1. Global Cash Management Trends and Solutions December 2007 Itzik Coriat Global Transaction Services Head Citi Israel

3. 3 Agenda  Market Forces & Trends  Liquidity & Investments  Electronic Banking & Information Services  Questions

4. Market Forces & Trends

5. 5 Forces Driving Treasury Changes Forces Trends Outcome ■ Rationalisation of bank relationships and account structures ■ Migration of treasury / financial functions into global treasury centres, in-house banks, shared service centres, and payment factories ■ Focus on integrating transaction management, optimising cash / credit utilisation globally ■ Centralisation of head office control, standardised processes / procedures ■ Centralised audit, regulatory, reporting and internal benchmarking through transactional visibility (SOX, IAS39, FAS133, IFRS) ■ Focus on gaining visibility and control ■ Process / workflow automation to free resource time ■ Leveraging a single ERP platform to apply best practices for automation of payables and receivables management in SSC or Payment Factory structure with a single bank integration point ■ Format standardisation to increase STP and reduce errors / fraud ■ Trading partner integration for better working capital management ■ Real-time actionable information delivery for better decisions Strategic Treasury Holistic approaches across enterprise Globalization Risk & Control Focus Technology

6. Liquidity & Investments

7. 7 Pre-TBA Bank London Header Account EUR 100 Bank London Header Account EUR 150 USD 75USD 25 Post TBA Paris Source EUR 75 Paris Source EUR 0 Target Balancing  Solution whereby credit & debit balances in a single currency are physically moved from a source account to a header account.  Available Domestically, Cross-Border and Cross-Regionally.  Funds move. The source account’s specified target balance is achieved by taking or moving funds from/to the nominated header account.  End of day value dated balances are always swept with good value. Target balancing can take place on a periodic basis.  Interest may be re-allocated if requested. Madrid Source EUR(25) Madrid Source EUR 0

8. 8  Automated Target Balancing tools will enable efficient concentration of cash and funding of deficits  Same day value via cross border/cross regional Target Balancing  Intra day or next day via Multi Bank Target Balancing  Statement Files/Message Based Information downloaded to SAP for daily accounting of funds movement Domestic Bank(s) MT920 Request for Statement (MT942) Customer Define TBA Rules – Source A/C & Target A/C relationship Intraday TBA Processor MT940 / MT950 End of Day Reporting MT942 Ad hoc Intraday Report Communication Methods -Web-based reports -Files -XML Messages MT101 Request for Transfer MT103 – Funds Transfer (Concentrating to Target Account) Target Account MT101 Request for Transfer MT103 – Funds Transfer (Funding Source Account) Multi-bank Target Balancing

9. Follow / Against The Sun Sweep

10. 10 Notional Pooling With notional pooling, the autonomy of the accounts is maintained, while debit and credit balances are offset for interest purposes. Bank Account 1 +USD 1000 Bank Account 3 +USD 1500 Bank Account 2 -USD 2100 Bank Account 4 -USD 500 Bank Account 5 +USD 400 Without Notional Pooling With Notional Pooling Interest = + 40 - 126 + 60 - 30 + 16 = - USD 40 Bank Rates Credit Interest = 4%, Debit Interest = 6% Bank Account 1 +USD 1000 Bank Account 2 -USD 2100 Bank Rates Credit Interest = 4%, Debit Interest = 6% Bank Net Position +USD 300 Interest earned by pooling accounts = USD 300 x 4% = USD 12 Advantage to customer = USD 12 - (- USD 40) = USD 52 Bank Account 3 +USD 1500 Bank Account 4 -USD 500 Bank Account 5 +USD 400 Single Currency Notional Pooling – Example.

11. 11 Optimisation – Multi Currency Notional Pooling  Optimises short term (overnight) cash positions, by notionally pooling balances with London bank, across eligible currencies  Fully automated process applies to full closing balances, so treasury can focus on managing strategic hedging and structural positions  Flexibility to transact in any pooled currency, without FX conversion  Integrate with target balancing to maximise cash upstreamed into pool - EUR 40mn eqv. + EUR 20mn eqv. + EUR 60mn eqv. Available Balance = EUR 40mn equivalent, in any pool CCY London x Group EUR Sub D EUR Sub C EUR London x Group LCY Sub B LCY Sub A LCY London Individual Currency Pools or TBAs in London Net Multi Currency Pool Balances (EUR Equiv) Net Customer Position (EUR Equiv) Cross Currency Balance Sheet Set-Off x Group GBP Sub F GBP Sub E GBP

12. 12 Multi-Currency Pooling: Participation Asia:Australia, Hong Kong, Japan, New Zealand, Singapore, Indonesia*, Philippines***, Taiwan* EMEA:Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany (gmbh), Greece, Hungary, Ireland, Israel*, Italy, Netherlands, Poland, Portugal, Slovakia Spain, Switzerland, Turkey, UK Americas:Bahamas, Bermuda, Canada (Ontario/Quebec), USA Currencies (19):USD, EUR, GBP, CHF, NOK, SEK, DKK, CAD, AUD, NZD, JPY, PLN**, CZK**, HUF**, HKD**, SKK** RON** Positive balances only:ZAR, TRY, SGD** Approved Jurisdictions Additionally, on-going legal reviews Slovakia, for which external counsel have advised they expect a favorable outcome. * FCY only **pilot phase ***FCY not sourced from local currency FX

13. 13 Integrating Investments with Liquidity Solutions Liquidity structures facilitate concentration into a single position, which can be invested in a choice of investments on an automated or active basis: 1.High Interest Yield Account or end-of-day sweep, as per market environment 2.Money market mutual funds via daily automated sweep 3.Time deposits Automated Investment Solutions Active Investment Solutions Bank High Interest Yield Account (HIYA) or Overnight Sweep Sub 2Sub 3Sub 4 Money Market FundsTime Deposits 1 2 3 Sub 1 Tight integration of investments with global liquidity structures optimizes both cash balances and cash investments Liquidity structure (TBA or Notional Pool) to optimise investments

14. Electronic Banking & Information Services

15. 15 Data Aggregation Solutions Gaining Visibility into Group Cash Positions  Gaining visibility and control of group cash with actionable data is a critical first step  To enables companies to realize these benefits now without need to build system interfaces with each banking provider  To provides integrated information – the first building block to controlling and optimizing cash  To enables companies to manage risk through improved cash control, forecasting and event notification  To enables more effective working capital management across various entities through provision of real-time actionable information  To enables improved reporting to meet regulatory requirements (e.g. Sarbanes- Oxley )

16. 16 Integrated Payments & Collections  Account based payment options, e.g. funds transfers, local cheques, ACH/Giro, direct debit  Non-account based options that provide multi-currency payment capabilities without the need to open multiple accounts in each country Global solution integrating domestic and cross-border payment & collection capabilities into a single, standardized and efficient product offering

17. 17 Questions ?

18. 18 Thank you for your time !