#1BARCIAS Barclays PLC Investment Bank 28 June 2013 BARCLAYS BARCLAYS BARCLAYS BARCLAYS BARCIA BARCLAYS#2Agenda 1. Building on strong foundations to become the 'Go-To' bank 2. Transforming our business for the new environment 3. Realistic plans to deliver on commitments 2 Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#3Financial commitments Group 2012 Restated Results 2015 Targets Return on Equity 9.0% Operating Expenses £18.6bn £16.8bn Cost:Income Ratio 63% mid-50s Investment Bank 2015 Targets 11-12% > Group CoE Fully loaded RoE Includes impact of: Head office cost and minority interest (190 bps) • Bank levy (120 bps) • Residual legacy assets (300 bps) Comp: Income mid-30s Pro forma £468bn £440bn B3 RWAS Pro forma B3 RWA Core Capital Ratio 10.8% >10.5% Dividend Payout Ratio 17% 30% Income 3 | Investment Bank Investor Presentation | 28 June 2013 £210-230bn Single digit growth BARCLAYS#4Section 1: Building on strong foundations to become the 'Go-To' investment bank Our current market position 1. Global reach with unique strengths in the largest markets 2. Leading Fixed Income, Currencies, Commodities (FICC) franchise 3. Significant progress in Banking and Equities 4. A business model that delivers stable earnings 5. Proven track record of managing costs 6. Proven track record of reducing RWAs 4 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#5Section 1: Building on strong foundations to become the 'Go-To' investment bank Barclays is a global investment bank with leading franchises in the US and UK Global presence Dual home markets in the US and UK Home markets represent near 60% of the industry fee pool Global investment banking revenue pools by region (FY 2012) Euromoney Best Investment Bank in the USA July 2012 Euromoney Best Investment Bank in the UK July 2012 22% 58% 20% Offices in 30 countries ⚫ Six trading hubs: New York, London, Hong Kong, Singapore, Tokyo, Johannesburg Serving clients based in 138 countries 90% of FTSE 100 companies ⚫ 72% of Fortune 500 companies IFR AWARDS 2012 US Debt House December 2012 FINANCIAL NEWS AWARDS FOR EXCELLENCE IN INVESTMENT BANKING EUROPE 2012 WINNER European FICC House of the Year November 2012 Americas + UK APAC EMEA ex UK Source: Coalition. Franchise view excluding trading risk revenues. Includes FICC, Equities and Origination & Advisory. 5 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#6Section 1: Building on strong foundations to become the 'Go-To' investment bank FICC represents over half of the global industry revenue pools... Global revenue pools up from 2011 but below historical highs... Global revenue pools (2012, £bn) ...of which FICC is the largest portion Global investment banking revenue pools by product (2012) -28% +7% 227 190 164 174 132 55% 2008 2009 2010 2011 Source: Coalition, includes Advisory, Origination, Equities sales and trading, FICC sales and trading. 2008 and 2009 year-on-year changes particularly impacted by USD/GBP exchange rate movements. 6 | Investment Bank Investor Presentation | 28 June 2013 20% 25% £174bn 2012 FICC Sales & Trading Origination & Advisory Equities Sales & Trading Industry Source: Coalition, includes Advisory, Origination, Equities sales and trading, FICC sales and trading. Product view in Coalition standard taxonomy. BARCLAYS#7Section 1: Building on strong foundations to become the 'Go-To' investment bank ...and Barclays is a leader in FICC flow products Top 3 across key flow products Barclays FICC revenue rankings Flow Credit Investment Grade Credit High Yield Credit and Loan Trading Flow Rates Government and Agencies Swaps Inflation G10 Foreign Exchange Top 3 2011 2012 Selective approach to other products Barclays FICC revenue rankings Distressed Credit Other Structured Credit Rates Options and Structured Trading Securitisation #1 #1 #1 Commodities Emerging Markets Municipal Finance 4-6 7-10 2011 2012 Source: Coalition Note: Coalition rankings based on Barclays' business line taxonomy. Competitor set is constituent banks of the Coalition index - the largest 10 investment banks globally: BAML, BARC, CITI, CS, DB, GS, JPM, MS, RBS, UBS 7 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#8Section 1: Building on strong foundations to become the 'Go-To' investment bank Our efficient build-out in Banking has resulted in share growth... Market share growth since the acquisition... Barclays market share (fees) ...driven by a growing but still relatively small team... Producer headcount (products and coverage) +15-30% ...resulting in higher revenue productivity Barclays Banking revenue per headcount (£m) 5.2% 4.6% 3.2% 2009 2012 Banking revenues for industry (£bn) 37.6 43.3 