2011 GSA SmartPay® Training Conference

Beyond Plastics

Jeff GeorgeVice President, Citi

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A Winning Hand: Solutions, Savings and Sustainability with GSA SmartPayThe 13th Annual GSA SmartPay Training Conference, Las Vegas

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To ensure the best possible learning experience for participants, please adhere to the following house rules:

• Turn cell phones and pagers to vibrate• Hold questions to end of session• Ensure your participant badge is scanned to receive CLP credits− For each course− Must leave room and re-enter

• Take advantage of opportunities to provide feedback − Please select the Citi Q&A icon on any Citi PC at the conference− Answers to be e-mailed after the conference within 60 days

House Rules

Beyond Plastics

Experienced AOPC

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This course is designed to assist you in achieving the following objectives:

• Learn about Citi’s non-plastic alternatives• Learn how to help drive efficiencies and

drive down costs• Learn how Citi can help analyze which

solution may work best for your agency

Goals & Objectives

Beyond Plastics

Experienced AOPC

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Industry Challenges and Trends

Review Citi Products– Ghost Cards– Virtual Cards– Paylink for Cards– Procure to Pay

How Citi can help – Citi Working Capital Analytics

Agenda

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Experienced AOPC

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1. Industry Challenges and Trends

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Agencies face common challenges in managing payables effectively– Agencies are under pressure to reduce

expenses, increase efficiency and optimize budgets

– Agencies and their suppliers may be affected by credit constraints and their access to capital and liquidity

– Agencies are moving away from a silo approach to managing the procurement to payment cycle and budget optimization initiatives together

– Agencies are moving towards an electronic solution and automation of the supply chain

Accounts Payable and Procurement focus on the tangible tasks of managing the supply chain– Manage Supplier Relationships– Operating Efficiencies – Smooth

operations equal happy internal partners– Control – Understand and manage

processes tightly– Compliance – Ensuring that the process

follows the rules

Market Environment: The Current Challenge Experienced AOPC

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Beyond Plastics

With improved efficiencies, shortened cycle time, and improvements in budget optimization, agencies can:– Unlock cost savings and increase efficiency: Automate payments Electronify accounts payable and any manual/paper-based processes Shorten invoice cycle time to open up working capital opportunities

– Optimize budgets, cash management, and days payable outstanding: Early visibility into cash and payables requirements Access early payment discount opportunities Purchasing Card rebates and payment terms

– Strengthen compliance and control: Put electronic controls in place (invoice matching, contract compliance, etc.)

Market Environment: The Goal Experienced AOPC

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ACH13%

Check80%

Commercial Card2%

Wire Transfers

5%

70%

60%

50%

40%

30%

20%

10%

2006

Electronic Invoices

2008 2009 2011 2011 2012

Paper Invoices

2007

Per

cent

of I

nvoi

ces

by D

eliv

ery

Met

hod

0%* This chart only takes into account B2B invoices traded within the US

Wholesale Non-Cash Payments: 2006

Payment Automation

Wire Transfers7%Commercial

Card5%

Check68%

ACH20%

Wholesale Non-Cash Payments: 2011

Invoice Automation

PayStream and Aberdeen

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The Market is Moving to Electronic Payables Experienced AOPC

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Introduction Growth Maturity Decline1 2 3 4

PayStream Advisors

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Stages of Automation Vary Experienced AOPC

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Summarizing Our Clients’ Needs Experienced AOPC

Reduce processing costs Eliminate paper purchase orders,

invoices, and checks Speed payment and invoice

reconciliation

Enhanced tracking and security of payments

Instant View of Payables Manage cash needs upon

invoice arrival Provide visibility to Suppliers Reduce risk exposure

Budget Drivers Access supplier discounts Increase card rebates Manage Days Paid

Outstanding (DPO) – limit PPI

Efficiency Control

BudgetVisibility

Improved timing, tracking, and security

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2. Ghost Card

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Features:

• Non-card account for preferred supplier relationship• Account number held by vendor• A Seller Initiated Payment • Allows many employees to purchase without issuing multiple cards• Integrates with ERP systems or Electronic Purchasing Systems

Ghost Cards – Supplier Initiated Experienced AOPC

Applications and Uses:

• Central travel airline accounts• Purchases made via internet or intranet• Elimination of low value invoices (i.e. UPS, FedEx, etc.)

