Citigroup Diversity

Annual Report

{ 2004 }

“Our goal is for to be the most respected global financial services company…” 

MESSAGE FROM OUR { CHIEF EXECUTIVE OFFICER AND PRESIDENT & CHIEF OPERATING OFFICER }

Our goal is for Citigroup to be the most respected global financial services company; to achieve that, the company has embarked on a multiyear, global effort to reinforce our values and take the next step in the evolution of our culture.

Reinforcing and reaffirming our commitment to diversity is a fundamental part of this effort—and the more we meet with employees around the world, the more we recognize it is also a fundamental part of our success.

While Citigroup may be the most diverse company ever created—our staff is 98 percent local in the nearly 100 countries in which we operate—we know we have much more work to do. But as you will read on the pages that follow, we’re pleased to report that Citigroup made significant progress on our diversity goals in 2004.

At Citigroup, our success depends on every one of us having a chance to succeed based on his or her merits and on all of us working together to uphold our Shared Responsibilities to our clients, to each other, and to our franchise.

We have made great strides embedding the principles of diversity and inclusion in our culture. We are proud of the progress we made in 2004, and we intend to build on that progress in the year ahead.

Sincerely,

CHUCK PRINCE BOB WILLUMSTAD 

MESSAGE FROM OUR { DIRECTOR OF GLOBAL WORKFORCE DIVERSITY }

Citigroup’s diversity strategy is based on four components—to be the employer of , service provider of choice, business partner of choice, and neighbor of choice. In 2004, I am pleased that we have made progress toward achieving each of these goals.

We’ve taken concrete steps to inform our 300,000 employees about our diversity strategy. For the second consecutive year, our senior managers developed diversity plans and reviewed progress against these plans every quarter. In 2004, we continued to embed mentoring programs to support career development, strengthen our employee network program, and develop our products and services for an increasingly diverse customer base. We also have partnered with leading diversity organizations to identify and hire diverse talent and have seen positive results.

Our diversity within the U.S. continues to trend positively, growing from 28.4 percent in 2002 to 33.4 percent in 2004, a five percent increase in total diverse representation. Of particular note, our representation in professional jobs rose from 26.3 percent in 2002 to 34.6 percent in 2004, a strong, 8.3 percent representation increase.

At the same time, we reinforced our efforts with our business partners by creating exciting opportunities among affinity markets and continuing to focus on Supplier Diversity, which resulted in $725 million in spending with business enterprises owned by minorities, women, disabled veterans, and people with disabilities, an increase of 64 percent over the last three years.

Our employees represent Citigroup’s diversity strategy in action. In 2004, more of our employees became involved in our diversity initiatives: they led diversity councils in Africa, Asia-Pacific, Europe, Japan, Latin America, and the ; launched employee networks; and assisted in recruiting, mentoring, and teaching financial education programs in the communities where we live and work. In addition to their day-to-day work responsibilities, these employees, in conjunction with our diversity directors in the businesses, lead and contribute to our diversity strategy, and we recognize and applaud their commitment.

Once again, we are honored by the external recognition of our efforts, including, among others, being ranked the #2 company for diversity by DiversityInc magazine, and receiving a 100 percent ranking on the Human Rights Campaign Corporate Equality Index.

Embedding the principles of diversity and inclusion in everything we do is essential to Citigroup’s goal to be the most respected global financial services company. We will continue our efforts and expect greater progress in 2005.

Sincerely,

ANA DUARTE McCARTHY 

{ EMPLOYER OF CHOICE } Citigroup values a work environment where diversity is embraced, where people are promoted on their merits, and where people treat each other with mutual respect and dignity. Around the world, we are committed to being a company where the best people want to work; where opportunities to develop are widely available; where innovation and an entrepreneurial spirit are valued; and where a healthy work/life balance is encouraged.

{ SERVICE PROVIDER OF CHOICE } Citigroup strives to deliver products and services to our customers that reflect both our global reach and our deep local roots in every market where we operate. The diversity of our employees enables us to better understand our customers, while the breadth of our product offerings allows us to serve them better.

{ BUSINESS PARTNER OF CHOICE } Citigroup works to create mutually beneficial business relationships with minorities, women, disabled veterans, and people with disabilities. We recognize that working with a wide range of professionals, suppliers, and consultants strengthens the communities we serve and creates value for our shareholders.

{ NEIGHBOR OF CHOICE } Citigroup believes it has a responsibility to make a difference in the neighborhoods in which we live and work around the world. We reach out to and form part- nerships with nonprofit organizations, civic groups, educational institutions, and local governments representing the diverse nature of these communities. “Being respected at Citigroup as a self-identified and visible gay man is tremendously important and rewarding to me…”  }

CITIGROUP

WITH

YEARS

EN SEV ., JR , JONES

KEVIN . J

{ “ … I have had the opportunity to work with some wonderful people—true heroes—whom I would otherwise not have had the pleasure of meeting. For a community of employees that is still largely invisible, being out makes a difference. So I know that I am making some difference on a day-to-day basis. The concrete progress that I have experienced through Citigroup’s diversity initiatives gives me hope for positive change beyond the workplace.” 