1. Annualised +17% +6% +12% Q1 2013 2009 2012 ♥BARCLAYS Peer average 2011 2012 43.91 Source: Dealogic, includes Advisory and Origination 8 | Investment Bank Investor Presentation | 28 June 2013 Source: Oliver Wyman Q1 2013 annualised Лualit BARCLAYS#9Section 1: Building on strong foundations to become the 'Go-To' investment bank ...in particular, the build-out has focused on high-margin businesses Progress in Advisory ... ...and in Equity Capital Markets Advisory market share¹ (volume) Equity Origination market share (volume) +8.4% +3.8% 21.4% 5.3% 5.0% 15.7% 13.0% 1.5% Advisory Equity Origination Gap to Top 5 ~350bps 2009 #5 #4 Gap to Top 5 2012 Q1 2013 ~530bps ~190bps -100bps 2009 2012 Q1 2013 1. M&A Announced Source: Dealogic Source: Dealogic 9 | Investment Bank Investor Presentation | 28 June 2013 Net Corporate Broking client wins¹ (Jan 2010 May 2013) +35 BARCLAYS Peers 1. FTSE 350 or equivalent Source: RNS, Hemscott BARCLAYS#10Section 1: Building on strong foundations to become the 'Go-To' investment bank We have strong momentum in Equities sales and trading Market share growth across all regions in a shrinking revenue environment... Barclays market share in Equities sales and trading (ex-Prime Services) ...driven by strong content and client focus 7.8% 6.0% Americas Industry revenues in Equities sales -40% and trading (ex- Prime Services) 2009 2012 3.8% 3.9% 3.1% 2.9% EMEA -38% Source: Oliver Wyman, Equities sales and trading revenues, excluding Prime Services 10 | Investment Bank Investor Presentation | 28 June 2013 APAC GREENWICH ASSOCIATES US Equities Investors Study Portfolio Managers #3 for Sales Quality #3 for Corporate Access March 2013 Institutional Investor The 2013 All-America Research Team Top 2 in Equity Research for past 11 years October 2012 Nikkei The 2013 Japan Equity Analyst Rankings #8 overall up from #10 in 2012 #3 among foreign firms up from #5 in 2012 March 2013 Institutional Investor The 2013 All-Europe Research Team #6 overall in Equity Research up from #8 in 2012 February 2013 Broker vote standing (average) US EMEA 2010 2012 APAC ex-Japan Japan -37% 6.6 5.8 7.2 12.0 7.4 12.4 10.4 19.2 BARCLAYS#11Section 1: Building on strong foundations to become the 'Go-To' investment bank Our business model has delivered stable earnings despite market volatility Conservative approach to risk Revenue/VaR (FY12) Rates FX Cash Equity Comm- Equities Derivatives odities Stable earnings Standard deviation of quarterly Investment Bank PBT excluding own credit (£bn, Q1 2011 – Q4 2012) BARCLAYS US peer EU peer EU peer US peer US peer US peer EU peer US peer Top 3 4-6 Source: Tricumen, VaR adjusted and normalised to 1-day holding period, 99% confidence, 3-year historical simulation. 11 | Investment Bank Investor Presentation | 28 June 2013 US peer 0.3 BARCLAYS 0.4 EU peer 0.6 0.7 EU peer US peer 0.7 US peer 0.7 1.0 US peer 1.0 EU peer 1.1 7-9 US peer Source: Derived from company results BARCLAYS#12Section 1: Building on strong foundations to become the 'Go-To' investment bank We have actively managed our cost base... Significant reduction in costs while absorbing investments.... Operating expenses (£m, including bank levy) >£1.5bn gross cost saves resulting in consistent top tier cost performance Cost: Net Income ratio FY12 FY11 FY10 140% + 734 8,295 829 383 193 323 100% 7.631 60% 2010 I Non- Performance 'performance costs costs Head office I allocations Invest- ments LIBOR 2012 12 | Investment Bank Investor Presentation | 28 June 2013 US US peer¹ peer1,2 US US EU EU US EU I peer peer peer peer peer peer 1. Includes Corporate and Investment Banking. 2. 2010 data unavailable. Source: Derived from company results. BARCLAYS#13Section 1: Building on strong foundations to become the 'Go-To' investment bank ...and successfully reduced RWAs while absorbing the impact of Basel 2.5 Reduced Risk Weighted Assets by £91bn since Dec 2008... Risk Weighted Assets (£bn) -34% 12 269 30 227 | | | | 91 178 35 Legacy Dec 2008 Basel 2.5 impact FX / Other Dec 2008 Implied RWAS Legacy and risk reduction 13 | Investment Bank Investor Presentation | 28 June 2013 143 Dec 2012 ... through various management actions Legacy reduction and closing businesses • Reduction in risk appetite and optimisation • Reducing risk in specific businesses • (e.g. securitised products) Detailed review of derivative exposure across 15,000 counterparties Reducing exposure to certain Eurozone countries BARCLAYS#14Section 2a. Transforming our business for the new environment: Banking Agenda 1. Building on strong foundations to become the 'Go-To' bank 2. Transforming our business for the new environment a. Banking b. Markets 3. Realistic plans to deliver on commitments 14 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#15Section 2a. Transforming our business for the new environment: Banking Our Banking strategy is based on our fundamental strengths Business environment Our priorities to become the 'Go-To' bank Subdued macro economy 1. 