MaxTrad Online Trade Services Overview

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Global Trade Finance & Supply Chain Solutions maxtrad.com

The MaxTrad™ Network

Your trade business isn’t standing still. Neither are we.

Global Transaction Services

The Royal Bank of ScotlandGlobal Trade Finance & Supply Chain Solutions

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Global Trade Finance & Supply Chain Solutions maxtrad.com2

Contents

Your Trade Business and RBS• Our Trade Advisory Approach

The MaxTrad Network• Benefits• Solutions for Importers and Exporters

Trade & Supply Chain Solutions• Traditional Trade Solutions• Host to Host Services• Offshore Services & Document Preparation• Open Account Services• Supply Chain Finance Solutions

Our Credentials

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Managing Your Trade BusinessWithout the proper tools and guidance, global trade can be a risky and costly business. Companies are faced with a myriad of challenges:

Unknown Trading Partners Country & Payment Risk Regulatory & Cross Border Compliance

Supply Chain Security Corporate Identity Theft Trade Agreements & Protectionism

Tight Credit Markets Working Capital Constraints Documentary Risk

If you fail to manage this complex environment, you could face higher costs and greater risk in an already pressured supply chain – and that can put you at a significant competitive disadvantage.

Whether its traditional trade instruments or complex advisory services tailored to your needs, RBS Global Trade Services provides access to a number of solutions that help you:

• Reduce the cost and risk of international trade• Accelerate your cash flow • Streamline trade transaction cycle and reduce processing times• Leverage financing at key points in your supply chain• Manage your trade business globally from a central location

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Managing Your Business ProcessesPaper vs. MaxTrad – How much do you want to save?

MaxTrad’s efficiencies will save your company time and money.

On average, companies are 20% more efficient when using MaxTrad

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Your Trade Business Isn’t Standing Still – Neither are We.

IDENTIFY CHALLENGES

Identify origination issues and bottlenecks; spot root causes of slow receivables.

UNCOVER OPPORTUNITIES

Unlock working capital and improve cycle times.

Gain greater visibility and on-line access to funds.

DEVELOP SOLUTIONS

Process-driven solutions using trade-centric technology to drive electronic trade, document exchange and on-line collaboration.

EXECUTE FLEXIBLE SOLUTIONS

Eliminate pain points and improve process with flexible solutions to meet the changing environment.

Our approach is flexible – and as your advisor, we will:

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The MaxTrad Network

The MaxTrad Network is comprised of people and technology covering a global footprint. Our customers are at the heart of everything we do.

Customer Driven ApproachInput by our savvy buyers and sellers inspires us to continue to provide best in class services and forms the genesis for the evolution of MaxTrad™.

Advances in technologyNew options to accelerate the cash conversion cycle include workflow and imaging for better decision-making, real-time transactions and information reporting.

Expertise and Global ReachDeep industry expertise and a real understanding of the changing face of trade finance, in addition to advances in technology, systems integration and an unswerving commitment to customer service.

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The MaxTrad™ Network Delivers More Than Just Trade Services and Solutions

IntegrationStreamline client workflows

through data integration

IntelligenceSmart analytics that

improve your bottom line.

VisibilityInformation to drive

business decisions globally.

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The MaxTrad Network is not just an online version of paper trade

• Improve Working Capital decision-making (payables and receivable) with comprehensive real-time information and user-customized reporting tools.

• Receive transaction alerts on the events most important to you to manage your business. For global companies, you can be alerted for events happening at remote offices and third party logistics providers that would otherwise require manual processes.

• Manage controls and accommodate approval and reporting using three-tier hierarchy for segregation of different groups or functions. Control access for approval and reporting.

• Speed up issue resolution with digital imaging of all documentation related to a trade transaction, regardless of how the original documentation is delivered – fax, courier or drop-off.

• Simplify communication and collaboration with trading partners by tracking the status of any transaction.

• Get answers to trade questions with online & self-service support and chat functionality. Access customer support from your desktop anytime, anywhere, including a comprehensive database of frequently asked questions.