FOR OUR EMPLOYEES, WE WANT TO BE the employer of choice } 

CITIGROUP VALUES A WORK ENVIRONMENT WHERE DIVERSITY IS EMBRACED, WHERE PEOPLE ARE PROMOTED ON THEIR MERITS, AND WHERE PEOPLE TREAT EACH OTHER WITH MUTUAL RESPECT AND DIGNITY. AROUND THE WORLD, WE ARE COMMITTED TO BEING A COMPANY WHERE THE BEST PEOPLE WANT TO WORK; WHERE OPPORTUNITIES TO DEVELOP ARE WIDELY AVAILABLE; WHERE INNOVATION AND AN ENTREPRENEURIAL SPIRIT ARE VALUED; AND { WHERE A HEALTHY WORK/LIFE BALANCE IS ENCOURAGED.

CITIGROUP HAS DEVELOPED A Management Chuck Prince and Bob Willumstad COMMON FRAMEWORK ACROSS Accountability reinforced their senior management THE BUSINESSES TO STRENGTHEN We are working to ensure that team’s commitment to diversity by OUR EFFORTS IN EMPLOYEE Citigroup businesses and their manag- outlining our diversity strategy in a DIVERSITY AROUND THE WORLD. ers develop diversity plans and are held company-wide communication in IT COMPRISES MANAGEMENT more directly accountable for progress September that encouraged employees ACCOUNTABILITY, ATTRACTING against those plans. to become involved and engaged in TALENT, DEVELOPING OUR our efforts. EMPLOYEES, AND CREATING A At Citigroup, diversity is a source POSITIVE AND INCLUSIVE WORK of strength for our people and our DIVERSITY COUNCILS ENVIRONMENT. businesses, and we have embedded We drive Citigroup’s diversity strat- diversity as a core component of egy through our diversity councils. our management practices. The Citigroup Diversity Operating Council, comprised of senior diversity In 2004, our senior leaders were and Human Resources leaders from responsible for developing and com- core businesses and regions, meets municating business diversity plans. bi-weekly to review progress against They fostered inclusion through the strategy, share best practices, and training, mentoring, and networking align policies globally. initiatives and often became personally involved in these efforts. In total, 162 In 2004, we continued to promote diversity reviews were conducted in diversity locally in Africa, Asia- the businesses in 2004. Senior manage- Pacific, Europe, Japan, Latin America ment’s overall efforts, which are linked (LATAM), Mexico, and the United to compensation, were reviewed every States, through 35 business diversity quarter with President and COO Bob councils in which business leadership Willumstad and were also reported to and employees from various levels and Citigroup’s . functional groups develop and execute strategies and initiatives. 

The councils focus on gender along the National Black MBA Association ATTRACTING DIVERSE with other dimensions of diversity, (NBMBAA) and the National Society UNDERGRADUATES including, as relevant, race, ethnicity, of Hispanic MBAs (NSHMBA). In Citigroup continued its long-time disability, and sexual orientation. 2004, Citigroup managers and recruit- partnership with INROADS and the Among new councils launched ers attended the organizations’ annual Sponsors for Educational Opportunity in 2004 were the LATAM Diversity career fairs, which attract thousands (SEO) programs through which we Council, the Singapore Diversity of diverse MBAs and professionals. hire diverse undergraduates for sum- Council and the Asia-Pacific Diversity Citigroup also sponsored NSHMBA’s mer internships. In 2004, we sponsored Council. first finance case competition, which 64 INROADS interns in various U.S. attracted 18 university entries. Our metropolitan areas; four graduating We continue to look closely at the results from these core partnerships interns accepted offers of employment. Affirmative Action plans in our U.S. were very positive. We hired 31 INROADS recognized Citigroup businesses. In 2004, 509 plans were individuals from the conferences— operations in Stamford, Connecticut, created and a new mid-year review by a 55 percent increase over 2003. We which received the “Champion’s the Corporate Office of Affirmative are a member of both organizations’ Award,” and New Castle, Delaware, Action was instituted to better moni- strategic corporate advisory boards which was honored as “Business tor efforts toward goal achievement. and continue to work closely with Advisor of the Year.” We also hired their national offices and local affiliates. five INROADS interns in Mexico. Attracting Talent We are working to ensure that our We understand that our ability to In 2004, 20 SEO interns worked in workforce—at all levels—is representa- attract diverse MBA and undergradu- Corporate and Investment Banking tive of all segments of the population ate talent is contingent upon a strong in the U.S. The SEO Career Program, and that we develop a diverse pool of pipeline of diverse students entering of which Citigroup is a founding candidates for management, especially these programs. Citigroup initiated member, has gained national senior management positions. a partnership with Management recognition as one of the most Leadership for Tomorrow (MLT), effective sources of talented, diverse Attracting and retaining diverse gradu- a nonprofit organization that is undergraduate candidates in the ate, professional, and undergraduate committed to helping diverse students U.S. In addition to recruiting from our talent ensures a leadership pipeline across the U.S. prepare for successful 20 SEO interns, the program allowed that reflects our customers and the careers in corporations, nonprofit Citigroup to recruit from a broader communities where we do business. organizations, and entrepreneurial set of more than 200 SEO interns In 2004, we continued to strengthen ventures. Citigroup, along with corpo- who worked at major investment our relationships with our longtime rate sponsors PepsiCo and Booz Allen banks across Wall Street. As a result, association partners while working to Hamilton, provided a financial training nine graduating SEO interns accepted develop new relationships to expand “boot camp” for MLT students begin- offers of employment at Citigroup and our reach. ning their MBA studies. In 2004, 90 will join more than 35 SEO alumni students were involved in the program; already working here. ATTRACTING DIVERSE GRADUATES 11 pre-MBA students were hired for AND PROFESSIONALS summer internships, ten in Corporate We have also continued to develop Since 1995, we’ve placed emphasis on and Investment Banking and one in our relationship with SEO outside the building cross-business sponsorship of our Financial Control group. U.S., by hosting seven SEO interns in two national partners within the U.S., London and two SEO interns in Hong Kong in 2004. 