2. Regulatory changes 3. Competitor dynamics Changing stakeholder expectations Continue to grow well-established franchises in the Americas and UK Serve global clients using an APAC and EMEA (ex- UK) footprint that is right-sized for the opportunity Continue to deliver strategic risk management solutions to clients 4. Leverage synergies with other Barclays businesses 15 Investment Bank Investor Presentation | 28 June 2013 Cost and capital efficiency are a key focus of everything we do BARCLAYS#16Section 2a. Transforming our business for the new environment: Banking Banking overview 2012 Banking cash revenues 100% = £2.1bn Products 2012 Banking total revenues (cash and risk solutions) 100% £3.6bn Regions 2012 Banking total revenues (cash and risk solutions) 100% = £3.6bn 15% 26% 59% 8% 42% 47% 58% 45% Debt Origination Advisory Equity Origination Risk solutions Cash products (Advisory, Americas EMEA APAC Equity and Debt Origination) 16 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#17Section 2a: Transforming our business for the new environment: Banking Our focus is on strengthening senior client relationships in our two home markets... With regional concentration shifting towards the Americas and UK... Banking revenues for the industry (£bn) Estimated Growth CAGR 2015 vs 2012 Total 44.2 43.5 43.3 -5% we have clear plans in place to continue to grow share by building on our existing strong franchises Barclays Banking fee market share 4.9% 57% 59% 62% Americas 0-15% + UK EMEA 20% 22% 20% (ex UK) 0-5% APAC 23% 20% 19% 0-5% 6.7% 6.4% 8.9% Strategy ⚫ Continue focus on priority clients · Enhance coverage through allocating our senior and most experienced resources Strengthen relationships with Boards, CEOs and CFOs 2010 2011 2012 Source: Dealogic, Oliver Wyman 17 | Investment Bank Investor Presentation | 28 June 2013 US UK Source: Dealogic 2009 2012 BARCLAYS#18Section 2a: Transforming our business for the new environment: Banking ...and on serving the largest clients with an efficient global footprint Given the limited fee pool opportunity in APAC and EMEA ex-UK... Banking revenue pools for the industry Estimated Growth CAGR 2015 vs 2012 £10.2bn APAC -20.6% 0-5% £8.1bn ...we have streamlined our onshore footprint... Lead performance indicators for Barclays Banking -14.8% £9.0bn EMEA ex-UK -5.6% 0-5% £8.5bn Headcount -15.1% +6.6% Monthly run-rate costs¹ Productivity2 Apr 12 Apr 13 Q1 2012 Q1 2013 ...and will focus on serving the largest clients globally UK and Hong Kong to be used as coverage hubs to provide full service banking offering • Extensive industry coverage Full product capabilities Focus on: • . Providing global access to US and UK clients Serving largest local companies 2010 2012 Source: Dealogic, for historical fee pools. Oliver Wyman for growth estimates. Includes Advisory and Origination. 18 | Investment Bank Investor Presentation | 28 June 2013 Note: 1. Includes pre-performance staff costs and non-staff costs 2. Productivity calculated as revenue per front office employee BARCLAYS#19Section 2a: Transforming our business for the new environment: Banking Risk management solutions on the private side enable broader strategic dialogue with clients Private side structure of risk management solutions drives best-in-class execution Best-in-class products for hedging non-industrial Different opportunities globally driven by the maturity of the risk management franchise Barclays risk management revenues (2012) risks Interest rates FX . Emerging Markets Inflation Credit Risk Management Solutions 64% 19% 52% 81% Advisory + Origination 48% 36% Euromoney GREENWICH G ASSOCIATES Euromoney Primary Debt Survey Corporate Interest Rate Derivatives Services Awards for Excellence Opportunities #1 Best for Swap Provisioning June 2013 Study #1 Europe Top-Tier Market Share #1 Europe Top-Tier Service Quality March 2013 Best Risk Management House in the USA July 2012 19 | Investment Bank Investor Presentation | 28 June 2013 • EMEA Diversification from Rates to EM / transactional FX Investments in CEEMEA Corporate coverage APAC Opportunities for event-driven business (DCM / M&A) • • Strong capital / governance focus across all regions Americas Momentum in strategic / M&A driven dialogue Investments in LATAM BARCLAYS#20Section 2a: Transforming our business for the new environment: Banking We