Citigroup

2019 Contents

• Section I: Business Overview

o Company Snapshot 4 o Organization Structure 5 o Historical Timeline 6 o Key Metrics 7-8 o Service Portfolio 9-11 o Clients and Partnerships 12-15 o Strategies 16 o RecentDevelopments 17-19 o Key Management Churn 20-21 • Section II: Competition o Competitors’ Analysis 23-25 • Section III: SWOT Analysis o Strengths 27 o Weakness 28 o Opportunity 29 o Threats 30 • Section IV: Executive Profiles o Management Team 32-33

2 Alchemy Research and Analytics Section I: Company Overview

3 Alchemy Research and Analytics Company Snapshot

Citigroup is a global diversified financial services holding company. It provide consumers, corporations, governments and institutions with a broad, yet focused range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services and wealth management. Citigroup conducts business in more than 160 countries spanning four regions (Asia Pacific, Europe, Middle East & Africa (EMEA), Latin America and North America). Key facts Business Segments Year of establishment 1812 Citigroup provides retail banking and Headquarters New York, USA Global wealth management services through Physical presence in 98 countries. Global Consumer Banking. It operates in Consumer Global Presence Also operates in another 63 19 markets worldwide with a focus on countries from outside Banking (GCB) three priority markets - Asia, Mexico and Asset Under Custody ICG - $17.4 trillion (2017) the U.S. Revenue $72.9 billion (2018) Citigroup Institutional Clients Group Employees 206,000 (2018) provides various banking services and Institutional markets & security services to large • Michael Corbat (CEO of multinational corporations, public sector Clients Group Citigroup) entities, ultra high-net-worth households • James A. Forese (President of (ICG) and investment managers. Citi’s Citigroup & CEO of Institutional Institutional Business operates in 98 Key Executives Clients Group) markets globally. • Mark Mason (CFO of Citigroup) • Paco Ybarra (Global Head of Regions Served Markets and Securities Services) • Best Global Digital : Euromoney (2017) • Best Brand Award in Middle Awards Market Banking: Greenwich Associates (2017) • Most Innovative Private Bank: Europe, Middle Asia Pacific Latin America North America Global Finance Magazine (2017) East & Africa Source: Company Website, Annual Reports

4 Alchemy Research and Analytics Organization Structure

Global Consumer Banking Institutional Clients Group Corporate/Others (GCB) (ICG)

Retail Banking & Wealth Banking Treasury Management

- Local small business - Investment banking Operations and technology - Banking and commercial - Treasury and trade banking solutions - Residential real estate - Corporate lending Global staff functions and - Asset management in - Private bank other corporate expenses Latin America Markets and Securities Legacy Non-core Assets: Citi-branded Cards Services

- Fixed income markets - Consumer loans Citi Retail Services in North - Equity markets - Certain international America - Securities services consumer portfolios and businesses - Certain portfolios of securities, loans, and other assets

Discontinued Operations

Source: Annual Report

5 Alchemy Research and Analytics Historical Timeline

1812-1967: 2001 & 2005: 2016 - 2017: • 1812 – Citigroup commences operation as City • 2001 - Bank Handlowy w Warszawie S.A. and • 2016 - Citigroup's head office moves from 399 Bank of New York (Poland) S.A. merges to form Citi Park Avenue to 388 Greenwich Street • 1897 - The bank opens a foreign exchange Handlowy • 2017 - Citigroup acquires the customer portfolio of department • Acquires Mexico's - Citi's merchant acquiring business in 11 markets in • 1955 - The bank extends its operations to four Accival for $12.5 billion Asia Pacific new countries - Egypt, Liberia, Lebanon, and • 2005 - Citi launches Citi Microfinance. It provides • London Stock Exchange Group purchases Saudi Arabia products and services for microfinance institutions Citigroup’s fixed-income analytics and index • 1958 - The bank's head office moves from 55 (MFIs) businesses for $685 million Wall Street to 399 Park Avenue • Citigroup sell's its Asset Management Business to • Citigroup completes the sale of CitiFinancial • 1967 - Citi introduces The Everything Card in receive Legg Mason broker-dealer business and Canada to J.C. Flowers & Co. LLC and Värde US as overdraft banking was not allowed in the other consideration Partners US

1968 - 2000: 2006 - 2016: 2018: • 1974 - The bank's holding company changes its • 2008 - Tata Consultancy Services acquires • 2018 – Citibank Thailand Completes the name to Citicorp in 1974. And 2 years later the Citi’s interest in Citigroup Global Services Acquisition and System Migration of the Personal bank becomes Citibank, N.A. (for national Limited (CGSL) for all cash consideration of Loans Portfolio from TISCO Financial Group association) approximately $505 million • Banco Colpatria Multibanca Colpatria S.A. • 1998 - Citicorp and Travelers Group merges to • Citi reorganizes its consumer group into two acquires consumer and SME operations of form Citigroup. The group agrees on 50:50 global businesses – Consumer Banking and Citibank in Colombia ownership and an 18-member board for the new Global Cards • Citigroup combines its Corporate and Investment company • 2013 - Citi acquires Best Buy's U.S. credit card Banking division (CIB) with the Capital Markets • 2000 - Citigroup Inc. acquires the investment portfolio Origination division (CMO) banking division of Schroders PLC, for $2.21 • 2016 - SS&C Technologies Holdings acquires • Citigroup sells the asset management business of billion Citi's Alternative Investor Services Business for its Mexico based subsidiary Citibanamex to approximately $321 million BlackRock

Source: Company Website, Business Wire, Business Insider, CNN Money, TATA Consultancy Services, PR Newswire, The Financial Times, Wirecard AG