ATTRACTING PEOPLE In the U.K., Citigroup was the first We also promote employee devel- WITH DISABILITIES financial institution to target the opment through both informal Our businesses are focusing on hiring LGBT student networks directly for networking and more structured people with disabilities. Our Banamex MBA recruiting at schools such as mentoring initiatives. Our leadership business in Mexico formed a Diversity Oxford, Cambridge, the London has embraced mentoring; 70 percent Corporate Committee to approve and School of Economics, Imperial of our Management Committee par- support projects that promote equal College, and INSEAD. Citigroup is ticipates in mentoring relationships. opportunities for employees in each also involved in “Out in the City,” business. A pilot program was launched an industry-wide LGBT undergrad- In 2004, Bonnie Howard, Citigroup’s called “Oportunidades Banamex” to uate career fair, and MBA events Chief Auditor, announced the launch hire people with disabilities in cus- “Reaching OUT” and “Eurotrek.” of a pilot mentoring program specifi- tomer service centers and other areas. cally targeting Audit and Risk Review The program resulted in 12 hires. EXPANDING OUR EFFORTS (ARR) employees across the U.S., Asia, TO RECRUIT WOMEN Europe, and Latin America. ARR has In the U.K., Citigroup partnered with Citigroup is involved in many wom- nominated 114 mentors and aspires Pitney Bowes and Mencap, the U.K.’s en’s efforts on campuses, including to offer mentoring relationships to leading organization for people with the Michigan Women in Leadership 680 potential mentees. The program learning disabilities, to launch a pilot Conference, the Stern Women in focuses on flexible, self-paced mentor- program called WorkRight and provide Business Conference, and the Wharton ing relationships and customized work placements. Women in Business Conference. development plans. We sponsored the annual Women’s REACHING OUT TO LGBT TALENT Management Council Symposium We have also successfully partnered Our outreach to the lesbian, gay, at Cornell’s Johnson School of with external organizations to help bisexual, and transgender (LGBT) Management, as well as the Columbia develop the leadership skills of our community continued in 2004. Women in Business annual conference, diverse employees. Since 2002, Citigroup organized and participated where Sallie Krawcheck, Citigroup’s Citigroup annually has nominated in four receptions in Boston, Chicago, CFO and Head of Strategy, was a emerging African-American leaders City, and Philadelphia to keynote speaker. to participate in the Executive recruit LGBT students at eight schools: Leadership Council’s (ELC) Mid- Stern, Columbia, Wharton, Chicago, Workforce Development Level Managers Symposium, held Kellogg, Sloan, Harvard, and Tuck. We are working to help employees annually in Washington, D.C. ELC, Citigroup was an event sponsor of build productive and rewarding careers a national membership organization the 7th annual Reaching Out MBA by providing a wide array of work- comprised of senior-level African- Conference; 18 of our employees were force development and training American executives from U.S. in attendance. We provided speakers programs. Fortune 500 corporations, provides for two panels as well as opening a forum for offering perspective and remarks at two separate events. Every year, we assess the top talent of direction on national and international our company, including the positions economic and public policy issues. of women globally and minorities In 2004, 50 of our employees attended within the U.S. to ensure that we are the program that included a network- developing a diverse pool of future ing session with senior Citigroup leaders. African-American leaders. 

Work Environment We continued to expand our Respect EMPLOYEE NETWORKS We are striving to make Citigroup at Work training in 2004. In our Employee networks are employee- a great place to work, a place where Barcelona Service Center, 244 initiated and employee-led groups diversity is valued, and where people employees participated in the curri- open to all Citigroup employees in feel respected regardless of their culum. In the United Arab Emirates, the country in which they are formed. differences. online efforts were launched through Employee networks support the which 480 employees were trained, diversity and business initiatives of the We encourage the values of diversity and the program was incorporated organization, and provide employees and inclusion through diversity train- into new hire orientations. And, with an opportunity to share common ing, by supporting employee networks, in the Asia-Pacific region, 2,279 experiences and build awareness of by celebrating the rich and diverse employees completed the online diverse cultures and communities cultural heritage of our employees, training program. within Citigroup. and by providing work-life programs. We value our employees’ opinions In 2004, Citigroup recognized 11 TRAINING AND FEEDBACK about their workplace and encourage new employee networks, bringing our We made strong progress in providing them to make their voices heard. One total to 21 employee network groups. diversity training throughout our busi- of the ways we assess trends in the We have 17 networks operating in nesses. Since 2003, 67,000 employees work environment and management U.S. locations, including Dallas/Ft. in the U.S., U.K., Asia-Pacific, Latin practices is through our annual Voice Worth, Hagerstown, the New York America, and Western Europe partici- of the Employee survey (VOE). City metro area, the San Francisco Bay pated in diversity training, including VOE results for 2004 indicated that Area, South Florida, Sioux Falls, and 91 percent of our Management we continued to make progress in the St. Louis. We also have four networks Committee. area of diversity, although we recognize in London. we still have work to do.

