Finance Presentation

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Finance Presentation
November 14, 2003
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Table of Contents

• Overview of SunTrust
• Syndicated Finance
• Debt Capital Markets Origination
• Corporate Banking
• Application of the MBA

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Overview of SunTrust
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Overview of SunTrust

• One of the nation's largest financial holding
  companies with assets in excess of 126 billion
  (as of September 03)
• Offers a full line of financial services for
  customers and businesses, serving more than 3.7
  million customer households through a regional
  organizational structure and encompasses more
  than 1,100 branches in six states Alabama,
  Florida, Georgia, Maryland, Tennessee and
  Virginia
• Market capitalization is in excess of 19 billion
  (as of October 03)
• Superior financial strength with credit ratings
  of AA-/Aa3

Top Ten U.S. Banks Ranked by Asset Size
Rank
Bank
1
Citigroup
2
J.P. Morgan Chase
3
Bank of America
4
Wachovia Corp.
5
Wells Fargo
6
Bank One
7
Fleet Boston Financial
8
U.S. Bancorp
9
SunTrust
10
National City
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Overview of SunTrust Coca-Cola Company

• Trust Company of Georgia underwrote IPO for Coke
• Secret formula remains in downtown Atlanta
• 122 million shares held
• 2nd largest shareholder behind
• Berkshire Hathaway

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Overview of SunTrust
CONFIDENTIAL
SunTrust Corporate Investment Bank (CIB)
Debt Capital Markets
Equity Capital Markets
SunTrust Corporate Banking

• Syndicated Bank Loans
• Private Placements of Debt
• Public Debt
• Structured Leasing
• Asset Securitization
• Asset-Backed Commercial Paper
• Municipal Finance
• Debt Sales Trading
• Financial Risk Management

• Public Offerings of Equity
• Mergers, Acquisitions Divestitures
• Private Placements of Equity
• Leveraged Buyouts
• Financial Advisory Services
• Fairness Opinions
• Equity Research
• Equity Sales Trading

• Regional Specialty Groups
• Healthcare
• Beverage Foodservice
• Textiles
• Energy
• Agrifoods
• Communications and Media
• Transportation

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Syndicated Finance
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Syndicated Finance
CONFIDENTIAL
SunTrust Corporate Investment Bank (CIB)
Debt Capital Markets
Equity Capital Markets
SunTrust Corporate Banking

• Syndicated Bank Loans
• Private Placements of Debt
• Public Debt
• Structured Leasing
• Asset Securitization
• Asset-Backed Commercial Paper
• Municipal Finance
• Debt Sales Trading
• Financial Risk Management

• Public Offerings of Equity
• Mergers, Acquisitions Divestitures
• Private Placements of Equity
• Leveraged Buyouts
• Financial Advisory Services
• Fairness Opinions
• Equity Research
• Equity Sales Trading

• Regional Specialty Groups
• Healthcare
• Beverage Foodservice
• Textiles
• Energy
• Agrifoods
• Communications and Media
• Transportation

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Syndicated Finance Syndications Group
SunTrusts Syndicated Finance Group has grown its
business at a substantial pace as issuers realize
the benefits of SunTrusts strong industry
expertise combined with syndicated debt market
experience and capabilities.
SunTrust Agent Only Syndications
Historical data for first half of 2003 24.5
Billion and 94 deals
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Syndicated Finance Market Conditions/Takeaways

• Recent Market Trends
• Both, the leveraged and investment grade pipeline
  are beginning to grow. While refinancing
  transactions still dominate the calendar, there
  has been a significant increase in the number of
  MA related transactions.
• Banks have ceased tightening credit standards
  beginning with lower credit spreads. The easing
  has been primarily driven by declining default
  rates and increased competition from other banks,
  as well as other funding alternatives, such as
  corporate bonds.
• There is currently very strong demand for assets
  in both markets.
• Summary
• A stable bond market and increased competition
  amongst banks and institutional investors for
  assets should continue to provide for a very
  favorable issuers market. Comparable credit
  spreads continue to tighten and credit statistics
  and tenors should begin to loosen.
• Takeaways
• Deal Bunker
• Focus/intimate knowledge of one product/market
• Exposure to many different industries/companies

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Syndicated Finance Syndications Group
Syndications Profile

• SunTrust has been growing its Syndications
  Business at a rapid pace
• 9th Ranked by Number of Deals with 94 Agent Only
  roles 1H03
• 11th Ranked by Number of deals with 161 Agent
  Only roles in 2002
• 154 Agent-Only roles in 2001
• 123 Agent-Only roles in 2000
• 14th Ranked by Number of Deals with 30 Lead
  Arranger roles in 1H03
• 15th Ranked by Number of Deals with 49 Lead
  Arranger roles in 2002
• 62 Lead Arranger roles in 2001
• 57 Lead Arranger roles in 2000
• 38 Lead Arranger roles in 1999