6 Alchemy Research and Analytics Key Metrics (1/2)

2018 Net Revenue by Geography 2018 Revenue by business

North America 2.9% 2.9% Global Consumer Banking 21.0% Asia

$72.85 45.9% Latin America $72.85 46.4% Institutional Clients Billion 50.8% Billion Group 14.1% Europe Middle East and Africa (EMEA) 16.2% Corporate / Other Corporate / Other

ICG Corporate Client Base (LTM 20171) ICG Non-Financial Institution Client Base (LTM 20171)

Non-Financial Regional / Instituion 16.0% Domestics Corporates 14,000 46.4% 6,500 53.6%

Financial Global Multinational Institutions 84.0%

• Non-financial institution corporates accounted for ~40% of client revenue and it excludes ~10,000 ultra high net worth / high net worth Private Bank clients 1. LTM’17 reflects last twelve months ending May 31, 2017 • Financial institutions accounted for ~60% of client revenue in 2017 Source: Annual Report, Investor Presentation

7 Alchemy Research and Analytics Key Metrics (2/2)

2018 ICG Revenue by Business Segments and Geography

Treasury & Trade Solutions North America 0.1% Investment Banking 25.1% 21.1% Private Bank 34.9% EMEA 46.0% $36.99 12.2% $36.99 Billion Corporate Lending Billion 13.5% Latin America Total Markets & 9.2% 6.0% Securities Services 31.8% Gain on Loan Asia Hedges

2018 GCB Revenue by Business Segments and Geography

North America Retail Banking 22.1%

41.6% $33.77 $33.77 Billion Billion Latin America 58.4% 17.1% 60.8%

Cards Asia

Source: Annual Report, Investor Presentation

8 Alchemy Research and Analytics Service Portfolio: Institutional Client Group (ICG)

Capital Markets Origination business is focused on the capital raising needs of institutional clients from Capital inaugural issuances and exchanges to cross-border transactions. Citi provides debt underwriting services Markets across a broad range of currencies and markets. Citi helps its clients to minimize risk in a persistently volatile Origination market backdrop through its expertise in equity, investment-grade, high-yield bonds, asset-backed financing - Provides cash and other capital markets management Citi’s Direct Custody and Clearing provides asset servicing and transaction functions primarily to intermediaries and trade Direct such as broker-dealers, , fund managers, insurance companies and other global investors through its solutions to 90% Custody of Global and proprietary network in over 60 markets. Other value added services include client-defined reporting, liquidity Fortune 500 Clearing solutions including cash management and liquidity financing, collateral management and monitoring, middle and back office outsourcing companies - Trading floors in Corporate Corporate and Investment Banking client teams are organized industry-wise and country-wise. Leveraging its 77 markets, and global proprietary network, Citi’s investment banking segment aims to meet clients’ debt capital-raising needs clearing and Investment and provides merger and acquisition and equity-related strategic financing solutions. Citi’s Corporate Banking custody Banking segment delivers corporate banking and services to global, regional and local clients networks in 63 markets and Citi’s Markets and Securities Services business provides diverse range of financial products and services to connections Markets & corporations, institutions, governments and investors. Citi’s sales and trading, distribution and research with 400 Security capabilities span a broad range of asset classes, currencies, sectors and products including equities, clearing systems Services commodities, credit, foreign exchange, emerging markets, G10 rates, municipals, Prime, futures and securities - Facilitates services businesses approximately Citi’s Private Bank is dedicated to high net worth individuals having a net worth in excess of $100 million. $4 trillion of Through its Global Client Service facilities Citi offers a seamless cross-border service and satisfies the clients’ average daily Private flows Banking capital markets needs, financing and refinancing in both commercial and residential real estate globally. Citi also offers its Private Banking clients access to its Corporate and Investment Bank locally for business activities - Ranks first in in their respective region Fixed income market share Citi’s Treasury and Trade Solutions business provides integrated cash management and trade finance Treasury globally services to multinational corporations, financial institutions and public sector organizations around the globe. and Trade Solutions Its diverse range of offerings include payments, receivables, liquidity management and investment services, working capital solutions, commercial card programs and trade finance

Source: Company Website

9 Alchemy Research and Analytics Service Portfolio: Global Consumer Banking (GCB)

Citi Retail Services is one of North America’s largest providers of private label and co-brand credit cards for retailers. It serves around 86 million accounts. In 2017, Citi Retail Services experienced purchase sales Citi Branded of $81 billion and a loan portfolio ending the year at $49 billion. Citi Branded Cards provide payment and Cards & Citi credit solutions to consumers and small businesses, with 56 million accounts globally. In 2017, the Retail Services business generated annual purchase sales of $418 billion and had an average loan portfolio of $108 billion - Serving over 100 million customers - A lean, urban retail bank footprint across It serves across the full spectrum of consumer banking needs through its urban-based branches and 19 markets in the digital capabilities. Citi provides personalized wealth management services, including dedicated bankers, US, Mexico and fund access, and a range of exclusive privileges, preferred pricing and benefits to clients around the Asia globe through its Citigold, Citigold Private Client and Citi Priority Client offerings. In 2017, Citi nearly Retail Banking doubled its fee-free ATM network in the US to more than 60,000 ATM’s. It also invested more than $11 - Pre-eminent billion in small business lending in the US and financed over $4.7 billion in affordable housing projects. banking franchise CitiMortgage, which provides loans for home purchase and refinance transactions in the US, originated in Mexico $13.1 billion in new loans - Growing Commercial Bank that serves mid- sized clients with cross-border Citi commercial banking provides global banking capabilities and services to midsized, trade-oriented needs companies. Citi helps its clients to expand internationally and access its capital across multiple countries. Commercial Its solutions include liquidity & cash management solutions, lending solutions, trade solutions, market Banking solutions, investment banking and capital market solutions, wealth management and fraud prevention services