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3. Virtual Cards

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Virtual Cards – Overview – Supplier Initiated Experienced AOPC

The Banker Technology Awards – Citi’s Virtual Card Account wins 2010 innovation in Payments Technology Award

● Non-plastic account number for purchases– The “real” billing account/card is never shared with

merchants– Unique virtual card numbers (VCNs), linked to real

card, are created for secure purchasing

● Transparent to merchant at point-of-sale– Standard 16-digit account number, expiration date,

3-digit security code created for seamless transacting by the merchant

● Virtual Card Numbers can be requested by authorized users or a system interface– Web interface, batch file, real-time XML API

What is a Virtual Card Account (VCA)?

Virtual Card Accounts (VCA) is an electronic global payment solution that offers unparalleled control and flexibility without the need to issue plastic cards

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Virtual Cards – Overview – Supplier Initiated Experienced AOPC

Security

Efficiency

Control Clients’ real card number is never shared with

suppliers VCA users can only access specific purchase types

and have individual spend limits Single-use virtual card numbers – lock-down

potential misuse

Set VCN with appropriate authorizations / controls:– Single or multi-use– Maximum amount– Validity Period– MCC Groups– Supplier

Web user interface:– Create user groups for different access types– Multi level approval flows

Policy Compliance Controls:– Issue VCNs with amount, MCC, supplier, and

date controls

Internal Controls

Merchant Controls

Real-time VCN requests and management Automated processes using the batch or XML API

interfaces Secure delivery of VCNs by encrypted email

available Streamlined record keeping with one-to-one VCN

transaction mapping Able to assign custom data fields per VCN for

simple reconciliation and reporting

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Virtual Cards – Uses Experienced AOPC

VCA is a powerful, flexible product which is used in a variety ways. There are four major categories of use which address different needs

Use of the VCA website to generate card numbers by a limited group of users

Utilize VCA controls to reduce risk for higher value payments and non-key suppliers

Centralized Payments

Utilize the VCA controls to define how, when, and where a virtual card can be used

Separate certain categories of spend to track separately from main card program

VCA Controlled Spend

Enable third party programs to make virtual card payments on your behalf

Utilize the groups on the VCA website to provide limited, controlled access to third parties and internal requestors

Third-Party Programs & Internal Workflows

Integrate VCA into your back-end systems to automatically generate single-use card numbers for every payment

Advanced Uses

Sample Use Cases

High Value Payments– Advertising Expenses– Legal and Court Fees– Telecom Expenses– Meeting and Event

Spend

Out-of-Policy (High Dollar/Infrequent Vendor) Payments

Overseas Vendors

Sample Use Cases

3rd Party Property Management

3rd Party Event Planning

3rd Party Central Travel Booking

Internal Approval Workflows and Controls (Pre-Approval to Spend)

Sample Use Cases

High Volume Payments / Disbursements– Franchise Payments– Online Travel Agents– Warranty Payments– Benefits Claims

Purchase Orders & Enhanced Reconciliation

A/P Integration

Catalog Integration

Sample Use Cases

Distressed Employees

Project Spend

Relocation/Repatriation

Recruiting Programs

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Reporting Reconciliation Allocation

Improved spend monitoring and compliance with capture of purchase description, employee ID, etc.

Increased spend insight and pattern analysis from additional client-provided transaction information

Automate matching of POs or Invoices with virtual card transactions by using the PO or Invoice # as a Client Defined Field (CDF )to serve as a unique key

Export Data file from Citi GDR

Easily allocate expenses by requiring accounting code information at the time of VCN creation

Use an automated process to map expenses to general ledgers based on the custom data fields

Agency ERP Merchant

VCN request with CDFs (PO #, Invoice #, GL code, etc.)

