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2001 ANNUAL REPORT

This is Citigroup 91925-AR-no10K-nospread 3/13/02 10:25 AM Page 2 fg63786 DISK1:Desktop Folder:

WE ARE AN ECONOMIC WE VALUE A WORKPLACE WE VALUE PEOPLE WHO… WE ASPIRE TO BE ENTERPRISE WITH… WHERE… KNOWN AS… take the company personally. a relentless focus on growth, bureaucracy is discouraged, They care about each other, the a company with the highest aiming to increase earnings by entrepreneurial thinking is fos- quality of our products and serv- standards of moral and ethical double digits on average. tered and decision-making is ices, and above all, their value to conduct—working to earn streamlined by an “open-door” our customers and shareholders. client trust, day in and day a global orientation, but with management style. out. Our word is our bond. deep local roots in every market are committed to a strong work where we operate. diversity is embraced, particularly ethic and are constantly striving to the leader in global financial in light of our globality. excel in serving their customers. services, with market leadership a highly diversified base of in every one of our major activi- earnings that enables us to employees think and act like are more interested in teamwork ties, and one of the great prosper under difficult market owners because they ARE owners. than in internal politics. companies in the world. conditions. mistakes are tolerated, admitted lead by example, giving credit to a company where the best capital employed in higher- and addressed before they become others for success and assuming people want to work, and the margin businesses, each one of real problems. personal responsibility for failure. first choice of where customers which is capable of profitable want to do business. growth on a stand-alone basis. people are promoted on their have a sense of urgency and merits rather than on their tenure, excitement, who demonstrate customer centered, providing financial strength protected by and rewarded for their perform- candor, insight and creativity, unparalleled levels of service as a financial discipline, enabling ance within the context of what and thrive in an environment means of protecting and building us to take risks commensurate they can personally control or of change, challenge and our business franchise over time. with rewards to capture attrac- influence. competition. tive opportunities. an organization with credibility people treat each other with are top performers and are com- —doing what we say and report- a close watch on our overhead mutual respect and dignity. mitted to excellence in whatever ing results with accuracy and costs, but a willingness to they do. objectivity. invest prudently in our infra- people truly feel that, no matter structure—we spend money how large we grow, each and a company dedicated to like it’s our own. every one of us can make a community service, taking a difference. leadership role in every local a focus on technological community around the world in innovation, seamlessly deliv- which we operate, and making ering value to our customers each community a better place across multiple platforms. because we are there. 91925-AR-no10K-nospread 3/13/02 10:25 AM Page 1 fg63786 DISK1:Desktop Folder:

CITIGROUP In Millions of Dollars   % Change

ADJUSTED REVENUE $83,625 $77,694 8

SEGMENT INCOME GLOBAL CONSUMER Banking/Lending , ,  Insurance   ⁽⁾ Western Europe    Japan    Emerging Markets ,   e-Consumer/Consumer Other ⁽⁾⁽⁾  TOTAL GLOBAL CONSUMER , , 

GLOBAL CORPORATE Corporate & Investment Bank , , ⁽⁾ Emerging Markets Corporate Banking and Global Transaction Services , ,  Commercial Lines Insurance  , ⁽⁾ TOTAL GLOBAL CORPORATE , , ⁽⁾

GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING Travelers Life & Annuity    The Citigroup Private Bank    Citigroup Asset Management   ⁽⁾ TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING , , 

INVESTMENT ACTIVITIES (A)  , ⁽⁾ CORPORATE/OTHER ⁽⁾⁽⁾  CORE INCOME , , 

Restructuring and Merger-Related Items—After Tax ⁽⁾⁽⁾  Income Before Cumulative Effect of Accounting Changes , ,  Cumulative Effect of Accounting Changes (B) ⁽⁾ - -

NET INCOME , , 

RETURN ON COMMON EQUITY (CORE INCOME) .% .% -

(A) Includes the Company’s venture capital activities, the realized investment gains and losses related to certain corporate- and insurance-related investments, and the results of certain investments in countries that refinanced debt under the 1989 Brady Plan or plans of a similar nature. (B) Accounting Changes refer to the adoption of Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended and the adoption of EITF issue 99-20 Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets.” Financial Highlights

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DEAR FELLOW SHAREHOLDERS,

IN 2001, CITIGROUP SOLIDIFIED ITS POSITION AS ONE OF THE MOST SUCCESSFUL FINANCIAL

SERVICES COMPANIES IN THE WORLD, OUTPERFORMING AND LEADING THE FIELD IN THE

MOST PROFITABLE AND ATTRACTIVE GROWTH AREAS. WE REGISTERED DOUBLE-DIGIT

INCREASES ACROSS MANY LINES OF BUSINESS, AND A 20 PERCENT RETURN ON EQUITY.

While these results are a testament to the intelligence, creativity and commitment of our 268,000 employees across more than 100 countries, they also say something about our coming of age as a company. Over the past three years, we have described Citigroup as a work in progress, a new model of financial services organization that we were building to serve our clients’ financial needs and deliver value for our shareholders. Today, we can say without hesitation that the model is working. We are now completely focused on our strategic aspiration—to establish trusted relation- ships with consumers, corporations, institutions and governments as we continue to deliver the full spectrum of financial services across our multiple distribution channels. 91925-AR-no10K-nospread 3/13/02 10:26 AM Page 3 fg63786 DISK1:Desktop Folder:

2001: A YEAR OF UNPRECEDENTED “CITIGROUP HAS PROVEN THE BENEFITS OF ITS CHALLENGES 2001 was an extraordinary year. We EXTRAORDINARY DIVERSIFICATION IN A DIFFICULT saw a world transformed from pros- perity and peace to economic turmoil OPERATING ENVIRONMENT.” and war. We experienced the first —STANDARD & POOR’S, SEPTEMBER 2001 synchronized global economic slow- down in decades. We saw the There is one other important reason Salomon Smith Barney and Citigroup economy of Argentina collapse and for our success: more than two-thirds Asset Management. In total, we had to witnessed the largest corporate bank- of our employees are owners of evacuate 16,000 people from a dozen ruptcy in history. And in the U.S., Citigroup, which offers them an addi- sites in lower Manhattan. Nevertheless, amid an environment of weakening tional opportunity to participate in our company continued to function corporate credit and falling stock our company’s success. When employ- with minimal disruption. markets, the September 11 attack took ees think and act like owners, their We were conducting business imme- thousands of lives even as it struck interests are aligned with those of their diately—resuming trading when the hard at the financial markets, causing fellow shareholders and our clients are bond market reopened and again more than $30 billion of damage to served well. when the bell sounded at the New the insurance industry alone. Our achievements received important York Stock Exchange. Our Travelers Despite these considerable challenges, recognition when Citigroup, for the catastrophe-response vans arrived Citigroup continued to grow in 2001. first time, was named one of America’s just a few blocks from Ground Zero We achieved record core income of 10 Most Admired Companies by on September 12, processing claims $14.6 billion, making us once again Fortune magazine and ranked number and approving overdraft limits for one of the world’s most profitable one in our industry category. I’m people hit hard by the tragedy. companies. Our revenues rose eight especially proud that, of the top 10 Many of our own people were also percent, while expenses increased companies, not only did Citigroup hit hard by the tragedy, having lost only four percent, and our core diluted bring the fourth-highest return to family and friends, yet they contin- earnings per share were up three shareholders over the past five years, ued to perform their duties under percent. We also completed multiple but we were also rated the very best very difficult circumstances. acquisitions in key markets. At the long-term investment value. same time, we received credit rating My heartfelt thanks and admiration While we have experienced success, upgrades from Standard & Poor’s go to them and to our Disaster a great deal of work lies ahead. What and Moody’s. Recovery team, under the leadership we can say, however, is that our brand of Bob Druskin and Frank Bisignano. What allowed us to operate success- is becoming synonymous with growth, They were called into action within fully in this difficult environment was stability, innovation and shareholder minutes of the disaster and made it our unique business model—the first value, and that we have been recog- possible for us to continue working of its kind in our industry. Citigroup nized as a safe haven for millions of on behalf of our clients, our share- brings together an incredible diversity new customers around the world in holders and our markets. of products and services…multiple these uncertain times. distribution channels…a powerful With the human side of this tragedy SEPTEMBER 11 brand…the largest global footprint uppermost in our minds, we created We will never forget the terrorist of any financial services firm…capital the Citigroup Relief Fund on Sep- attack that took thousands of lives strength that enables us not only to tember 14 with an initial grant of on September 11, including six of ride out economic storms but also $15 million to provide college schol- our own people. We dedicate this to seize opportunities…acquisitions arships for the most innocent victims annual report to their memory. expertise and expense management of all—the children of those who died discipline…all built on a foundation The third building to collapse that or were permanently disabled. Since of recurring and predictable earnings. day was 7 World Trade Center, home that day, the Fund has received an to 2,500 Citigroup employees from additional $4.5 million from our shareholders, clients and employees,

