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HOW TO BUY AND SELL
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Repurchase at your option
You may offer your Notes to RBS plc for repurchase on any business day on or
prior to , 2041, provided that you offer a minimum of 10,000 Notes for any
single repurchase and follow the procedures described in the pricing supplement.
Early redemption at our option We may redeem all of the Notes at our discretion
at any time on or prior to , 2041.
Daily Redemption Value
Upon early repurchase or redemption or at maturity, you will receive a cash
payment equal to the daily redemption value per Note. The daily redemption value
on the relevant valuation date is expected to be published on an RBS website*.
Secondary Market
The Notes are not listed on any securities exchange. Other than pursuant to the
early repurchase and redemption rights described above, we will not purchase
Notes in the secondary market. There is currently no secondary market for the
Notes.
SECTOR AND HOLDINGS BREAKDOWN (07/06/11)
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Brazil Russia
SECTOR WEIGHTING(1) (%) SECTOR WEIGHTING(1) (%)
------------------------- ----- ------------------------- -----
Materials 28.31 Energy 54.96
------------------------- ----- ------------------------- -----
Energy 27.96 Materials 18.77
------------------------- ----- ------------------------- -----
Financials 20.75 Telco Services 10.40
------------------------- ----- ------------------------- -----
Consumer Staples 11.30 Consumer Staples 5.22
------------------------- ----- ------------------------- -----
Utilities 5.17 Financials 3.86
------------------------- ----- ------------------------- -----
Telco Services 4.47 Utilities 2.82
------------------------- ----- ------------------------- -----
Industrials 1.61 Industrials 1.69
------------------------- ----- ------------------------- -----
Consumer Discretionary 0.43 Information Technology 0.90
------------------------- ----- ------------------------- -----
Health Care 0.82
------------------------- -----
Consumer Discretionary 0.55
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India China
SECTOR WEIGHTING(1) (%) SECTOR WEIGHTING(1) (%)
------------------------- ----- ------------------------- -----
Financials 31.04 Information Technology 26.31
------------------------- ----- ------------------------- -----
Information Technology 19.00 Energy 24.62
------------------------- ----- ------------------------- -----
Industrials 18.11 Telco Services 17.67
------------------------- ----- ------------------------- -----
Energy 13.21 Consumer Discretionary 11.67
------------------------- ----- ------------------------- -----
Materials 8.03 Financials 8.13
------------------------- ----- ------------------------- -----
Consumer Discretionary 4.00 Industrials 4.02
------------------------- ----- ------------------------- -----
Health Care 3.41 Health Care 3.26
------------------------- ----- ------------------------- -----
Utilities 3.01 Materials 3.03
------------------------- ----- ------------------------- -----
Telco Services 0.18 Utilities 1.29
------------------------- ----- ------------------------- -----
TOP 10 HOLDINGS(2) (%) TOP 10 HOLDINGS(2) (%)
-------------------------------- ----- ------------------------- -----
Petroleo Brasileiro S.A. ADS A 14.33 OAO Gazprom ADS 18.77
-------------------------------- ----- ------------------------- -----
Vale S.A. ADS CI A Pfd. 13.45 OJSC Surgutneftegaz ADS 11.03
-------------------------------- ----- ------------------------- -----
Petroleo Brasileiro S.A. ADS 12.24 Lukoil Holdings ADS 10.77
-------------------------------- ----- ------------------------- -----
Itau Unibanco Holding S.A. Uralkali GDR 4.65
ADS 10.62 ------------------------- -----
-------------------------------- ----- OJSC MMC Norilsk Nickel
Vale S.A. ADS 9.50 ADS 4.22
-------------------------------- ----- ------------------------- -----
Banco Bradesco S.A. ADS 8.71 OAO Novatek GDR 4.06
-------------------------------- ----- ------------------------- -----
Companhia de Bebidas das Rosneft GDR 3.72
Americas - AMBEV ADS 6.01 ------------------------- -----
-------------------------------- ----- Tatneft GDR 3.47
BRF-Brazil Foods S.A. ADS 2.48 ------------------------- -----
-------------------------------- ----- Mobile Telesystems OJSC
Companhia Siderurgica ADS 3.32
Nacional S.A. ADS 2.17 ------------------------- -----
-------------------------------- ----- Rostelecom OJSC ADS 3.07
Gerdau S.A. ADS 2.12 ------------------------- -----
-------------------------------- -----
TOP 10 HOLDINGS(2) (%) TOP 10 HOLDINGS(2) (%)
------------------------------- ----- ---------------------------------- -----
Infosys Technologies Ltd. China Mobile Ltd. ADS 10.17
ADS 15.23 ---------------------------------- -----
------------------------------- ----- CNOOC Ltd. ADS 8.15
Larsen and Toubro Ltd. GDR 13.64 ---------------------------------- -----
------------------------------- ----- PetroChina Co. Ltd. ADS 7.75
Reliance Industrials Ltd. GDR 13.21 ---------------------------------- -----
------------------------------- ----- China Life Insurance Co.
ICICI Bank Ltd. ADS 11.38 Ltd. ADS 6.87
------------------------------- ----- ---------------------------------- -----
HDFC Bank Ltd. ADS 11.29 Baidu, Inc. ADS 6.26
------------------------------- ----- ---------------------------------- -----
Tata Steel Ltd. GDR Reg S 4.93 China Petroleum and Chemical
------------------------------- ----- Corp. ADS 5.39
Tata Motors Ltd. ADS 4.47 ---------------------------------- -----
------------------------------- ----- China Unicom
Axis Bank Ltd. GDR 4.38 (Hong Kong) Ltd. ADS 3.79
------------------------------- ----- ---------------------------------- -----
Mahindra and Mahindra Ltd. China Telecom Corp. Ltd. ADS 3.72
GDR 4.00 ---------------------------------- -----
------------------------------- ----- Yanzhou Coal Mining Co.
