Presented by: Anthony Muh For: Shanghai Stock Exchange Asian Corporate Governance Association Local Insight Global View services provided by: Salomon Brothers Asset Management Smith Barney Asset Management Citibank Global Asset Management and affiliated advisory entities Enhancing Competitiveness and Market Value through Corporate Governance”

2 Global Presence Global Perspective with Local Insights 15 investment centres and 9 global research centres located in key strategic markets As at 30-Sep Singapore Stamford New York London Tokyo Melbourne São Paulo San Francisco Warsaw Hong Kong

3 Citigroup Asset Management Global presence 15 investment centers and 9 global research centers located in key strategic markets Approximately 2,600 employees in 20 countries worldwide Competitive position US$501 2 billion in client assets under management The 9th largest asset manager based on worldwide assets 1 Investment capabilities Full spectrum of equity, fixed income, balanced and alternative investment strategies 400 investment professionals Sophisticated, proprietary technology combined with market experience help us manage risk A Snapshot As at 30-Sep This ranking is based on the 2004 Pensions & Investments Money Manager Survey The investment advisory services of Citigroup Asset Management are provided by Salomon Brothers Asset Management Inc, Smith Barney Asset Management (a division of Citigroup Global Markets Inc.), Citibank Global Asset Management (a unit of Citibank, N.A. and Citibank International plc), Citigroup Asset Management Limited and affiliated advisory entities. 2 The Asset Management businesses include Citigroup Asset Management (CAM), Citigroup Alternative Investments’ (CAI) Institutional business, Banamex Asset Management and Retirement Services businesses, Koram Asset Management, Travelers Property and Casualty/Travelers Asset Management International Corporation Fixed Income business and Citigroup’s other retirement services businesses (includes Citistreet’s Retirement Services and Latin America Retirement Services businesses) in North America and Latin America.

4 The Investment Platform Proprietary fundamental research combined with disciplined valuation framework identifies attractive investment opportunities Portfolio Management, Fundamental Research and Quantitative Research work as a team to aim to maximise the impact of proprietary information and insights Apply repeatable, successful processes with world-class research resources Portfolio Management 28 teams worldwide Quantitative Research Over 30 quantitative analysts Fundamental Research Over 130 global equity research analysts and associates

5 Philosophy and Style “we believe by using proprietary research to define intrinsic value and combining that with shorter term earnings momentum will deliver consistent outperformance”.

6 Research is based on identification of sustainable long term cash generation Time ROE Normalised EarningsHistoric Operation earnings per share Sustainable Growth Rate Average = 12% ROE

7 Top-down Sector Bottom-up Country Risk Country Liquidity Country Momentum Country Valuation Balance Sheet Earnings Variability Earnings Forecastability Deriving for an appropriate discount rate

8 Corporate governance a useful tool for measuring management commitment to creating shareholder value. Various studies, including those by McKinsey (2000) and the City University of Hong Kong (2003), suggest that good governance tend to lead to lower capital costs, higher valuations and stronger stock price performance as investors appear willing to pay some premium for investments in companies that display superior corporate governance standards. Corporate Governance – how it really impacts valuation?

9 Defining intrinsic value Source: Internal. This is for illustration purposes only and does not represent our forecasts or any recommendation to purchase/ sell any security.

10 Ranking intrinsic value

11 Global High Grade Credit Research Fundamental equity research output is the starting point for credit analysis – Financial forecasts including credit ratios – Company-specific risk analysis – Industry outlook Financial Analysis – Equity research template – Financial flexibility – Operating performance – Capital structure – Financial policies Financial Analysis – Equity research template – Financial flexibility – Operating performance – Capital structure – Financial policies Citigroup Ratings – Long-term rating – Rating outlook – Event risk – Probability rating Citigroup Ratings – Long-term rating – Rating outlook – Event risk – Probability rating Company Analysis – Industry/markets – Country of domicile – Management – Corporate structure/governance – Ownership – Event risk Company Analysis – Industry/markets – Country of domicile – Management – Corporate structure/governance – Ownership – Event risk Standardised Research Template Disciplined and Structured Approach to Fundamental Credit Assessment Standardised Credit Report

12 Ratings Comparison For companies under coverage, CAM has been ahead of the Rating Agencies Case Study – Telecoms For illustrative purposes only. This example should not be construed as investment advice or a recommendation to buy or sell a security. Please see endnotes for additional information. A A- BBB+ BBB

13 Important Note The information in this presentation is of a general nature only and is not intended to be, and is not, a complete or definitive statement of the matters described in it. The information does not constitute specific investment advice and does not include recommendations on any particular securities or markets. Although statements of fact in this presentation have been obtained from and are based upon sources we believe to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions and estimates included in this communication constitute our judgment as of the date of this communication and are subject to change without notice. This presentation has not been prepared to take into account the investment objectives, financial objectives or particular needs of any particular person. Before making an investment decision you should consider, with or without the assistance of a financial adviser, whether such an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. We do not accept any liability for any direct or indirect loss arising from any reliance on the information contained in this presentation. The contents of this document may not be reproduced or distributed in any manner without prior permission by Citigroup Asset Management.