ReportReconcileAllocate

Transaction data with CDFs

Pre-transactionPost-transaction

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Virtual Cards – How it works – AP Automation Example Experienced AOPC

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4. Paylink for Cards

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● File-based payment process– Buyer initiates payment via file submission (modified EDI 820) to Citi & the

Payment Gateway– Payments settle on a master purchase card account (s)– Payment is straight through to the vendor’s bank account

● Payment Gateway– Central infrastructure where suppliers must securely register to receive

straight through payment– Matches payment detail in Buyer’s file to registered vendors without the need

for transmission of sensitive bank account details– Online portal which provides email remittance and houses payment status

and details for use by Buyer or Vendor in reconciliation process

What is a Citi Paylink for Card?

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Citibank Paylink for Cards – Buyer Initiated Experienced AOPC

Citi Paylink for Card automates end-to-end payment processing on a commercial card platform while increasing security, control, and efficiency

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Security Efficiency

Control

Card number(s) is never shared outside of Buyer organization– Reduce risk of wrongful use/fraud

Sensitive bank account details are never transmitted

Buyer initiates payment to Vendor at their discretion– Eliminates uncertainty of check clearing

timeline– Eliminates uncertainty of vendor card payment

initiation

Offers consistency across electronic payment processes– Similar to ACH processing

Streamlines payment processing directly from ERP

Provides rich remittance detail via email and download from online portal for Buyer or Vendor

Reduces payment processing and handling time– Check creation, cutting, mailing– Manual keying of card account number

Removes paper (and associated costs) from payment process

Beyond Plastics

Citibank Paylink for Cards – Buyer Initiated Experienced AOPC

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1. Buyer sends purchase order to supplier and subsequently receives/approves invoice

2. Buyer sends transaction instruction file to Citi

3. Citi validates file, matches supplier data and sends to Boost for authorization andsettlement

4. Vendor receives payment directly into its acquiring bank account

5. Buyer and vendor receive remittance detail

1

Purchase Order

Invoice

Supplier

ABank

Supplier

BBank

Supplier

CBank

5

2

5

3

4Buyer

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Paylink for Cards – Process Flow Experienced AOPC

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Based on experience, we recommend and will help you implement the following steps to ensure a successful program

Announce implementation and directive for product use within organization– Obtain buy-in from Treasury,

A/P, Shared Services, Procurement/Sourcing

– Ensure objective is aligned: working capital gains and process efficiency

Include Payables Account/Gateway as default payment type when negotiating new contracts

Organizational Alignment

Work with Citi and partners to target suppliers appropriately– Annual spend– Historical average transaction

size data (> $10,000)– Current payment type (check)– Number of annual payments

(between 5 – 20)– Review Current payment terms

Provide contact information and work with Citi and partners to navigate suppliers’ organization to enroll

Vendor Targeting and Contact Information

Mandate enrollment to target suppliers

Provide incentive by way of expedited payment terms to target suppliers

Provide dedicated ongoing resource to work with Citi and partners to maintain and grow program

Campaign Configuration and Support

Paylink for Cards – Best Practices Experienced AOPC

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Buyer Initiated Supplier Initiated

• Buyer initiates P-Card payment by routing charge/payment detail

• Card number maintained in secure Electronic Payment Gateway database

• File-based process mimics existing ACH processes in accounts payable and ERP systems

• Buyer controls process– Timing of payment, amount,

card/account number

• Vendor impact– Eliminates need to manually process

transactions at POS terminal and retain a card number

• Supplier processes P-Card transaction by entering card details in POS/acquiring bank interface

• Card / account number communicated to vendor with each transaction, or specific card maintained by vendor

• Vendor controls process– Uses existing hardware/software/

process/reporting

– Controls timing of transaction

– Potential for vendor to modify timing/ amount, resulting in reconciliation issues

• Supplier impact– Traditional card transaction posting, payment,

allocation, and reconciliation (potentially manual)

Buyer Initiated vs. Supplier Initiated Experienced AOPC

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Comparison of Non-Traditional Cards Experienced AOPC

