Citigroup Transaction Services (Malaysia) Sdn Bhd (“CTSM”)

Delivering Performance – A Continuing Journey on Excellence

Table of Contents

Introduction

Quality & Controls

People Focus

Customer Focus

Social Responsibilities and Awards

Delivering Performance – A Continuing Journey on Excellence

Overview

Tampa / US

London / UK

India

Penang /

Malaysia

Dalian /

ChinaAmericas

EMEA

Subcontinent,

Americas, EMEA

Asia, Americas, EMEA

Asia, Americas,

EMEA

Trade network present in 86 countries, with five regional processing centres supporting around-the-clock operations

Overview

Centre of Excellence – Strategy

Why Regionalize?

The goal was to create a “Centre of Excellence” with:

• Capacity for Volume Growth

• Synergy through Scale

• Consistent Process

In order to: -

• Realize benefits of economies of scale

• Leverage on best practices

• Standardize and simplify processes

• Improve overall risks & controls

Why Penang?

• Malaysia is the 3rd most attractive off shoring location in the World

• Various Financial Institutions and Banks, including Citigroup, have setup

processing hubs in Malaysia. Penang is the second largest business

centre in Malaysia, after Kuala Lumpur

• Malaysia overall and specifically in Penang because of its large variety of

cultures and languages, political stability, relatively low cost, and excellent

infrastructure

• Several multinational names have manufacturing plants located in

Penang for over 20 years e.g. Intel, Dell, Sony, Komag, Agilent

Technology, Motorola, B Braun etc

Source – www.atkearney.com

Key Considerations

Robust Infrastructure

High Quality People

Strong Work Ethics

Competitive Costs

Strategic Location

Better Investor Perception

Overview

• Established as the Regional Trade processing centre for

Asia in 1993, as a Malaysian Branch of Citicorp Trade

Services Ltd; Hong Kong

• The goal was to create a “Centre of Excellence” with

capacity for volume growth, achieve synergy through scale

and provide a consistent process

• Serving over 25 countries and operating according to

various time zone requirements.

• Currently deploy close to 700 headcount in Trade, with 24/7

operating capabilities

• In 2007, expanded in Kuala Lumpur to include processing

for CitiService, Loans, SFS, Cash etc

• Legal Vehicle was renamed in 2007 as Citigroup

Transaction Services (M) Sdn Bhd

History of CTSM

Quality & Controls

Continuous Focus on Metrics Measurement and Analysis

to help us Benchmark with the Best

USING TECHNOLOGY AS AN ENABLER

ControlsPeopleQuality ProductivityClient First

Active

participation

in all

initiatives

concerning

customer

service and

delivery

Success

Transfer and

“Best in

Class” in

Accuracy &

Timeliness

Competent

people

Develop

Talent

Train and

Reward

Standardize

processes

and system

platforms

Increase

automation

High

emphasis on

internal

controls,

regulatory

compliance

and COB

Pillars for Success

Shared Responsibilities

Meet those requirements at all times

Do It Right The First Time

Do It Better All the Time

ISO 9001:2008

Know all our customers requirements

Accuracy

Timeliness

Core Values

Our Quality Policy

Continuously improving the Quality Management System

Time

Control Framework

Overview - Risk Mitigation through Coordinated Control Actions

Audit Risk & Review

Statutory Audit Regulator Reviews

Operations Controls Business Controls

People Focus

People Focus

CTSM Demographics & People Initiatives

870Total FTE^ for TTS

30Average Age of Employees in

CTSM

20Average Years of Experience in

Management Team

5Average Years of Experience in

Trade Processing Officers

5Average Days of Classroom

Training Per Employee Per Annum

By the Numbers . . . New Hires

− Orientation

Online Orientation Program

Comprehensive Trade Product and Compliance Training for

Beginners

− Buddy Attachments

Career Development Plan

− Individual Development Plan for each employee

− Job Rotations - inter-departments/ cross products - Cash /KL/

China

− SWAP programs with Asiapac countries

− Leadership Development Program (LDP) – Regional participation

Mentoring Program

− Developing and grooming a talent pool to strengthen leadership

and people-management roles as part of mentees’ career

development. Focuses on relationship building within a mentoring

relationship. By-product of the program will be enhanced

knowledge and skills in business, operations, communication and

presentation skills

Rewards and Recognition Programs

− Monthly SPOT and AHA Awards

− Quarterly Team Excellence Awards

− Annual Achiever Awards (AAA)

Staff Activities / Employee Engagements

− Continuous Communication through Townhall, Coffee Mornings,

Talking Point, Department meetings

− Social, Community and Recreational Events like Blood Donations,

Charity efforts to the community, Soccer/Futsal/Badminton events,

Staff activities, Financial Planning talks, etc

Customer Focus

Customer FocusPartnering for Success

Product Capabilities

for Now and the

Future

Quality Execution

with Timely &

Error Free Process

Client Focus and

Responsiveness

Global

Consistency

& Local Market

Expertise

• Customer Bulletins

• Customer Training Seminars / Webinars

Support the Business

Share knowledge and expertise with clients

Social Responsibilities and

External Recognition

Global Community Day – CTSM participated in theCitigroup Global Community Day at Sekolah MenengahKebangsaan Pendidikan Khas Persekutuan which is apioneer deaf school in Malaysia. The school caters to theneeds of approximately 160 deaf children from the entireMalaysia between the ages of 6 - 18 with hostel facilities.

Financial Education - Penang's next generation ofentrepreneurs are being nurtured by Citi Trade ServicesMalaysia (CTSM) colleagues. Working in partnership withthe American Chamber of Commerce in Malaysia(AMCHAM), CTSM employee volunteers are teachingbusiness skills to local students in Citi's Young Enterprise(YE) Program that was launched in Penang on February24, 2009. The Citi-AMCHAM YE Program is an innovative,extracurricular activity for secondary school students (15-16 year olds known as Achievers). Under YE the Achieversare invited to form "mini companies" to gain hands-onbusiness and management experience.

CTSM partnership with USM as part of our communitycontribution in education through sessions of BankingSeminar/Lecture series on International Banking & TradeFinancing.

Corporate Social ResponsibilityLocal Community

Achievements

Awards & Accolades

International Asia Pacific Quality Award

Prime Minister Quality Award

SSON – Runners Up (Mature Captive Services Delivery)

Malaysia Export Excellence Award

Our “Evolution” Journey…..

Strictly Private and ConfidentialStrictly Private and Confidential1993

Subject Matter

Expertise

Processing

Excellence

• Shanghai Trade Setup

• KL- COE

• Multi-Products

2010

• Problem Solving

• Regional Trade Hub

• Trade Advisor

• ISO 9002 Certification

• 100+ CDCS

• Clean Audits

• TRIMS Drivers

• Doc Prep COE

• FI deals

• TSPs

• Client Visitations

• Bene Care

• Asset Defeasance

• Guarantee Mid Office

• 2005’ PMQA

• 2008’ IAPQA

• 2009’ SSO

Drive Process

& Technology

Innovation

Commence

Processing

HK Trade

Embed

Quality &

Controls –

Global

Scale - 25

countries

Risk

Defeasance

Franchise and

Recognition

Client Facing &

Revenue

Generation

Regional

Scale - 12

Countries

Transformation

• Data Entry

• Rule Based Processing

Pioneering Growth & Innovation, Changing Paradigms

CTSM Evolution

CTSM – Then , Now & Later

Now -

Processing

Excellence

Then - Regional

Processing CenterFuture –

Subject Matter

Experts

Pioneering Growth & Innovation, Changing Paradigms

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