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as well as individuals and organiza- markets during a period of attractive 2001 marked one more important tions from many other countries. market valuations and consolidation step toward realizing our vision for in the insurance industry. We are very grateful for your generos- Citigroup: cross-marketing initiatives led to enormous benefits for our ity and, like you, we hope that these We continued to make strong funds can in some small way help progress toward $1 billion in expense customers and shareholders. Today, secure a better future for the families savings—before reinvestment—before we derive more than $12 billion in who lost so much on September 11. the end of 2002, by leveraging tech- revenue from cross-marketing pro- nology and best operational practices grams—an increase of five percent 2001: A YEAR OF SOLID ACHIEVEMENTS across Citigroup. over 2000. We are taking measures Despite the shadow cast over 2001 to ensure that this important earn- We acquired European American by September 11 and the global eco- ings-generating trend will continue Bank, strengthening our foothold nomic downturn during the course of in 2002 and beyond. the year, Citigroup continued to build in the important consumer, small POSITIONED FOR THE FUTURE on its strengths. business and middle markets in the Northeast U.S. While I am extremely proud of our We acquired Banamex, Mexico’s achievements, I’m humbled by the We made additional prudent invest- most profitable bank, making us the enormous possibilities that await us ments in the Internet. Our alliances leading financial services provider in globally. Over the next several years, with AOL Time Warner and Microsoft that country. This deal, which was the the financial services industry will be marked by continuing consolidation, “WE CELEBRATE 100 YEARS OF SERVING THE FINANCIAL globalization and the convergence of NEEDS OF THE PEOPLE OF ASIA AND THE UNITED what were once distinct businesses. Technology will play an ever more KINGDOM.” critical role in increasing productivity and containing expenses. largest financial services investment have made us the preferred payment ever in Mexico, adds considerable product on the Internet. And we We believe Citigroup has many distribution strength to our Emerging nearly doubled our online consumer core advantages that uniquely distin- Markets franchise, and brings more accounts to 15 million. guish us from other financial services firms, and position us for continued than 1,500 branches and 4,200 ATMs Despite the difficult economic envi- success in this environment: throughout Mexico. ronment, we are also continuing to 1. Globality: While many talk about We completed the integration of make significant investments in our Associates, which has not only own technology infrastructure and globality, we define it. No other resulted in better-than-forecast cost applications that will keep us in the financial firm can match our presence savings and strong revenue returns forefront of client services globally. in more than 100 countries—some for more than a century. Our global in the U.S., but has also positioned us For example, CitiDirect® Online opportunities are extraordinary, to become a major force in consumer Banking, our Web-based transaction particularly in the fastest-growing finance markets overseas, particularly banking platform for corporate and markets of the world—the emerging in Japan. financial institution clients, is now markets—where we generate more available in 12 languages and pro- We announced our plan to spin off profits than any other financial vides access to our branches in 85 our property and casualty business in services company. 2002 to enable our company to focus countries, a significant expansion its resources more fully on higher- over last year. And our interactive 2. Diversified business portfolio: growth areas of financial services, Web sites for individual investors, We have played a lead role in defin- while giving Travelers Property SSB Access®, and corporate benefits ing the concept of a fully diversified Casualty greater headroom to grow clients, Benefits Access®, surpassed financial services firm. As 2001 illus- through capital-raising in the public a combined total of four million trated, our diversification can help accounts online.

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reduce earnings volatility, thus 7. Expense discipline and operational toward true leadership in global increasing our protection from efficiency: Keeping a tight lid on costs consumer finance. Bob’s new role, economic downturns and other is an unshakable part of our corporate in addition to his current position as unfavorable market conditions. culture and, as our experience in the Chairman and CEO of the Consumer 3. Capital strength: With the most past year demonstrated, enables Group, will enable us to leverage his equity capital of any financial services Citigroup to manage profitably talents even further as we grow our firm, at $88 billion (including trust through all kinds of business cycles. company in the years ahead. This operational flexibility allowed preferred securities), we maintain A NOTE OF APPRECIATION us to initiate a number of efficiency- control over our strategic destiny, My sincere appreciation goes to my focused projects that, in 2001, cut our positioning us to withstand difficult fellow directors for an outstanding expenses by $600 million—a key conditions and take full advantage job in 2001. We came through a contributor to our performance at the of opportunities. tough year and emerged more unified bottom of the market cycle. We antici- than ever, with a strong sense of pur- 4. Acquisitions expertise: By virtue pate additional reductions in 2002. of our tightly managed and well- pose about where we want to take honed acquisition processes, we OUR OPPORTUNITY our company in the years ahead. have become an acquirer of choice Our greatest opportunity is to For Citigroup, 2002 marks a special and often enjoy the first look at increase share in certain strategic anniversary: we celebrate 100 years the most attractive assets. This is markets in which we operate. Given of serving the financial needs of the a critical advantage in an industry the growth rates in many of those people of Asia and the United undergoing significant consolidation. economies, and our unique advan- Kingdom. We’re very proud of our tages listed above, we believe that 5. Multi-channel distribution: We achievements in these markets and we can increase our market share and have built distribution channels to the role we played in some of their earnings significantly over the coming every consumer wealth segment— landmark financial events of the 20th years. Our objective is to have annual from consumer finance branches, century. We eagerly look forward to double-digit earnings growth, on retail banking branches and the the next 100 years. average, across business cycles. Internet, to life insurance agents, Let me close with a special word to Financial Consultants and private We will achieve that by continuing to our employees. No one could have bankers. Having a world-class invest- attract, develop and retain the most predicted the kind of year 2001 turned ment bank and commercial bank talented employees available, and by out to be. But your enormous talent under one roof has enabled us to fostering an entrepreneurial culture and commitment to do what’s right provide greater value for our that allows employees of all back- for our customers and shareholders customers. In a world where value grounds to flourish individually as give me tremendous confidence in is migrating from manufacturing they work on our team. our continued success, no matter to distribution, and where open NEW CITIGROUP PRESIDENT NAMED what challenges may arise in the architecture is becoming mainstream, We began 2002 with another impor- years ahead. Thank you for making our strategy has positioned us favor- tant milestone for our company: Citigroup the great company that it is. ably for marketing multiple services the naming of Bob Willumstad as to customers around the world. President of Citigroup. Bob’s leadership 6. Financial controls: The strong of our consumer business—where he financial controls we have in place was very successful in integrating in managing each of our businesses acquisitions, building our franchises Sandy Weill have allowed us to provide full and from within, exporting our consumer accurate reporing to our shareholders. finance model into the untapped inter- We continue to manage risk carefully national markets and keeping expenses and achieve profitability by running under control—has contributed signif- our businesses well rather than by icantly to our earnings and moved us leveraging our balance sheet.

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DEAR CITIGROUP SHAREHOLDER,

IN THE TWO YEARS THAT I HAVE BEEN AT CITIGROUP, THE PEOPLE OF THIS COMPANY HAVE

MADE GREAT PROGRESS IN TRANSFORMING ITS CONSTITUENT PARTS INTO A SOUND AND

SUCCESSFUL ORGANIZATION WITH A BROAD PRODUCT SCOPE AND LOCAL OPERATIONS IN

MORE THAN 100 COUNTRIES.

This immense accomplishment has provided great value for our consumer customers, our corporate clients and investors by providing products, services and global capacity relevant to our clients’ needs, all within one organization. Citigroup, already the world’s largest financial institution, is in many ways the world’s leading financial institution.

This ability to serve our clients is manifested in the work that our clients ask us to do, day in and day out. The effectiveness of Citigroup’s combination of great financial strength and broad product as well as geographical scope also provides an opportunity for outstanding professionals to more fully realize their potential. Our highest priority, in seeking to serve our clients and provide shareholder value, is to focus with great intensity on attracting outstanding people to Citigroup and providing them with a rewarding and fulfilling environment.

Having said that, great institutions are always works in progress because only through a dynamic commitment to moving ahead strategically can an organiza- tion remain successful—all within the context of an unchanging set of underlying values. A great deal has been accomplished at Citigroup, but much remains to be done to realize the immense potential of this organization. This will always be true. When the challenges of today have been met, there will be new issues, new opportunities and new problems. Our dynamic commitment to change will best ensure that we meet the needs of our customers, provide fulfillment for our people and create shareholder value.

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2001 was an especially stressful year, for the global community and for our company. The terrorist attack on September 11 was a great tragedy, and both that attack and the continued softening of the global economy posed huge challenges to Citigroup. Our people successfully met these challenges through extraordinary effort, maintaining our operations under difficult conditions in the immediate aftermath of September 11, and producing strong financial results for the year.

In the years ahead, globalization, the spread of market-based economics and new technologies will continue to present great opportunities in the developed and emerging markets. But the challenges will also be great, both to policymakers and to each of us as participants in the global economy. No one knows what eco- nomic conditions will be like over this year or in the longer run; but I think our strategy of dynamically seeking opportunities to build our businesses, combined with intense expense discipline and a sound balance sheet, is the right approach to weathering difficult times when they occur and, at the same time, realizing what I believe is the immense potential over time for the global economy and for Citigroup.

Though we can look back with great satisfaction at all that Citigroup has accom- plished for the benefit of its customers, employees and shareholders over the past few years, I believe equally that there is absolutely no room for even one moment of complacency. All of our activities are highly competitive, and the global economic environment will always be challenging, in good times and in difficult times. Thus, we must remain committed to constant improvement and change in all of our activities, while adhering to unchanging values. This view is widely shared at Citigroup—in fact, it is central to the culture of our company.

I have continued to focus on working with Sandy and members of the Management Committee on strategic and managerial issues, acting as a sounding board for others in all our businesses, and working with clients. As my experi- ence here grows, so too does my great respect for what has been accomplished and my strong belief in the immense potential of Citigroup to serve our customers, provide opportunity for our people and create value for our share- holders. I look forward to working with Sandy, the management team and the people of Citigroup for a long time to come, in our joint undertaking to build a truly extraordinary institution.

Robert E. Rubin

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CITIGROUP NEARLY DOUBLED ITS NUMBER OF ONLINE CUSTOMERS TO 15 MILLION 91925-AR-no10K-nospread 3/13/02 10:27 AM Page 9 fg63786 DISK1:Desktop Folder:

CONSUMER GROUP

DESPITE A DIFFICULT ECONOMY, THE CONSUMER GROUP WAS A POWERFUL ENGINE OF GROWTH customer service. This, in turn, led to enhanced satisfaction lev- FOR CITIGROUP IN 2001. WITH CONSISTENT AND STRONG PERFORMANCES ACROSS THE els, deeper customer relationships BOARD, WE REINFORCED THAT A RELENTLESS FOCUS ON THE CONSUMER EXPERIENCE IS THE and greater retention—all leading to increased wallet share. BEST MEANS NOT ONLY TO SATISFY FINANCIAL NEEDS, BUT TO BUILD SHAREHOLDER VALUE

