Citibank Consumer Banking Strategy

1. Citibank Consumer Banking Strategy Press Conference Prague, November 4, 2004

2. Citibank strategy Citibank and SME segment New commercial offer for SME segment Rajeev Chalisgaonkar, Retail Banking Head Ladislav Kročák, Head of CitiBusiness Sales Ladislav Kročák, Head of CitiBusiness Sales Agenda for today

3. Citibank Consumer Bank strategy Rajeev Chalisgaonkar

4. Consumer Bank History • 1999*CitiBusiness -we started to finance and service small and medium sized companies • 2001Citibank launched personal banking including: • Deposit and payment products • Credit Cards • Personal Installment loans • Citibank Online Internet banking • 2003We launched CitigGold, a range of services for affluent clients *Citibank’s corporate banking business has been present in Czech Republic since 1991

5. 2004 position • Our core business lines are: • CitiGold Wealth Management • We became an established market player in the affluent segment with unique range of deposit and investment product and financial planning tools • CitiBusiness • We have built a strong position in the SME segment, based on innovative credit products, and relationship based approach • Credit cards • We are the third largest local issuer with top rated products in terms of security, additional features and the length of interest free period • Consumer loans • We provide to our customers largest unsecured personal loans without guarantors or any other additional security for bank

6. Wealth Management and CitiBusiness • 4 new branches to be opened in Prague, Liberec and Olomouc • Focus on providing value added advisory services and product innovations Credit Cards • Expand sales network & introduce new sales channels • Even stronger focus on product development and security (Photo sign & extended fraud coverage) • Personal Instalment Loans • Expand distribution channels • Lending against investments in mutual funds or deposits 2005Strategy

7. Future Vision • Leading Player in the market in Credit Cards • Leading Player in the market in Wealth Management • Key Player in SME segment - CitiBusiness • Key Player in Consumer Loans

8. Focus on Wealth Management • Superior service standards • Trained and internationally certified CitiGold personal bankers and investment consultants • Dedicated service areas for CitiGold clientele in branches • Global standard CitiPhone banking - dedicated CitiGold phone lines 24x7 • Unique investment planning tools –> CitiGold Wealth Planner • Distribution of investment products of top rated providers • 20% of our client’s total savings in Citibank is in mutual funds and structured notes, compared to country average of 9% • More than 180 investment mutual funds and unique deposit products: market linked and premium deposits, CitiOne saving account • Free of charge banking services for customers that keep min. CZK 200 000 of their savings with the bank

9. Focus on direct banking • 94% of all transactions are initiated via internet, minimum goes through branches • 40% customers use both Citibank debit and credit cards • Most of our customers visited branch only once, some of our customers never visited our branches (everything was agreed on-line or during a personal visit of their banker) • All products including current account can be opened based on internet application

10. Focuson credit cards • Aggressively expand and diversify the Sales network to attain market leadership in cards • Recruit the best Sales Force talent in the country. • We already have the strongest product offering in the cards market. • Most secure card in the market! • Zero liability (free feature) for all reported lost/stolen cards • Unique Photo Sign feature - over 70% of our customers use it. • State-of- the-art anti-fraud management systems • Up to 55 days interest free period – Unique in the market! • 5% minimum payment facility – Best in the market! • Citibank individualni program splatek – Unique value proposition to manage ever better flexibility. • Unique promotional pricing to reward the customer based on usage. • Further innovations and development of new product features to continue our strong value proposition and image.

11. Focus on personal loans • Expansion of target market and refocusing on smaller loans below 80.000 Kc – today’s average installment loan is 120 000 CZK • 150% growth in number of consumer loans in 2005 • Product innovations • secured overdraft - lending against investments in mutual funds or deposits • home equity loans - “American” mortgage • Expansion of distribution channels • Direct sales channels • Remote sales channels – phone selling • Dedicated loan specialists in branches

12. Citibank and SME segment Ladislav Kročák, CitiBusiness Head

13. Looking back…….We launched an SME Bank in 1999 Original research findings about Czech SMEs in 1999 The SME Bank Model “CitiBusiness” • They will adopt new technology as long as it brings real benefits to them • They are professional businessmen and not banking experts – our products must add value to their business and be simple to use • Czech SMEs need capital to invest as much as to smoothly run current operations • Speed and predictability of credit approval process is key - their success is about long term strategy as much as being able to take up tactical opportunities. Service & DistributionModel New credit process New Product Set

14. New dedicated service & distribution channels based on active direct banking principles Internet Banking for SMEs + Special Business Debit Card Relationship managers - mobile bankers Phone based day-to-day service support 100% of CitiBusiness clients use internet banking 99.7% of all transactions are done on-line including cross border and loan transactions (many customers started to use internet because of CitiBusiness). Over 70% of customers don’t need to use our branch at all in a year High customer satisfaction rates - over 90% Service & Distribution Model Citibank´s SME clients belong to most active customers, they use Internet Banking extensively

15. Implemented program-based lending driven by customer needs– approval based on simplified documentation ‘pre-grading’ and indicative offers (free of charge) within 24 hours based on basic financials Provide advisory to the customer to ensure we match needs by product solutions We do not charge any commitment fee (zavazkovou provizi) Our lending to SMEs has grown 57% in 2004 Simple loans are typically approved within 48 hours PortfolioPerformance is very good despite largely unsecured portfolio New credit process Strong growth in SME lending

16. First to launch a simple unsecured Working Capital Loan up to CZK 1.3MM Launched a pre-approved ‘Loyalty Overdraft’ A complete suit of loan products - building blocks for Individual Financing Solutions Cross-border banking tools leveraging Citibank’s global reach and capabilities Pricing programs for different business profiles Almost 50% of our active customers are using financing products 69% take-up rate for Loyalty Overdraft – a pre-approved financing offer (bank does the paperwork - Client ‘approves’ the loan by signing a loan agreement.) CitiBusiness also attracts exporting or importing customers that value reliable cross border services New Product Set A business built around the needs of SMEs

17. 2005 StrategyContinue and expand our commitment to the Czech SME sector • Increase loans to the SME segment by over 50% in 2005 • Come closer to the market - open dedicated CitiBusiness Branches – starting with Liberec and Olomouc in first half of 2005 • Facilitate access to EU funded programs by providing special bridge loans (‘Eurocredit’) and other assistance including advisory • Continue to enhance active direct banking model – new version of CitiBusiness Direct to be launched in 1st quarter 2005. • Continue to support SMEs ‘beyond banking’ – sponsor SME education (seminars with AMSP and CzechInvest)

18. Special CitiBusiness Offer • We invite new customers to experience CitiBusiness through trial periods for business banking services. • A) For new customers that will open CitiBusiness account: • Banking services in the value of CZK 15.000 5-10 months free CitiBusiness account – depending on pricing program selected • ‘Free CitiBusiness Account’ includes: • Internet banking • account maintenance for unlimited number of accounts • Domestic payments incoming and outgoing • Up to 2 international payment cards • Up to 25 ATM withdrawals a month • Incoming cross-border payments • B) For customers that will choose & use any of our credit products we offer: • No loan approval fee(saving costs up to CZK 15000)+ free Citibusiness account for 1 year • Offer is valid till January 31st, 2005