top gun banking in global all sectors

Top Gun Banking in Global All Sectors

PERFORMANCE AND PREDICTIVE ANALYTICS

National Bank Financial "Voice of the Client" Utilities and Power Group – List B

2 Years Ending June 30th 2015

� Level 1 GAP Report



First Intelligence

Print Date: 12/6/2015 Brendan Wood International

BRENDAN WOOD INTERNATIONAL – Investment & Corporate Banking World Watch Confidential Information 2

Top Gun Banking Drives Majority of Equity/M&A Fees in the Global All Sectors Sector

The total population of nominated top gun bankers by transactionally active clients:

- On Equity and M&A transactions

- Further nominated on debt transactions

- Total nominated top gun bankers

Collectively, these top gun bankers generate 50% of the fees paid in the sector.

TOP GUN BANKERS

13

42

55

National Bank Financial employs 3.6%(6th) of the Top Gun Bankers in the sector. These top bankers generate 19% of National Bank Financial's fees in the sector.

GAP ANALYSIS: National Bank Financial bankers did not compete for 84% of the fees in the sector, representing $519m in potential fees.

Global - Equity Issues, M&A Mandates, Bond Issues and Syndicated Loans - All Sectors - NBF - Pipelines - List B Transactions Closed 1 Jul, 2013 to 30 Jun, 2015 Administrator - Dec 06, 2015 2:10 PM


Back-testing was performed on the past 9 years of data (1999-2007)

Changes in current performance lead to changes in the predicted

market share moves.

% market share of fees

Predictive Metrics

The BWI predictive metrics are based on the proven correlation between a bank’s performance on key BWI metrics and subsequent

market share moves.


Global All Sectors

National Bank Financial - Directional Data

Direction

Performance Against The

Leader Industry Rank

Share of Deals by number (Tenacity) 15 th

18% of RBC Up

Share of Fees (Market Share) 12 34% of RBC th

Up

Deals Competed For 6 th 38% of RBC Up

Fees Competed For 6 26% of RBC th

Up

Share of Top Gun Bankers 18% of CIBC 6 th

Flat

Fees Covered by Top Gun Bankers 7 th

10% of SC Flat

Brand (% of top nominations) 6 th

Flat 47% of RBC

Brand (% of top nominations) Fee Weighted 6 th

Flat 60% of RBC

Share of Planned Transactions th 6 43% of RBC Flat

Share of Planned Transactions (Fee Weighted) th

5 66% of CIBC Up

Productivity (% Market Share Per Banker) 12 th

25% of CITI Up

Of Top 20 by Market Share

Increase in rank Decrease in rank No change in rank Flat Up Down

*Transactions: Global All Sectors , Transactions closed 24mo. Ending June 2015 Equity Issues, M&A Mandates, Bond Issues and Syndicated Loans (see Appendix for exclusions and deal size minima)


Global All Sectors

Which Banks Gained/Lost The Most Market Share?

- +

Market Share For Transactions Closed 1 Jul, 2013 to 30 Jun, 2015 and Transactions Closed

1 Jan, 2013 to 31 Dec, 2013

RBC Capital Markets 10.8% (12.4%) Scotia Capital 9.6% (10.7%) TD Securities 9.4% (7.8%) CIBC World Markets 8.8% (6.1%) BMO Capital Markets 7.1% (7.8%) Citigroup 5.8% (8.3%) Morgan Stanley 4.5% (4.7%) Bank of America Merrill Lynch 4.3% (7.0%)

Barclays 4.2% (6.2%) JP Morgan 3.9% (3.0%) Wells Fargo Securities 3.9% (3.0%) National Bank Financial 3.7% (2.6%) Credit Suisse 2.8% (2.3%) HSBC 2.6% (2.6%) Deutsche Bank 2.2% (1.8%) Goldman Sachs 2.0% (0.7%) The Royal Bank Of Scotland 1.6% (1.6%) Bank of Tokyo Mitsubishi UFJ 1.5% (1.4%) Desjardins Securities 1.4% (0.4%) Macquarie Bank 1.1% (0.9%)



