Citigroup, Inc. · NYSE:C
Citigroup — Treasury and Trade Solutions Webinar Series (July 2013)
51 slides from Citigroup's conference presentation, July 2013
Slide 1: Citi Nigeria – Regulatory & Infrastructural changes driving Cash Management & Trade
Treasury and Trade Solutions Webinar Series | July 2013 Citi Nigeria – Regulatory & Infrastructural changes driving th C the Cash hM Managementt & TTrade d llandscape d iin Ni Nigeria i
Slide 2: Outline
Outline 1. Focus on Nigeria 2. Background – “Why Citi?” 3. Emerging Trends in the Environment – Trade 4 Emerging 4. E i T Trends d iin th the E Environment i t – Cash C h 5. Market Response And Impact on Businesses in Nigeria 6. Contact Information 7. Appendix i. General Account Services ii. Collect
Slide 3: Nigeria – Fifth Fastest Growing Economy in The World
Nigeria – Fifth Fastest Growing Economy in The World Citi Investment Research and Analysis’ recent survey of the world's top ‘global growth generators’ (3G) of the next 40 years identified Nigeria as the economy with the potential to generate the world's world s highest real economic growth rate ove
Slide 4: Citi in Nigeria
Citi® in Nigeria 10 Locations Product Offering TTS Cash Management 12 29 years Trade ● Kano Branches Client Delivery ● Abuja ● Lanlate ● Ososa Corporate Finance ● Egbeda ● Lagos ● Aba Debt ● Warri ● Port P t Harcourt H t Ad i Advisory ● Bonny Project Finance 800+ collection 22 Teller Implant points
Slide 5: Emerging Trends in the Environment – Trade
Emerging Trends in the Environment – Trade
Slide 6: Nigeria's Trade Environment
Nigeria’s Trade Environment Capital Importation Capital importation can be either equity or loan and can be in cash or kind (equipment); done via an authorized dealer (a bank) who will issue a Certificate of Capital Importation to the investor. This enables future payment of interest, dividend & rep
Slide 7: Nigerian Trade Environment – Imports, Exports, FX
Nigerian Trade Environment – Imports, Exports. FX The foreign exchange market in Nigeria is regulated. Access to FX is permitted for payments for good and services imported via authorized channels and subject to presentation of required documents documents. Mode of Payment – Cash Collateralized Le
Slide 8: Emerging Trends in the Environment – Imports
Emerging Trends in the Environment – Imports The Central Bank of Nigeria (CBN), Federal Ministry of Finance and Nigeria Customs Service (NCS) are committed to automating the imports process end-to end to end end. This is in line with the Nigerian Government’s Government s objective of reducing the c
Slide 9: Capital Importation
Capital Importation Anybody y y whether resident or non-resident in Nigeria, g citizen of Nigeria g or foreigner g mayy invest in any y enterprise p except p those specified in Section 13 of Nigerian Investment Promotion Commission Act of 1995. However, a foreign national who wishes to establish an
Slide 10: Capital Importation – in Kind
Capital Importation – in Kind Equipment or raw materials. Evidence of receipt of goods into the system required (Final Exchange Control Documents). Copy of form “M” opened on non valid for foreign exchange basis. Evidence that funds have not been remitted to the beneficiary y where form ‘M’ was
Slide 11: Emerging Trends in the Environment – Cash
Emerging Trends in the Environment – Cash
Slide 12: Emerging Trends in the Environment – Cash Management
Emerging Trends in the Environment – Cash Management Policy initiatives by regulators is driving diverse changes in the banking environment especially as they relate to the cash management business Key Trend Drivers Central Bank of Nigeria – Implementation of Cash-lite initiative in Lagos. Reducti
Slide 13: Emerging Trends in the Environment – Cash Management (contd.)
Emerging Trends in the Environment – Cash Management (contd.) Effective March 31, 2012 for Lagos and subsequently for major commercial cities, cities the following daily cumulative limits Available Products for Collections & rd on 3 party cash lodgements and withdrawals will be applied: Payments –
Slide 14: Market Response and Impact on Businesses in Nigeria
M k t Response Market R and d Impact I t on Businesses B i in i Nigeria Ni i
Slide 15: Treasury Priorities for 2013/2014
Treasury Priorities for 2013/2014 Treasury y Actions Global /Local Cash pools 1 Establish optimal treasury structure especially for Cash & Liquidity & Investment structures emerging markets Funding Achieving efficiencies as budget constraints increase 2 Fund working capital required optimally Co
Slide 16: Best Practices Applicable to Businesses
Best Practices Applicable to Businesses Background to the developments in the cash environment in Nigeria – Limited ATM and POS terminals – High cost of operations in the system – Public acceptance p of electronic channels;; fraud – Infrastructure – power, ICT, uptime of payment platforms etc. – Leg
Slide 17: Solutions suite emerging in response to market trends
Solutions suite emerging in response to market trends Service Providers in the financial industry have tailored solutions in response to market trends. We see industry specific convergence of products Fast Moving Consumer Goods Airlines Shipping Lines (FMCG) Real-time Receivables Proposition Rea
Slide 18: Solutions suite emerging in response to market trends (contd.)
