Naveed Sultan – Global Head of Treasury and Trade Solutions

Treasury and Trade Solutions

May 7, 2014

Treasury and Trade Solutions

“Partnership is not a posture but a

process – a continuous process that

grows stronger each year as we devote

ourselves to common goals.”

JFK

1

Citigroup Financials – 1Q14 Update

1Q14 Results:

• Revenues of $20.1Bn

• Net Income of $3.9Bn

• Tangible Book value per share increased to $56.40

Progress in key execution priorities

• Loans and deposits growth, with expense discipline

• Citi Holdings losses reduced by over 60% YoY

• Citi Holdings assets of $114bn declined 23% QoQ

• Deferred tax assets reduced by approximately $1.1B in 1Q

Building a safer and sounder institution

• Basel III Tier 1 Common Ratio of 10.4%

• Basel III Supplementary Leverage Ratio of 5.6%

Citigroup 1Q14 Revenues ($bn)

Institutional Clients Group 1Q14 Revenues ($bn)

2

Treasury and Trade Solutions (TTS) TTS underpins Citi’s global business model and client relationships

Wholesale

Cards

Receivables

Liquidity

Management

Services

Trade

Channel

Services

Payments

TTS

as of Q4, 2013

>3,000,000,000,00

0

421,760,000,00

0 140 98

$ value of

payments

processed daily

$ average

deposits and

other customer

liabilities

Currencies

handled by TTS

global platforms

and gateways

Countries

where we

have a

banking

license

TTS approach is client

centric and value driven.

TTS Key Attributes of

Client Engagement:

• Client Experience

• Consultancy

• Solutions

• Innovation

• Technology

• Execution

• Network

TTS’ strong portfolio of capabilities and solutions

3

TTS Strategic Relevance to Citi’s Model

“We will continue to invest in our Treasury and

Trade Solutions business, the backbone of our

global network, while we capitalize on our focus

on the payments side. This business is capital

friendly and not easily replicable. It took us

decades to build and remains the clear global

industry leader.”

Michael Corbat,

Citigroup CEO

2013 Annual Report - Letter to Shareholders

4

“Change is the law of life. And those

who look only to the past or the present

are certain to miss the future.”

JFK

We are Living through Times of Unprecedented Change

5

Major New Regulation passed

every 15-20 years

1950 - Office of Foreign Asset Control 1970 - Bank Secrecy Act 1986 - Money Laundering Control Act

Secular Trends Shaping the Future

Primary Sources: EIU, Roland Berger, United Nations Statistics, WHO Statistics, Forrester Research, Citi Analysis

Globalization

Urbanization

Digitization

Past (1990) Present Future

USA JPN

DEU

USA CHN

JPN

CHN USA

IND

17 % 26 % 33 % EM Trade as % Global Trade Exports share of GDP Exports share of GDP

Largest world economies Largest world economies Largest world economies

43% world population in cities 53% world population in cities 70% world population in cities (2050)

9% world population > 60 years old 11% world population > 60 years old 22% world population > 60 years old (2050)

Mobile broadband subscriptions: None Mobile broadband subscriptions: 1.5bn Mobile broadband subscriptions: 6.5bn (2018)

Internet users: Nominal

Web browser introduced in 1992

Internet users: 2.7bn

39% global penetration

Internet users: 3.6bn (2017)

50% global penetration

0 1.5bn 6.5bn

Regulation

Increasingly complex banking rules passed at an escalating pace in the past 13 years, with indications that pace will continue…

Since 2000 – FACTA, US Patriot Act, SEPA, USAPA Certificate Benchmarking Dodd-Frank Act, Durbin Amendment, Payment Services Directive II, Recovery &Resolution Planning, Basel III,…

6

TTS is a “POSITIVE” Play on Global Macro Trends

Global Network to

service the changing size

and direction of flows

Investments in

Digitalization &

Innovation

Focus on Urban

Ecosystems

Globalization

Urbanization

Digitization

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These Trends Are Shifting the “QUANTUM” & “DIRECTION” of Flows

