ConfidentialCitigroup Swiss Private Banking RoundtableZurichJuly 12, 2006Arthur Vayloyan, Private Banking Head of Investment Services and Products
DisclaimerCautionary statement regarding forward-looking informationThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of -looking statements involve inherent risks and uncertainties, andwe might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions weexpress in these forward-looking statements, including those we identify in"Risk Factors" in our Annual Report on Form 20-F for the fiscal yearended December 31, 2005 filed with the US Securities and Exchange Commission, and in other public filings and press do not intend to update these forward-looking statements except as may be required by applicable PB RoundtableSOVP, Slide 2
Key trends in Private Banking A highly profitable industry Markets Continued strong growth: +CHF 11 trillionAuM1)over next four years Increased regulatory scrutiny Growth opportunity onshore several times higher than offshore Ever increasing and more complex demandsClients Increasingly global orientation Look for combination of strong platform and tailor-made solutions Ongoing market consolidation Competition Pressure on margins for plain-vanilla products Fierce war for talents1) Source: BCG Wealth Market Sizing Database 2005Citigroup PB RoundtableSOVP, Slide 3
Our strategyAggressively Leverage Further Continuously grow Gain market opportunities extend improve international share in our from Execute with our leading productivityfranchise Swiss home integrating best peopleclient value and financial onshore and marketthe banking propositionperformanceoffshorebusinessesCitigroup PB RoundtableSOVP, Slide 4
International growthKey themes across regions Strengthen local market presence –especially onshore Hire, grow and train relationship managers with local expertise Broaden range of local products and solutions Establish globally aligned processes and platforms Deliver benefits of the integrated bank to the client Selectively seize acquisition opportunitiesCitigroup PB RoundtableSOVP, Slide 5
Gain market share in Switzerland1)AuMin CHFbn428365+17% NNA: 4% annual growth expected Margins: Improvement expected due to enhanced solution offering20042005Way forward Further build on value propositions for attractive client sub-segments Foster product & business innovation Leverage capabilities of Asset Management and Investment Banking Continuously improve productivity 1) Including Corporate & Retail Banking, Independent Private Banks and External Asset Managers Citigroup PB RoundtableSOVP, Slide 6
Client value: Key building blocks for true client focusAnalysisDesignDelivery Client needs / Relationship managersvoice of the customerand specialistsWinning value Client profitability propositions for Products and solutionsand wallet shareattractive target Processes and toolssegments Competitive Client experiencepositioningCitigroup PB RoundtableSOVP, Slide 7
Client value: delivering One BankCLIENTRelationship ManagerSolution SpecialistsLocal and Global SpecialistsInvestment BankPrivate BankingingAsset Management IPO Investment consulting Investment funds M&A advisory Trusts Discretionary mandates Derivatives Insurance wrappers Alternative investment products Structured finance Inheritance & tax consulting Private equity Trading Margin lending Private label funds MortgagesCitigroup PB RoundtableSOVP, Slide 8
Managing productivity and costsOne Bank SynergiesObjectives Continuously improve efficiency, counter rising Operational Excellencecosts of doing business(Lean Sigma) Fund investments into growth while ensuring strong and sustainable Centers of Excellenceprofitability(Efficiently leverage global resources)Citigroup PB RoundtableSOVP, Slide 9
Summary Grow international franchise Gain market share in Switzerland Client value proposition Integrating the banking businesses Productivity and financial performance... execute with best peopleCitigroup PB RoundtableSOVP, Slide 10
Questions & AnswersCitigroup PB RoundtableSOVP, Slide 11
AppendixCitigroup PB RoundtableSOVP, Slide 12
Markets: Europe/Middle East/AfricaAuMin CHFbn239 NNA: 7% annual growth expected199+20% Margins: small dilution due to increasing share of onshore business20042005Way forward Western Europe onshore to reach break-even by 2007 latest Establish branch in Moscow Explore opportunities in Central and Eastern Europe Leverage hub in Dubai Increase footprint in Middle EastCitigroup PB RoundtableSOVP, Slide 13
Markets: Asia-PacificAuMin CHFbn50 NNA: 19% annual growth expected 35+43% Margins: stable environment20042005Way forward Explore opportunities in China; build Shanghai branch and explore JV opportunities Leverage Singapore and Hong Kong hubs, upgrade IT platform Build on and expand onshore presence, . India, Indonesia and AustraliaCitigroup PB RoundtableSOVP, Slide 14
Markets: AmericasAuMin CHFbn11392+23% NNA: 10% annual growth expected Margins: Improvement expected given transformation towards comprehensive wealth management business model20042005Way forward Build comprehensive Wealth Management in USA Strengthen footprint in Latin America, . onshore presence in BrazilCitigroup PB RoundtableSOVP, Slide 15
Client value: Leading-edge advisory process Comprehensive assessment framework First mover in systematically addressing liabilities Supported by industry-leading tool and process platform Process being rolled out globally Basis for needs-based segmentationCitigroup PB RoundtableSOVP, Slide 16
Integrated bank: 5 key cross-selling opportunitiesLeverage IB relationships for client referrals to PB and AMProvide UHNW clients with customized solutions and access to IB and AMMarket alternative capital products to pension funds leveraging IB relationshipsGrow sales of alternative products and other services to PB clientsOffer prime services / execution to hedge fund and mutual fund managers leveraging PB relationshipsIB = Investment Banking / PB = Private Banking / AM = Asset Management / UHNW = Ultra-High-Net-WorthCitigroup PB RoundtableSOVP, Slide 17
Clariden Leu: SnapshotMerging entitiesFacts ofClariden Leu Integration as of January 2007 CHF 112bn assets under management More than 55'000 private client relationships 1'800 employees Net revenues of CHF 1'164m Net income of CHF 443m Globally present in over 20 locationsNote: Figures as of PB RoundtableSOVP, Slide 18
Clariden Leu: Independently managed Private Bank backed by Credit Suisse GroupClaridenc oLmeupilse mtoe CntSa rpyarent's private banking business Attractive alternative to universal bank for clients and employees Potential for active role in market consolidationClariden iLneduepweiBtnhud seintess Model Independent product offering, services and investment management Own HR and recruiting managementCredit Suisse Groups pynroevrigdies significant Shareholder with long term view and providing additional respectability Economies of scale in IT and Operations (app. CHF 100 m per annum in additional net income as of 2008)Citigroup PB RoundtableSOVP, Slide 19
Citigroup PB RoundtableSOVP, Slide 20