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Syndicated Finance Tombstones
450,000,000 Revolving Credit Facility
800,000,000 Revolving Credit Facilities
225,000,000 Revolving Credit Facility
200,000,000 Senior Credit Facilities
700,000,000 Revolving Credit Facilities
Haverty Furniture Company 110,000,000 Revolving
Credit Facilities
250,000,000 Revolving Credit Facility
650,000,000 Senior Credit Facilities
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DCM Originations
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DCM Originations
CONFIDENTIAL
SunTrust Corporate Investment Bank (CIB)
Debt Capital Markets
Equity Capital Markets
SunTrust Corporate Banking

• Syndicated Bank Loans
• Private Placements of Debt
• Public Debt
• Structured Leasing
• Asset Securitization
• Asset-Backed Commercial Paper
• Municipal Finance
• Debt Sales Trading
• Financial Risk Management

• Public Offerings of Equity
• Mergers, Acquisitions Divestitures
• Private Placements of Equity
• Leveraged Buyouts
• Financial Advisory Services
• Fairness Opinions
• Equity Research
• Equity Sales Trading

• Regional Specialty Groups
• Healthcare
• Beverage Foodservice
• Textiles
• Energy
• Agrifoods
• Communications and Media
• Transportation

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DCM Originations Market Conditions/Takeaways

• Group was formed to assist client managers with
  the analysis and presentation of complex capital
  markets transactions including
• Transactions that include multiple capital
  markets products
• The underwriting of bridge financing for public
  debt and equity transactions
• Comprehensive capital structure analysis.
• Summary
• Great working environment (trading floor)
• Finger on the pulse of the capital markets
• Takeaways
• Well-rounded experience
• Requires considerable knowledge of full suite of
  capital markets products
• Exposure to many different industries/companies

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Corporate Banking
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Corporate Banking
CONFIDENTIAL
SunTrust Corporate Investment Bank (CIB)
Debt Capital Markets
Equity Capital Markets
SunTrust Corporate Banking

• Syndicated Bank Loans
• Private Placements of Debt
• Public Debt
• Structured Leasing
• Asset Securitization
• Asset-Backed Commercial Paper
• Municipal Finance
• Debt Sales Trading
• Financial Risk Management

• Public Offerings of Equity
• Mergers, Acquisitions Divestitures
• Private Placements of Equity
• Leveraged Buyouts
• Financial Advisory Services
• Fairness Opinions
• Equity Research
• Equity Sales Trading

• Regional Specialty Groups
• Healthcare
• Beverage Foodservice
• Textiles
• Energy
• Agrifoods
• Communications and Media
• Transportation

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Corporate Banking

• Portfolio Manager/Quarterback
• Identify relevant opportunities within the
  portfolio
• Engage appropriate product specialist
• Connect specialist with client to provide value
  added solution.
• Ultimately, create a profitable relationship for
  the Bank.

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Corporate Banking
UGA Product Specialists

• SunTrust Product Specialists
• Todd Koetje, Syndicated Finance
• Jess Jarratt, Debt Origination
• Bob McMahon, Real Estate Finance
• Betsy Blunt, Fixed Income Sales and Trading
• Cathy Wagner, Treasury Management
• Walt Pickell, Foreign Exchange
• Jon Van Slooten, Interest Rate Derivatives
• Brian Gupton, Trust Services
• Mike Mahoney, Derivatives
• Todd Shutley, Structured Leasing

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Corporate BankingRisk Adjusted Profitability

• SunTrust and its competitors are focusing their
  attention on risk-adjusted profit or RAROC, which
  stands for Risk-adjusted Return on Capital.
• Essentially, banks are converting GAAP profit on
  transactions into a profitability measure which
  reflects the underlying risk of the Company and
  its ability to service the debt.
• First, it brings together all products revenue
  and expenses attributable to a client or
  portfolio for a total view of relationship
  profitability.
• It also uses a more sophisticated, prospective
  measure of credit costs versus the traditional
  loan loss provision, derived from a historic view
  of the Company.
• Finally, it introduces a capital charge that
  reflects investors required returns on capital
  employed to cover unexpected losses attributable
  to the credit, operational and market risks
  inherent with the business.
• Encourages non-credit related cross-sells to
  drive profitability

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Corporate BankingUnderwriting Process

• Internal process is just as essential as
  identifying opportunities with clients
• Credit administrators often portrayed as
  bulldogs.
• Get em involved early!
• SunTrust Process has evolved into a team effort.

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Application of the MBA
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Application of the MBA

• Team-oriented environment, ability to work
  seamlessly with many different people and
  personalities.
• Confidence and experience derived from in class
  presentation of case-based material.
• Inherent work ethic and prior work experience to
  draw from and lead with.

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Finance Presentation
November 14, 2003