Source: Company Website

10 Alchemy Research and Analytics Service Portfolio: Citi UK Wealth Management

Through its UK based wealth management arm, Citigroup offers a range of multi-currency wealth products which offers exposure to global markets with offshore solutions managed by Jersey Booking Centre Citigroup Wealth Management Choices

Citigold Wealth Citigold International Citigold Expat Citigold Private Client Management Personal Bank

Investment Products

Investment Funds Structured Products Foreign Exchange The investment funds are available in multiple Citi’s FX solutions include straightforward foreign currencies and classes. By investing transfers to Citi accounts in over 20 countries money across different sectors, countries and The structured products are medium to long- globally as well as innovative FX Order Watch product types these pooled funds help term investment products where the clients service. Citi offers the clients to convert up to diversify risk and reduce investment costs and can benefit from potentially higher returns, £5,000,000 instantly between 11 different also provide the clients access to wide variety with the option of protecting, or partially currencies at competitive market rate. FX of markets. Citi offers over 450 onshore and protecting the initial investment. Citi issues Order Watch provides the clients an option to offshore funds including open end funds, close new structured notes monthly target the exchange rate that they would like end funds, exchange traded funds and hedge to convert funds at funds

Insurance Products Bonds Equities Citi offers a range of insurance products in partnership with insurance specialists Old Citi offers equity trading services by providing Citi offers its clients the option of buying and Mutual Wealth. The offered insurance direct access to 34 financial exchanges. The selling bonds from its extensive range of products include Life Cover, Critical Illness clients can diversify their portfolio on a global investment grade, government and emerging Cover and Guaranteed Whole of Life. The scale and take advantage of both onshore and market bonds across 21 markets. The bonds Guaranteed Whole of Life product helps to offshore investments. The various types of are available in a wide range of currencies and mitigate the inheritance tax incurred by the equities available to the clients are preferred they are all double agency rated by S&P, clients’ family members while allowing to pass shares, exchange traded funds, American and Moody's and Fitch them a potentially tax-free lump sum global depository receipts. separately from clients’ estate

Source: Company Website

11 Alchemy Research and Analytics Clients and Partnerships

Key Partnerships • Feedzai Inc., based in California US, develops artificial intelligence platform for end-to-end fraud prevention • In December 2018, Citi’s Treasury and Trade Solutions entered into a strategic partnership with Feedzai for real-time risk management across banking and commerce. Citi integrated, Feedzai’s transaction monitoring platform into its own proprietary services and platforms to provide clients with enhanced control and risk management for payments transactions • ConsenSys is a blockchain software technology company based in New York USA • In September 2018, Citigroup and 14 other firms joined hands with blockchain start-up ConsenSys to make a collaborative foray into the enterprise-level blockchain platform space via a new firm called Komgo SA. • HighRadius Corporation, based in Texas US, provides financial supply chain management software solutions to automate and optimize the business processes of receivables functions • In July 2018, Citi Treasury and Trade Solutions entered into a strategic partnership with HighRadius Corporation to launch Citi® Smart Match. The application would help clients enhance straight-through- reconciliation rates by bringing together different payment data and applying artificial intelligence and machine learning enabled business logic to match payments received with expected receipts in a more efficient manner • Xero Limited, based out of New Zealand, operates as a software as a service company worldwide. It offers cloud-based accounting software, accountant/bookkeeper tools, mobile app etc. • In June 2018, Xero partnered with Citibank to provide their joint customers with direct access to bank feeds from within the Xero platform • American Honda Motor Co., Inc., is the sole distributor of Honda motorcycles, scooters and ATVs. In the US American Honda's Motorcycle Division conducts the sales, marketing and operational activities for these products • In July 2017, Citi Retail Services partnered with American Honda Motor Corp to provide a private label credit card program supporting Honda's Powersports dealer network nationwide

Source: Feedzai, Bloomberg, Consensys, Bankingtech, NEWSBTC, Company Website

12 Alchemy Research and Analytics Clients and Partnerships

Key Partnerships • PayPal, Inc. based in California US, operates a technology platform that enables individuals and businesses to send and receive payments online • In July 2017, Citi and PayPal expanded its strategic partnership. The partnership would broaden consumer payment choices by enabling eligible Citi card members to use their Thank You Points to pay for purchases when shopping online with PayPal in the US. Citi entered into this partnership in 2016 to enable cardmembers to use their cards with PayPal seamlessly—online, in-app and in store • Zelle Network is run by Early Warning Services. The company develops and delivers risk management and payment solutions for financial institutions, government entities, and payment companies, as well as consumers in the US • In June 2017, Citi partnered with Zelle Network to expand its payment capabilities for its customers. The partnership enabled Citi's customers to make real-time, person-to-person payments to almost anyone with a U.S. bank account • In May 2017, Nasdaq, Inc. partnered with Citi Treasury and Trade Solutions to form a new integrated payment solution that enables straight through payment processing and automates reconciliation by using a distributed ledger to record and transmit payment instructions. Also a number of transactions have been concluded, including Citi's automated processing of cross-border payments via a link between the CitiConnect® and the Linq Platform powered by the Nasdaq Financial Framework • Ford Motor Company, based in US, designs, manufactures, markets, and services a range of Ford cars, trucks, sport utility vehicles, and electrified vehicles worldwide • In March 2017, Citi Retail Services renewed its partnership with Ford Motor Company. The partnership began in 2011 and would continue to provide consumer financing for parts and services through Ford dealerships nationwide • BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and propulsion systems worldwide • In January 2017, Citi Retail Services formed a long-term financing services agreement with BRP. The agreement leveraged Citi Retail Services’ experience in providing private label credit card services to help BRP expand its retail services for customers Source: Business Wire, Bloomberg, Company Website