Source: International Monetary Fund , McKinsey Global Capital Markets 2011, and CTS analysis

(1) Includes total value of cross-border investments in equity and debt securities, lending and deposits, and foreign direct investment

Domestic financial assets

0.5-1%

1-5%

5-10%

10%+

Arrow width shows value of cross-

border investments between regions1

Arrow color shows flow opportunity

Traditional flows

Growing

opportunity flows

Australia,

New Zealand,

and Canada

$4.0T

North

America

$65.0T Japan

$26.8T

Western

Europe

$53.4T

UK

$9.7T

Latin America

$6.6T

Emerging

Asia

$24.5T

Russia,

Eastern Europe

$4.3T

Hong Kong,

Singapore, Taiwan

$4.5T

Middle East,

Rest of World

$7.9T

• New corridors of flows

• Rise of Emerging Markets

• Globally integrated marketplace

We are facilitating

new and emerging corridors

Cross-Border Investment Flows

8

Macro-Trends Digital Strategy

Digitization - TTS Strategy

Optimize business performance for

Citi and clients through

rich data and analytics

Expand channels and extend reach

through digital technology

Extend core digital platforms,

products, and services

Deliver Platforms and products that

enable channel & device

expansion, and reduced

cycle times

Strategic Priorities

• Enhance end-to-end client experience

• Deliver greater value to our clients

• Leverage our global scale to digitize

financial flows

• Drive competitive differentiation

Our focus is to digitize our entire business and operating model.

Macro Economy

Changing direction of flows &

markets uncertainties

Regulation

Transparency requirements

driven by regulations

Competition

Banks and non-traditional

competitors are expanding

into transaction banking

Globalization

Automation, centralization of

information across

ecosystems

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Decision

making

Innovation

Connectivity

Automation

Product

and Service

Innovation

Risk

Optimization

Digital Transformation Drives Business Value(1)

1- Based on McKinsey & Company, “Finding your Digital Sweet Spot”, November 2013

Extend

• CitiManager

• CitiConnect

• CitiDirect BE Trade

• Supply Chain & Trade Services

Embedded / automated controls and risk profiling

• Electronic data security and paperless solutions

• Tackling fraud and overpayments in Public Sector Flows

Real-time management information system

• Treasury Vision

Optimize

• Receivables Vision / Payment

Analytics

• Treasury Diagnostics

• CitiDirect BE Analytics

Business

Performance

Enhanced

Corporate

Control

Distribution

and

Channels

Deliver

• Services Tracking and Reporting

Systems (STaRS)

• Embedding UX Design standards

• eBAM Digital Account Management

Customer

Experience

Expand

• Recurring Payments

• CitiDirect BE – mobile, tablet

10

Holistic Approach Towards Digital & Innovation

CitiDirect BESM Mobile

Award-winning mobile banking

platform for institutional clients to

conduct business anytime,

anywhere – in real time.

CitiDirect BE Trade

Trade clients can perform critical

operational transactions: upload

trade documentation, access Citi

Supplier Finance, and more.

eBAM

Digital application for managing

account opening, signatory

changes and maintenance,

enabling self service in 54 countries.

CitiDirect BESM

Deliver consistent and enhanced

client experience across the

network

Expand channels and capture new

flows

Extend core digital platforms,

products, and services

Optimize business performance for

Citi and clients through

rich data and analytics

CitiDirect BE Analytics

CitiDirect BE Self Service

Best in class self service

capabilities to gain the most

current and relevant information

about accounts, inquiries

and cut off times.

CitiConnect

Whether it’s on mobile, tablet or the

web, clients have a complete and

consistent view of all of their

cash management capabilities.

Access sophisticated

payments and receivables

solutions via interactive

dashboards

CitiConnect integrates payments,

receivables and information with

clients’ data systems from anywhere

in the world.