Solutions suite emerging in response to market trends (contd.) Service Providers in the financial industry have tailored solutions in response to market trends. We see industry specific convergence of products Infrastructure Oil and Gas Telecoms Project driven, long term funding Foreign Exchange
Slide 19: Contacts
Contacts Segun Adaramola Head, Treasury &Trade Solutions Tel: +234 1 463 8413 Email: segun.adaramola@citi.com g @ Emmanuel Umukoro Head Cash Management Head, Tel: +234 1 463 8567 Email: emmanuel.umukoro@citi.com Foluso Ayo-Olaiya Head, Client Sales Management Tel: +234 1 463 8563 Email: foluso.ayool
Slide 20: Appendix
Appendix
Slide 21: General Account Services
G General l Account A t Services S i
Slide 22: Account Services
Account Services Our clients may establish both local currency (Naira) and foreign currency accounts with Citi®. The accounts may be accessed electronically y from anyy location in the world via our award winning g web-based electronic banking gpplatform CitiDirect®. Foreign Currency Accounts Local
Slide 23: Collection Capabilities
Collection Capabilities
Slide 24: Collection Capabilities – Overview
Collection Capabilities – Overview Collection Method Description Cash & Cheque Collection Client can lodge cash or cheques into their account with Citibank. We also have a team of CBN- approved CIT companies to pick up cash and cheques from Client‘s premises, distributors and depots T ll Implant T
Slide 25: Web Payment Solution - Overview
Web Payment Solution - Overview WebPAYDirect® is a secured ppayment y gateway g y developed p and Verified by Visa (VbV) is a simple password password-protected protected identity identity- supported by Interswitch to facilitate payments for goods and checking service, developed by Visa Internationa
Slide 26: Point of Sale (POS) Collection
Point of Sale (POS) Collection Citi POS solution provides a convenient and reliable way to collect receivables from your customers via payment cards on POS terminals at your offices and booking centers nationwide nationwide. It provides an efficient method of managing your accounts receivable portfo
Slide 27: Citi Instant Collect (CIC)
Citi Instant Collect (CIC) An instant electronic collection solution eliminating the need for cash and/or cheque collection at the Client’s premises or the bank branch. p Product Definition & Features Process Flow Leverages NIBSS Instant Payment platform Customer/Agent/Dealer Transfer Bank accou
Slide 28: Direct Debits
Direct Debits Definition Direct debit is a cash-less form of financial settlement, which facilitates settlement of "regular in nature" payments. Key Features • Payments are regular in nature • Amounts could be fixed or variable • It normally involves three parties (agreements will be executed) • The
Slide 29: Direct Debit – Key Benefits
Direct Debit – Key Benefits Benefits To You Benefits To Your Clients • No need to operate multiple accounts for invoice • No need to visit your offices or the banks to pay their collections bills • Faster collections of receivables • An easy and convenient payment method • Improved working capital m
Slide 30: SpeedCollect
SpeedCollect Citi® provides a convenient reliable way to collect receivables from your customers and an efficient method of managing your accounts receivable portfolio portfolio. Deposits within Citi branches Network of 13 branches, 10 in key commercial centres On-line O li information i f ti
Slide 31: Payment Capabilities
Payment Capabilities
Slide 32: Payment Capabilities – Overview
Payment Capabilities – Overview Payment Method Description Cash Cash Account to Account Funds Transfer between two accounts held in Citi (on-line). Client can use this to Transfer pay beneficiaries with accounts in Citibank Cheques Paper-based, can be returned unpaid, amount payable must not b
Slide 33: Paylink
Paylink Citibank PayLink provides your business with a convenient, fast, reliable and secure way to make disbursements to your suppliers vendors suppliers, vendors, shareholders shareholders, employees, employees other companies and individuals via the Paylink cheques initiated from ® CitiDirect . 1
Slide 34: Domestic Funds Transfer
Domestic Funds Transfer All payments can be initiated through CitiDirect, which can be integrated with Client’s Accounting Package. Book Transfer Account to Account transfers for beneficiaries who have Citi accounts Cash pick-up across the counter. Solution works well for beneficiaries who do no