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Customer-focused ToolsTrade Primer

MaxTrad Institute

Efficiency-driven FeaturesEvent driven e-mail alerts

Non-negotiable copies of instruments and documentsTransaction-level inquiry

Real-time, Detailed and Downloadable Trade Reports

Complete Trade Initiation SuiteCommercial Letters of Credit for Importers

Stand By Letters of Credit & GuaranteesDocumentary Collections for Exporters (DCL)

Borderless TradeReal-time centralized access to information

Configurable reporting and authorization capabilityMatch Client’s Enterprise access with Corporate Hierarchy

Full Access to InstrumentsCommercial Letters of Credit for Exporters

Stand By Letters of Credit & GuaranteesDrawing Advices against Commercial Letters of Credit

Documentary Collections for Importers (ICL)

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MaxTrad Enterprise Solutions

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MaxTrad Express for Small-Medium Sized Businesses

SecurityAccommodates 2-FA (Digipass)

Data security and Audit trailSAS 70 and SOX-compliant

IntuitiveAssumes limited baseline of trade knowledge

Trade expertise not mandatory“Always-on” trade assistance

VisibilityEvent-driven e-mail alertsTrade Activity Dashboard

Access to trade documents & messagesReal-time information and Reporting

Simple & EasyBuilt-in trade logic in completing applications

Templates based on issued instrumentsTask-driven transaction initiation

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Resources CenterSearch using key words across all available

documents and guides

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MaxTrad Institute – Global Trade Knowledgebase and Self-Service Support

Search & SupportContact details for all Global Trade Finance

Sales and MaxTrad Support personnel around the world

Ability to instantly email or chat with an agent if needed

E-Learning CenterInteractive short videos of MaxTrad

navigation, features and self-guided demos

News & InformationSelf-directed, content-rich guidance for

answering questions about MaxTradArticles and industry information

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Whether RBS represents you as an Applicant or Beneficiary, Buyer or Seller, MaxTrad will streamline your work flow.

MaxTrad Enterprise and MaxTrad Express Commercial and Standby LC and Guarantees – How It Works

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Whether RBS represents you as a Drawer or Drawee, Seller or Buyer, MaxTrad will streamline your work flow.

MaxTrad Enterprise Documentary CollectionsHow It Works

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MaxTrad Host To Host Channel Services

How it works• Initiate Documentary Credits, Export (Direct) Collections, Open Account and Supply Chain Finance (SCF)

directly from your ERP or other back-office systems• Align your level of automation with your business workflow

• Integrate with your multi-bank channel provider

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Benefits• Processing and Cost Efficiencies

• Integrate and stream your trade data directly, securely and automatically to RBS

• Utilize message standards (SWIFT, XML)

Our Approach:• Use client’s existing infrastructure

• Improve Straight-Thru-Processing

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Offshore Letters of Credit Services for Importers How it works

• RBS Hong Kong issues an Import Letter of Credit (MT700) based on an LC application submitted by Applicant.

• Applicant sends the issuance request to RBS HK via MaxTrad – no communication with the program partner. • All correspondence is directly with the Applicant via MaxTrad.

• Quicker access to original documents

• Improve in Days Payable Outstanding (DPO)

• Reduce exposure against Letters of Credit facility and optimize working capital

Benefits to Importer• Shorten procurement cycle with fast Import LC Issuance

• Opportunities to increase business with existing suppliers and expand sources of supply

• Streamline your transaction cycle

• Support from RBS Team in Supplier’s country leading to client’s workload reduction

Procurement Cycle Accelerates

Reduction in DPO

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Document Preparation Services for ExportersHow it works• RBS prepares and guarantees compliance of 1st party documents • RBS collates 3rd party documents and presents documents to the L/C issuing or nominated bank• RBS facilitates the collection of funds

Benefits• Reduction in DSO = Faster access to funds

• Speed of Presentment and Settlement

• Access to about 135 RBS Certified Documentary

Credit Specialist professionals • Fewer discrepancies = Significant cost reduction