Buyer-initiated and control of payments

Module of Citi’s P2P electronic payments platform

Consistent processing / integration

Capture recurring payments to core suppliers

Enhanced controls versus traditional ghost card approaches

Ease of integration – real-time, batch file or web user interface

Capture strategic, one-off, and large ticket purchases within card program

Card/account number communicated to vendor with each transaction, or specific card maintained by vendor

Standard transaction process – limited ability to set transaction controls

Traditional card transaction posting, payment, allocation and reconciliation (potentially manual)

Citi Paylink for Cards

File-based, buyer-initiated, straight-through payments

settled via card

Citi Virtual Card Accounts

Dynamically generated single or multiple use

virtual cards with robust controls

Traditional Ghost Cards

Card number used with traditional transaction

and reconciliation processes

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Citi’s Extensive Product Range

Traditional Plastic P-card– Traditional Plastic Card Account with credit line.

Ideal for low to medium value purchases needed tosupport business flexibility

Ghost Card– Card Account is held in trust by a key supplier,

charged at buyer’s instructions– Ideal recurring for purchases and Catalog buy

Virtual Card Account (VCA)– Non-plastic Card Account setup for a specific amount

and timeframe, with customized control fields for automatic reconciliation

Paylink for Cards (BIPC)– File based solution to make payments by effectively

“pushing” (straight-through processing) the transaction to the supplier. Perfect to pay for large strategic purchases without showing account info while still delivering remittance information to the merchant

Low

Hig

h

Low High

Tran

sact

ion

Siz

e

Spend per SupplierVery H

ighH

ighC

ontrol

Ghost Pcard

Pcard

Virtual Card

Paylink for

Cards

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Comparison of Non-Traditional Cards Experienced AOPC

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Use Area Description Examples

Reconciliation issues Lack of reporting/spend level details for multiple purchases; manual or complex processes; vendor accuracy

Volume purchases, ad hoc purchases, de-centralized purchasing like office supplies, couriers, facilities maintenance

Compliance concerns Need to enforce compliance with policies and purchase thresholds

High employee turnover, restricted commodities, large-ticket purchases (e.g. recruiting travel, software, etc.)

Risk of fraud or misuse Nature of purchase -who is making purchase, vendor, amount -create greater concerns re control

Purchases from non-core suppliers, one-time purchases, purchases for satellite offices, contractors

High transaction volume High volume transactions in certain businesses require significant efficiencies on card processing

Online ordering and bookings (e.g. travel) that support thousands of transactions daily

Inefficient manual processes

Faxed timesheets, handwritten signatures, paper checks

Temporary staffing

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Identifying Opportunities Experienced AOPC

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5. Citi Procure to Pay

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Paper-Based

10 Days

30-60 Days

The procure-to-pay cycle

Electronic

Citi Procure to Pay – Overview Experienced AOPC

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The collective set of accounts payable processes that begins with the issuance of a Purchase Order and ends with payment to the supplier:

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Purchase Order Management

• Automated PODelivery & Mgmt

• Contract Mgmt

Electronic Invoicing

• Supplier Connectivity• Automated Invoice Delivery

Workflow Approval

• Automated WorkflowMatching & Approval

• Reduces exceptions, errors & cycle time

E-Payables• Automated Payment via Check to ACH

• Remittance Delivery

Purchasing Card• Increased Rebate• Reduce low valuetransactions

Early Payment Discount

• Maximize Capture ofTrade Discounts

• Dynamic DiscountCapture

Supplier Financing

• DPO Extension• Improved Cash Mgmt& Visibility

Procure to Pay

Procure to PayAutomation Tools

PayablesWorking Capital Tools

Procure Pay

Beyond Plastics

Citi Procure to Pay – Payables Continuum Experienced AOPC

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• Electronic Purchase Order and Invoice Processing

• P.O. and Invoice Status Reports

• Approval Routing and Workflow

• Paper to Electronic Invoice Conversion

• Contract Compliance

• Settlement via Purchasing Card or ACH

• Integration with MasterCard Payment Gateway, which provides:

– Buyer-initiated P-Card processing

– Rich Remittance Data

– Registry for managing P-Card and supplier bank account data

• Citi Supplier Finance

• Discount Management

– Dynamic Discount Management

– Standard Terms

Purchasing Card

Comprehensive supplier enablement and supplier value-added services across all modules