are bringing clients expertise from across Barclays to generate revenues efficiently Corporate Banking Banking clients by corporate product use (Top 1,000 clients) Existing Banking clients using 33% • corporate treasury products Prospects, . including international 67% subsidies • • Deepen relationship further Sell more corporate treasury products Revenue per client currently between £2-5m per annum for most clients Strongest relationships currently generate >£5m Increase penetration Revenue per client currently below £200k per annum for 2/3 of clients Opportunity to increase returns by building on existing senior relationships Opportunities with Africa Africa Integrate with global Corporate and Investment Banking product and sector coverage Build on Top 3 positioning in African Debt Capital Markets Utilise Top 3 positioning in South Africa Advisory and Equity Capital Markets to enhance position in pan-Africa Seamless service across the continent for multi-national corporate clients in Africa Local expertise and relationships tied to a pan-African Corporate proposition 2012 Deliver cost savings through alignment of coverage and product offering across Banking and Corporate Banking 20 | Investment Bank Investor Presentation | 28 June 2013 Source for rankings: Dealogic, Bloomberg BARCLAYS#21Section 2a: Transforming our business for the new environment: Banking Case Study: 'Go-To' Investment Bank Offering 'best in class' advice and products across Corporate and Investment Banking through regional coverage from US and UK Corporate Finance Significant balance sheet commitment Various Investment Grade loans (2010, 2011, 2012) Bookrunner and mandated Lead Arranger on £650m Forward Start facility (2009) Joint Bookrunner on $550m bond due 2013 (2008) Joint Structuring Advisor and Joint Bookrunner on €750m 60-year Hybrid (2007) ⚫ First ever UK Corporate Hybrid transaction Transaction Management Cash deposits Operational banking services FTSE 100 Company Risk Management Solutions Derivative counterparty for significant Commodities hedging programme Ongoing provider of FX and Interest Rates hedging Advisory and Equity Origination • Ongoing strategic advisory dialogue $500m sale of non-core business unit to a US acquirer (2012) $250m sale of packaging business unit (2012) $350m sale of containers business unit (2011) £350m Rights Issue (2009) 21 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#22Section 2b. Transforming our business for the new environment: Markets Agenda 1. Building on strong foundations to become the 'Go-To' bank 2. Transforming our business for the new environment a. Banking b. Markets 3. Realistic plans to deliver on commitments 22 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#23Section 2b. Transforming our business for the new environment: Markets Markets is a client-focused business diversified by products and regions Clients Regions Products 2012 Revenues by product¹ 2012 Revenues by region 48% of clients active in more than three products 47% of clients active in more than one region 850 clients with >£1m in revenue driving c.75% of total revenues 11% 25% 45% 46% 43% 30% ■Macro products (Rates, FX, Commodities) I Credit and Securitised Products Equities & Prime Services 1. Excludes legacy assets 23 Investment Bank Investor Presentation | 28 June 2013 Americas EMEA APAC BARCLAYS#24Section 2b. Transforming our business for the new environment: Markets Our strategy is aligned to the changing business environment Business environment Subdued macro economy Regulatory changes Competitor dynamics Changing stakeholder expectations Our priorities to become the 'Go-To' bank 1. Evolving our business mix 2. Enhancing our award winning technology and scaled execution capabilities 3. Reducing cost and driving productivity 4. Delivering on the opportunities resulting from changes to market structure 5. Further intensifying focus on capital management and legacy asset reduction 6. Adapting business structure in response to regulatory reform 24 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#251. 2. 