AND CONTINUE TO EXPAND THE BUSINESS INTO A TRULY DYNAMIC GLOBAL FRANCHISE. CITIGROUP BUSINESS MODEL A hallmark of the Consumer Our results in 2001 further vali- strong results in 2001. Two Group has been the ability to dated our business model—that outstanding examples are “export” a business model to is, a balanced business strategy CitiFinancial and our U.S. other businesses abroad. As focusing on revenue gains and Citi® Cards operations. Citigroup moves further into productivity enhancements, the huge, untapped international organic growth as well as growth CitiFinancial—which now consumer finance markets, this by acquisition, strict expense dis- has the largest consumer finance core competency will play a sig- cipline, and maintaining and operation in North America with nificant role in our growth, given enhancing our market leadership some 2,200 branches—continues the fact that these markets are in key business segments. to have a customer satisfaction less mature and offer enormous rating of nearly 90 percent. The opportunity going forward. Our This strategy—which has been business also was among the existing global platform has put the foundation of the Consumer lowest-cost providers in the con- the franchise in a strong position. Group’s success in recent years— sumer finance industry in 2001, has propelled us to the top in with expenses at only 3.4 percent We have demonstrated the ability every business. We are a provider of receivables. of our Consumer franchise to of more product and service acquire large companies such as choices to our customers than Citigroup’s cards business is the Associates, leverage them and our competitors, a low-cost pro- world’s largest provider of credit grow significantly. We are now ducer and, ultimately, a leading cards. In the U.S., the business among the top five companies in player in the continued consoli- has grown significantly over the the consumer finance industry in dation of the financial services last three years, at a rate estimated Japan, compared to 1997 when industry. at 1.4 times the industry average. we had no significant consumer finance presence there. We strengthened the franchise BEST IN CLASS significantly by leveraging our The Consumer Group is And consumer finance means vast product array and focusing Citigroup’s most diverse collection much more than lending. extensively on providing superior of businesses, and the majority of Primerica, which celebrates them reported exceptionally

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100YEARS IN ASIA & U.K. 100YEARS 100YEARS 100YEARS 102: the percentage increase of Citibank’s home equity business

In 1902, we opened the first branch of any American bank in Shanghai.

its 25th anniversary in 2002, consumer accounts to 15 million and have become the preferred pay- continues to be a strong distribu- ment provider on the net through alliances with America Online and tion channel domestically for Microsoft. Citibank® Online, which debuted in 2000, is now fully inte- Citigroup products. We will grated into the business and provides users with unprecedented export the Primerica business information and access, allowing them to deepen their relationships model to other countries in 2002. with Citigroup.

The fact that our business model We use the Internet to provide expanded services to our customers and is flexible and easily adaptable has greater efficiencies for our organization. And it’s working. In our private been an enormous competitive student loan business, approximately 70 percent of the business—or advantage. An example is the $1 billion—was generated and processed online. CitiMortgage closed acquisition of European American its first paperless “e-Mortgages” in the fourth quarter. And CitiFinancial Bank (EAB), a highly successful continues to increase its Internet presence. branch banking operation serving New York City and adjacent Long JAPAN Island. Our defined business The Citibank Consumer business in Japan grew substantially in 2001 model helped to integrate EAB into and benefited from a full year of expense savings at Diners Japan. the Citibanking operation, setting Growth was reported across all product categories, and we anticipate it the stage for future expansion. will continue in 2002 as we look to expand our cards, revolving credit and investment products, as well as build the banking business by Citipro®, our unique banking focusing on expanded distribution channels, including remote banking. financial-needs analysis program, In addition, as the regulatory environment changes in Japan, we expect has become embedded in the the business to benefit as consumers look to Citigroup as the safe and Citibank Financial Center sales trusted company with which to do their business. process as we offer investments, insurance, debt management WESTERN EUROPE and basic cash management Consumer Western Europe reported core income up 26 percent in services to our clients. Citipro 2001, mainly reflecting growth in the consumer finance, branch lending also proved to be a valuable tool and credit card businesses, particularly in Germany, the U.K., Spain and in the integration of the EAB into Italy. Revenues and assets in the region grew seven percent during the the Citibanking culture. year, even after the sale of several Diners Club franchises. Core income growth was supported by strong expense and credit management, which LEADER IN INNOVATION is reflected in the net credit loss ratio of 1.88 percent in 2001 versus 2.05 To maintain our leadership on percent in 2000. the Internet, we continue to invest in online services. We The consumer business in Western Europe continues to gain selective nearly doubled our online market share in loans and cards, specifically in Germany, Belgium, the

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100YEARS 100YEARS 100YEARS 100YEARS 100YEARS 100YEARS 100YEARS 100YEARS

U.K. and Spain. In all European markets, we improved our advisory-based As a result, we anticipate that our investments program, adding market share of net retail investment flows in consumer businesses will main- most markets, notwithstanding uniformly weak equity market conditions. tain the momentum they built in 2001 and continue to strengthen The business also successfully managed the changeover to the euro their market positions to take currency for our customers in the Eurozone without any major issues. advantage of the huge global

LIVE RICHLYSM opportunities that await. In 2001, we introduced new branding. The Citi brand became even more recognized through our Live Richly ad campaign, with its non- traditional approach. The philosophy behind the brand platform—that Citi advocates a healthy approach to money—has resonated with con- sumers and helped generate positive results. For example, after just two months of advertising about Citipro, we experienced a 73 percent increase in the sales of products using Citipro over a four-month period. Moreover, because the Citi brand is used across the Consumer Group businesses, the advertising has created a broad impact.

CONCLUSION During 2001, our consumer businesses demonstrated the importance of “predictable and recurring earnings” to Citigroup’s value proposition. In a difficult global economic environment, most of these businesses still sustained double-digit growth rates. Although expense control—one of our core competencies—was a key factor, revenues in a number of these businesses registered double-digit growth over 2000, offsetting a higher level of credit losses related to the slowing of the global economy.

Importantly, every business within the Consumer Group is either the leader or near the top of its class. In the primary areas of cards, consumer finance and banking, the businesses maintain distinct competitive advantages:

low-cost producers with superior credit management,

exportable business models with superior acquisition capabilities,

a strong brand.

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CORPORATE & INVESTMENT BANK

WITH FLAT EARNINGS IN 2001 DURING THE TOUGHEST BUSINESS ENVIRONMENT IN A DECADE, We also made tremendous progress in developing other CITIGROUP’S CORPORATE & INVESTMENT BANK (CIB) OUTPERFORMED COMPETITORS, WHOSE important areas of our business. EARNINGS WERE DOWN DRAMATICALLY. For example, our global market share in equity underwriting GLOBAL FINANCE 12 percent market share, we jumped from 8 percent to 12 per- The reason for this superior result raised some $487 billion for our cent, with an overall third-place is the unique business model we clients, a 37 percent increase over ranking. In M&A, our share of have implemented successfully the prior year. We also ranked completed deals globally rose over the last three years. With the first in disclosed fees at $2.4 bil- from 17 to 22 percent. mergers of Salomon and Smith lion, up 17 percent over 2000. Barney, Citibank and Salomon Our success touched all regions. We became the leading global Smith Barney (SSB), the formation In Japan, Nikko Salomon Smith investment banking firm as of Nikko Salomon Smith Barney Barney again dominated the measured by revenue. and the acquisition of Schroders, equity markets, being named the today we have leading-edge capa- We became the number-one number-one equity bookrunner, bilities in every part of the globe global fixed-income underwriter and increasing our lead market for every financial services product with record new-issue volume, share over last year from 32 per- that corporations, governments earning International Financing cent to 36 percent. In Europe, and institutional investors need. Review’s Global Bond House of Schroder Salomon Smith Barney the Year award. In addition, our continued to build its franchise, By combining world-class invest- firm was again voted number one becoming the number-two under- ment banking services through in the Institutional Investor Fixed writer in the European bond SSB and world-class commercial Income Trading Survey. markets and number-one in banking through Citibank, we European securitization as well as We maintained our first place provide unique value propositions positioning in many other areas, in completed M&A in the U.K. to our clients. As a result, invest- such as municipal finance, foreign ment banking revenue from our In Latin America, we earned exchange and project finance. target client base rose 15 percent. top-three rankings in the debt, Due to this success in serving our Our equity research ranked equity, syndicated loans and clients, 2001 was a year of impor- number one in the Institutional M&A league tables, and were tant “firsts” for us: Investor All-America Research named Regional Bank of the Year poll. Coupled with a number-two by Latin Finance. In the U.S., We became the leading global showing in Europe, our research we topped the league tables for underwriter in combined equity platform is becoming a global investment grade bonds with a and debt for the first time. With leader. 22 percent market share, while our share of the market in

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100YEARS IN ASIA & U.K. 100YEARS 100YEARS 100YEARS 88: percentage of the Fortune 50 doing business with our Corporate & Investment Bank $10 note of local currency issued in Tientsin, July 1, 1918 by the International Banking Corporation/National City Bank.

convertibles more than doubled co-lead-managed Brazil’s $2.15 billion par-for-par debt exchange, to 15 percent, and our equities which was named Sovereign Liability Management Deal of the Year market position rose to third with by Latin Finance. a 14 percent share. Also in the Strong expense discipline was another reason for the CIB’s industry- U.S., we were again the year’s leading performance this year, and for our achieving profits significantly leader of municipal debt under- greater than those of our competitors. By initiating a program of writing; and in Asia, the CIB was aggressive expense reductions early in the year, well ahead of competi- named International Financial tors, we reduced our quarterly expenses by 19 percent from their peak in Review (IFR) Asia’s Bank of the the first quarter. Today, we are the low-cost competitor in our industry. Year, winning recognition for the quality and professionalism of its No review of the year would be complete without mentioning various businesses in virtually September 11 and the unspeakable human and material devastation. every country in the region. Sadly, and most importantly, one of our CIB employees remains unac- counted for. Given the location of the CIB’s global headquarters—just The CIB was involved in many blocks from the World Trade Center—and the significant number of of the year’s key transactions. In CIB staff displaced by the collapse of 7 World Trade Center, the dis- the U.S., we jointly led the Kraft ruption was enormous, but the emotional and business support we Foods Initial Public Offering, the received from colleagues and clients around the globe was beyond largest of the year, which was anything we could have imagined. voted U.S. Equity Issue of the Year by IFR. We also lead man- To the credit of those who developed and implemented our disaster aged the majority of the year’s recovery plan, its depth and quality addressed our immediate needs as jumbo bond deals, including an organization. Our extensive communication and array of counseling those for AOL Time Warner, programs sought to address the needs of our employees, virtually all of DaimlerChrysler and Kellogg. We whom were touched in some way by this tragedy. As the financial mar- were instrumental in many other kets reopened after September 11, the CIB was a leading participant, award-winning financings, includ- providing back-up lines of credit to our clients the next day and even ing Lucent and Rite Aid. We led handling record single-day volume on the resumption of equity trading. Europe’s IPO of the Year, a 2.4 billion euro offering for Spain’s PRIVATE CLIENT GROUP Inditex. In Asia, Citigroup under- Despite challenging market conditions, the Private Client Group (PCG) wrote SingTel’s US$2.3 billion continued to distinguish itself in 2001 as a world-class leader in delivering equivalent global bond offering, wealth management and financial planning services to high-net-worth the largest non-Japanese Asian private investors, small- to mid-sized businesses, non-profit organizations corporate bond issuance in and family foundations. history. In Latin America, we