13 Alchemy Research and Analytics Clients and Partnerships

Key Partnerships • Old Mutual Wealth provides long term savings solutions for investments. The Company offers pensions, life insurances, bonds, etc. • Citi offers life cover, Critical Illness Cover, and Guaranteed Whole of Life policies in partnership with Old Mutual Wealth Key Clients • Pacific Asset Management (PAM), is the asset management arm of Sir John Beckwith’s Pacific Investments Group. The company manages over $20 billion assets and has 11 business locations globally • In Feb 2019, Citi won the fund administration and custody mandate from Pacific Asset Management. Citi would provide fund administration, depositary, custody, clearing and foreign exchange solutions to PAM • Polunin Capital Partners Limited is a privately owned investment manager. The firm launches and manages equity mutual funds and private funds investing in equity markets. It also launches and manages hedge funds • In March 2018, Citi was selected by investment manager Polunin Capital Partners to provide global custody, fund administration and depositary services for its Luxembourg-domiciled Sicav funds. The new agreement followed the existing relationship between Citi and Polunin through which Citi provides global custody for Polunin’s US-domiciled funds. • GLP (Global Logistic Properties) is a provider of modern logistics facilities and technology-led solutions globally. It owns and operates a 73 million square meter property portfolio • Citi served as a joint lead financial advisor and jointly underwrote a $4.65 billion credit facility supporting the $17.9 billion privatization of the Singapore-listed GLP. Citi also acted as the facility agent and security agent for the credit facilities and provided foreign exchange hedging solutions and ratings advisory services to the client. GLP successfully completed the privatization process in January, 2018 • Becton, Dickinson and Company (BD) is a global medical technology company engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products • Citi structured a bridge financing facility of $16 billion on behalf of BD to facilitate its acquisition of C.R. Bard, Inc. Citi also served as a lead left bookrunner for all permanent financings for the company. The acquisition completed on December, 2017 Source: Company Website, Pacific Asset Management, Global Banking & Finance review, Bloomberg, Reuters, funds europe, GLP, Annual Report 2017

14 Alchemy Research and Analytics Clients and Partnerships

Key Clients • Deere & Company, based in Illinois, manufactures and distributes various equipment worldwide. The company operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services • Citi served as a financial advisor to Deere & Company on its $5.3 billion acquisition of Wirtgen Group. The acquisition completed on December, 2017 • Ørsted A/S is a power company based in Denmark. The company, together with its subsidiaries, develops, constructs, and operates offshore wind farms, bioenergy plants, and waste-to-energy solutions. • Citi served as exclusive M&A financial advisor, co-structuring bank and placement agent to Ørsted on the sale and financing of a 50% stake in Walney Extension, a UK offshore wind farm project in the Irish Sea. The agreement of sale was signed on November, 2017 • Intel Corporation, based in California, is a multinational corporation and technology company. It offers computing, networking, data storage, and communication solutions worldwide • Citi served as a financial advisor to Intel Corporation on its $14 billion acquisition of Mobileye N.V. The acquisition completed on August, 2017 • Banco Santander, doing business as Santander Group, is a Spanish multinational commercial bank and financial services company based in Spain • Citi acted as joint global coordinator on the €7 billion rights issue for Banco Santander in connection with its agreement to acquire Banco Popular. Citi also served as a sole financial advisor to Banco Santander on the transaction. The right issue was announced on July, 2017 • Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. It operates in three segments: Consumer, Pharmaceutical, and Medical Devices. It is a multinational company based in New Jersey • Citi served as a financial advisor to Johnson & Johnson on its $31 billion acquisition of Actelion. The acquisition completed on June, 2017 • Allianz Global Corporate & Specialty SE provides a range of corporate and specialty insurance services worldwide • Citi provided payment processing services for Allianz Global Corporate & Specialty SE in a successful trial of blockchain technology for a global captive insurance program, including cash transfer between countries Source: Company Website, Annual Report 2017, Bloomberg

15 Alchemy Research and Analytics Strategies

• Reallocation of resources from less attractive markets to those markets where there is ample scope to achieve the best returns Locational Strategy • Citi has reduced consumer footprint from over 40 to 19 markets with a focus on the US, Mexico and Asia. It has also reduced its institutional coverage from over 30,000 to 14,000 corporate and investor clients

Utilization of DTA • Utilize its deferred tax assets (“DTA”) and grow its capital base to meet evolving regulatory requirements

• Generate revenue growth by improving the client experience, deepening client relationships and serving consumer Increased Client and institutional clients with distinction Focus • Citi is not focussed to drive revenue growth from acquiring competitors, entering new territories, or expanding into ancillary businesses

• Continue to strengthen its capabilities while keeping a tight hold on costs. The future investments of Citi would be Cost Cutting incremental, self-funded and targeted

• Continuous investment in technology systems to enhance its digital capabilities across the franchise. Especially in retail banking, Citi is focused on having a lighter footprint with higher digital engagement Investment in • Optimize its processes through machine learning and robotics and rapidly deploying technology to verify clients’ Technology identities while safeguarding their information • Pursue efficiency savings through its digital initiatives, location strategy and organizational simplification. Citi sources new technology from outside and uses a multipronged approach

Focussing on Urban • Citi’s Global Consumer Banking is focussed to leverage Citi’s global footprint and be the pre-eminent bank for the Consumers emerging affluent and affluent consumers in large urban centers

Investment in • Continuous investment to streamline infrastructure and drive further growth in targeted areas including Mexico, US Infrastructure Cards, Treasury and Trade Solutions, Equities and Investment Banking franchises

Source: Company Annual Report, Investors Presentation

16 Alchemy Research and Analytics Recent Developments (1/3)

Launch of CitiDirect • In February 2019, Citi launched new global liquidity solution, CitiDirect BE Cash Concentration, Feb BE Cash which allows clients to digitally manage their cash pooling structures through Citi’s online 2019 Concentration treasury management tool