(discrepancy fees)

• Web-based tracking

Our Approach• Review L/C terms and conditions with you and highlight

any variances; Ensure workability

• Enter L/C and shipping information directly into document templates tailored to your requirements

• Send draft templates of documents to third parties

• Handle dispatching of documents to nominated banks

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Open Account Services (e-Invoicing)Drive cost savings throughout your supply chain

Reduce Costs• Eliminate costs associated with handling paper• Fit with existing invoicing processes; avoid re-keying of data• Easily keep track of invoices, pay when they’re due (not early or late)• Handle discrepancies only – not every invoice• Straight-through processing• Eliminate fraud and duplicate invoices

Gain visibility throughout the supply chain• Integrate with Enterprise Resource Planning Systems (ERP)• Know where the process is before, during, and after manufacture and shipping• Eliminate “surprises”: e.g. goods arrive early/late, wrong goods/wrong quantity of

goods• Reduce overall risk of supply chain

Improve cash flow• Stay on top of what’s paid and what’s due • Make proactive decisions about when to pay

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Open Account Services (e-Invoicing) – How It Works

RBS mediates flow of supply chain information through MaxTrad™

Provides secure electronic exchange of purchase order, invoice and shipping data between trading partners

Audits data to detect discrepancies, notifies users when discrepancies are found

Generates payment automatically on due date when no discrepancies exist

Integrates with supply chain finance and risk mitigation, using the same procure-to-pay data

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Pre-Shipment FinancingPO Financing – Supplier financing on Buyer-confirmed POs

• Allows Suppliers to fulfill all sales orders, even those that exceed their normal volume or scope

• Frees up Supplier cash for critical business expenses• Requires PO from credit worthy commercial or government Buyer

Post-Shipment FinancingSupply-Side Financing – Buyer-Centric

• Program is implemented through the Buyer • No need to evaluate the heterogeneous Buyer portfolio of each Supplier,

yielding a lower cost of funding• Suppliers determine their own level of involvement in the program

Receivable Purchase – Seller-Centric• AR financing allows the bank to provide liquidity to the Supplier by

financing its invoices prior to payment by the buyer• Disclosure or Non-Disclosure to Buyers• All invoices submitted will be sold to the bank

Supply Chain Finance Solutions

Capital, capability and insight are married to maximize Working Capital.

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Financing

Technology

Visibility

MaxTradSupply Chain Finance

Supply Chain Finance BenefitsSolutions for the MaxTrad Supply Chain Finance and RBS Supplier Finance Programs

Financial network among the top three globally, extending to over 35 countries

Ability to syndicate, sub-participate or issue commercial paper

Solid financial partner

Award-winning web-based IT platform

Paperless, click-through transaction structure

High degree of automation accelerates on-boarding

Visibility and control over the entire supply chain

Reporting on current and past trade activity

Respectful of corporate structure – providing rollup of all subsidiary transactions at the parent

Capital, capability and insight are married to maximize Working Capital.

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Supply Chain Finance Benefits MaxTrad Unlocks Working Capital Value

Buyer Benefits• Better payment terms and pricing on trade • Increase in DPO frees cash from working capital• Reduction in Net Assets improves profitability• Option to outsource AP to the bank• Improved relations with Suppliers• Reduced supply-base risk• Easily connect with Suppliers for supply chain–wide data

consistency• Visibility and control over the entire supply chain

Supplier Benefits• Optimize working capital management and liquidity by

monetizing trade receivables• Lower financing and processing costs• Reduced DSO improves liquidity • Mitigate commercial and cross border risk • Leverage on credit insurance policies• Freedom to accept buyer terms and large orders

“[I]mproving the working capital ratio from the median to the upper quartile of an industry could on average

generate a 6.5% improvement in RONA…”

(European Working Capital Study, 2009)PricewaterhouseCoopers

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Electronic Supply Chain Finance – How It WorksMaximize Working Capital