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The PCG’s commitment to delivering superior value to clients was by particularly difficult market evidenced by the development of new client relationships and the expan- conditions in the transportation sion of others, resulting in more than $40 billion in net new money for market and the costs of integrat- 2001. In a year that reinforced the value of professional and personalized ing many diverse operations. The advice, the firm selectively increased the number of Financial Consultants ongoing priorities are to refine by nearly 600 to a record 12,927 by year-end. the focus of the overall business, enhance and integrate operational For the year, the PCG continued its leadership in fee-based financial controls and improve profitability. services, which now comprise 49 percent of total revenues. The division also maintained industry-leading profit margins of 21 percent, reflecting COMMERCIAL LINES the productivity of its financial professionals and disciplined cost man- Despite the economic difficulties of 2001 agement in all market conditions. and a decade of falling rates, Travelers

The PCG sharpened its focus on client-friendly technology, adding the Commercial Lines — the third-largest e-delivery of client statements and prospectuses to its roster of Web provider of insurance to businesses, insti- offerings for individual investors. Also reaching new highs in 2001, tutions and government — emerged a PCG’s Web sites for individual investors and corporate benefits clients strong, well-capitalized and profitable surpassed a combined total of four million client accounts online. business. As the rate environment began to improve last year, Travelers’ financial Our Financial Consultants continued to leverage access to the resources strength enabled us to use technology to of Citigroup on behalf of their clients. In fact, they assisted clients with reinforce our ties with the independent a record $3 billion in loans and mortgages during the year—a billion agent and broker community through which dollars more than last year. all our products and services are sold. CITICAPITAL In 2001, CitiCapital, the commercial finance business of Citigroup, continued integrating acquisitions into its operations, most notably Associates Commercial Finance and the leasing businesses of the European American Bank. As the second-largest U.S.-based leasing com- pany, CitiCapital serves equipment manufacturers, as well as dealers and buyers of transportation equipment, material handling and construction equipment, and business technology and medical equipment. It is also a leading provider of master leasing programs to large corporations.

With several significant mergers and acquisitions behind it, CitiCapital has grown in less than two years from almost $8 billion in managed receivables to nearly $35 billion. Profitability in 2001 was affected

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CITIGROUP IS PROUD THAT  PERCENT OF ITS EMPLOYEES ARE LOCAL 91925-AR-no10K-nospread 3/13/02 10:30 AM Page 17 fg63786 DISK1:Desktop Folder:

EMERGING MARKETS

WITH A PRESENCE IN 80 COUNTRIES IN ASIA, LATIN AMERICA, CENTRAL AND EASTERN EUROPE, has been built over many years. Indeed, for millions of customers THE MIDDLE EAST AND AFRICA, CITIGROUP, PRINCIPALLY THROUGH CITIBANK, HAS A UNIQUE in the emerging markets, Citibank FRANCHISE IN THE EMERGING MARKETS OF THE WORLD. is a trusted partner and the logi- cal choice for financial services. In 2001, this franchise achieved history in most of the markets in enormous success, recording which we operate. Our presence Recognizing the immense potential significant earnings growth, in Latin America dates back to in these markets, Citigroup created increasing our market share, 1904, and we opened offices in an organization two years ago and building our client base as cus- the Middle East and Africa in the to focus on our businesses there. tomers turned to Citibank, seeking 1950s. Through this unparalleled We brought together the consumer the kind of quality products and on-the-ground presence, Citibank and corporate businesses in each services few others can offer in provides the industry’s most country. We offer two transaction the emerging markets, along with extensive array of products and banking businesses, which serve the stability we provide. services to the broadest range of our corporate customers in both clients. No other financial institu- the developed and emerging mar- Against the backdrop of unstable tion can rival our global network kets—e-Business, our award- economies in many emerging- or customer base—key factors winning e-commerce, cash-man- market countries and global in our continuing success as a agement and electronic-banking political turmoil, 2001 was a franchise. business; and Citibank Global solid year for our franchise and Securities Services, which provides one in which we built momen- The opportunity for growth in a full spectrum of industry-leading tum for 2002 and beyond. We these markets is dramatic, as the securities-related services, includ- earned $2.8 billion in core demographics show: 86 percent ing custody, clearing, agency and income, up 22 percent over the of the world’s population lives in trust, and depositary receipts. In prior year, even with the $470 emerging-market countries; their addition, our Sales and Trading million (pre-tax) charges we economies account for 43 percent business provides capital markets took in Argentina. of the world’s purchasing power; products to clients and manages and their emerging middle class our own position. 100 YEARS IN ASIA has new and largely unmet needs. We have a long and unrivaled The results in 2001 validate our Individuals and businesses history in the world’s emerging decision to focus on the emerg- in these countries need what markets, and 2002 is an important ing markets. Our 22 percent Citibank has—credit cards for year for us. It marks our centen- growth in earnings came from consumers, electronic solutions nial anniversary in six countries both our consumer and corporate for small businesses, sophisticated in Asia: China, Hong Kong, India, franchises, which grew 29 percent corporate finance for multinational Japan, the Philippines and and 17 percent, respectively. Singapore. In fact, we have a long subsidiaries, and the trust that

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100YEARS IN ASIA & U.K. 100YEARS 100YEARS 100YEARS 400 million: amount of business in U.S. dollars Citigroup awarded to companies owned by minorities and/or women

Singapore branch opened in 1902, relocated to the Ocean building in 1923.

ROOM TO GROW market share over the next five years through our Embedded Bank Indeed, the emerging markets strategy. By Embedded Bank we mean a bank that has roots in the coun- represent our most exciting growth try as deep as any local indigenous bank, building a broad customer opportunity. While our overall base, offering diverse products, actively participating in the community market share of four percent gives and recruiting staff and senior management from the local population. us a leadership position, we still Our long history in these regions positions us as a genuinely local have substantial room to grow. In bank—but one with an important difference. As much as they appreci- 2001, we completed the Banamex ate our local character and established roots, our customers also value acquisition, the largest financial our global access and expertise. In these markets, Citibank offers the services investment ever in Mexico. best of both worlds. This transaction powerfully posi- tions us in Mexico, where we are The Embedded Bank strategy is validated by the strength of our brand. now the number-one corporate The Citibank brand is recognized throughout the emerging markets and, bank, the number-one retail bank in 2001, we launched a focused effort to enhance our brand. In Asia, we and the number-one credit card are one of the top five consumer brands and number one among financial issuer, with a share of between 25 services providers. We are now introducing the new Citibank logo across percent and 30 percent in most our markets. markets. In addition to Banamex, THE CONSUMER FRANCHISE we acquired Credito Familiar, a The opportunity in our consumer business is also tremendous. We cur- consumer finance company, which rently provide consumer services in 36 of our 80 countries, so there is positions us to provide services to ample room to grow as we introduce these services into new countries. virtually every consumer and cor- In countries where we have consumer businesses, we will introduce new porate segment in Mexico. products as the markets mature. Our goal is to provide a complete spec- The Banamex transaction followed trum of services for consumers as they enter the middle class and their our acquisition of Bank Handlowy financial needs evolve. w Warszawie in Poland, where we Our consumer finance business offers a broad array of loan products to are now the leading corporate bank meet the growing needs of people in the emerging-markets economies. in terms of the number of customers As consumers gain confidence in their earning power, retail bank serv- we serve. Both acquisitions under- ices and credit cards become more important. Indeed, credit cards score the kind of growth we can represent the bulk of consumer lending in the emerging markets and build in our largest and highest- provide the highest rates of return. We are steadily expanding retail potential markets. bank services and our cards business, and launched several new prod- While these acquisitions have ucts during 2001, including cobranded and youth cards. received much attention, organic Wealth Management for the middle affluent is an important new initia- growth fuels the bulk of our tive, as consumers begin to accumulate wealth and seek advice and expansion. Our goal is to grow our expertise in managing their assets. In 2001, we introduced Wealth

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Management Banking in Asia, which we will expand across other payments and clearing systems regions. Insurance also represents a large untapped opportunity in our used by customers and industry markets and will be an important initiative in 2002. Our integrated colleagues alike. In the wake organization also facilitates the cross-marketing of consumer products of September 11, both of these to the employees of corporate customers, and we will continue to roll critical operating areas performed out these programs. flawlessly. Our international network remained open, even We are a leader in Internet banking for consumers, with more than three in markets facing heightened million customers in 25 countries accessing our online offerings. From tension. This was a result of the mobile banking and wireless alerts to e-commerce and electronic bill extraordinary efforts of our many presentment and payment, we are continuously introducing new serv- people around the world, and we ices that meet our clients’ needs. thank them for their dedication.

THE CORPORATE FRANCHISE Citibank’s experience allows us We serve the full spectrum of business clients, from small family busi- to maintain a long-term commit- nesses to subsidiaries of the world’s largest multinational companies. ment to the markets where we CitiBusiness® focuses on emerging local corporations—local companies do business. The strength of with annual sales of less than $50 million, the fastest-growing customer our business model allows us to segment in the Emerging Markets. Our Citibank Global Securities Services weather even the most difficult business remains a leader in its field, offering award-winning services in periods. While the competition 73 markets. Our Sales and Trading business had record earnings in 2001, may retreat from challenging mar- with net income growth of 35 percent. We are steadily building our global kets, we can sustain our presence customer base and have been recognized as a leader in foreign exchange, and even thrive. This is a crucial derivatives, treasury and risk management in every region. attribute for organizations seeking to do business around the world, The demand for online banking continues to increase, and we are and our extensive experience committed to being the number one provider of Internet services for has enabled us to develop the our customers. During 2001, e-Business continued to roll out CitiDirect® people and processes to succeed. Online Banking, our online platform for corporate customers which is now available in 85 countries and is processing more than $50 billion in payments a month—a number that is steadily growing as more companies take advantage of this platform.