Invoice Automation Electronic Payment Solutions

Working Capital Solutions

Comprehensive reporting and analytics across all modules

Beyond Plastics

Citi Procure to Pay – Integrated Solution Experienced AOPC

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Payment Gateway Platform

SupplierFinancePlatform

Buyer Supplier1 2

34

5

SettlementACHClearinghouse

Credit CardNetwork

ACHClearinghouse

Wire Transfer

7

Citi® Procure to Pay Portal

• Invoice Automation

• ApprovalWorkflow

• Spend Visibility

• Exception Management

• Discount Management

• Business Rule Validation

• Contract Compliance

Electronicpurchase order

Buyer receives invoices and routes for approval

Supplier receivespurchase order

Sends back invoice

PaymentInstruction

ApprovedInvoice Fileor

EnrichedACH

Buyer InitiatedPurchasing Card

6

Electronic Payment Remittances 7

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Citi Procure to Pay – How it works Experienced AOPC

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• Eliminate paper

• Decrease accounts payable costs

• Reduce cycle times

Accounts Payable

• Optimize working capital

• Maximize payables discounts

• Increase audits and controls

Treasury and Finance

• Supplier management

• Price and contract compliance

• Spend analysis

Procurement

• Extend capability of ERP investment

• Decrease IT costs

• Limit interference with existing infrastructure

Information Technology

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Citi Procure to Pay – Agency Wide Value Experienced AOPC

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6. How Citi Can Help – Citi Working Capital Analytics

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Background:

As described by the OMB, Strategic Sourcing is the driving force in business to business purchasing & payment

Enterprise spend analysis is critical to the success of Strategic Sourcing

Purchase to payment optimization is a Strategic Sourcing, Treasury & Accounts Payable sub-objective

Spend analysis is a key activity for best-of-breed purchase to payment optimization

Beyond Plastics

Citi Working Capital Analytics – Budget Optimize Experienced AOPC

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What can Citi Working Capital Analytics do for you? Citi will mine your agency’s payables data to make specific payment

recommendations on how to improve your budget and supply chain processes

Data will be selectively enriched to provide more targeted and realistic results

Once the analysis is completed, Citi will provide a step-by-step action plan for unlocking opportunities within our Commercial Cards and Procure to Pay Solutions sets

Your agency data will also be analyzed and compared to the best-in-class organizations in your industry for increased visibility into your working capital standing

Beyond Plastics

Citi Working Capital Analytics Experienced AOPC

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Control– Macro-to- Microscopic visibility into payments and timing, program and policy

compliance

Cash Flow– Extend your payables while paying your suppliers faster; take better advantage of

vendor discounts and rebates, reduce borrowing costs, and leverage card float

Efficiency– Identify the business case for electronic processing conversion to reduce the time and

the costs associated with paper-based invoicing and payments

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Citi Working Capital Analytics – Benefits Experienced AOPC

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Citi performs an analysis to determine which areas need improvement, and provides recommendations

Evaluate Opportunity

Analyze Accounts

Payable DataBest Practice Assessment

Citi Payment Solutions ACH conversion

campaigns

Citi Supplier Finance Existing discount

capture Dynamic discounting

Citi Commercial Cards Purchase card

expansion Buyer Initiated

Purchasing Card Virtual card

Deliver Results

Implement Results &

Track Progress

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Citi Working Capital Analytics – How It Works Experienced AOPC

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7. Final Thoughts

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Am I not able to pay supplier invoices via a card due to an approval process requirement?

Are there reconciliation issues currently with certain types of payments?

Does my agency have a large amount of one-off ad hoc spend that is paid via checks?

Am I spending a great deal of time with offline processes and manual reconciliation?

Would I like to put more controls on card usage and spend categories?

Would additional information help reconcile my agency’s accounts payables better?

Is there a spend category my agency could put on a non-traditional card product?

Some questions you may want to think about …

Beyond Plastics

Final Thoughts Experienced AOPC

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Beyond Plastics

Jeff George Experienced AOPC

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Thank you for attending!