{ BUILDING AWARENESS THROUGH CELEBRATION }

Citigroup Diversity Black History Month Women's History Month Asian Pacific American Advertisement Heritage Month 

Within the U.S., employee networks from across our businesses serve as in 2004. The broad array of activities, focus on African Heritage, Asian liaisons. An additional 19 groups are often designed in partnership with Heritage, Hispanic Heritage, Pride forming in the U.S. and we plan to our employee network groups, give (a group focused on the LGBT com- further expand our networks globally. employees an opportunity to learn munity), Women, and Working Parents. about the achievements of multicul- In the U.K., Pride, Women, Parents, Employee networks focus on a tural groups and celebrate the diversity and a multicultural network called variety of activities that provide their of our organization. Roots have been recognized. members with cross-business network- ing opportunities, including speaker While Citigroup continued to sponsor Since the inception of networks at presentations, cultural programs, career programs around Black History Citigroup in 2002, employee development programs, and volunteer- month, Hispanic Heritage month, participation has more than doubled ism in the community. Members of Pride month, and Women’s History to some 4,700 employees. Senior the networks actively support the month, new efforts in 2004 included managers—including Business Heads efforts of our college and university celebrating Asian Pacific Heritage Robert Druskin, President and CEO, recruiting programs by attending con- month, Disability Awareness month, Corporate and Investment Banking; ferences and career fairs, participating Native American Heritage month, and Marge Magner, Chairman and in campus outreach, and serving as and Veterans Day. In addition, the CEO, Global Consumer Group; as well liaisons to prospective employees. Citigroup Roots Network-London as Management Committee members held the first local Black History Ajay Banga, Steve Freiberg, Kevin CELEBRATING OUR HERITAGE month celebration within our U.K. Kessinger, and Dave Lowman—serve In the U.S., Citigroup sponsored businesses. as Business Sponsors of the networks. 64 programs in dozens of locations Twenty-six Human Resources Officers in conjunction with heritage months

Pride Month Hispanic Heritage Month Disability Awareness Month Native American Heritage Month 

For Disability Awareness month, THE LIFEWORKS® PROGRAM Employees in the U.S. also have access Citigroup partnered with the American AT CITIGROUP to elder care management services to Association of People with Disabilities Citigroup’s LifeWorks® program helps assist them when their elder care needs (AAPD) and the National Business employees and their dependents better become more critical. and Disability Council (NBDC) to manage the demands that individuals serve as a business sponsor of Disability may confront throughout their lives. The demands of business and pressures Mentoring Day, a program that pro- Open to employees, their partners, and outside work can sometimes make vides people with disabilities a chance their dependents in the U.S., Puerto life difficult. Access to the Employee to learn about career and employment Rico, and Canada, the program is Assistance Program (EAP) is available opportunities and to meet one-on-one available through a toll-free telephone around the clock via toll-free tele- with mentors. number and via the Web. In 2004, phone numbers. In 2004, the U.S. EAP LifeWorks resources addressed a range launched an awareness campaign in During Native American Heritage of real-life issues by, among others, collaboration with the National Youth month, our businesses in New York assisting those employees affected by Anti-Drug Media Campaign targeted and Texas sponsored Native American the southeast U.S. hurricanes to find to employees with teenage family cultural performances and exhibited temporary child care and contractors members. The EAP also provided work through the American Indian to rebuild their damaged homes. resources for families affected by Art Council. military deployment as well as natural A VARIETY OF DEPENDENT disasters. Diversity awareness was also the CARE OPTIONS theme of Corporate and Investment Citigroup offers full-time and back-up CITIGROUP’S HEALTH Banking-U.K.’s Diversity week. The child care programs and elder care MANAGEMENT PROGRAM week provided employees with an management services and back-up Citigroup’s Health Management opportunity to attend lectures, training, programs to more than 89,000 Program provides a wide array of con- and cultural programs to further edu- employees in the United States and venient options ranging from on-site, cate themselves about cultural diversity Europe. In addition, Citigroup owns or professionally staffed Wellness Centers, within our U.K. business. participates in 14 child care centers in lunchtime seminars and programs, and Florida, Maryland, Missouri, Nevada, print- and Web-based health education WORK/LIFE PROGRAMS New Jersey, New York, South Dakota, information and resources, to discount Citigroup recognizes that our employ- and Texas, as well as in Dublin and arrangements for commercial health ees strive to succeed in their work and London. and fitness clubs and home exercise their personal lives. The needs of one equipment. In 2004, Citigroup made often impact the needs of the other. In the U.S., employees in participating a significant investment in employee That’s why we continually seek to businesses in 18 states have access to a health by opening five new on-site make tools and programs available back-up child and elder care program Wellness Centers in New Jersey, to our employees around the world to that helps them to identify and pay Kentucky, North Carolina, Idaho, and help them meet the challenges of their for care when their primary dependent Puerto Rico. work and personal responsibilities. care is unavailable. U.S. employees may also receive discounts when they use leading national child care centers. More than 5,900 children and older family members of employees were served through these programs. “As an African-American, I thought I had a strong understanding of workplace issues…”  }