With its extensive global presence, Citigroup’s Emerging Markets busi- ness has a long track record of operating in volatile markets. In 2001, we demonstrated once again our ability to manage through a crisis. e-Business and Citibank Global Securities Services provide basic

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GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING GROUP

THE GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING GROUP COMBINES A annuity sales in all channels increased by four percent. Over U.S. LEADER IN THE LIFE AND ANNUITIES ARENA, A LEADING PRIVATE BANK FRANCHISE, the last four years, TL&A has A TOP-TIER GLOBAL ASSET MANAGEMENT FIRM, A STRONG ALTERNATIVE INVESTMENTS moved from 38 to 18 in life insurance industry sales (LIMRA) CAPABILITY, AND THE SECOND-LARGEST U.S. DEFINED CONTRIBUTION RETIREMENT —with a year-over-year increase SERVICES RECORD KEEPING PLATFORM. of 61 percent—by focusing on high-net-worth customers and Across these businesses, our TRAVELERS LIFE & ANNUITY by achieving significant growth group is committed to achieving Travelers Life & Annuity (TL&A) from the independent producer strong investment performance prospered in a year of uncertain channel. TL&A maintained with an emphasis on risk control, market conditions, continuing its its number-three rank within providing broad product offerings strong operating results. TL&A the institutional annuity arena tailored for each client segment, achieved record operating earn- (LIMRA), mainly due to record and delivering world-class client ings of $821 million, placing it in group annuity sales in the pen- service supported by superior the top three U.S. companies pro- sion closeout and structured technology. viding individual life and annuity settlement segments. products. Expense management We estimate that Citigroup ranks Our partnership with Citigroup remained a high priority, with sister companies continued to number one or two in Global TL&A continuing its industry- Wealth Management as measured grow across all product lines. low expense ratio. In 2001, Citigroup profits were further by revenue and net income. TL&A’s strong sales results pro- Citigroup is extremely well- increased with 52 percent of new duced market share gains in all annuity deposits into TL&A vari- positioned to capture even three of its product lines: individ- greater share in the Global able annuity products going into ual life, and individual and group Citigroup Asset Management Wealth Management market annuities. based on our strong product set funds. Distribution continued and the firm’s impressive distribu- Leveraging its scale and strength to be expanded within Citigroup tion channels. The high-net-worth in Citigroup channels, TL&A out- channels, as well as through an market is growing faster than the paced the industry in individual exciting new venture leveraging financial services industry overall, annuity sales by increasing third- Citibank’s overseas distribution, and generates relatively stable party channels in 2001 by 32 offering new investment and life earnings and attractive margins. percent. Overall net individual products.

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100YEARS IN ASIA & U.K. 100YEARS 100YEARS 100YEARS 4.8 trillion: total assets in U.S. dollars under custody by Citibank Global Securities Services

First office in the U.K. opened in London in 1902.

THE CITIGROUP PRIVATE BANK wide array of investment management, capital markets and investment Despite a turbulent year, The banking services. In addition, the bank differentiates itself by offering Citigroup Private Bank made distinctive advisory services to the marketplace, including the highly major progress in building the successful Family Advisory Practice, which provides families with guid- business globally, expanding its ance on an array of wealth management issues from business succession investment offerings and leveraging to philanthropy. Art Advisory Services helps clients build or disperse art the vast resources of Citigroup. The and antique collections. Private Bank provides personal- ized wealth management services The Citigroup Private Bank ended 2001 with double-digit growth for many of the world’s most suc- in margin and net income. During the past two years, net income has cessful families through 90 offices grown more than 40 percent, despite the uncertainty and volatility in in 58 cities and 31 countries. our industry.

The Citigroup Private Bank acts CITIGROUP ASSET MANAGEMENT as a global gateway to the full Citigroup Asset Management (CAM) is a leading asset manager, with resources of Citigroup. The firm $417 billion in assets under management as 2001 closed. CAM is offers affluent families a full range committed to offering excellent investment performance through a of portfolio management and broad array of products and services to institutional, high-net-worth investment advisory services. and retail clients around the world. The business achieved record Clients of the Private Bank are net flows in 2001, with $29 billion in retail and high-net-worth man- considered clients of Citigroup aged accounts and long-term mutual fund flows, and $35 billion in as a whole, allowing them to have institutional managed accounts and liquidity flows. multiple touch points within the CAM is a market leader in U.S. retail managed accounts with $63 billion organization and giving them assets under management and is ranked number one in the Dalbar unparalleled access to Citigroup’s Survey (Research) of investment professionals regarding quality of service global capabilities. The Private among mid-size mutual fund families. Bank is committed to providing high-quality investment advisory CAM also has built one of the world’s finest global buyside research services and asset allocation to organizations, which has become a cornerstone of our institutional and clients. retail asset management business. The depth and breadth of our research and investment capabilities is helping to accelerate the growth of insti- Working with Citigroup Asset tutional sales. CAM’s Institutional Division expects to continue to Management and Citigroup’s improve its share of the institutional pension segment globally. Corporate & Investment Bank, the Private Bank offers clients a

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Through CitiStreet, our joint ven- CITIGROUP GLOBAL INVESTMENTS ture with State Street Bank & Trust Citigroup Global Investments (CGI), one of the world’s leading investment organizations, Company, we offer administration, continued to outperform peers despite a difficult investment environment in 2001. CGI outsourcing and investment man- applies Citigroup’s in-depth knowledge of geographies, industries and clients and agement services for defined makes direct investments across a full range of fixed-income, equities and alternative contribution, pension and health- products, including real estate, private equity, hedge funds and structured investments. and-welfare plans worldwide. CitiStreet now ranks second overall Our $160 billion portfolio of investments consists of our Property Casualty and Life & among retirement plan record- Annuity assets, the Citigroup Pension Fund, Citigroup’s Proprietary Equity Investments, keepers, administering $179 and our clients’ money. It is managed across four categories: Citigroup Venture Capital, billion in assets for 7.1 million par- U.S. Proprietary and Alternative Investments, Fixed Income and Emerging Markets. ticipants (Plan Sponsor magazine). In 2001, our fixed-income insurance investment performance ranked in the upper 20th CAM is committed to growing percentile of the Lipper Intermediate Investment Grade Debt Rankings. The Citigroup defined contribution assets by cap- Pension Fund outperformed benchmarks, ranking just shy of the top quartile of all pen- italizing on the CitiStreet platform, sion funds of more than $1 billion. Additionally, earnings from our proprietary and currently manages $3 billion for CitiStreet clients. investments—combined with the realized gains of our insurance investments—totaled $530 million in net income. CITIGROUP ALTERNATIVE INVESTMENTS In addition to generating significant returns in 2001, CGI committed an additional Citigroup Alternative Investments $1.9 billion of proprietary capital across several alternative asset classes and raised is a newly branded business unit and a leader in the field of alter- almost $1.5 billion of client capital for a variety of co-investment opportunities, includ- native investments. It meets the ing nearly $1 billion for the new CVC Fund, about $600 million for the CT Mezzanine needs of investors around the Fund II and $350 million for the Tishman V Fund. world seeking a range of products, Toward the end of the year, CGI created Citigroup Alternative Investments, a business including hedge funds, real estate, responsible for structuring and marketing alternative investments to customers, often credit structures and private as co-investment with Citigroup. This business allows us to systematically leverage two equity. In 2001, assets under of Citigroup’s greatest strengths—our distribution channels and our diverse product management grew 10 percent, offering—into increased shareholder value. to $39 billion.

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CITIGROUP UNDERWROTE MORE THAN  BILLION OF ENVIRONMENTAL11 IMPROVEMENT PROJECTS 91925-AR-no10K-nospread 3/13/02 10:31 AM Page 25 fg63786 DISK1:Desktop Folder:

GLOBAL COMMUNITY

CITIGROUP STRIVES TO MAKE EACH COMMUNITY WHERE WE OPERATE A BETTER PLACE resents an increase of 107 percent over a two-year period. CCDE BECAUSE WE ARE THERE. WE FOCUS THIS EFFORT IN THREE AREAS: BUILDING COMMUNITIES draws resources from across AND ENTREPRENEURS, FINANCIAL EDUCATION AND EDUCATING THE NEXT GENERATION. Citigroup’s businesses to provide nonprofit and for-profit Our philosophy is founded upon of the Smith Barney Charitable organizations with innovative, high standards of ethics, fair lend- Investment Fund. The fund is comprehensive and cost-effective ing and fair access to financial administered through Salomon financing packages for commu- services, customer privacy, diver- Smith Barney Charitable Trust nity development. sity in hiring, and cultural and Inc., an independent public charity Our businesses also supported environmental sensitivity. We for clients who want to make non-governmental organizations believe that extending our future philanthropic grants to (NGOs) and nonprofits around resources and expertise to benefit charitable organizations while the globe by working to develop others is the right thing to do; and receiving immediate income tax financial programs that address we understand that economically deductions on their contribution their needs and offering them healthy communities are necessary of cash or appreciated securities. customized financial product for business success. Citigroup’s community lending and services packages. In 2001, We live these values through our to and investing with low- we introduced a capacity building business activities, through our and moderate-income (LMI) program to help NGOs in philanthropic giving, and through individuals and areas in the Indonesia run their operations our employee volunteers. Overall, U.S. continued to grow, reaching efficiently. This was part of our our total philanthropy in 2001, more than $21 billion—an Citibank Peka program. In the from the Citigroup Foundation increase of 140 percent since U.S., Citigroup’s Community and the businesses combined, 1997. In 2001, we leveraged our Development Institute sponsored exceeded $67 million. partnerships to further extend technical assistance and training our reach to thousands of LMI programs attended by more than BUILDING COMMUNITIES and minority families, new immi- 1,500 nonprofit organizations. Our employees regularly seek out grants, underserved households opportunities where business and and other emerging markets. MICROCREDIT social responsibility go hand-in- Citigroup participates in a broad hand. Our Smith Barney Public Our Center for Community range of community building Finance Group specializes in Development Enterprise (CCDE) initiatives that foster healthy funding a wide variety of environ- also delivered impressive results. economies: microlending, mentally beneficial projects. In During 2001, CCDE loaned and affordable housing and special- 2001, we announced the launch invested $892 million, which rep- needs facilities, small-business

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100YEARS IN ASIA & U.K. 100YEARS 100YEARS 100YEARS 21 billion: U.S. dollar amount Citigroup loaned to and invested in low- and moderate- income communities in the U.S.