3. Section 2b. Transforming our business for the new environment: Markets We are actively evolving our business mix Business evolution Simpler products Less inventory Less long dated Revenue split¹ (2010-2012) Average DVaR (£m) Flow² Structured³ 2010 67% Rates 2011 84% Rates 2012 88% 2010 20.6 2011 17.7 2012 12.7 Credit 2010 75% 2011 71% 2012 71% 2010 91% ☑ 2011 92% Reduced risk 2012 97% Excludes legacy assets Flow includes Cash, Corporate Bonds, Government Bonds, Vanilla Options, Vanilla Derivatives and Swaps, Convertible Derivatives Structured includes: Exotics, Market Portfolio, Credit Correlation and Structured Derivatives 25 | Investment Bank Investor Presentation | 28 June 2013 Emerging Markets Credit 2010 15.3 2011 9.1 2012 6.3 2010 11.6 2011 7.2 2012 6.9 BARCLAYS#26Section 2b. Transforming our business for the new environment: Markets We will continue to innovate and invest in technology Over the last decade we have helped define the market standard in electronic trading via the BARX platform and we continue to innovate delivering award winning customer solutions across the board. FX • Automated pricing and risk management of FX spot flows Handle over 100,000 trades a day without human intervention Examples of recent leading client solutions Rates Lead innovation in electronic trading since 2001 In 2012, 90% of US Treasury and European Government Bond trades executed electronically FX Prime Research Credit Provides an aggregated picture of available liquidity across venues in GATOR one place and allows clients to execute the trade with just one click THE 2013 PROFIT & LOSS DIGITAL FX AWARDS 2013 Product of the Year for BARX FX Cator April 2013 Integrated cross-asset class offering for margin solutions, analytics and execution • Winner of best prime broker technology for last 5 years' Leading research analysis tools and index data Ability to compute risk and return analytics on over 500,000 securities Developed an enhanced risk management tool allowing drill down into individual positions Provides wealth manager clients with access to a single global Structured Investment Pricing and BARX COMET Execution platform, covering Equities, Index, FX and Commodities underlyings 1. Source: HFM Week's European Hedge Fund Services awards 26 | Investment Bank Investor Presentation | 28 June 2013 COMET Online Pricers Hong Kong t Blotter Filter by One Year Whose Trades All Trades r Producti Add-on Trade ID 15225939 BC IS 19 16 34 All Products All Products Tax Accumulator Deccumulator 05 Equity linked Norte BC 15 19 1601 05 OTC Option BC IS 18 99 00 BC15 18 37.75 19 Jan 2010 My Quotes Status EXECUTED EXPIRED EXECUTED 10251680 EXECUTED 10251680 EXPIRED BARCLAYS#27Section 2b. Transforming our business for the new environment: Markets Case study: BARX GATOR Client Experience Completing a large FX trade before Completing a large FX trade with GATOR Venue Venue Venue Venue Venue 3 3 2 Venue 1 Venue 4 2 4 Venue 1 Venue 5 Venue 5 BARX GATOR Client Client Time consuming: Multiple trading venues Complex: Multiple counterparty agreements Inefficient: Complex execution 27 | Investment Bank Investor Presentation | 28 June 2013 Quick: Single price discovery mechanism Simple: One click execution Efficient: Best execution algorithm for entire trade BARCLAYS#28Section 2b. Transforming our business for the new environment: Markets We have right-sized our businesses... Headcount reductions (Sales, Trading, Research April 13 vs. April 12) Commodities Equities FX Emerging Markets Credit Prime Syndicate Municipals Research Rates Steps taken 18% Exited businesses / segments that were not aligned with core strategy 16% 11% 10% 10% 10% 9% 8% 7% 4% 4% Right-sized Equities footprint in Europe and APAC for the available opportunity • Re-focused Commodities on core banking, financing and risk management activities • Re-focused client coverage model improving alignment between sales and trading teams Securitised Products 9% total headcount reduction in the Front Office 28 Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#29Section 2b. Transforming our business for the new environment: Markets for example in Commodities, where we changed our business model... We have significantly adapted our business model ... Total trading costs -21% Average DVAR -62% ... to focus on areas where we can generate sustainable returns Strategy Focus on core banking, financing and risk management activities Leverage 'smart physical' expertise and improved productivity to increase revenues / returns with flat cost base Continue to leverage Banking relationship for cross- selling and introductions Continue efficient use of balance sheet / RWA 2010 2012 2010 2012 29 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#30Section 2b. Transforming our business for the new environment: Markets and in Equities, where we are increasing productivity Building on our strong US and UK franchises Leading platform in the US Top 5 by total sales & trading revenues¹ Top 3 in flow derivatives and convertibles² • #2 Americas research ranking³ Refocusing our businesses in APAC and EMEA (ex-UK) Right-sized for the opportunity while EMEA Revenue per dedicated front office employee -100% Strong, growing platform in the UK • Research