Visit the Citibank Welcome Center– Level 3 – Foyer West– National Industries for the Blind will have

a display of products– Conference Slide Show – come see

yourself shine!

Visit the Citibank One-on-One Lab – Lido 3101 A/B

Visit the Citibank Mini Sessions – Lido 3001 A/B

Citi Q&A Link – Tell us your thoughts

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Reminders Experienced AOPC

Beyond Plastics

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Schedules Available at the Welcome Center Experienced AOPC

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Interactive Training Events – DoD

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Citi offers on-site training at no cost for agencies meeting the required minimum participant level of 20 or more as set forth in the GSA SmartPay2 Master Contract.

Regional Citi Training Locations– Norfolk, VA– Washington, DC– Visit www.defensetravel.dod.mil/passport to view and register for these sessions

Upcoming Training– Visit www.defensetravel.dod.mil/passport to view and register for these sessions

On-site at your base or installation– 20-participant minimum– Visit www.citimanager.com/dodhome and under Resources to download the On-site

Training Request Form

Distance Learning – Video Conferences

Please e-mail us at CommCard.Training@citi.com and a Citi training coordinator will work with you directly for on-site or Distance Learning sessions.

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Interactive Training Events – GSA

Beyond Plastics

Citi offers Computer Based Training (CBT) via the Citi Commercial Card Learning and System Support (CLASS) in CitiManager.

Visit home.cards.citidirect.com and from the Web Tools tab select the CLASS link

Please contact your Account or Client Manager if you are interested in setting up a training session. Training can be conducted at a Citi Training Location, on-site at your office or via the Web.

Regional Citi Training Locations– Norfolk, VA– Washington, DC

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Terms & Disclosures

Tuesday, July 28, 2009

IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.

Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate definitive written agreements. This presentation is not a commitment to lend, syndicate a financing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a commitment. Nor are we acting in any other capacity as a fiduciary to you. By accepting this presentation, subject to applicable law or regulation, you agree to keep confidential the existence of and proposed terms for any Transaction.

Prior to entering into any Transaction, you should determine, without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these risks) as well as the legal, tax and accounting characterizations and consequences of any such Transaction. In this regard, by accepting this presentation, you acknowledge that (a) we are not in the business of providing (and you are not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should receive (and rely on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting advice (and any risks associated with any Transaction) and our disclaimer as to these matters. By acceptance of these materials, you and we hereby agree that from the commencement of discussions with respect to any Transaction, and notwithstanding any other provision in this presentation, we hereby confirm that no participant in any Transaction shall be limited from disclosing the U.S. tax treatment or U.S. tax structure of such Transaction.

We are required to obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID number. We may also request corporate formation documents, or other forms of identification, to verify information provided.

Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. These indications are provided solely for your information and consideration, are subject to change at any time without notice and are not intended as a solicitation with respect to the purchase or sale of any instrument. The information contained in this presentation may include results of analyses from a quantitative model which represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof and are subject to change without any notice. We and/or our affiliates may make a market in these instruments for our customers and for our own account. Accordingly, we may have a position in any such instrument at any time.

Although this material may contain publicly available information about Citi corporate bond research, fixed income strategy or economic and market analysis, Citi policy (i) prohibits employees from offering, directly or indirectly, a favorable or negative research opinion or offering to change an opinion as consideration or inducement for the receipt of business or for compensation and (ii) prohibits analysts from being compensated for specific recommendations or views contained in research reports. So as to reduce the potential for conflicts of interest, as well as to reduce any appearance of conflicts of interest, Citi has enacted policies and procedures designed to limit communications between its investment banking and research personnel to specifically prescribed circumstances.

© 2011 Citibank, N.A. All rights reserved. Citi, Citi Arc Design, CitiDirect, Citimanager, Citibank Custom Reporting System, Citibank Electronic Reporting System, are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

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.

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®©2011 Citibank, N.A. All rights reserved. Citi, Citi and Arc Design and CitiDirect are trademarks and service marks of Citigroup Inc., used and registered throughout the world.

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