Hankow branch opened in 1909.

development and savings incen- escrow agent for the $6 million facility, financed by USAID through tive programs. Our involvement AMIR, while also issuing guarantees to the commercial banks that includes offering customized provide credit to the MFIs. products and services and access to technical assistance, along with the We also expanded our microlending outreach to Morocco, where we are volunteer efforts of our employees. partners with Al-Amana, one of the country’s largest providers of micro- finance. Citigroup is helping to capitalize Al-Amana’s lending portfolio Citigroup has pioneered and and working closely with the institution to increase its capacity to meet funded microlending programs the growing demands of microentrepreneurs. around the world for more than 20 years. We have helped microfi- FINANCIAL EDUCATION nance institutions (MFIs) become In 2001, Citigroup strengthened its commitment to financial education more self-sufficient and improve by providing more opportunities for individuals and institutions to learn their accounting and financial about managing their finances. management so they can serve In the U.S., Citibank offered some 1,400 free financial education semi- more clients effectively. In 2001, nars attended by more than 23,000 individuals. In addition, Smith we contributed $3.5 million and Barney continued sponsorship of its Target Market investor education issued letters of credit totaling programs that give women, minorities and young investors greater $4.5 million. insight into investing and the financial markets. At Travelers, consumer Among our new microlending education was offered in loss prevention and safety through its partner- initiatives in 2001 was the devel- ship with the Neighborhood Reinvestment Corporation’s National opment of the Wholesale Funding Insurance Task Force. Facility in Jordan through a part- In Taiwan, we launched the Citibank Personal Finance Seminar Series nership with the United States on EduCities, a Web site that provides free access to hundreds of Agency for International courses. In China, we opened the Citigroup-Fudan International Development (USAID) and Management Center, which offers training programs to help develop the Access to Microfinance management talent there. Another successful program is Salomon Smith and Improved Implementation Barney Australia’s ASX Schools Sharemarket Game, which provides of Reform Program (AMIR). teams of high school students hands-on experience trading virtual This first-of-its-kind facility shares via the Internet. will enable the country’s USAID- supported MFIs to obtain low- During 2001, more than 17,000 students attended Academies of interest loans from commercial Finance, a program of the National Academy Foundation, founded and banks. Citibank Jordan acts as chaired by Citigroup Chairman & CEO Sandy Weill. While preparing for careers in the financial services industry, these students also develop their

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100YEARS 100YEARS 100YEARS 100YEARS 100YEARS 100YEARS 100YEARS 100YEARS

own personal finance skills. In the spring of 2001, Citigroup named One of our leading volunteer activ- 20 graduating seniors from across the country as its first Academy of ities is “hands-on” community Finance Scholars. This annual scholarship program provides selected stu- building. In Colombia, 300 dents with $20,000 scholarships, along with internship opportunities Citibank employees are involved and a mentor from Citigroup. in the School Construction Program helping to build schools EDUCATING THE NEXT GENERATION and collect educational supplies Recognizing that knowledge enables individuals and societies to realize benefiting more than 2,000 their full potential, Citigroup is committed to supporting education and children. career development at every level. In Singapore, we expanded our suc- cessful Foundations in Finance program to the secondary school level In 2001, the Citigroup Foundation and sponsored the country’s first global business plan competition for further strengthened our U.S. university students. Citigroup Builds Communities with Habitat for Humanity volun- The Citigroup Success Fund multimarket program awards grants to edu- teer program with a $1 million cators to develop innovative, easily replicable, grassroots programs aimed grant. Since Citigroup launched at helping students succeed. In 2001, Citigroup provided grants totaling the program two years ago, more $798,000 to support Success Fund programs in California, Florida, than 6,000 employees in 20 states Georgia, New York, Singapore, Hong Kong and Guam that afforded have contributed 64,000 volun- thousands of teachers an opportunity to put their best ideas into action. teer hours. Our employees in Bolivia, Colombia, Kenya, THE ENVIRONMENT Paraguay, Peru, the Philippines, We recognize the importance of responsible environmental stewardship South Africa, South Korea, and continue to work with key environmental organizations. In 2001, Uganda and Venezuela were along with expanding our relationship with environmental organizations also involved in local Habitat such as Conservation International and World Resources Institute, we projects. established new partnerships with the World Wildlife Fund and others. In addition, we focused on raising the awareness of our employees about the opportunities and challenges associated with environmental issues and conducted training sessions for our bankers on environmental risk management.

VOLUNTEERISM Citigroup encourages volunteerism. We have a diverse range of company- sponsored employee programs in countries such as Australia, Brazil, Indonesia, Turkey, the U.K. and the U.S.

27 CITIGROUP 2001 GLOBAL COMMUNITY 91925-AR-no10K-nospread 3/13/02 10:32 AM Page 28 fg63786 DISK1:Desktop Folder:

Recognition

AS THE WORLD’S LEADING FINANCIAL SERVICES PROVIDER TO INDIVIDUAL AND CORPORATE CLIENTS,

CITIGROUP IS RECOGNIZED BY INDEPENDENT ORGANIZATIONS, THE MEDIA AND CLIENTS AS THE

BEST IN THE INDUSTRY. FOLLOWING IS A SAMPLING OF THIS RECOGNITION:

ADWEEK FREDDIE AWARD LATINA STYLE Named a Live Richly Ad—Delivery Room— Diners Club/Club Rewards, Best Frequent Number One Company for Latinas to Work One of Best Spots of the Year Traveler Affinity Charge/Credit Program for in the U.S.

AMERICAN FOUNDATION FX WEEK MUTUAL FUNDS MAGAZINE FOR THE BLIND Best Bank for Foreign Exchange Best in Class: Helen Keller Award (talking ATMs) Smith Barney Large Cap Growth Fund GLOBAL FINANCE Smith Barney Social Awareness Fund ASIAMONEY Best Global FX Bank Salomon Brothers Capital Fund Best Cash Management Bank in Asia Best Global Consumer Bank Smith Barney Fundamental Value Fund & Best Derivatives Bank in Asia Best Bank in Middle East/Africa (SAMBA) Smith Barney Security and Growth Fund Best Global Emerging Markets Bank BARRON’S Smith Barney Aggressive Growth Fund Salomon Brothers Asset Management Best Trade Finance Bank Globally Smith Barney Appreciation Fund Ranked Number Four in the Mutual Best Internet Bank in Latin America Fund Family Annual Rankings Best Internet Bank in Asia Pacific RED HERRING Top Investment Bank CORPORATE FINANCE GLOBAL INVESTOR Best Bank for Project Finance Best FX Provider RISK Derivatives House of the Year COUNCIL FOR AID TO EDUCATION Best Clearing Bank in Equities 2001 Leaders for Change Best Clearing Bank in Fixed Income U.S. SMALL BUSINESS ADMINISTRATION Best in Class GOMEZ ADVISORS Excellence in Lending Citibank: Special Recognition (9/11 Support) DARWIN Citibank Online: Number One Online Banking Service Fittest 50 e-Business THE ASSET CitiCards.com Ranked Number One Among Best Commercial Bank in Asia EUROMONEY Online Credit Card Sites Best Cash Management Bank World’s Best Bank HISPANIC MAGAZINE Best Foreign Exchange Bank World’s Best Global Bank in Emerging Markets Top 100 Companies Providing the Most Best Asian Currency Bond House World’s Best Foreign Exchange Bank Opportunities to Hispanics Best Loan House Best Bank in Latin America Best Project Finance House Best Bank in Asia INDEPENDENT INSURANCE AGENTS OF AMERICA Best Structured Trade Finance Bank Best Bank in Africa Best Practices Award of Excellence Best Bank in Online FX THE BANKER Best Online Site for Cash Management INSTITUTIONAL INVESTOR Global Bank of the Year World’s Best Credit Bond House Top Fixed Income Trading Firm Best Bank in North America Top All-America Research Team Best Use of Technology FINANCE ASIA Number One in Global Custody Top 20 Bond House of the Year Best Bank FX House of the Year Best Commercial Bank INTERNATIONAL FINANCING REVIEW Best Cash Management Bank Best Global Bond House THE WALL STREET JOURNAL Best Foreign Exchange Bank Best U.S. Dollar Bond House Ranked Number One in Best of the Street Best Japan Securitization House Survey FINANCIAL TIMES Best Latin America Loan House World’s Most Respected Financial Company WOMEN & DIVERSITY INTERNATIONAL FINANCING LEADERSHIP SUMMIT FORBES REVIEW ASIA Diversity Best Practices Number One on Forbes Super 50 Bank of the Year Citibank Online Named Forbes Favorite WORKING MOTHER 100 Best Companies for Working Smith Barney Aggressive Growth Fund LAFFERTY GROUP/RETAIL BANK INTERNATIONAL Mothers—Top 10 Honor Roll Best Global Retail Bank WORTH FORTUNE LATIN FINANCE Best Online Bank Citigroup Named to Top 10 of America’s Best Regional Bank in Latin America Most Admired Companies Readers’ Choice: Number One in Online Banking 91925-AR-no10K-nospread 3/13/02 10:32 AM Page 137 fg63786 DISK1:Desktop Folder:

Citigroup at a glance

CONSUMER GROUP Individual client service The Private Client Products Develop global products with the fur- Group and its 12,000 Financial Consultants ther expansion of consumer finance, insurance 2001 INITIATIVES helped its high-net-worth customers through and asset management services. Internet expansion Citibanking North America a difficult market, adding $40 billion in net (CBNA) demonstrated the power of its award- Leadership Continue to define ourselves as assets during the year, improving our Internet winning online banking with 25 percent of the leading financial institution as we further services and broadening the product and serv- CBNA clients regularly using Internet banking improve the level of both customer and ices available to clients. versus the industry average of 15 percent. employee satisfaction. Brand leverage Further leveraged the “Citi” FOCUS FOR 2002 GLOBAL INVESTMENT MANAGEMENT brand through the highly successful Live Richly Clients first Continue effective implementation & PRIVATE BANKING GROUP campaign. For example, Citipro® sales during a of proven Power of One business model. four-month ad period were up 73 percent. Broaden and deepen relationships with our 2001 INITIATIVES target client base, particularly in becoming Number one Citigroup Asset Management Accelerated growth CitiFinancial demonstrated their principal trusted strategic advisor. Further became number one in U.S. retail high-net- one of the highest growth rates of any Citigroup develop customized financial solutions for worth managed accounts with $63 billion of business in 2001. high-net-worth clients. assets under management and $14 billion Acquisitions expertise Continued integration in net flows. Increase reach Strengthen our positions of acquired companies, while positioning in markets and industries where we are Record gains in cross-marketing Citigroup Asset ourselves to further take advantage of under-represented. Management and The Citigroup Private Bank ongoing industry consolidation. collaborated efficiently, enabling the Private Resource management Remain focused on Bank to capture an all-time high of $4.3 billion FOCUS FOR 2002 expense reduction and operational efficiency in net new discretionary sales. Increase productivity Keep leveraging our in anticipation of continuing difficult markets. competitive advantages through branding The rankings Travelers Life & Annuity ranks Re-engineer CitiCapital Continue integration and increasing productivity at all levels in number three in U.S. life and annuity earnings, of recently acquired commercial finance busi- retail banking. number seven in individual annuity sales, nesses. Upgrade operational infrastructure and number three in group annuity and number Export business model Using our exportable improve financial performance. 18 in individual life sales. Citigroup Asset business model, further develop the consumer Management ranks number one in the Dalbar finance franchise internationally. Continue dili- EMERGING MARKETS survey of financial professionals regarding the gent risk management in a changing global quality of mutual fund firms. economy. 2001 INITIATIVES Building momentum Gained strong momentum FOCUS FOR 2002 Increase momentum Maintain and expand through the combination of internal growth current cards momentum through branding, and selected acquisitions in priority countries. Alternative Investments Become the leader in efficiency, superior risk management and ability alternative investments by expanding offerings to take advantage of industry consolidation Acquisitions/joint ventures Completed the inte- and targeting a broader distribution in the insti- opportunities. gration of Citibank Mexico and Banamex. tutional and high-net-worth markets. Bought remaining interest of Credito Familiar Broaden and deepen relationships Uphold and Nikko Trust in Japan, a custody business. Citigroup Asset Management Expand institu- highest standards of service and conduct while tional pension investment advisory assets, delivering a variety of meaningful and effective Cost management Initiated actions focusing on maintain top position in U.S. high-net-worth products to our clients. Deepen and broaden integrating operations and technology in each managed accounts and expand third-party relationships with current and future country, and the streamlining of infrastructure distribution. customers. with the goal of operating processes in locations with lower cost structures. Private Bank growth Expand the Citigroup Private Bank’s wealth management market CORPORATE & INVESTMENT BANK Solutions Our Internet platform for corporate share by emphasizing our sophisticated asset clients (CitiDirect® Online Banking) is now 2001 INITIATIVES allocation strategy and investment portfolio, in 85 countries and 12 languages. Rolled out Market leadership Continued to grow market including alternative investments. CitiDirect® for Securities, the online platform share across all businesses globally. Became lead- for our securities customers. Travelers Life & Annuity Expand third-party ing underwriter globally in volume by raising distribution to grow our share of individual $487 billion for clients, a 37 percent increase FOCUS FOR 2002 annuity and life sales. over 2000. Became number one globally in Market share Maintain our status as the number- investment banking revenue. one financial institution in the emerging markets Aggressive cost cutting Initiated aggressive through market share increases as a result of expense reductions early in 2001, reducing organic growth and acquisitions. quarterly expenses overall by 19 percent from Internet Exploit global market presence to a peak in the first quarter, resulting in superior deliver products via the Internet for corporate profit performance and reinforcement of our and consumer customers. Provide innovative position as the low-cost competitor. electronic solutions for our corporate customers. 91925-AR-no10K-nospread 3/13/02 10:32 AM Page 138 fg63786 DISK1:Desktop Folder:

Leadership

BOARD OF DIRECTORS Valentin Diez Raymond J. Quinlan Ann M. Goodbody Senior Executive Global Product Risk Management C. Michael Armstrong Grupo Modelo, S.A. de C.V. Management/Development Chairman & CEO William R. Hofmann AT&T Corp. Andrea Jung George C. Ross Consumer Finance President & CEO Risk Management Alain J. P. Belda Sandra S. Jaffee Avon Products, Inc. ∞ Chairman of the Board A. Sami Siddiqui* Citibank Global Securities Services & CEO, Alcoa Inc. Ralph S. Larsen e-Consumer Alan D. Jones Chairman & CEO Edward Travaglianti Human Resources Kenneth J. Bialkin, Esq. Johnson & Johnson Partner, Skadden, Arps, Slate, Commercial Markets Stephen H. Long* Meagher & Flom LLP Göran Lindahl D. Richard Williams Asia-Pacific Corporate Chairman Designate Primerica Financial Services Kenneth T. Derr Anglo American plc Manuel Medina-Mora* Chairman of the Board, Retired Martin Wong Mexico—Consumer/Corporate ChevronTexaco Corporation Thomas S. Murphy Managing Deputy General Counsel Former Chairman & CEO Charles O. Prince* John M. Deutch Capital Cities/ABC, Inc. David W. Young COO Institute Professor, Massachusetts Treasury ∞ William R. Rhodes*+ Naveed Riaz Institute of Technology Operations & Technology Senior Vice Chairman CORPORATE & INVESTMENT Alfredo Harp Helú Michael A. Ross Citigroup/Citicorp/Citibank BANK PLANNING GROUP Chairman of the Board ∞ General Counsel Grupo Financiero Banamex Robert E. Rubin* Director; Member, Office of Michael A. Carpenter* Francis Andrew Rozario Roberto Hernández Ramirez the Chairman, Citigroup Inc. Chairman & CEO CitiBusiness Chairman of the Board Ellen Alemany* Banco Nacional de México Dr. Eisuke Sakakibara Frederik F. Seegers* Professor of Keio University President & CEO, CitiCapital Asia-Pacific Consumer Ann Dibble Jordan Former Vice Minister of Finance Frank Bisignano Consultant Jean-Paul Votron* for International Affairs, Japan CAO Central & Eastern Europe, Middle Robert I. Lipp Prof. Dr. Ekkehard Schulz David Bushnell East & Africa Consumer/Corporate Chairman & CEO Chairman of the Executive Board Travelers Property Casualty Corp. Head, Global Risk Management Edward T. Walsh ThyssenKrupp AG François de Carbonnel CFO Reuben Mark Morris Tabaksblat Strategy Simon J. Williams*∞ Chairman & CEO Chairman, Reed Elsevier plc Colgate-Palmolive Company Robert DiFazio* Latin America Consumer Sanford I. Weill* Michael T. Masin Co-Head, Global Equities Y.S. Wong Chairman & CEO John Donnelly Global Sales & Trading Vice Chairman & President Citigroup Inc. Verizon Communications Inc. Head, Human Resources Lorenzo H. Zambrano GLOBAL INVESTMENT Dudley C. Mecum Marcy Engel Chairman of the Board & CEO Deputy General Counsel MANAGEMENT & PRIVATE Managing Director Cemex, S.A. de C.V. Capricorn Holdings, LLC Paul Galant∞ BANKING PLANNING GROUP Alfred Zeien Head, e-Commerce Thomas W. Jones* Richard D. Parsons Former Chairman & CEO Co-Chief Operating Officer The Gillette Company Joan Guggenheimer* Chairman & CEO, Global Investment AOL Time Warner Inc. General Counsel Management and Private Banking Group; Chairman & CEO, Citigroup Andrall E. Pearson CONSUMER PLANNING GROUP Arthur Hyde* Founding Chairman Co-Head, Global Equities Asset Management TRICON Global Restaurants, Inc. Robert B. Willumstad*+∞ Stephen Cone∞ Chairman & CEO; Michael Klein* Robert E. Rubin*∞ Co-Head, Global Investment Banking Marketing & Public Relations Member, Office of the Chairman, President, Citigroup Ahmed Fahour* Marjorie Magner*+∞ Toshiharu Kojima Citigroup Inc. CEO, Nikko SSB CEO, Citigroup Alternative Senior EVP; CAO Investments; Head, Strategic Franklin A. Thomas ∞ John A. Addison, Jr. Alan S. MacDonald*+ Investments Group Former President Head, Global Relationship Bank Primerica Financial Services Evan Merberg The Ford Foundation ∞ Ajay Banga* Tom Maheras* CAO Sanford I. Weill* Head, Global Fixed Income Consumer Assets Michael Rosenbaum Chairman & CEO ∞ Citigroup Inc. & Consumer Finance Jay Mandelbaum* General Counsel CEO, Global Private Client Group Arthur Zankel Kenneth L. Dowd Ed Watson Managing Member Global Investments Eduardo Mestre CFO High Rise Capital Advisors, LLC James J. Duffy Chairman, Global Investment Banking HONORARY DIRECTOR Human Resources Edward Miller CITIGROUP ASSET MANAGEMENT Co-CEO, Schroder SSB The Honorable Gerald R. Ford Michael R. Dunn Robert Battel Former President of the United States CFO William Mills Head, Europe, Middle East, Africa CEO, SSB Asia-Pacific Steven Freiberg*∞ Virgil Cumming SALOMON SMITH BARNEY Citi Cards North America Robert Morse* CIO, U.S. Retail and High-Net-Worth INTERNATIONAL ADVISORY BOARD Roy A. Guthrie* Co-Head, Global Investment Banking and Affiliates Umberto Agnelli CitiFinancial International Will Samuel Michael Even Vice Chairman & CEO Kevin Kessinger Co-CEO, Schroder SSB CIO, Private Bank & Quant Research IFI–Istituto Finanziario Industriale Citi Cards North America Barbara Yastine* Stephen Hopkins S.p.A. Michael S. Knapp CFO CPB Product Management, Marketing, Sir Peter Bonfield CitiFinancial North America Sales & Service EMERGING MARKETS Chief Executive Carl E. Levinson Rama Krishna* PLANNING GROUP British Telecommunications plc Consumer Assets CIO & Head—Institutional Michael A. Carpenter* Anne MacDonald Victor J. Menezes*+ Wendy Murdock* Chairman & CEO, SSB Global Marketing Chairman & CEO, Citibank NA COO, Retail and High-Net-Worth John L. Clendenin Maura Markus∞ Jorge A. Bermudez*∞ Peter Wilby Former Chairman & CEO Citibanking North America e-Business and Emerging Markets CIO, North American Fixed Income, BellSouth Corporation Stephanie B. Mudick* Financial Institutions High Yield & Emerging Markets John C. Danforth General Counsel Michael A. Contreras* Partner, Bryan Cave LLP Latin America Corporate Former U.S. Senator