CitiConnect

Global Flows Analytics

Mining Citi’s global transaction flow

data to yield actionable intelligence

and enable clients to visualize their

supply chains and optimization

opportunities

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Leading the Way to the Future – Digital Money Index

Digital

Money

Readiness

Index

Questions Asked

• Does digital money adoption make a difference?

• What factors affect the outcome of a digital money initiative?

• Can we quantify the benefit of adoption to governments, businesses and individuals?

Four Key Pillars to the Readiness Index

Cashless Intensity Consumer Spending via Digital Channels vs Total Consumer Spend

Does Readiness drive adoption?

Ind

ex S

co

re

Correlation 0.79

Global metrics to link digital money adoption with various measures of socio-economic development.

Pillars were further disaggregated into 15

attribute “indicators” that helped to create a

composite score of the preparedness of any

country / economy

Most of the countries that are best prepared for

digital money adoption tend to use less cash but

cultural factors play an important role

Does Readiness drive

adoption?

Stage of Readiness

Groupings based on characteristics exhibited

by underlying pillars for stakeholders to

recognize their nation’s current level of

digitization and provide perspective on

how to progress.

12

TTS Approach to Innovation – Recognized by HBR

“Citigroup developed models for

transaction data to analyse the flow of

money in different parts of the

financial system, uncovering

inefficiencies that hindered its clients’

ability to make effective use of

different payment mechanisms. Over

a five-year period those models have

been honed into a stream of client

services.”

13

In order to successfully execute upon our digital strategy, three imperatives have been

established to drive focused execution, allowing for further competitive differentiation.

Digitization - Measuring Impact and Progress

Ensuring digital innovation

is translating into

business results

Partnering to effectively

scale TTS assets

across our market

footprint

Creating a sustainable

competitive advantage

through next generation

digital experiences

Commercialization

Focused Digital Scorecard Client Experience

14

Client Experience is a Sustainable Differentiator Client centric approach to client experience

Aligning functions to ensure clients are experiencing more seamless service, streamlined decision making & simplified processes

Performance

Management

Organization

Functions &

Franchise

Processes

Location &

Site Strategy

Technology

Standards &

Platforms

Global

Product

Initiatives

Network

Management

Operations

& Services

Client

Advocacy

Target Client

Model

Redesigning processes to reduce cycle time and client contact points

Leveraging technology to re-engineer delivery mechanism, standardize document repositories and automate process workflows

Refining differentiated service models

Client

15

Enhancing Client Experience-TTS Client Service Progress Tracking

Focus Examples of Progress to date

Content Management Product and Regulatory

Communication

• central knowledge management tool to provide timely and accurate information to clients

is now live for Citi client facing functions in EMEA (TTS, GSG and Banking)

Documentation

Content & Process

Streamlining Documentation

Requirements and Digitizing

Process*

• Streamlined account opening documentation in 47 countries, reducing and eliminating

client paperwork

• 99.9% audit certification request delivered within 7 days SLA (WE + 5 African countries)

• 50% of local account opening documents eliminated in EMEA

Ease of Doing Business through

self service,

automation and

product enhancements

Payment Status Inquiries*

• Leveraging CitiDirect BE real time payment status

Recurring Payments & MIFT

Digitization* • Live in 62 countries

Account Balance widget*

• Payment Analytics - in implementation in Asia

• Receivables Vision - Live with some US clients

Increased

Transparency

Service Tracking and

Reporting Systems (STaRS)*

• Completed rollout in 118 countries

Service

Responsiveness

Technology Change Calendar

Overall Client Contact rate

Client Service Team Coverage

• live for over 50 clients

• improved from 0.27% of total transactions in ‘12 to 0.18% in ‘13

• 3 add’l languages supported in Dublin (Mandarin, Russian, Spanish)

*Available to Clients

Services

Global Product

Network Management

Client Advocacy

16

“It always seems impossible until it is

done.”

Nelson Mandela

17

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