Sale of Mexican Asset • In September 2018, Citigroup sold the asset management business of its Mexico based Sep Management subsidiary Citibanamex to BlackRock. The transaction involves fixed income, equity, and multi- 2018 Business asset funds holding which constitutes approximately $34 billion in investments

• In September 2018, Citigroup merged its corporate and investment bank with its capital Sep Merging of Business markets origination business and appointed two veterans, New York-based Tyler Dickson and 2018 Verticals London-based Manolo Falco as the head of the new division

• In February 2018, in its effort to expand its Global Innovation Labs, Citi launched London Feb Launch of Innovation Innovation Lab that would support Citi’s Markets and Securities Services business globally with 2018 Lab a focus on building competitive advantage for clients through solutions leveraging advanced technologies, including data science and visualization as well as high performance computing

Sale of Fixed-income May • In May 2017, London Stock Exchange Group purchased Citigroup’s fixed-income analytics and Analytics & Index 2017 index businesses for $685 million Business

Source: Press Release, Blackrock.com, CNBC, Pionline, Wirecard.com

17 Alchemy Research and Analytics Recent Developments (2/3)

• In March 2017, Wirecard AG purchased the customer portfolio of Citi's merchant acquiring Sale of Customer Mar business in 11 markets in Asia Pacific. The portfolio comprises a client base of more than 20,000 Portfolio in Asia 2017 merchants, e.g. in airlines / travel, financial services, luxury goods, retail as well as technology Pacific and telecommunications sectors

Mar Sale of CitiFinancial • In March 2017, Citigroup completed the sale of CitiFinancial Canada to J.C. Flowers & Co. LLC 2017 Canada and Värde Partners

Mar Launch of CitiConnect • In March 2017, Citi, through its Treasury and Trade Solutions (TTS) group, launched the 2017 API CitiConnect API: a solution for payment initiation, status and account balance inquiries

• In February 2017, Citi launched Citi Tech for Integrity Challenge (T4I) in collaboration with public and private sector allies. It is an effort to encourage technology innovators to create Feb Launch of T4I cutting-edge solutions to promote integrity, accountability and transparency in the public 2017 sector and beyond. T4I will also provide the support and infrastructure to the tech innovators to tailor new technology solutions for this market

• In November 2016, Citibank launched Citi Pay, a new digital wallet that would provide Citi Nov customers an advanced provision for online, in-app and in-store payment. Citi has partnered Launch of Citi Pay 2016 with Mastercard to leverage its digital payment service, Masterpass to enable the online and in-app transactions in 33 countries

Source: Press Release, Torys.com, Pragrammableweb, Wirecard.com

18 Alchemy Research and Analytics Recent Developments (3/3)

• In November 2016, Citi launched a new global API Developer Hub to rapidly connect with Nov Launch of Global API developers and enable them to build innovative client solutions. Citi API marks the evolution of 2016 Developer Hub Citi's technology to open architecture, which would facilitate collaboration and partnerships with FinTech companies and consumer brands across the globe

• In October 2016, Citi sold its consumer banking business in Argentina to Banco Santander Rio. Oct Sale of Consumer In the same month Citi sold its consumer banking business in Brazil to Itaú Unibanco. The 2016 Banking Businesses transactions constitute $1.4 billion and $2.8 billion in assets respectively

• In June 2016, Citigroup Inc. completed the acquisition of US co-brand credit card portfolio of Jun Acquisition of Credit Costco Wholesale Corporation from American Express Company. The transaction includes the 2016 Card Portfolio acquisition of over $10.5 billion of credit card receivables

Aug Sale of OpenWealth • In August 2015, Citibank N.A. sold its UK based OpenWealth platform to Genpact. Earlier in 2015 Platform 2015, Genpact acquired the US OpenWealth platform business from Citibank

• In March 2015, Citigroup reached a definitive agreement to sell OneMain Financial Holdings, Mar Sale of Non-core Inc. to Springleaf Holdings for a purchase price of $4.25 billion. The transaction is part of Citi's 2015 Business strategy to sell the businesses that are not part of its core franchise

Source: Press Release, Zacks.com, Finextra

19 Alchemy Research and Analytics Key Management Churn (1/2)

Feb • In February 2019, Citigroup appointed Mark A.L. Mason to be Citi CFO replacing retiring CFO CFO 2019 John C. Gerspach

In September 2018, Citi hired three investment bankers for its technology investment banking group focused on software in the United States and in Europe: Leaders of Sep • Brian Marshall was appointed as Co-head of Software alongside Sam Kumar Technology 2018 • Jim Mackey was appointed as Chairman of Software based in San Francisco Investment Banking • Yishai Fransis was appointed as the Head of European, Middle East and Africa (EMEA) Technology

• In August 2018, Citigroup appointed Anand Selva as Head of US Consumer Banking. Previously Mr. Selva was working as Head of Consumer Banking in Asia Pacific. Gonzalo Luchetti, Head of Aug Head of US Consumer Asia Pacific Retail Banking would serve as Interim Head of Asia Consumer Banking 2018 Banking • The management reshuffling is part of Citi’s organizational restructuring strategy of moving the US consumer operation to a regional model, replicating retail operations in Asia and Mexico

Head of Global Cards • In August 2018, Judson Linville, the Head of Global Cards and Consumer Services departed from Aug and Consumer the firm after spending eight years. The exit happened after Citi restructured its consumer- 2018 Services banking operation by merging the credit-card business with its wealth and retail units

Head of Retail Aug • Following Judson’s exit, Citi's former Head of Global Retail Banking David Chubak got appointed Banking and 2018 as Head of Retail Banking and Consumer Lending in August 2018 Consumer Lending

Source: Company 8-K Filing, Reuters, Businessinsider

20 Alchemy Research and Analytics Key Management Churn (2/2)

Head of US Jul Government Bond • In July 2018, Citigroup hired Sean Hodgson as new Head of US Government Bond Trading 2018 Trading