* Member of Citigroup Management Committee + Member of Citicorp/Citibank, N.A. Board of Directors ∞ Member of the Internet Operating Group 91925-AR-no10K-nospread 3/13/02 10:32 AM Page 139 fg63786 DISK1:Desktop Folder:

RETIREMENT SERVICES International Insurance CITIGROUP GLOBAL Sir Deryck C. Maughan*∞ ∞ INVESTMENTS Vice Chairman; Mergers Robert B. Shepler Michael B.G. Froman & Acquisitions; Chairman, Corporate Development President & CEO, CitiInsurance Todd S. Thomson* Internet Operating Group; & Retirement Services Business Head Chairman, Cross-Marketing TRAVELERS PROPERTY CASUALTY William Comfort Group; Chairman, Citigroup Japan PRIVATE BANK Robert I. Lipp Citigroup Venture Capital Stephanie B. Mudick* Peter K. Scaturro* Chairman & CEO Ahmed Fahour* Co-General Counsel CEO Charles J. Clarke CEO, Citigroup Alternative Michael Neborak Koichiro Kitade President Investments; Head, Strategic Co-Director, Strategy & Market Region—Japan Douglas Elliot Investments Group Business Development Damian Kozlowski COO Dipak Rastogi Nancy S. Newcomb COO John J. Albano Emerging Markets Windows on Risk Christopher Preston National Accounts Joseph Rueli Douglas L. Peterson* Market Region—EMEA Diana E. Beecher∞ CFO Chief Auditor Frances Sevilla-Sacasa CIO David Tyson Charles O. Prince* Market Region—Latin America Jay S. Benet Fixed Income COO; Corporate Secretary Deepak Sharma CFO Sheri Ptashek CITIGROUP SENIOR Market Region—Asia-Pacific Investor Relations Susan Stonehill Claflin CORPORATE OFFICERS Clark Winter Special Liabilities William R. Rhodes*+ ∞ Chief Investment Strategist William E. Cunningham, Jr. Hamid Biglari* Senior Vice Chairman Construction Corporate Strategy Citigroup/Citicorp/Citibank GLOBAL INSURANCE Peter N. Higgins Sir Winfried F.W. Bischoff* H. Onno Ruding+ George C. Kokulis* Middle Market Chairman, Citigroup Europe Vice Chairman, Citicorp/Citibank ∞ Chairman & CEO Larry Illion Robert Druskin* Petros K. Sabatacakis*+ Small Commercial Chief Operations & Senior Risk Officer Technology Officer Travelers Life & Annuity Joseph P. Kiernan Michael Schlein* Irwin Ettinger William R. Hogan Bond Corporate Affairs & Tax and Accounting Individual Annuities Joseph P. Lacher Human Resources & Life Products & Services Personal Lines Stanley Fischer* Zion Shohet Vice Chairman Glenn D. Lammey Brian MacLean Co-Director, Strategy & Business Development CFO Claim Pamela P. Flaherty Global Community Relations Katherine McG. Sullivan∞ Brendan Lynch James M. Michener President/COO, e-Citi and Group Annuity Products & Services General Counsel James M. Garnett, Jr. Risk Management Cross-Marketing Group Warren H. May Christopher E. Watson Independent Producer Distribution Joan Guggenheimer* Todd S. Thomson* Gulf Specialty EVP; CFO Laura Pantaleo Co-General Counsel Broker-Dealer Distribution William Hannon Guy Whittaker Citigroup Controller Treasurer Kathleen A. Preston ∞ Citibank & Primerica Distribution Business Services Robert B. Willumstad*+ President

CITIGROUP COUNTRY CORPORATE OFFICERS Algeria Cameroon Egypt Indonesia Mexico Poland Tanzania Kamal B. Driss Emeka Emuwa Michael Accad Michael G. Zink Manuel Medina Shirish Apte Mayanik Malik Angola Canada El Salvador Ireland Mora* Portugal Thailand Cristina Duarte Michael M. Roberts Gjis Veltman Aidan M. Brady Monaco Martin Johansson Tab Cuddyre Argentina Cayman Islands Finland Israel To be announced Puerto Rico Trinidad & Tobago Peter Baumann M. Carmen Butler Jan Stjernstrom To be announced Morocco Alvaro Jaramillo Steve M. Bideshi Aruba Channel Islands France Italy Eric P. Stoclet Romania Tunisia Philip Henriquez (Jersey) Jean-Claude Gruffat Carlos Fedrigotti Nepal Zdenek Turek Michael Grossman Australia Clive S. Jones Gabon Jamaica Anil Gyawali Russia Turkey Shayne Elliott Chile Asif Zaidi Peter H. Moses Netherlands Allan J. Hirst Sebastian Paredes Austria Ariel D. Sevi Germany Japan Christopher I. Saudi Arabia Uganda Helmut Gottlieb China Christine Licci Charles K. Devries Mike de Graffenried Sanjeev Anand Bahamas Richard D. Stanley Ghana Whitehead New Zealand Senegal Ukraine M. Carmen Butler Colombia To be announced Jordan Andrew Au Gabriel Lopes Witold Zielinski Bahrain Steven Puig Greece Suhair A. Al-Ali Nigeria Singapore United Arab Mohammed E. Al- Congo, Democratic Christos Sorotos Kazakhstan Arif Usmani Sunil Sreenivasan Emirates Shroogi Republic of the Guam Reza Ghaffari Norway Slovakia Ahmed Saeed S. Bangladesh To be announced Vic Lim Kenya Per Kumle Tirad Mahmoud Bin Brek David E. Rees Costa Rica Guatemala Terence M. Davidson Oman South Africa United Kingdom Belgium Victor M. Balcazar Juan A. Miro Korea Zulfiquar A. Suliman Marcus Andrade Michael Kirkwood Peter Verhoeven Côte d’Ivoire Haiti Sajjad Razvi Pakistan Spain Uruguay Bolivia Mark H. Wiessing Gladys M. Coupet Lebanon Zubyr Soomro Charles DelPorto Constantino Gotsis Agustin Davalos Czech Republic Honduras Elia S. Samaha Panama Sri Lanka Venezuela Brazil Atif Bajwa Maximo Vidal Luxembourg Francisco J. Conto Kapila Jayawardena Philip Henriquez Gustavo Marin Denmark Hong Kong Marc E. Pecquet Paraguay Sweden Vietnam Brunei Elias Panayotopoulos T.C. Chan Macau Henry Comber Jan Belfrage John M. Beeman Glen R. Rase Dominican Hungary T.C. Chan Peru Switzerland Virgin Islands Bulgaria Republic Mark Robinson Malaysia Eric R. Mayer Per Etholm (U.S.) Ignacio Jasminoy Alvaro Jaramillo Plamen S. Iltchev India Juan Bruchou Philippines Taiwan Ecuador Nanoo G. Pamnani Catherine M. Weir Eric Chen Zambia Franco Moccia Srinivasan Sridhar

* Member of Citigroup Management Committee + Member of Citicorp/Citibank, N.A. Board of Directors ∞ Member of the Internet Operating Group Note: Countries and territories where Citigroup has a presence but no designated Country Corporate Officer are not reflected in the above list. 91925-AR-no10K-nospread 3/13/02 10:32 AM Page 140 fg63786 DISK1:Desktop Folder:

TUESDAY .

8:48 a.m. Terrorists crash plane into 1 World Trade Center. 9:10 a.m. Evacuation of 16,000 employees in lower Manhattan begins; customer coverage provided out of London, Chicago and San Francisco. 10:30 a.m. Citigroup Disaster Recovery teams make their way to New Jersey and other Disaster Recovery sites. 12:00 p.m. First all-hands Disaster Recovery conference call held with executives and Disaster Recovery coordinators for each business. 12:15 p.m. Begin process of getting operations running in remote locations. 2:00 p.m. Begin providing additional short-term liquidity to our corporate clients who could not access the securities markets or banks. 5:20 p.m. 7 World Trade Center collapses. 7:00 p.m. Create special telephone hotlines with Disaster Recovery information for displaced employees, which will receive more than 15,500 calls in the first week. WEDNESDAY .

8:00 a.m. Contingency locations are fully staffed and operational. 10:30 a.m. Travelers catastrophe vans arrive near Ground Zero and process claims for individuals and business owners. 11:30 a.m. Create special Disaster Recovery information Web site on Citigroup.com for clients, shareholders and employees. 12:30 p.m. First Citibank Financial Center opens to provide food and shelter to emergency workers; several other Financial Centers will follow later in the week. THURSDAY .

9:00 a.m. Citigroup bond trading desks fully operational and ready when Bond Markets resume trading. 10:00 a.m. Citigroup conducts its first grief counseling session, which subsequently will be used by more than 6,000 employees at 60 locations in 12 states. 2:30 p.m. Citibank establishes Citi for the City, a fund to meet the immediate needs of relief workers and families affected by the tragedy.

FRIDAY .

1:20 p.m. Citigroup announces that, with a $15 million donation, it has established the Citigroup Relief Fund to provide college scholarships to children of 9/11 victims. It is the largest corporate-sponsored fund of its kind.

SATURDAY/SUNDAY .-

10:00 a.m. After review by New York City and independent engineers, 388 and 390 Greenwich Street are declared (Sat.) habitable and made ready for employees to return to their desks. 7:00 p.m. Citigroup’s Robert Rubin appears on “60 Minutes” to provide his perspective on the attack and the state (Sun.) of the economy. MONDAY .

8:00 a.m. Citigroup issues press statement estimating the September 11 impact on our earnings. 9:30 a.m. Opening bell rings on New York Stock Exchange. Citigroup begins what will be single-day record volume trading. 6:00 p.m. Almost one week after the attack on the World Trade Center, six Citigroup employees remain missing. Printed on recycled paper. Design: Salomon Smith Barney Graphic Communications All times—EDT 91925-AR-no10K-nospread 3/13/02 10:32 AM Page 141 fg63786 DISK1:Desktop Folder:

 SEPTEMBER  Andre Bonheur Richard Bosco Juan Lafuente Nicole Lindo Francisco Liriano Joseph Zuccala

WE REMEMBER 91925-AR-no10K-nospread 3/13/02 10:32 AM Page 142 fg63786 DISK1:Desktop Folder:

www.citigroup.com

©2002 Citigroup Inc. 91925 3/02 CIT2025