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Filed pursuant to Rule 433. Registration Statement Nos. 333-184147 and
333-184147-01.
RBS Exchange Traded Notes
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RBS US Large Cap Alternator ETN[] (ALTL)
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ETN Overview:
The RBS US Large Cap Alternator Exchange Traded Notes[] (the "RBS ETNs") track
the RBS US Large Cap Alternator Index[] (USD) (the "Index") which is designed to
provide exposure to the US large cap equity market by alternating between three
popular indices, the SandP 500([R]) Total Return Index (MC), the SandP 500([R])
Low Volatility Total Return Index (LV) and the SandP 500([R]) Equal Weight Total
Return Index (EW) (each, an "Underlying Index"). Each month, the Index will
track the return of the Underlying Index with the highest relative strength
score, which is based on average historical returns.
RBS US Large Cap Alternator Index[] Features
Strategy: Each month, the Index will track the return of the Underlying Index
with the highest relative strength score at the end of the prior month.
Relative strength score: Simple average of the 1-month, 3-month, 6-month,
9-month and 12-month returns of each of the Underlying Indices.
Rebalanced monthly: Relative strength score is calculated with respect to the
last business day of each month. The Index is rebalanced at the close of the
[]rst business day of the next month.
Hypothetical Market Cycle
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The graph above illustrates a hypothetical market cycle and which Underlying
Index the relative strength Index methodology may select in the above stage of
the market cycle. The illustrations above do not re[]ect an actual market cycle
and they are not an indication of how a market cycle may develop, how long a
stage of the market cycle could last in the future, which Underlying Index will
be tracked during any part of a market cycle or whether any Underlying Index
will be tracked at all or in any particular order.
SandP 500([R]) Total Return Index
[] Tracks the 500 largest U.S. stocks weighted by market capitalization.
[] Expected to outperform the other Underlying Indices during the last stage
of a bull market.
[] May underperform low volatility indices in falling and choppy markets.
SandP 500([R]) Low Volatility Total Return Index
[] Consists of the 100 stocks from the SandP 500([R]) Index with the lowest
historical volatility over the past 12 months. The least volatile stocks
have the largest weighting in the index.
[] Expected to outperform the other Underlying Indices in choppy markets and
tracks the historically least volatile stocks of the SandP 500([R]) Index.
[] May underperform the other Underlying Indices in a rising market.
SandP 500([R]) Equal Weight Total Return Index
[] All 500 stocks rebalance to the same weight in the index on a quarterly
basis.
[] Expected to outperform the other Underlying Indices at the beginning and
middle of bull markets because the equal weighting creates a higher
exposure to the smaller companies within the index.
[] May underperform the other Underlying Indices in falling markets.
Not FDIC Insured. May Lose Value.
RBS ETN Details
Ticker ALTL
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Intraday ALTL.IV
Indicative Value
Ticker
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CUSIP 78009P168
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ISIN US78009P1681
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Primary NYSE Arca
Exchange
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Annual Investor 1.00% per annum
Fee
(accrued on a
daily basis)
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Inception Date 8/30/2012
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Maturity 9/5/2042
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Issuer The Royal Bank of Scotland plc
("RBS plc")
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Guarantor The Royal Bank of Scotland
Group plc ("RBSG")
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Underlying SandP 500([R]) Total Return Index
Indices (SPTR), SandP 500([R]) Equal Weight
Total Return Index (SPXEWTR),
SandP 500([R]) Low Volatility Total
Return Index (SP5LVIT)
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Repurchase at You may offer your RBS ETNs
your option to RBS plc for repurchase on
any business day on or prior to 8/27/2042, provided that you
offer a minimum of 20,000 RBS ETNs for any single repurchase
and follow the procedures described in the pricing supplement.
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Early We may redeem all of the RBS
redemption at ETNs at our discretion at any
our option time on or prior to 9/3/2042.
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Daily Upon early repurchase or
Redemption redemption or at maturity, you
Value will receive a cash payment
equal to the daily redemption value per RBS ETN. The daily
redemption value on the relevant valuation date will be
published on www.rbs.com/etnus/altl*.
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The ETNs The RBS ETNs are unsecured and senior debt
obligations of the Issuer and are fully and unconditionally
guaranteed by the Guarantor.
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* Information contained on our website is not incorporated by reference in, and
should not be considered a part of, this document.
To []nd out more Call toll free 855-RBS-ETPS or visit www.rbs.com/etnUS
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Illustration of a $100,000 Investment in Each of the Three Underlying Indices --
7/31/2011 - 12/31/2012
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The graph above does not re[]ect the performance of the RBS US Large Cap
Alternator Index[] or the RBS US Large Cap Alternator ETN[]. Index performance
returns do not re[]ect any fees or transaction costs. You can not invest
directly in an index. Source: Bloomberg. All indices are based to $100,000 as of
7/31/2011.
Calendar Year Returns for 2008 - 2012 (%) -- as of 12/31/2012
INCEPTION DATE
-------------------------------------------------------- --------------
SandP 500([R]) Total Return Index (SPTR) 05/1991
SandP 500([R]) Low Volatility Total Return Index (SP5LVIT) 04/2011
SandP 500([R]) Equal Weight Total Return Index (SPXEWTR) 01/2003
2008 2009 2010 2011 2012
------ ----- ----- ----- -----
-37.00 26.46 15.06 2.11 16.00
-- -- -- 14.78 10.30
-39.72 46.31 21.91 -0.11 17.65
Source: Bloomberg.