CITIGROUP

WITH

YEARS

EN ELEV , HADDON

AMES J

{ “ … However, that was not the case and my diversity activities have helped me to expand my knowledge and sensitivity to these issues. I think there is a strong correlation between satisfied employees and satisfied customers. I believe my efforts to improve diversity at Citigroup have helped to make our company a better workplace for its employees with a stronger focus on meeting the needs of our diverse customers.” FOR OUR CUSTOMERS, WE WANT TO BE the service provider of choice } 

CITIGROUP STRIVES TO DELIVER PRODUCTS AND SERVICES TO OUR CUSTOMERS THAT REFLECT BOTH OUR GLOBAL REACH AND OUR DEEP LOCAL ROOTS IN EVERY MARKET WHERE WE OPERATE. THE DIVERSITY OF OUR EMPLOYEES ENABLES US TO BETTER UNDERSTAND OUR CUSTOMERS, WHILE THE BREADTH OF OUR PRODUCT OFFERINGS ALLOWS US TO SERVE { THEM BETTER.

AFRICAN-AMERICAN CUSTOMERS Various businesses participated in ASIAN-PACIFIC ISLANDER In celebration of Black History month, a wide range of events throughout CUSTOMERS 130 Financial Centers hosted the year to expand our reach in To celebrate the “Year of the Monkey,” Gospel Brunch events or storytelling the African-American community. Citibank branches offered the Chinese hours to raise historic and cultural Citibank’s National Initiatives team community in the U.S. traditional red awareness of the contributions made hosted a Financial Education work- money envelopes for free. In addition, by African-Americans and to help shop with Nehemiah Ministries Citibank’s “More Fortune, More attendees think about financial solu- (AME Church), delivering savings Wealth and More Peace” promotion tions to issues such as future college and investment planning education offered gifts of gold and diamond funding or purchasing a home. to more than 500 attendees on the jewelry and collectible crystals to West Coast. Citi Cards, CitiMortgage, new depositors. Citibank sponsored the reception for and Citibank participated in the Expo “Harlem Is...” at the Cathedral of St. at the Congressional Black Caucus’s To show support to the South Asian John the Divine, an exhibit produced Annual Conference. Each business community and celebrate Diwali, by Community Works, a local non- participated with specific product the festival of lights, and Eid al Fitr, profit dedicated to art education. promotions for the target audience. which marks the end of the fasting “Harlem Is...” was a multimedia art CitiMortgage is a supporter of the period of Ramadan, Citibank branches and education exhibit celebrating the Caucus’s “With Ownership Wealth” partnered with Indiaplaza.com to offer living history of Harlem by honoring (WOW) initiative, and also participated Bollywood entertainment movies and more than two dozen community in the housing brain trust. In addition, music packs to new customers. members from all sectors of society. the Commercial Business Group was The exhibit displayed their photo- a lead sponsor for the New York graphs and the writings of Harlem Chapter of the National Association public school students who inter- of Black Accountants—Division of viewed them. Firms first annual conference. 

HISPANIC CUSTOMERS Through the bi-national credit card research, preventative care, and finan- The Student Loan Corporation was program, Citigroup offers customers cial information to attendees and to the sole student loan lender to attend in the U.S. the possibility to share their support the Dallas Komen Race for the National Hispanic College Fairs access to credit with family and friends the Cure. organized by the Hispanic Scholar- in Mexico. Under this program, a ship Fund (HSF) in 18 U.S. cities. Banamex USA credit card holder can In 2004, Women and Company® Through these events, the Student ask us to send an additional Banamex continued to expand its financial edu- Loan Corporation provided financial credit card to his or her relatives or cation program. Women and Company aid education and options to more friends in Mexico. conducted 48 conference calls headed than 2,000 Hispanic high school by notable financial experts; hosted 22 students and parents, including LESBIAN/GAY/BISEXUAL/ Master Classes in major metropolitan low- to moderate-income and new TRANSGENDER CUSTOMERS markets, from New York to Chicago immigrant families. For the third consecutive year, the to Atlanta to San Francisco; and Citibank Consumer Finance division co-sponsored with Citibank and Smith To increase Hispanic homeowner- continued its partnership with Barney more than 200 educational ship and to recognize those who Gay.com/PlanetOut.com to market seminars for women and their families serve in the United States military, home equity products to the LGBT across the U.S. In addition, Women CitiMortgage launched a “Welcome community. In June 2004, Smith and Company published some 25 Home Program” for Spanish-speaking Barney launched a sales and marketing information bulletins containing servicemen and sevicewomen transi- initiative to reach the LGBT commu- articles and tips addressing financial tioning from active duty into careers nity in the U.S. Financial Consultants topics of particular concern to women. in the mortgage industry. Citigroup across the country used marketing helped fund a nationwide focus group materials, including brochures, promo- In 2004, Women and Company, study on housing, with emphasis on tional letters, and advertisements to in partnership with the Citigroup homeownership barriers, consumer establish Smith Barney as a financial Foundation, created the Women perceptions, and industry practices in services firm that understands and and Company Microenterprise the Hispanic community. This sponsor- uses creative strategies to address the Boost Project, administered by ship also helps to support a two-year unique and complex financial planning the Association for Enterprise fellowship program designed to needs of the LGBT community. Opportunity. The Women and empower Latino housing professionals. Company Microenterprise Boost WOMEN CUSTOMERS Project gives low- and moderate- Citibank customers can manage their Smith Barney hosted its annual income women microentrepreneurs accounts and do transactions online Women’s Health symposium in New across the U.S. a greater chance of in Spanish using www.Citibank.com/ York to support the Susan B. Komen business success by providing them español. The site also offers informa- Breast Cancer Foundation. More with high-quality business training and tion on our bank accounts and credit than 650 clients, investors, and others $1,000 in cash. Seventy-two equity cards as well as credit education. attended. The forum focused on awards will be distributed through the latest medical developments and eight microenterprise development investment opportunities within the programs during 2005. medical technology industry. In Dallas, Sallie Krawcheck hosted a Women’s Health luncheon to provide health “My job brings me closer to the hearts and minds of Hispanics like me…”  }