• In June 2018, Citigroup hired James Fleming from Bank of America Corp to become Co-head of Jun Co-head of Equity its equity capital markets business in Europe, the Middle East and Africa alongside Valery 2018 Capital Markets EMEA Barrier, who got promoted from his former role of Head of ECM Franchise, France

May Head of Commercial • In May 2018, Citi Treasury and Trade appointed Sebastien Delasnerie as Head of Commercial 2018 Cards & Trade Cards and James Fraser as Head of Trade

Co-head of EMEA Mar • In March 2018, Citigroup hired Alexis Maskell as Co-head of EMEA Alternative Assets Group Alternative Assets 2018 alongside Shawn Borisoff Group

• In February 2018, Peter Tague, Citigroup Inc.’s Co-head of Mergers and one of the most senior Feb Co-head of Mergers deal makers on Wall Street left the firm. Mr. Tague’s Co-heads Mark Shafir and Cary Kochman 2018 continued to run the business

Source: Fnlondon, Bloomberg, Paymentssource, Penews, Marketwatch

21 Alchemy Research and Analytics Section II: Competition

22 Alchemy Research and Analytics Competitor Analysis (1/3)

Market Valuation Market Name Business Description Competitive Landscape 2018 Focus (Forbes) J.P. Morgan Chase & Co. is an American JP Morgan is a close competitor in terms of multinational investment bank and servicing cross-border institutional clients $387.67 financial services company. It operates especially in the custody and fund services Worldwide billion through four segments: Consumer Banking, business segment in Asia Pacific region. JP Corporate & Investment Bank, Commercial Morgan remains the largest bank in US Banking, and Asset & Wealth Management. with $2.6 trillion in assets. The Bank of America Corporation is an The Bank of America is a major competitor American multinational investment bank to Citigroup in terms of combined fixed- EMEA, Asia $313.51 and financial services company. It operates income and stock trading. In terms of Pacific, billion through four segments: Consumer Banking, Assets as of Dec 2018, Bank of America Americas Global Wealth & Investment Management, held the 2nd position after JP Morgan, Global Banking, and Global Markets. followed by Citigroup and Wells Fargo. Wells Fargo is one of the main competitor Wells Fargo & Company is an American to Citigroup in the US Consumer Banking multinational financial services company. It $265.33 segment. The 4 major U.S. banks operates through three segments: Worldwide billion comprising Wells Fargo, JPMorgan, Community Banking, Wholesale Banking, Citigroup, and Bank of America together and Wealth & Investment Management. hold 40% to 45% of all U.S. bank deposits. The Goldman Sachs Group, Inc., is an Goldman Sachs is a strong competitor to American multinational investment bank Citigroup in terms of Fixed income and financial services company currencies and commodities (FICC) trading. $91.8 billion headquartered in . It offers Worldwide Goldman Sachs aims to imitate Citi’s services in investment management, business model in terms of servicing the securities, asset management, prime corporate clients brokerage, and securities underwriting. Source: Company Websites, Forbes, Investopedia,

23 Alchemy Research and Analytics Competitor Analysis (2/3)

Market Market Name Valuation Business Description Competitive Landscape Focus 2018 (Forbes) Morgan Stanley is an American Americas, Morgan Stanley and Citigroup competes in multinational investment bank and Asia the investment banking division. Morgan financial services company. The company $97.7 billion Pacific, Stanley’s investment banking revenues operates through Institutional Securities, EMEA, rose 14 % in 3rd quarter 2018 whereas Wealth Management, and Investment Japan Citigroup showed a negative figure. Management segments. The Royal Bank of Scotland is a strong Europe, competitor to Citigroup in the UK in the The Royal Bank of Scotland plc., provides a Asia, the investment banking segment through range of banking and other financial Middle NatWest Markets. NatWest Markets $47.9 billion services. The company operates through East and jumped to 8th place in 2018 from 20th in UK Personal & Business Banking, and North 2015 in the league tables of euro- Commercial & Private Banking segments. America denominated bond sales for financial institutions. London based Barclays PLC’s investment Barclays is a major player in the UK banking services includes financial advisory, investment banking (IB) market. As per Europe, capital raising, wealth and investment Dealogic’s IB league tables 2018, Barclays $49.7 billion Americas, management, and financing and risk held the 7th position in global IB revenue Asia Pacific management services to corporations, rankings while Citi remained in the 5th governments, and financial institutions. position. UBS Group AG is a Swiss bank. Its UBS competes with the top American Investment Bank division provides advisory, banks including Citigroup specially in the debt and equity capital market, and $61.8 billion Worldwide private banking segment. Citigroup took financing solutions, sales & trading, foreign away the best global private bank award exchange as well as risk management from Switzerland's UBS in 2018. services. Source: Company Websites, Forbes, Financial Times, eFinancialCareers, finews.com

24 Alchemy Research and Analytics Competitor Analysis (3/3)

Name HQ Revenue Employees Assets (Forbes)

New York, US $109 billion (FY, 2018) 256,105 $2,609.8 billion

Charlotte, US $110.6 billion (FY, 2018) 204,489 $2,328.5 billion

New York, US $72.9 billion (FY, 2018) 206,000 $1,922.1 billion

San Francisco, US $101.1 billion (FY, 2018) 258,700 $1,915.4 billion

London, GB £26.8 billion (FY, 2017) 79,900 $1,533 billion

Edinburgh, GB £10.2 billion (FY, 2017) 68,600 $1,036 billion

New York, US $36.6 billion (FY, 2018) 36,600 $973.5 billion

Zurich, CH CHF36.7 billion (FY, 2017) 66,888 $960.1 billion

New York, US $40.1 billion (FY, 2018) 60,348 $858.5 billion

Source: Company Websites, Forbes, Craft.co

25 Alchemy Research and Analytics Section III: SWOT Analysis

26 Alchemy Research and Analytics Strengths

• Citigroup has built a strong brand image by consistently providing excellent customer service across Established Brand Image the financial services domain with over 200 years of experience. The company puts its customers at the forefront of its business strategy and has always aimed at serving consumer and institutional clients with distinction. The bank has a robust customer support team which functions round the clock and offers a personal banker to each of their privileged customers. Euromoney has recognized Citi as a leading global institution in categories such as digital, financial inclusion, markets and transaction services and rewarded it with several awards