Index Statistics -- as of 12/31/2012
SandP 500([R]) LOW
VOLATILITY SandP 500([R]) EQUAL
SandP 500([R]) TOTAL TOTAL RETURN WEIGHT TOTAL
RETURN INDEX INDEX RETURN INDEX
---------------------------- ------------------ ---------------- ------------------
Top 10 Holdings (%) 19.57% 12.93% 2.11%
Median Market
Capitalization $12.64 bn $17.59 bn $12.64 bn
Average Weighted
Market Capitalization $212.05 mil $439.02 mil $53.68 mil
Average Dividend 2.14 3.34 1.96
Yield(1) (%)
Average Price to Earnings(2) 20.12 16.84 20.12
Beta(3) 1.00 0.562 1.092
(1)Dividend Yield means the sum of the gross dividends paid on the stocks
comprising the Index (which is a total return index) over the prior 12 months
ending 12/31/2012 divided by the closing level of the price return version of
the Index as of 12/31/2012.
(2)A valuation of a company's current share price compared to its earnings per
share. Earnings per share is measured on a twelve month trailing basis. (3)A
number describing the volatility of an index in relation to the volatility of
the SandP 500([R]) that is calculated using trailing 12 month weekly returns.
Source: Bloomberg
Sector Weightings Comparison(4) -- as of 12/31/2012
SandP 500([R]) LOW
VOLATILITY SandP 500([R]) EQUAL
SandP 500([R]) TOTAL TOTAL RETURN WEIGHT TOTAL
RETURN INDEX (%) INDEX (%) RETURN INDEX (%)
------------------- ------ ---------------- ------ ------------------ ------
Info Tech 19.04 Utilities 31.09 Cons Disc. 16.63
Financials 15.61 Cons. Staples 26.80 Financials 16.46
Health Care 12.01 Health Care 11.31 Info Tech 14.02
Cons. Disc. 11.50 Financials 10.52 Industrials 12.05
Energy 10.99 Industrials 6.51 Health Care 10.24
Cons. Staples 10.61 Info Tech 3.62 Energy 8.61
Telecom
Industrials 10.12 2.98 Cons. Staples 8.19
Services
Materials 3.62 Cons. Disc. 2.79 Utilities 6.13
Utilities 3.43 Materials 2.56 Materials 6.12
Telecom Telecom
3.06 Energy 1.82 1.55
Services Services
Total 100.00 Total 100.00 Total 100.00
(4)Based on standard industry classi[]cations. Source: SandP Dow Jones Indices
CERTAIN RISK CONSIDERATIONS: The RBS ETNs 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
suf[]cient to offset the aggregate investor fee applicable to the RBS ETNs 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
the SandP 500([R]) Index or any Underlying Index.
Even though the RBS ETNs are listed on the NYSE Arca, a trading market may not
develop and the liquidity of the RBS ETNs may be limited and/or vary over time,
as RBS plc is not required to maintain any listing of the RBS ETNs. The RBS ETNs
are not principal protected and do not pay interest. Any payment on the RBS ETNs
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 RBS ETNs 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 RBS ETNs.
The RBS ETNs 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 RBS ETNs as described
in the "Risk Factors" section of the pricing supplement, before investing.
IMPORTANT INFORMATION: RBS plc and RBS Group have []led a registration statement
(including a prospectus) with the U.S. Securities and Exchange Commission (SEC)
for the offering of RBS ETNs to which this communication relates. Before you
invest in any RBS ETNs, you should read the prospectus in that registration
statement and other documents that have been []led 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 Securities Inc. (RBSSI) or
any dealer participating in the offering will arrange to send you the prospectus
and the pricing supplement at no charge if you request it by calling
1-855-RBS-ETPS (toll-free). The RBS US Large Cap Alternator Index[] (USD)
("Index") is the property of RBS plc (the "Index Sponsor"), which has contracted
with SandP Opco, LLC, a subsidiary of SandP Dow Jones Indices LLC ("SandP Dow
Jones Indices") to maintain and calculate the Index. The SandP 500([R]) Index,
SandP 500 Low Volatility Index([R]) and SandP 500([R]) Equal Weight Index[]
(including the total return versions) are the exclusive property of SandP Dow
Jones Indices and have been licensed for use by the Index Sponsor in connection
with the Index. SandP Dow Jones Indices, its af[]liates and their third party
licensors shall have no liability for any errors or omissions in calculating the
Index. SandP([R]) is a registered trademark of Standard and Poor's Financial
Services LLC ("SPFS") and Dow Jones[R] is a registered trademark of Dow Jones
Trademark Holdings LLC ("Dow Jones"). These trademarks have been licensed to
SandP Dow Jones Indices. SandP([R]), C A L C U L ATED BY SandP 500([R]), SandP
500 Low Volatility Index([R]), SandP 500([R]) Equal Weight Index[] and SandP
500[R] EWI[] are trademarks of SPFS and together with the "Calculated by SandP
Dow Jones Indices Custom" and its related stylized mark(s) have been licensed
for use by the Index Sponsor. Copyright [C] 2013 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.
www.rbs.com/etnUS | TOLL FREE: 855-RBS-ETPS | Not FDIC Insured. May Lose Value.
Dated January 15, 2013
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