Slide 35: Foreign Currency/Cross Border Payments
Foreign Currency/Cross Border Payments Use of Citi’s global network in over 100 countries results in low lifting/correspondent bank fees. Your Concern Citi's Solution Overview Speed Global network to expedite delivery at Foreign currency payments done through CBFT module minimal cost off CitiDir
Slide 36: CitiDirect Online Banking
CitiDirect Online Banking
Slide 37: CitiDirect Online Banking
CitiDirect® Online Banking CitiDirect® is a sophisticated, user-centered interface offering customers global access, uniform client software, enhanced, customized reporting capabilities and online technical and customer services support support. CitiDirect® Online Banking is Citigroup’s online banki
Slide 38: Trade Finance & Services Capabilities
Trade Finance & Services Capabilities
Slide 39: Trade Products Capabilities
Trade Products Capabilities Our Trade Products offerings are structured towards Trade Services and Finance. Trade Services Export Services Bills For Collection Unconfirmed & Cash Collateralized Import Letters of Credit Invisibles Remittances – Dividend, Management, Technical Support Fees etc
Slide 40: Trade Finance
Trade Finance Bills For Collection Financing – Local and Foreign Foreign g Currency y Letters of Credit financing g ((ITFF)) Currency Local Currency Letters of Credit financing (IFP) Guaranteed Bills For Collection Export pre-shipment/post shipment Finance USD Denominated Floating Rate (IT
Slide 41: Invisible Trade - Invisibles (Form A) Remittances
Invisible Trade - Invisibles (Form A) Remittances We are able to effect seamless and timely payments of your invisible trade transactions in foreign currency. Conference, Seminars and Training Courses (Organized Abroad) Technical Services Fees License (Patent, Trade Mark, Know-How) Managemen
Slide 42: Supplier Finance
Supplier Finance
Slide 43: Our Proposal
Our Proposal The Supplier Finance Concept Partnership between the buyer (Client) and the Bank (CITI) to allow pre-agreed Suppliers (Client vendors) to enter a program to sell receivables to the Bank Features Suppliers do not need to be customers of the bank or open any account with Citi and are
Slide 44: Supplier Finance Basic Mechanics
Supplier Finance Basic Mechanics Example: Day 1* Day 6* Day 30* Buyer Approves S Supplier li Buyer Buyer Invoice Supplier Supplier After receipt Sells Disbursement of goods, Receivables of payment; sends Remits settlement l off Invoice/ Funds invoice Payment Instructions Supplier Finance Supplier Fi
Slide 45: Benefits – Cost Savings
Benefits – Cost Savings Supplier optimizes cost benefit– Example Payment Terms is 45 Days Win – Win Partnership Assume Supplier’s existing cost of Working Capital Finance is 20% p.a. Assume Supplier’s Supplier s cost of Working Capital Finance under CITI Supplier Finance Solution is 17% p.a. (
Slide 46: Benefits – Longer Payable Days
Benefits – Longer Payable Days Client Negotiates Extended Payment Terms – Example Payment Terms is 45 Days Win – Win Partnership Assume Supplier’s existing cost of Working Capital Finance is 20% p.a. Assume Supplier’s pp cost of Working g Capital p Finance under CITI Supplier pp Finance Soluti
Slide 47: Commercial Cards
Commercial Cards
Slide 48: Commercial Cards
Commercial Cards Introduction of a credit card product suite in 3 currencies of Naira, USD and EUR to serve alternative payment needs of corporate and commercial customers customers. Product Range The Commercial card shall be launched under 5 p product lines: • Corporate Card – to address Travel & E
Slide 49: Commercial Cards (Contd.)
Commercial Cards (Contd.) Corporate Card – Payment mechanism for corporate T&E expenses – Typically Air, Rail, Hotel, Restaurant, Taxi etc. Purchasing Card – Low value purchases, to address transactions under a certain value – Usage of spending restrictions to control buying (single transaction
Slide 50: Awards
Awards Awards for Excellence 2009 World’s Best Cash Management World's Best Banks House • #1 Online Corporate and Commercial Global Winner ‐ Cash Management Bank E B ki Pl E‐Banking Platform tf ffor Large L Corporates C t B t E‐commerce Best E B k Bank Best Cash Management House for • #1 Online Corp
Slide 51: efficiency, renewable energy & mitigation
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 bee
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