acquisitions Why are businesses investing?

6. It’s worth taking the time to research what finance options are available, and then choose the most appropriate method or portfolio of funding solutions to finance your capex investment, and it might not be an off-the- shelf solution, or the easiest one available to you. Some options include: Asset finance Bank loan Crowd funding Equity Security may be required and product fees may apply What are the finance options available? Grants Invoice Discounting Overdraft Trade Finance

7. There are a number of Government initiatives that have been developed to help you gain access to grants, funding schemes and allowances that can help you invest. Research what is available to you and how you can best benefit from what is currently available on the market. Some examples of grants and allowances include: Capital Allowances Enhanced Capital Allowances Funding for Lending Scheme Innovation Vouchers Grants & allowances Have you thought about…. Patent Box R&D Tax Credits Regional Growth Fund

8. How can your business benefit from investing? More efficient and productive equipment More competitive offering Increase in profitability Additional cashflow; Better external finance to fund capital investment Investment in capital equipment Security may be required and product fees may apply

9. Backing up Lombard’s commitment In 2012 Lombard increased its overall year on year lending by 10% Year on year lending to manufacturing was up by 66% in December 2012 Our year on year lending on machine tools in 2012 was up 65% compared with an industry increase of 7% In 2013 we aim to lend £4.5bn Lombard is actively working with manufacturers to ensure maximum benefit from the increase in the Annual Investment Allowance We shall continue to work with industry bodies throughout 2013 to support investment in UK manufacturing Security may be required and product fees may apply

10. Where to go to find out more Better Business Finance – www.betterbusinessfinance.co.uk/ Capital Allowances – www.hmrc.gov.uk/capital-allowances/index.htm Enhanced Capital Allowances – https://etl.decc.gov.uk/etl/site.html Funding for Lending Scheme – www.bankofengland.co.uk/markets/Pages/FLS/data.aspx Innovation Vouchers – https://vouchers.innovateuk.org/home Patent Box – www.hmrc.gov.uk/ct/forms-rates/claims/patent-box.htm R&D Tax Credits – www.hmrc.gov.uk/randd// Regional Growth Fund – www.gov.uk/regional-growth-fund-a-guide- for-small-and-medium-enterprises-smes

11. Thank you for your time. Please do not hesitate to contact me if you have further questions. Nick Taylor Director of Asset Finance 07747 564242 nick.taylor@lombard.co.uk nick.taylor@lombard.co.uk