CITIGROUP

WITH

YEARS

FOUR , VARGAS

REBECA

{ “ … I started my career in Mexico, but through my work at Citigroup, I’ve grown more aware of the difficulties and challenges facing the Hispanic community in the U.S. I’ve also learned about the different ways in which large organizations like Citigroup can make a positive impact in the development of underserved communities and specific segment markets through the products and services we provide them or through the services they are able to provide us. It’s given me a different perspective on the role that a financial institution and its employees play in society.” FOR OUR SUPPLIERS, WE WANT TO BE the business partner of choice } 

CITIGROUP WORKS TO CREATE MUTUALLY BENEFICIAL BUSINESS RELATIONSHIPS WITH MINORITIES, WOMEN, DISABLED VETERANS, AND PEOPLE WITH DISABILITIES. WE RECOGNIZE THAT WORKING WITH A WIDE RANGE OF PROFESSIONALS, SUPPLIERS, AND CONSULTANTS STRENGTHENS THE COMMUNITIES WE SERVE { AND CREATES VALUE FOR OUR SHAREHOLDERS.

SUPPLIER DIVERSITY SPENDING officials, including the U.K. Treasury reduced its billing errors by more than INCREASED 64% IN THREE YEARS Chief Secretary and a director of the 50 percent and significantly improved In 2004, Citigroup Supplier Diversity Commission for Racial Equality. customer service. continued to build its presence as it In addition, a demographic report pursued its goal to increase opportuni- outlining the business case for supplier The second project involved the ties for business enterprises owned diversity within five European coun- pairing of a woman-owned informa- by minorities, women, disabled veter- tries was created and task forces were tion technology consulting firm with ans, and people with disabilities. Our organized to explore recruiting a leading organizational consulting overall diversity spend has increased companies, certifying suppliers, and company. The firm’s client base had by more than 64 percent over the last implementing a strategy to promote been growing faster than could be three years. For 2004, Citigroup’s total the value of fostering supplier diversity. easily managed, but with expertise diversity spend was $725 million. shared through the Mentor Protégé MENTOR PROTÉGÉ Program, the firm improved its service EUROPEAN SUPPLIER DIVERSITY PROGRAM UPDATE and saved more than $100,000. BUSINESS-LED FORUM Citigroup’s Mentor Protégé Program In 2004, a team from Citigroup and helps diverse suppliers grow their The third project was of particular 12 other multinational companies businesses by pairing them with one note. Another of our diverse suppliers completed the research phase of the of our major suppliers for 12- to had set a long-term goal to expand European Supplier Diversity Project 18-month periods. Three projects its administrative staffing business. formulated to introduce supplier were completed in 2004. The first A leading outplacement firm was diversity programs in Europe. The project paired a diverse electrical assigned as its mentor; the transfer companies worked in partnership distribution company with a major of knowledge helped to create one with the Migration Policy Group, a Citigroup supplier to learn six-sigma of the first women- and minority- well-known think tank, to conduct process improvement as a strategy to owned outplacement firms in the three successful workshops in London upgrade its billing system. As a result industry. attended by top-level government of this effort, the diverse supplier  “Citigroup’s commitment to the community is real and it’s growing…”  }

CITIGROUP

WITH

YEARS

TEEN NINE , TAKAHISA

WENDY

{ “ … I’ve been with the organization for 19 years and, in that time, I’ve seen thousands of lives touched in my community and communities around the world. Citigroup backs up its philanthropy by encouraging employees to volunteer for organizations they care about. I’ve seen this support firsthand. As President of the Board of Asian Americans for Equality, a community development organization, and a Citigroup employee, I help link our two organizations, and help make my community a better place to live, work, and do business.” FOR OUR COMMUNITIES, WE ASPIRE TO BE the neighbor of choice } 

CITIGROUP BELIEVES IT HAS A RESPONSIBILITY TO MAKE A DIFFERENCE IN THE NEIGHBORHOODS IN WHICH WE LIVE AND WORK AROUND THE WORLD. WE REACH OUT TO AND FORM PARTNERSHIPS WITH NONPROFIT ORGANIZATIONS, CIVIC GROUPS, EDUCATIONAL INSTITUTIONS, AND LOCAL GOVERNMENTS REPRESENTING THE DIVERSE NATURE OF THESE { COMMUNITIES.