Global All Sectors

NATIONAL BANK FINANCIAL BANKERS

BANKERS RATED BY CLIENTS IN RELATIONSHIP MANAGEMENT, CLIENT COVERAGE AND

EXECUTION OF TRANSACTIONS

EQUITY / M&A

TRANSACTIONS

DEBT

TRANSACTIONS

Craig Langpap

Iain Watson

Patrick Kenny

Iain Watson

John Carrique

John Niedermier

Tushar Kittur

BWI allows client to drill-down in this data to achieve full comfort. Note: Bankers are nominated at the bank employing them at the time of the bank’s selection. From time to time, senior executives, corporate bankers, analysts and other capital markets professionals may also be nominated as they may form

an integral part of the relationship from the client’s viewpoint. Bankers whose clients were not transactionally active or did not participate in the debriefing process may not appear in the above list(s).


Global All Sectors

NATIONAL BANK FINANCIAL BANKERS

WHAT PERCENTAGE OF THE TOP SCORES DOES YOUR FIRM GET?

Share of Top Scores Per Key Performance Category

NATIONAL

BANK

FINANCIAL

% share of top score

3% (6th) Personally relates and understands your

needs/problems

4% (6th) Originality, quality, and appropriateness of ideas

4% (6th) Sales ability...professional aggressiveness and

perseverance

6% (6th) Specialized knowledge and understanding of your

industry sector

3% (7th) Personal chemistry with you, the client

5% (6th) Your perception of the negotiating skills of this individual either representing your company's

interests or defending the bank's interests

Global All Sectors - Transactions Closed 1 Jul, 2013 to 30 Jun, 2015 Administrator - Dec 06, 2015 2:13 PM


Global All Sectors

SHARE OF TOP GUN BANKERS

: Top Ranked Banker's % 2.6%

: Rank 6

National Bank Financial Historical Results

1 Jan, 2013 to 31 Dec, 2013

National Bank Financial 6 : Rank

3.6 % : Top Ranked Banker's %

Rank

CIBC World Markets 1

Scotia Capital 1

RBC Capital Markets 3

TD Securities 4

BMO Capital Markets 5

HSBC 6

National Bank Financial 6

Morgan Stanley 8

Credit Suisse 9

JP Morgan 9

*Transactions: Global - Equity Issues, M&A Mandates, Bond Issues and Syndicated Loans - All Sectors - NBF - Pipelines - List B , Transactions closed 24mo. Ending June 2015


Global All Sectors

The Organic Growth Opportunity

How can BWI Client Intelligence be used:

1) Withdrawing/changing coverage which clients deem to be in-effective.

2) Who are the right expansion clients? (Best fits with your brand / a pre-

disposition to your bank’s proposition)

3) What is the size of wallet/frequency of transactions?

4) What are the “coverage” benchmarks? (Price of entry)

5) Assigning the right coverage. Bankers and coverage criteria matching

client relative criteria.

6) Can BWI train a coverage / relationship banker for you?

7) Sponsor a BWI banking candidate to be trained on your clients and targets.

�Inorganic Solutions


Global All Sectors

Strategic Hiring Solutions

GROWING MARKET SHARE THROUGH EFFECTIVE RECRUITMENT

2 YEARS

Top Gun Bankers At Competitors

Market Share Attributable to This Banker

Projected Fees Attributable to This Potential Recruit

Estimated Net Additional Market Share to National

Market Share Overlap With National Bank Financial

Top Gun Bankers Currently Employed With Competitors Who Represent Strategic Hiring Opportunities.

Little or Negligible Overlap with National Bank Financial footprint

7.92% $48m Banker #1 0.98% 8.90%

6.68% $41m Banker #2 0.65% 7.33%

6.28% $38m Banker #3 0.68% 6.96%

3.94% $24m Banker #4 1.33% 5.27%

4.11% $25m Banker #5 0.70% 4.81%

2.75% $17m Banker #6 0.91% 3.66%

2.64% $16m Banker #7 0.80% 3.44%

2.16% $13m Banker #8 1.12% 3.28%

2.77% $17m Banker #9 0.31% 3.08%

2.40% $15m Banker #10 0.68% 3.08%



Global All Sectors

What is the Value of Fees Not Competed for by National Bank Financial? $519M

• Composition of the $519M not penetrated by National Bank Financial:

Equity Issues $228m

M&A Advisory $27m

Bond Issues $151m

Syndicated Loans $75m

$519m Total*

Total Number of Transactions Not Penetrated: 74

*Note: Total may not add due to rounding

Penetrated: Considered for a lead or joint-lead position on a transaction • Composition of the Transactions Closed 1 Jul, 2013 to 30 Jun, 2015 Administrator - Dec 06, 2015 2:14 PM


Global All Sectors

Companies Not Penetrated by National Bank Financial SELECTION CRITERIA USED BY COMPANIES THAT DID NOT CONSIDER NATIONAL BANK FINANCIAL

($27m) ($228m) EQUITY ISSUES M&A

SELECTION CRITERIA USED BY COMPANIES THAT DID NOT CONSIDER NATIONAL BANK FINANCIAL Transactions Closed 1 Jul, 2013 to 30 Jun, 2015 Administrator - Dec 06, 2015 2:15 PM


Global All Sectors

Planned Transactions

WHO IS SHORTLISTED FOR THE NEXT 12 MONTHS OF TRANSACTIONS

% of planned transactions for which this bank was cited as the SOLE choice for lead for their next transaction

% of planned transactions for which this bank was cited as ONE OF their choices for lead for their next transaction

Total # of Deals Planned:

25 Transactions where an IB was Shortlisted

Transactions 'Open' for Competition

20

45 Total Deals Planned

National Bank Financial Historical Results Transactions Closed 1 Jan, 2013 to 31 Dec, 2013

Shortlist

Penetration "Lock-up"

0.0% 17.9% [6]

National Bank Financial 6 : Rank

20.0% : Shortlist Penetration

Rank

RBC Capital Markets 1

CIBC World Markets 2

TD Securities 3

BMO Capital Markets 4

Scotia Capital 4

National Bank Financial 6

HSBC 7

Acumen Capital 8

Bank of America Merrill Lynch 8

Citigroup 8



Sector Reports and Additional Services

Sector Reports: Analytical predictive and proactive, sector reports tell you what to do to grow your business, make it stronger, and eliminate its weaknesses. As a client you can assess the “Voice of the Client” feedback deal-by-deal relationship-by-relationship fact-based insight at three levels.

Level 1 Report Focused on sectors, countries or product, the Level 1 report outlines to leading banking teams where its market share is going and why. This highly popular level of report uncovers the potential of the franchise, the case for hiring competitive bankers to exploit untapped potential, and the kind of client targeting required.

Level 2 Report Level 2 reports explore the granular detail behind all competition in the sector and explains the activities and metrics of achievement which drive the market share of all key competitors. Level 2 reports clearly underpin the dynamics of competition and illustrate the specific opportunity for your banking team to grow/gain market share.

Level 3 Report Level 3 reports allow you to analyze the specific corporates in your bank's coverage footprint and determine what coverage is effective/less effective. What to question, what to change and what to trust based on the voice of your clients. You can customize reports to match your exact targeted coverage list on individual banker coverage silos, filled from the BWI universe.

Choose powerful “Voice of the Client” fact-based presentation to drive performance, top gun coverage, and industry leading execution.

Brendan Wood International offers career management services to top performers in the industry, enabling BWI to help you fill your coverage gaps complemented with on-going performance monitoring and skills enhancement.

Offsites

Career Management


APPENDIX

.


The BWI Universe

Transactions falling below BWI deal minimums (listed below) are excluded from the interviewing universe, as are self-led or related-party transactions. All transactions must have closed.

Equity M&A

Investment Grade Bonds

High Yield Bonds

Investment Grade Loans

High Yield Loans

Europe

USA

Pacific Rim Latin

America

Canada

10M

30M

350M, 100M (for Sterling Bond Issues)

100M

1B

250M

Excludes Asset Backed and Mortgage Backed Securities

25M

100M

250M

100M

1B

400M

150M

25M

100M

150M

500M

250M

100M

any

10M

any

100M

any

100M

100M

100M

100M

10M

25M

.

. Deal Minimums (US$ Millions):

.

. M&A Fees Exclude Work Fees and Fairness Opinions

top gun banking in global all sectors

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