• Citibank has one of the largest banking networks in the world. It’s Institutional Client Group Global Reach operates with a worldwide proprietary network, having a physical presence in 98 markets while its Global Consumer Bank serves as a trusted partner to more than 100 million customers in 19 markets worldwide. Through this global network, Citi is well positioned to take advantage of evolving global trends and provide its clients a full suite of integrated products and services. This vast network has also helped the bank to overcome the financial crisis better than their competitors and maintain the quality and consistency of their earnings

• Citi has a strong base of distributors and dealers worldwide who not only work as product advocates Strong Partner Community but also continuously invest in training the sales team to provide better customer service. Citi Retail Services has partnership with several leading global brands. Citi has always been focussed to strengthen its partner relationship by helping them to grow their businesses utilizing its multi channel expertise and digital solutions

Continuous Investment in • The technological landscape of the financial industry is continuously shifting. Throughout its Technology franchises, Citi is making continuous investment in its technology platform to optimize its processes through machine learning and robotics. Citi has spent more than $8 billion on technology in 2017 to introduce a host of digital solutions

• Citi would be better positioned than many UK based competitors to operate in the post Brexit Strong Position Post Brexit environment as it has individual offices in all major European cities with local banking licenses. Citi is better placed to adapt to a post-Brexit business environment, on account of its presence in the UK and continental Europe Source: Company Website, Annual Report, Investor Presentation, Finextra

27 Alchemy Research and Analytics Weaknesses

Overdependence on US, • In its effort to undertake major organization restructuring, Citigroup has reduced its footprint by Mexico & Asia exiting from many regional markets. The firm is in the process of exiting from markets like Argentina, Brazil and Columbia. As a result it has become overdependent on the three priority markets – Asia, Mexico and the US. Especially, after spending bulk of its capital expenditure over the last few years on building out its operations in Latina America, Middle East and Eastern Europe, this new strategy of reduction of geographical footprint demonstrates the firm’s failure to capitalize on its past investments

Negative Image due to • Citigroup’s operations are somewhat impacted by legacy reputational risk. In May 2017, Citigroup Allegation of Money agreed to pay $97.4 million in a settlement after a long federal investigation into Banamex USA. In Laundering spite of raising several flags internally, Citi did not alert regulators or step up its monitoring for money laundering. The bank also failed to properly safeguard its systems from being infiltrated by drug money and other illicit funds and was fined $70 million in this regard. This has resulted in lay off of top executives from the bank

Management Churn due to • The change of organizational structure and executive reshuffling has forced the exit of several top Restructuring level executives from Citigroup. These executives made key contribution in making Citi a leading global bank. The departed executives could be a valuable asset for the firm going forward, which is now a lost opportunity because of the firm’s failure to retain them. Moreover, the bank’s current organizational structure is only compatible with present business model thus limiting expansion in adjacent product segments

Limited Success Outside Core • Although Citi is a leading global bank backed up by strong capital base and leading technology and Business infrastructure, it failed to generate consistent profit from businesses which are outside of its core offerings. It has also decided not to venture into new businesses that are not core to its strategy. Citi had to completely wind down its legacy assets, formerly known as Citi Holdings. The firm has also exited from the mortgage-servicing business and sold $97 billion of portfolio. These can be viewed as an operational failure of the firm Source: Company Website, Annual Report, Investor Update, Fortune, Bloomberg, The New York Times, Business Insider, American Banker, Financial News

28 Alchemy Research and Analytics Opportunities

• Over the past few years Citibank has invested heavily in growing its partner network. Citi Retail Increase the Partner Network Services has already partnered directly with more than 20 retailers and dealers including established brand names like Costco, Home Depot etc. to offer private-label and co-branded consumer and commercial cards. The existing partnership with several reputed brands makes Citigroup highly attractive within the partner community. This opens up huge opportunities for Citi Retail Services to add partners within target industries that have strong loyalty, lending or payment programs and growth potential

• Improved macroeconomic environment and increase in customer spending, after years of recession Improved Macroeconomic and slow growth rate in the industry have opened up new opportunities for Citi to capture new Environment customers and provide stronger business performance • The lower corporate tax rate post US tax reform would also provide the scope for Citi to increase its profitability • Asia is one of the three key markets Citi is targeting. The massive growth potential of the Asian market provides Citi the opportunity to reduce its overdependence of the US market capitalizing on its key partnerships with the reputed brands operating in the Asia

• Citi has invested heavily in the recent times into the online platform which has resulted in opening Enhanced Customer Service of new sales channels for the firm. Citi has improved the efficiency of its global network by launching API-driven connectivity services and global solutions for payments and receivables which allows clients to directly connect with Citi across 96 countries to access services. In the coming years, the company can leverage this opportunity to provide better customer service

• Post financial recession, Citigroup followed the strategy of trimming its businesses by winding down Business Trimming non-profitable business verticals and reducing its institutional customer base. Citi consumer business has also exited from various low profit generating countries. This approach has made the management and operation of various Citi franchises less cumbersome. Now, there is a huge opportunity for the firm to focus on a more selective institutional client base and improve the client experience. This focused country presence in consumer banking and selective institutional client base would provide the opportunity for Citi to achieve solid growth in core consumer and institutional businesses Source: Investor Presentation, Annual Report