For more than 100 years and in more MICROFINANCE BUSINESS INITIATIVES than 100 countries, Citigroup has For nearly 40 years, Citigroup has In 2004, our total U.S. community played an important role in helping been a leading advocate of microfi- investment exceeded $28 billion. To people achieve their goals and lead nance by providing access to credit help ensure that money is available productive lives. to poor individuals and families. This to low- and moderate-income families aligns perfectly with our goal to in the U.S. who want to purchase a We believe we continued that expand access to financial resources. home, in 2003 Citigroup committed legacy in 2004. Citigroup was reaf- In 2004, we formed Global Micro- to making $200 billion available for firmed as a component of the Dow finance, a business group focused on affordable mortgage lending through Jones Sustainability World Index for developing financial products and 2010. To date, we have already lent 2005, which recognizes companies services for microfinance institutions $67 billion of that total commitment. in the top ten percent in terms of (MFIs). Among Global Microfinance’s Also in 2004, Citigroup underwrote environmental, social, and economic first transactions was a bond issue by 168 environmentally beneficial proj- performance. We also were included Citigroup/Banamex that will enable ects in the U.S. totaling more than once again on the FTSE4Good Index Financiera Compartamos, a leading $12.9 billion. for having met specific criteria relating Mexican MFI, to serve one million to environmental sustainability, clients by 2008. In addition, Citigroup Venture Capital corporate citizenship, shareholder International made a $23 million returns, and support of human rights. The Citigroup Foundation targets its investment in Suzlon, a wind energy grantmaking to microfinance programs converter global manufacturing focused on developing human resources firm in India. This was the first invest- and helping MFIs expand their reach. ment made through Citigroup’s new It is also a major supporter of the Sustainable Development Investment United Nations’ Year of Microcredit Program. 2005 initiative, which recognizes microfinance’s contribution to alleviating global poverty. 

Citigroup in 2004 marked the first Among Citigroup’s many U.S. pro- In 2004, we introduced a new anniversary of the Equator Principles— grams is “Get Smart About Credit,” program giving employees a paid voluntary guidelines based on World developed in partnership with the day off to volunteer at an eligible Bank and International Finance American Bankers Association. This nonprofit organization of their Corporation policies to evaluate envi- year more than 200 of our employees choice. Citigroup employees have ronmental and social risks related to taught credit management lessons to a long tradition of volunteerism and projects we finance. To ensure imple- 5,000 teens and young adults in 40 it is our intention to continue to mentation of these principles and our U.S. cities. strengthen and support that. enhanced Environmental and Social Risk Management (ESRM) Policy, we EDUCATING THE NEXT GENERATION ASSISTING FIRMS IN revised our risk policies, incorporated In 2004, the Citigroup Foundation THE EXTERNAL MARKETPLACE environmental and social risks into our provided $21.6 million in grants in In 1998, Citigroup co-sponsored a standard risk training, and hired a new 42 countries and territories to prepare $91 million minority private equity ESRM director to lead our efforts. the next generation for personal and fund named the Black Enterprise/ professional success. Funded programs Greenwich Street Corporate Growth FINANCIAL EDUCATION encourage early literacy, develop Fund (“BE Fund”), which was created Citigroup and the Citigroup quality teachers, build skills of low- to finance the growth of established Foundation made a ten-year, $200 performing students, enhance student minority-owned, -managed or million global commitment to support creativity, and increase access to higher -targeted businesses. With a majority financial education and established education for underrepresented of the capital invested, the BE Fund is an Office of Financial Education. The populations. currently in the market with a $250 Office works with our businesses to million follow-on fund and Citigroup support and implement initiatives that PHILANTHROPIC GIVING AND expects to continue to co-sponsor and help individuals, families, and institu- VOLUNTEERISM strongly support the BE Fund by com- tions make sound financial decisions. Total philanthropic giving in 2004 mitting to invest up to $50 million in In 2004, more than $22 million from the Citigroup Foundation and this second fund. was invested in financial education our businesses combined exceeded programs. $111 million. One of our largest grant-supported partners is Habitat One of our broadest financial education for Humanity International, for which initiatives was developed in partnership Citigroup and Banamex served as lead with Junior Achievement (JA). In 2004, sponsors of the Jimmy Carter Work the Citigroup Foundation made grants Project for 2004. Citigroup President totaling more than $2.4 million to and Chief Operating Officer Bob support JA programs in 46 countries, Willumstad led more than 40 employ- including the U.S., where we made ees in building homes for families in 33 grants in 19 states. Puebla, Mexico. “Our employees represent Citigroup’s diversity strategy in action.”

ANA DUARTE McCARTHY   diversity awards & recognition }

AMERICA’S 50 BEST BEST COMPANIES OF 2004 COMPANIES FOR MINORITIES Asian Enterprise magazine, Citigroup named one of the Fortune magazine, Citigroup named to top 50 top 10 companies with a diverse employee workforce