State Bank of India GDR 4.00 Ltd. ADS 3.33
------------------------------- ----- ---------------------------------- -----
Ctrip.com International Ltd. ADS 3.01
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(1) Based on standard industry classifications (2) Source: BNY Mellon[R]
The four BNY Mellon([R]) indices that comprise the RBS BRIC Trendpilot[TM] Index
are composed of depositary receipts, which are generally quoted and traded in
U.S. dollars on The New York Stock Exchange (NYSE), The NYSE Amex, NASDAQ Stock
Market (NASDAQ) or the London Stock Exchange, either in American (ADR) or global
(GDR) form. Each depositary receipt generally represents an ownership interest
in shares (or fractions of a share) of an underlying stock that is quoted and
traded in its local jurisdiction (specifically, Brazil, Russia, India and China)
in a foreign currency (specifically, the Brazilian real, the Russian ruble, the
Indian rupee and the Chinese renminbi, as the case may be). Depositary receipts
are included in the four Benchmark Indices based, among other things, on their
market capitalization and liquidity.
CERTAIN RISK CONSIDERATIONS: The Notes involve risks not associated with an
investment in conventional debt securities, including a possible loss of some or
all of your investment. The level of the Index must increase by an amount
sufficient to offset the aggregate investor fee applicable to the Notes in order
for you to receive at least the principal amount of your investment back at
maturity or upon early repurchase or redemption. The Index may underperform any
or all of the Benchmark Indices, and is expected to perform poorly in volatile
markets. The Notes involve risks associated with an investment in the emerging
markets, as well as currency exchange risk. There is currently no secondary
market for the Notes. The Notes do not pay interest. Any payment on the Notes is
subject to the ability of RBS plc, as the issuer, and RBS Group, as the
guarantor, to pay their respective obligations when they become due. You should
carefully consider whether the Notes are suited to your particular circumstances
before you decide to purchase them. We urge you to consult with your investment,
legal, accounting, tax and other advisors with respect to any investment in the
Notes.
The Notes are not suitable for all investors. You should carefully read the
relevant pricing supplement and prospectus, including the more detailed
explanation of the risks involved in any investment in the Notes as described in
the "Risk Factors" section of the pricing supplement, before investing.
IMPORTANT INFORMATION: The Royal Bank of Scotland plc (RBS plc) and The Royal
Bank of Scotland Group plc (RBS Group) have filed a registration statement
(including a prospectus) with the U.S. Securities and Exchange Commission (SEC)
for the offering of Notes to which this communication relates. Before you invest
in any Notes, you should read the prospectus in that registration statement and
other documents that have been filed by RBS plc and RBS Group with the SEC for
more complete information about RBS plc and RBS Group, and the offering. You may
get these documents for free by visiting EDGAR on the SEC's web site at
www.sec.gov. Alternatively, RBS plc, RBS Group, RBS Securities Inc. (RBSSI) or
any dealer participating in the relevant offering will arrange to send you the
prospectus and the pricing supplement at no charge if you request it by calling
1-855-RBS-3877 (toll-free). RBS BRIC Trendpilot[TM] Index (USD) is the property
of RBS plc.
BNY Mellon([R]), BNY Mellon Brazil ADR Index(SM), BNY Mellon Russia Select ADR
Index(SM), BNY Mellon India Select ADR Index(SM) and BNY Mellon China Select ADR
Index(SM) ("BNYM Licensor Index Marks") are service marks of The Bank of New
York Mellon Corporation or any of its subsidiaries, affiliates or group
companies ("BNY Mellon") and have been licensed for use for certain purposes by
RBS plc and RBSSI. Products based on the BNYM Licensor Index Marks named above
are not sponsored, endorsed, sold, recommended or promoted by BNY Mellon([R]),
and BNY Mellon([R]) does not make any representation or warranty, express or
implied, to the purchasers or owners of the products or any member of the public
regarding the advisability of investing in financial products generally or in
these products particularly, the ability of the indexes named above to track
market performance or the suitability or appropriateness of the products for
such purchasers, owners or such member of the public. For a further description
of the license agreement between us, RBSSI and BNY Mellon([R]) (including
certain disclaimers by BNY Mellon([R])), see the pricing supplement relating to
the Notes that RBS plc and RBS Group filed with the SEC. RBS BRIC Trendpilot[TM]
Index is maintained and calculated by Dow Jones Indexes, the marketing name and
a licensed trademark of CME Group Index Services LLC. "Dow Jones Indexes" is a
service mark of Dow Jones Trademark Holdings LLC ("Dow Jones"). The RBS BRIC
Trendpilot[TM] Notes are not sponsored, endorsed, sold or promoted by CME Indexes,
Dow Jones or their respective affiliates, and CME Indexes, Dow Jones and their
respective affiliates make no representation regarding the advisability of
investing in the Notes.
Copyright[C] 2011 RBS Securities Inc. All rights reserved. RBS Securities Inc.,
a U.S. registered broker-dealer, member of FINRA and SIPC, is an indirect
wholly-owned subsidiary of The Royal Bank of Scotland plc.
Dated July 13, 2011
TOLL FREE: 855-RBS-3877 page 2 of 2
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