The Asian Banker Summit Hong Kong, April 7 th 2011 Ravi Saxena, Asia Trade Head, Citibank

Payables Finance – Supply Chain Capital Cost Efficiency Capital Cost Examples (Source: Bloomberg) BanksCorporates European Bank Citibank “A” rated Global Tech “BBB” rated Indian Energy “BBB” rated LatAm Energy “A” rated European consumer Weighted Average Cost of Capital4.09%3.77%9.45%12.15%23.60%11.16% Cost of Debt1.83%1.81%3.09%13.66%13.96%2.75% Cost of Equity16.03%14.27%10.95%13.86%27.06%12.38% Anchor Client  Cost of Debt= X  Cost of Capital= Y Suppliers  Cost of Debt= X ++  Cost of Capital= Y ++  Cost of Debt= X --  Cost of Capital= Y - Pay Earliest Pay Latest Bank

Supplier Finance – Value points Supporting the Suppliers –Maintaining stability in the supply side Cost of Goods Reduction –Leveraging cheaper financing to drive down COGS –Translating financing benefits into price reduction Extending Payment Terms –Using Buyer power to negotiate longer payment terms –Easing the pain with an efficient financing program Dynamic Discounting –Availing early payment discounts 6

Supplier Finance - Components of Success Global technology platform –Allow for Scale –Consistent experience for buyers and suppliers Supplier on-boarding –Global capability –Consistent strategy and approach –Local presence Organizational support and leadership –Critical to have senior management sponsorship AND follow through –CFO pitch? Organizational alignment –Treasury, Procurement, Accounts Payable 6

Accounts Receivable Financing Key motivations for AR Financing Liquidity DSO reduction Buyer risk mitigation Key Factors to assess relevance What is DSO reduction valued at? Cost of capital Cost of Debt Marginal Cost of borrowing Investment returns (for cash surplus corporates) Bank expertise Documentation resulting in balance sheet efficiency Experience in perfecting multi-jurisdiction assignment of receivables Global customer base of Buyers and established methodology for the acceptance of subsidiary risk. Anchor Client (Seller) A/R Large Buyer = A/P Commercial Terms Purchase A/R Future Payments Large Counterparties – Cross-border Flows. Bank

© 2010 Citigroup Global Markets Inc. Member SIPC. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world. efficiency, renewable energy & mitigation In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with a broad range of stakeholders on the issue of climate change to help advance understanding and solutions. Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.