covers 94 stocks on the FTSE 100 #2 in UK block trades4 • 35 UK Corporate broking mandates retaining the ability to capitalise on market opportunities Q1 2012 Q1 2013 APAC revenue per dedicated front office employee 01 2012 >150% 01 2013 Source: 1. Oliver Wyman (2012); 2. Oliver Wyman (2012); 3. Institutional Investor (2012); 4. Dealogic (equal apportionment, excludes deals <$50m, derivatives and institutional blocks; 2010 - 20 May 2013) 30 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#31Section 2b. Transforming our business for the new environment: Markets We will continue to deliver client solutions for the changing market structure Our first mover advantage in the rapidly growing OTC clearing space... OTC clearing industry notional volumes ($trn) 0.2 0.4 13.1 26.8 positions us well to monetise future opportunities Barclays took an early view of providing Clearing services to our most strategic clients This results in enhanced client relationships and opportunities to grow other franchises Awarded #1 OTC Derivatives Prime Broker by Global Custodian for 3 consecutive years Example client quote: "[Barclays] has learned the ins and outs of the industry, and there is nowhere better to go if you want to learn about the growing world of OTC Clearing" 2010 2011 2012 YTD May 2013 - Global Custodian 31 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#32Section 2b. Transforming our business for the new environment: Markets We are managing our business to be capital efficient... We have clear plans to enhance how we deploy RWAs on an ongoing basis... ... and have built a suite of applications to maximise the capital efficiency of new and existing business Clearing • Increase use of central clearing Portfolio optimisation • Improve documentation to ensure netting is applicable New business Transactions Renegotiate Credit Support Annex • Unwind restructure trades Focus on capital efficient trades • Management information RSG Rates Structuring [RWAS PV Scenarios] BARCLAYS RWAs scenario estimation Allows analysis on a transaction level to assess the return on RWAs under different assumptions Unilateral CVA Bateral CVA DayOMM DVA Son Total W PV edged Total CCRA Total Debre Alber 443512 4435,138 0034,100 30 16x114 50 5501369 SSEL 309 50 $131.900 $1,548 760 $151.996 $13760 50 363.811.555 530179716 Valuation Date Trade Date Centerparty 90sie Counterparts are CVA-V RVA Helge Rete is CRT name Dervative PWC SA POTICA 23050013 2305/2013 1000% Cab (USD) $2,000,000 $100,000 Cash Revenue (Mon Dematter Tots Reverse 53019716 $48,82856 Enhance risk models Improve reporting efficiency RWAs allocation tracker Existing Enables us to assess and track capital usage, business and its underlying drivers, by client and trading desk 32 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#33Section 2b. Transforming our business for the new environment: Markets ...and will continue to reduce legacy assets Our track record in selling down CMEs... Historic Credit Market Exposures Balance sheet assets (£bn) gives us confidence in our ability to reduce our new revised legacy asset portfolio Revised legacy asset portfolio Basel 2.5 RWAS (£bn) Basel 3 RWAS (£bn) -54% -78% 79.0 7.0 4.0 44.0 £11bn reduction 16.0 May YTD 35.0 16.0 36.0 11.0 41.7 26.9 23.9 9.5 14.5 15.2 9.3 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 12 Additional legacy assets Pre-B3 rates Dec 12 widened CRD IV portfolio Legacy asset reduction Derivative Further Further efficiencies legacy derivative asset efficiencies reduction Dec 15 33 | Investment Bank Investor Presentation | 28 June 2013 May YTD BARCLAYS#34Section 2b. Transforming our business for the new environment: Markets We have a range of options to comply with emerging structural reform We are actively engaged with UK, US and European regulators and have undertaken a detailed analysis of different scenarios, which are reflected in our 2015 financial targets ICB Proposals consistent with our plans for a narrow ring-fence Believe impact already priced into wholesale funding costs Dodd Frank Section 165 Liikanen Recovery & Resolution Directive • Comment letter submitted Key contributor to leverage ratio is repo book - numerous levers available to comply without adversely impacting our US franchise Barclays is preparing its response to the recent EC consultation - EC to publish proposals in Q3 of 2013 Supportive of bail-in proposals, and are well placed irrespective of the final scope used Risk of bail-in of senior debt has been priced into UK spreads since 2009 34 | Investment Bank Investor Presentation | 28 June 2013 Fully engaged in regulatory process Rules not finalised • Implementation timings ranging from mid 2015 to 2019 • International regulatory • coordination needed Impact on wholesale funding costs manageable and within plans • Advanced Recovery & Resolution plan in place BARCLAYS#35Section 3. Realistic plans to deliver on commitments Agenda 1. Building on strong foundations to become the 'Go-To' bank 2. Transforming our business for the new environment 3. Realistic plans to deliver on commitments 35 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#36Section 3. Realistic plans to deliver on commitments Becoming the 'Go-To' Investment Bank Client Being a strategic partner for our clients by providing long term strategic advice and solutions Providing best in class client experience via the use of technology combined with seamless and efficient execution Developing highest standards of client conduct through enhanced product suitability framework Colleague Providing world class opportunities for career progression and global mobility Delivering industry leading solutions for clients • Rewarding competitively for performance Embracing diversity and inclusion 36 | Investment Bank Investor Presentation | 28 June 2013 Conduct Transforming control environment front to back through enhanced supervision practices, improved standardisation and increased automation Institutionalising culture with values and behaviours workshops completed for all staff and balanced scorecard performance management to be rolled over the next 18 months Citizenship Contributing to growth: Providing advisory and financing solutions for corporate, institutional and government clients • The way we do business: Actively managing the social and environmental impacts of what we do Supporting our communities: Contributing over 45,000 staff volunteer hours in 2012 BARCLAYS#37Section 3. Realistic plans to deliver on commitments We are reducing our cost base... Investment Bank non-performance costs (£bn, 2012-2015) 5.9 2012 0.9-1.2 0.4 Estimated total Cost to Achieve of £0.6bn 5.1-5.4 Gross cost reduction Additional regulatory costs / investments / inflation 2015 target (ex. CTA) 37 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#38Section 3. Realistic plans to deliver on commitments ...by making structural changes to the way we run our business... Initiatives Reducing 'Reposition', 'Transition' and 'Exit' businesses Increasing front office productivity Better integrating support functions • • • • Re-focusing business and product mix: Refocused on those areas with the greatest return and reduced risk profile (e.g. Commodities) Exiting non-core areas: Sold Private Equity arm and planning exit of residual non-core businesses Re-aligning geographic footprint: Reduced headcount in APAC, EMEA and LATAM to better fit the market opportunities Simplifying and de-layering: Created Markets division to eliminate inefficiencies in sales and trading and reduce management layers Optimising client service model: Developing tiered client servicing model to align cost-to-serve with value of client relationship and increasing use of self-service/low touch models Leveraging economies of scale: Reducing infrastructure costs through leveraging scale across Barclays (e.g. by sunsetting 200 + legacy applications and consolidating vendors across the group) Increasing integration of control functions: Reducing duplication and increasing use of best practices across core control functions: HR, Risk, Finance, Legal and Compliance 38 | Investment Bank Investor Presentation | 28 June 2013 Estimated gross saving £50 - 100m £150-200m £200 - 300m BARCLAYS#39Section 3. Realistic plans to deliver on commitments ...and by enhancing efficiency Initiatives Enhancing front-to-back efficiency • Right-shoring Automation and simplification: Enhancing front- to-back processes by the use of technology De-duplication: Increasing standardisation of cross-product and cross-function platforms with single sources of both reference and transactional data Trades processed per Ops FTE +20% Estimated gross saving £100 - 150m Achieved to date: Intensive right-shoring programme started in 2011, with 2,000 roles already transitioned from high cost locations up to the end of 2012 Plans ahead: We are further accelerating this shift with plans in place to move a further 4,000 roles by 2015 39 | Investment Bank Investor Presentation | 28 June 2013 2012 2015 Infrastructure headcount in medium and low cost locations 2012 2015 +38% +49% +200% £200 - 250m IT Operations Other Infra. BARCLAYS#40Section 3. Realistic plans to deliver on commitments We will continue to reduce RWAs Investment Bank Basel 3 pro forma RWAs (£bn) 257 79 178 11 16 16 