Security Analysis Presentation: Investment Funds Management September 20, 2004

Current Stock Facts (C) Price: $45.36 Price: $ week range: $42.10-$ week range: $42.10-$49.99 Market Cap: 234,980.2(mil) Market Cap: 234,980.2(mil) Beta: 1.28 Beta: 1.28 EPS: 3.26 EPS: 3.26 DPS: 1.60 DPS: 1.60 P/E: 11.2 P/E: 11.2

Citigroup’s Company Profile Diversified holding company Diversified holding company Global financial services provider 15 brands under Citigroup umbrella 15 brands under Citigroup umbrella 3 major business segments and 2 stand-alone segments 3 major business segments and 2 stand-alone segments 287,000 employees; 4,500 locations 287,000 employees; 4,500 locations Global distribution to six continents and over 100 countries Global distribution to six continents and over 100 countries

Management Charles Prince- CEO and Director, October 2003 Charles Prince- CEO and Director, October 2003 Sanford Weill- Remains chairman of board until 2006 Sanford Weill- Remains chairman of board until 2006 May still have too much control 2004 major revamping of corporate governance 2004 major revamping of corporate governance Result: 70% of board classified as independent

Trend Analysis vs. S&P 500

EPS Estimates (analysts)

Industry Comparisons

Industry Comparisons (continued)

Fundamental Valuation Required rate of return = 12.46% Required rate of return = 12.46% Assumes Rf = 4.3% and Equity risk premium of 6.38% Forecasted growth rate = % Forecasted growth rate = % Future dividend w/ constant growth = 2.07 Future dividend w/ constant growth = 2.07 Value of Stock = $39.06 Value of Stock = $39.06

Summary of Citigroup as an Investment Pros: Pros: Large, well diversified financial services conglomerate With global expansion as its goal has growth opportunity Relatively inexpensive trading at 11X earnings Increased corporate governance mechanisms Cons: Cons: Slowed growth recently expected to continue until year end Decreased earnings estimates by analysts in past 90 days Valuation model prices at $39 Underperformance of the S&P 500 over the last year

Recommendation HOLD HOLD Uncertain future in the short-run Uncertain future in the short-run Long-term growth opportunities exist Long-term growth opportunities exist