29 Alchemy Research and Analytics Threats

• The financial services industry is highly regulated. Citi’s management and businesses continuously Highly Regulated Industry face ongoing regulatory uncertainties and changes, in the US. There are even deeper regulatory and compliance related risks for the brand in the emerging Asian markets. Ongoing regulatory uncertainties and changes make Citi’s and its management’s long-term business, balance sheet and budget planning difficult or subject to change Increasing Competitive • Competitive intensity in the financial services industry is high because of the presence of large Intensity financial players backed up by strong capitalised positions. Moreover, Citigroup's US consumer operations still lag behind to its US universal bank peers, Bank of America and JPMorgan Chase in scale and diversification • With regards to Brexit, Citi will face intense competition in Europe from companies like Deutsche Bank and Societe Generale who are well entrenched in their domestic markets and will be difficult to dislodge from their leadership positions. Moreover, the uncertainties arising from the Brexit effect might enforce Citi to change its business strategy in the European markets Macroeconomic and • Macroeconomic and geopolitical challenges and uncertainties globally could have a negative impact Geopolitical Challenges on Citi’s businesses and results of operations. The potential border transactions on behalf of its clients expose the firm to potential threats from money-laundering. These risks can be more acute in less-developed markets • The firm is also exposed to political turmoil, foreign exchange controls, limitations on foreign investment, socio-political instability, fraud, nationalization or loss of licenses and other business restrictions in the emerging markets Relationship with Partners & • Citi is highly reliant on its distributor network for selling its products in various regional markets. Distributors Growing strengths of local distributors in local markets also pose a threat to Citi. Increased competition in the financial services industry has given these distributors a higher bargaining power which has in turn resulted in loss of business margin for Citi. • Citi has co-branding and private label relationships through its credit card businesses with various retailers and merchants globally. These relationships could be negatively impacted by various factors including declining sales and revenues or other difficulties of the retailer or merchant. Moreover, increased competition among card issuers have made it increasingly difficult for Citi to maintain the relationships on same term Source: Annual Report, Investors Presentation, Company Website, Moody’s

30 Alchemy Research and Analytics Section IV: Executive Profile

31 Alchemy Research and Analytics Management Team (1/2)

Iain Wallace (London Lab CIO) • Iain Wallace joined Citi in 1998 as an Infrastructure Manager and is currently designated as the London Lab CIO at Citi since 2017 • He is an experienced technology manager in the financial sector and had managed infrastructure teams and development organisations thereby supporting financial businesses • Prior to joining Citi, Iain Wallace was an Analyst at UBS • He holds a BEng degree in Computer Enhanced Mechanical Engineering from Glasgow University

Stuart Crouch (CIO of Citi Treasury) • Stuart Crouch has been with Citi since 2018 • He is designated as the CIO of Citi Treasury • He graduated in Economics from University of California

Mark Litz (Managing Director and Head of FinTech EMEA) • Mark Litz joined Citi in 2006 as the Managing Director and Head of Fintech EMEA at Citi • Prior to joining Citi he was an Associate at Dresdner Kleinwort Wasserstein and an Analyst at Bear Stearns • He completed his graduation in Business Honors and Finance from Red McCombs School of Business affiliated with The University of Texas at Austin

Farooq Jawaid (IT Director and EMEA Head of Treasury and Trade Solutions Technology and Innovation and Smart Automation) • Farooq Jawaid joined Citi in 2011 as the APAC Head of Securities and Fund Services Technology. Currently, Farooq Jawaid is the IT Director and EMEA Head of Treasury and Trade Solutions Technology and Innovation and Smart Automation at Citi since 2015 • Prior to joining Citi he was Global Head of Investment Operations Applications at Invesco US. Prior to Invesco US he was a Senior Associate at Apache Corporation • He holds a B.S. degree in Computer Science and MIS and an Executive MBA degree in Business Administration, Management and Operations from University of Houston

Source: Company Website, Linked in

32 Alchemy Research and Analytics Management Team (2/2)

Kunal Goklany (Director of Operations and Technology) • Kunal Goklany joined Citi in 2000 as Vice President of Operations and Technology and is currently designated as the Director of Operations and Technology at Citi since 2014 • Prior to joining Citi he was Senior Operations Manager at UTB • He holds a Mechanical Engineering degree from Manipal Institute of Technology and an MBA degree from Rotterdam School of Management affiliated with Erasmus University

Will Bassett (Head of Multi - Asset Solutions IT) • Will Bassett joined Citi in 2016 as the Head of Multi – Asset Solutions IT • Prior to joining Citi he was the Head of Equity Derivatives Technology of Global Markets at Credit Suisse and Senior Programme Manager of Equity Derivatives at UBS Investment Bank • Prior to UBS Investment Bank he worked for M.A. Partners

Joanna Wong (Head Of Digital) • Joanna Wong joined Citi in 2008 as Digital Sales Executive and is currently designated as the Head of Digital at Citi since 2017 • Joanna Wong worked at different roles at Citi as the Vice President of Regional APAC Digital Acquisition and Marketing and Head of Digital Media and Acquisition, before taking up her current role as the Head of Digital • She graduated from Sunway University

Haresh Bhatia (EMEA Head of Core Banking Technology) • Haresh Bhatia joined Citi in 2004 as Development and Implementations Manager and is currently designated as the EMEA Head of Core Banking Technology at Citi since 2018 • Prior to joining Citi he was Project Manger at Polaris Software Lab • He holds a Bachelor’s degree in Business Administration and Business Management from the University of Madras

Source: Company Website, Linked in

33 Alchemy Research and Analytics Contact

Niladri Paul

T: + 91 (0) 343 255 5846 M: +91 (0) 980 008 6550 Email: [email protected]

www.alchemy-research.com

34 Alchemy Research and Analytics