Organic growth and further regulatory change 210-230 19 36 174 Jan 13 May YTD legacy reduction Further legacy reduction Further derivative efficiencies Other optimisation Dec 15 Legacy RWAs 40 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#41Section 3. Realistic plans to deliver on commitments We are targeting an ROE of >14% by 2015 excluding legacy assets Transform cells: 2015 view 2 Reposition FICC (6) Invest and grow Equities - North America, UK Prime Services IBD - North America, UK IBD - Risk Solutions Group IB - Treasury (2) Absa Capital Equities - Europe excl. APAC Equities - APAC (2) IBD - Europe excl. UK IBD - APAC FICC-Emerging Markets FICC - Commodities 1 I⚫ 2015 RWA: £170-190bn • 2015 RoE: >14% 4 2015 RWA: £36bn ! Exit FICC Portfolio assets FICC- - Pre B3 rates 41 | Investment Bank Investor Presentation | 28 June 2013 Transition 3 BARCLAYS#42Section 3. Realistic plans to deliver on commitments 2015 financial targets FY 12 12.7% 40% Fully loaded RoE 2015 targets 11-12% Target includes impact of: • Head office cost and minority interest (190 bps) • Bank levy (120 bps) • Residual legacy assets (300 bps) Comp: Income £257bn Pro forma B3 RWA £11.8bn 42 | Investment Bank Investor Presentation | 28 June 2013 Income Mid 30s £210-230bn Single digit growth BARCLAYS#43Section 3. Realistic plans to deliver on commitments Barclays Investment Bank 1. Scale player in FICC, clear plans for growth in Equities and Banking 2. Unique UK/US home market presence with ability to service global clients in EMEA /APAC 3. Plans to structurally reduce non-performance costs while remaining competitive for talent 4. Proven track record of anticipating and adapting to regulation, which will continue in future 5. High-return core business with low volatility of earnings a key differentiator to peers. 43 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS#44Legal disclaimers Important Notice The information, statements and opinions contained in this document do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. Forward-looking Statements This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to certain of the Barclays Group's (the "Group") plans and its current goals and expectations relating to its future financial condition and performance. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as "may", "will", "seek”, “continue”, "aim", "anticipate", "target", "projected”, “expect”, “estimate”, “intend”, “plan”, "goal", "believe", "achieve" or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Group's future financial position, income growth, assets, impairment charges and provisions, business strategy, capital ratios, leverage, payment of dividends, projected levels of growth in the banking and financial markets, projected costs, commitments in connection with the Transform Programme, estimates of capital expenditures and plans and objectives for future operations and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, UK domestic, Eurozone and global macroeconomic and business conditions, the effects of continued volatility in credit markets, market related risks such as changes in interest rates and foreign exchange rates, effects of changes in valuation of credit market exposures, changes in valuation of issued notes, the policies and actions of governmental and regulatory authorities (including requirements regarding capital and Group structures and the potential for one or more countries exiting the Eurozone), changes in legislation, the further development of standards and interpretations under International Financial Reporting Standards ("IFRS") and prudential capital rules applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards, the outcome of current and future legal proceedings, the success of future acquisitions, disposals and other strategic transactions and the impact of competition, a number of such factors being beyond the Group's control. As a result, the Group's actual future results may differ materially from the plans, goals, and expectations set forth in the Group's forward-looking statements. Any forward-looking statements made herein speak only as of the date they are made. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, the London Stock Exchange plc (the "LSE") or applicable law, Barclays expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Barclays' expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has made or may make in documents it has published or may publish via the Regulatory News Service of the LSE and/or has filed or may file with the US Securities and Exchange Commission. 44 | Investment Bank Investor Presentation | 28 June 2013 BARCLAYS