RBS mediates flow of supply chain information through MaxTrad™

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Providing trade services globally

Americas Europe, the Middle East and Africa Asia Pacific

ArgentinaCanadaChileMexicoUnited States

AustriaBelgiumCzech RepublicDenmarkFinlandFranceGermanyGreeceIreland

ItalyLuxembourgNetherlandsNorwayPolandRomaniaRussia

SlovakiaSpainSwedenSwitzerlandTurkeyUnited Arab Emirates*United Kingdom

AustraliaChina*Hong KongIndia*IndonesiaJapanKorea

Malaysia*SingaporeThailand

Why RBS? Global footprint providing access to trade services worldwide

Because our clients operate globally, we are firmly committed to providing trade services globally

With regional trading hubs in the world’s key financial centers, our capabilities are available around the clock

Correspondent Bank relationships in over 135 countries

* Country restrictions apply

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MaxTrad Award-Winning Technology and Expertise

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For more information:

Patricia Tripar

Global Head/Commercial Services & Emerging Channels

Global Trade Product Delivery/ MaxTrad

Direct 312-906-5572

[email protected]

@PTripar

MaxTrad Home: http://www.maxtrad.com

Twitter: @RBSMaxTradLinkedIn: http://www.linkedin.com/company/rbs-global-transaction-services

mailto:[email protected]

http://www.maxtrad.com/

http://www.linkedin.com/company/rbs-global-transaction-services

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DisclaimerThe Royal Bank of Scotland plc (“RBS plc”), The Royal Bank of Scotland N.V. (“RBS N.V.”), RBS Citizens, N.A. and Citizens Bank of Pennsylvania (“Citizens”) are subsidiaries of The Royal Bank of Scotland Group plc (“RBS Group”). Citizens Bank and Charter One Bank are brand names of RBS Citizens, N.A. and Citizens Bank of Pennsylvania. With RBS Group and other subsidiaries and affiliates of RBS Group they are referred to here as “RBS Group Members”.

No representation, warranty or assurance of any kind, express or implied, is made as to the accuracy or completeness of the information contained in this document and the RBS Group Members accept no obligation to any recipient to update or correct any information contained herein. The information in this document is published for information purposes only. Views expressed herein are not intended to be and should not be viewed as advice or as a recommendation. You should take independent advice on issues that are of concern to you. This document does not purport to be all inclusive or constitute any form of recommendation and is not to be taken as a substitute for the recipient exercising his own judgment and seeking his own advice. This document is for your private information only and does not constitute an analysis of any potentially material issues nor does it constitute an opinion to buy or sell any investment. Prior to entering into any transaction, you should consider the relevance of the information contained herein to your decision given your own investment objectives, experience, financial and operational resources and any other relevant circumstances. No RBS Group Member, nor any other person, shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits, arising in any way from the information contained in this communication.

RBS plc is registered in Scotland No. 90312. Registered Office: 36 St. Andrew Square, Edinburgh EH2 2YB. It is authorized and regulated by the Financial Services Authority. RBS N.V. is registered with the Chamber of Commerce and Industries for Amsterdam, The Netherlands, with No. 33002587; its registered head office is Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands. It is authorized and regulated by De Nederlandsche Bank, the central bank of The Netherlands. Citizens is a National Bank, organized, existing and regulated under the laws of the United States of America.

RBS plc is in certain jurisdictions an authorized agent of RBS N.V. and RBS N.V. is in certain jurisdictions an authorized agent of RBS plc.

RBS Group Members operate in more than 35 countries around the world to provide a range of retail and corporate banking, consumer finance, insurance and wealth management services. RBS Americas encompasses all RBS Group Members’ operating units in North America and Latin America, including Citizens.

Copyright 2010 RBS plc. All rights reserved. This communication is for the use of intended recipients only and the contents may not be reproduced, redistributed, or copied in whole or in part for any purpose without RBS plc's prior express consent.

MaxTrad Online Trade Services Overview

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