TOP 50 COMPANIES FOR DIVERSITY 100% SCORE ON THE HRC DiversityInc magazine, CORPORATE EQUALITY INDEX Citigroup named No. 2 company For the first time, Citigroup scored 100% on the Human Rights Campaign’s evaluation of corporate opportunities 30 GREAT PLACES TO WORK for LGBT employees, consumers, and investors Essence magazine 10 BEST EMPLOYERS IN THE COUNTRY 25 ELITE HISPANIC WOMEN The Advocate, Citigroup named to the top ten list Hispanic Business magazine, of companies for LGBT people to work for in the U.S. Frances Aldrich Sevilla-Sacasa, President, Citigroup Private Bank Europe and Latin America, named on list LATINASTYLE 50—50 BEST COMPANIES FOR LATINAS TO WORK FOR IN THE U.S. CORPORATE 100 LATINAStyle magazine, Citigroup has been named HISPANIC magazine to LATINAStyle’s list of the top 50 companies for Latinas to work for in the U.S. every year 100 BEST COMPANIES FOR WORKING MOTHERS since the list began in 1998 For the 14th time, Working Mother magazine named Citigroup to its list of “100 Best Companies HARLEM YMCA SALUTE TO for Working Mothers” BLACK ACHIEVERS IN INDUSTRY Citigroup’s William Borden, Alan Bowser, Angela Celestin, THE BEST OF THE BEST: CORPORATE AWARDS and Sylvester McClearn were inducted into the Harlem FOR DIVERSITY AND WOMEN YMCA’s Black Achievers in Industry Diversity Best Practices and Business Women’s Network named Citigroup to its list YWCA SALUTE TO WOMEN ACHIEVERS Citigroup’s Bonnie Howard, Marisa Lago, and Faith CHAMPIONS FOR CHILDREN Massingale were inducted into the YWCA City of New CORPORATE LEADERSHIP AWARD York’s Academy of Women Achievers Citigroup awarded the “Champions for Children Corporate Leadership Award” for its 15-year partnership 50 MOST POWERFUL WOMEN IN BUSINESS with Child Care, Inc. Fortune magazine, Marge Magner, Chairman and CEO, Global Consumer Group, No. 5; Sallie Krawcheck, CFO and Head of Strategy, Citigroup, No. 7 diversity a glance @ 2004

162 64 diversity reviews conducted by senior management multicultural heritage initiatives in the U.S.

40,000 725 employees participated in diversity training million dollars in overall Supplier Diversity spend

53,000 200 employees involved in diversity initiatives employees taught credit management lessons

21 5,900 employee networks children and older family members of employees served through subsidized child care 4,700 and elder care programs employees participating in employee networks 130 Citibank Financial Centers hosted events 35 for Black History month diversity councils 200 509 educational seminars for women and their families Affirmative Action plans through Women and Company®

3 2,000 Supplier Diversity Mentor Protégé Hispanic high school students and parents Program projects completed provided with financial education through the Student Loan Corporation CITIGROUP 2004 u.s. workforce information report }

DATA EFFECTIVE JULY 2004

MALE FEMALE AMER. AMER. JOB CATEGORIES OVERALL WHITE BLACK HISPANIC ASIAN WHITE BLACK HISPANIC ASIAN INDIAN INDIAN Officials & 21,176 9,069 710 781 662 31 7,391 1,046 867 589 30 Managers Professionals 29,230 10,996 1,155 1,302 2,966 39 8,128 1,713 1,171 1,719 41 Technicians 1891 754 145 144 166 8 455 75 70 68 6 Sales Workers 19,324 12,296 472 762 660 37 3,451 426 618 583 19 Office & Clerical 63,884 9,343 3,206 2,551 1,029 103 28,719 9,630 6,683 2,311 309 Craft Workers 59 37 10 2 2 0 3 5 0 0 0 Operatives 1,015 156 126 95 91 2 249 101 56 133 6 Laborers 61 7 3 33 4 0 6 1 7 0 0 Service Workers 174 77 34 15 7 0 28 10 3 0 0 TOTALS 136,814 42,735 5,861 5,685 5,587 220 48,430 13,007 9,475 5,403 411

{ HIGHLIGHTS OF KEY PROGRESS }

Total minority representation in Citigroup’s U.S. employee population continued to show positive trending, going from 28.4 percent in 2002 to 33.4 percent in 2004, a 5.0 percent representation increase.

Our largest minority group is African-American, which represents 13.8 percent of Citigroup’s U.S. workforce followed by Hispanic at 11.1 percent, Asian at 8.0 percent, and American Indian at 0.5 percent.

Total minority representation continued to increase in almost all job categories. In looking at our Officials & Managers and Professional jobs, total minority representation was 19.4 percent in management positions in 2002 and increased to 22.3 percent in 2004, a 2.9 percent representation increase. Representation in professional jobs rose from 26.3 percent in 2002 to 34.6 percent in 2004, a strong 8.3 percent representation increase.

Citigroup Inc. and its subsidiaries offer Equal Employment Opportunity (EEO) to everyone—regardless of race, gender, gender identity or expression, color, creed, religion, national origin, citizenship, age, disability, marital status, sexual orientation, ancestry, veteran status, and socioeconomic status. Citigroup’s EEO policies apply to all employment practices, including recruiting, hiring, promoting, and training. Citigroup’s commitment to EEO includes the development of Affirmative Action programs modeled after U.S. federal, state, and local employment laws and regulations. Executives and department managers are responsible for making good-faith efforts to achieve Affirmative Action goals. The primary responsibility for developing and monitoring each program is assigned to a senior human resources officer, and progress on Affirmative Action efforts is regularly reviewed with senior management. Printed on recycled paper. Design: Citigroup Graphic Communications “Citigroup” and “company” in this report refer to Citigroup Inc., its subsidiaries, and their affiliates. This Annual Report was printed by a Hispanic-owned firm, one of Citigroup’s approved Minority Suppliers. 161589 CIT2064 3/05