Sales Strategy for 2007

Citibank Press Conference, May 15, 2007

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The Agenda

Citibank Sales Strategy tillCitibank Sales Strategy tillthe end of 2007the end of 2007

Opening new unique branchesOpening new unique branches

Bert Pijls, Business Manager, Citibank Retail Banking Division for CR and SR

Network expansion for SME Network expansion for SME customers in Czech Republiccustomers in Czech Republic

Rajeev Chalisgaonkar, Director, Commercial Banking Group

Citibank Sales Strategy till Citibank Sales Strategy till the end of 2007the end of 2007

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Banks‘ sales networks in Europe

Czech Republic under-banked compared to Western EuropeTo be successful in given segment, bank should have at least a 6% „share of the door“

* Measure based on 1680 branches and population 10.2 MM inhabitants (2005)

Inhabitants per branch

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Be

lgie

Lu

ce

mb

urs

ko

Šp

an

ěls

ko

Ra

ko

us

ko

Po

rtu

ga

lsk

o

Ně

me

ck

o

Itá

lie

Šv

ýc

ars

ko

Niz

oz

em

í

Dá

ns

ko

Fra

nc

ie

Irs

ko

No

rsk

o

Slo

vin

sk

o

Fin

sk

o

Šv

éd

sk

o

Ře

ck

o

UK

ČR

Ma

ďa

rsk

o

Po

lsk

o

EU = 1,957

4,947

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Citibank‘s Business Principles

Citibank puts greatest emphasis on clients‘ requirements that are accounted for and incorporated into Citibank‘s strategy.

Clients‘ requirements imposed on Citibank services:

ACCESSIBILITY: Citibank services are accessible from any place and are available at any time (Internet, telephone, external sales agents, bankers). Due to our global presence, we are able to service our corporate clients in more than 100 countries worldwide.

COMFORT: Citibank services are available from the comfort of one‘s home, without the need to physically visit our branches (bankers, external sales agents, Internet, telephone).

EXPERTISE: Highly trained and specialized Citi bankers, who are selected per most demanding criteria. Each of them takes care of a limited number of clients only, due to which they can thoroughly understand and comprehend their clients‘ financial needs.

FLEXIBILITY: Citibank products are flexible, we offer individual solutions customized to each client‘s own needs and requirements.

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Effective sales channels for single products and individual segmentsCitibank is focused on the following 3 key areas:

Segment Clients‘ needs Citibank strategy

Retail Banking

Individual care, accessibility

Enhancement of branch network, entire products offering is available via the Internet or phone

CitiGold WM Segment

Individual approach, 24x7 accessibility, discretion, expertise

Dedicated center, discretion zones in all branches, certified bankers

Credit Cards Accessibility, minimum of paperwork, speed

We sell the cards where our clients use them (kiosks), no need to submit one‘s income statement,

Consumer loans

Accessibility, minimum of paperwork, no collateral, discretion

Kiosks, internet, telephone, no need to submit one‘s income statement (Citibank clients), loans without a guarantor

SME segment

Individual approach, expert advisory, good knowledge of local market, 24x7 accessibility

Network of dedicated centers, calls at the client‘s site of business, internet, telephone

Top corporates

Global presence, international experiences, individual approach

Presence in 100 countries, international products, high expertise

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Development of Citibank sales network till the end of 2007

Before the end of 2007 we plan to open up to 6 bricks-and-mortar branches

Strengthening our sales position we hold in the City of Prague

– Opening of up to 4 retail branches

– Enhancing the number of points of sale for O2 Citi credit card (beginning by May, the card is sold at 21 O2 stores in Prague and 7 O2 stores in Brno)

Strengthening our position in the segment of affluent clientele

– Opening of dedicated center for private clientele (CitiGold segment)

Strengthening our position in SME segment

– Opening of another dedicated center(Zlín)

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100% accessibility and 100% comfort for all Citibank clients

• Internet (sale of all products )• Telephone (sale of all products)• 10 sale kiosks (sale of all types

of credit cards and personal loans)

• 21 Shell gas filling stations (sale of Shell MC from Citibank)

• 4 sale kiosks at the airport (Citi ČSA credit card)

• 28 02 stores (O2 Citi card)• 45 sales representatives who

make personal visits to companies in the CR (entire products offering)

• 100 external sales agents across the entire CR (credit cards, personal loans)

• 16 Citibank branches Our sales network comprises morethan 1,000 sale specialists

BranchesSales kiosksShell gas filling stationsO2 stores

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Unique conception of new retail branches

Modern solution of the branches

– Interactive communication with clients, automated services => reduction in Citibank‘s costs

12-hour business hours

– The business hours of new branches accommodateclient‘s needs. Our extended business hours make it possible even for fully occupied clients to visit our branch at one‘s leisure before or after their own working hours.

Commitment to community‘s development

– Citibank commits itself to participating in the develop-ment of civic community at every location where any Citi branch is opened

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Unique Global Branch Concept

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Unique Global Branch Concept

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First Glimps of New Approach

Network Expansion for SME Network Expansion for SME customer in Czech Republiccustomer in Czech Republic

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Our Services for SME companies

InceptionInceptionCapacity Growth

Capacity Growth

Market Diversification

(Exports)

Market Diversification

(Exports)

RapidGrowthRapid

Growth

Needs:• Financing for production capacity

/ sales infrastructure / working capital

• Account services

• Investment loans

• Equipment-backed loans EU advisory services

• Working capital

• Trade finance • Working capital finance

• Overdrafts• Account Services

Needs:• Financing for increase in

production capacity ( new factory, new warehouse..)

• Facilitation of foreign trade

• Long-term financing• Trade finance / services• Working capital finance• Overdrafts• Account Services• Treasury services• Advice on marketing and risk

management

ConsolidationConsolidation

Needs:• Optimise

financing cost• Utilise excess

liquidity• Manage FX

risk and counterparty risk

• Trade finance / services

• Liquidity management

• Investments• Derivatives• Export

insurance / factoring

Maturity & Renewal

Maturity & Renewal

Needs:• Succession / Change of

ownership• Transition to hired

professional management• Gaining scale to compete

with large companies• Strategic exit

• Acquisition financing• Succession planning• Buy-out financing• Wealth management

Lifestage

NeedsNeeds

Citibank ServicesCitibank Services

We support SME companies at every stage of their life-cycle

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Citibank Branches and Corporate Centres for SME

Corporate centres

Citibank branchesTEPLICETEPLICE

BRNOBRNO ZLÍNZLÍN

OSTRAVAOSTRAVA

PARDUBICEPARDUBICE

PRAGUEPRAGUE

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Why corporate centres ?

• SME companies in Czech Republic are well advanced in usage of various technologies

• We offer our SME customers quality Internet banking platforms and Online FX trading systems

• 99.5% of our SME banking transactions are processed online

• The traditional role of bank branches has changed from handling routine transactions to providing value-added advice to clients, and providing innovative banking solutions

• Customised advisory services and advanced banking products are the main advantages offered by Citibank to SME customers

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Role of Corporate Center

• Staffed with bankers who have local knowledge and experience

• Comfortable meeting and negotiation place for our customers and their

relationship managers

• Support our role as advisors to the clients

• A place for informative and educational events such as Foreign

exchange seminars, seminars about EU subsidies and other interactive

discussions between the Bank and SME companies

• Easy accessibility for SME customers

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Zlín Corporate Centre

• Large number of current customers present in the region

• Fast growth of GDP and exports in the Zlin Region – strong investment flows expected over coming five years, together with investment in infrastructure

• Managed by experienced bankers with long local experience