Citigroup, Inc. · NYSE:C
Citigroup — Investor Day (March 2022)
60 slides from Citigroup's investor day presentation, Mar 2, 2022
Slide 1: Investor Day
INVESTOR DAY PROPRIETARY AND PROTECTED INFORMATION. MAY NOT BE COPIED, SHARED OR DISTRIBUTED WITHOUT CITIGROUP WRITTEN CONSENT. ©2022 CITIGROUP INC.
Slide 2: Shahmir Khaliq
wN “4 SHAHMIR KHALIQ ~ citi Institutional Clients Group
Slide 3: Paco Ybarra, CEO Institutional Clients Group
PACO YBARRA CHIEF EXECUTIVE OFFICER INSTITUTIONAL CLIENTS GROUP citi
Slide 4: Our Business Today - ICG
Our Business Today - ICG (FY 2021) $40B Revenue $789B Deposits $24T $280B 1 ‘oss-Border AUC/AUA Transaction Value? 60% ~15% Efficiency RoTCE? CLIENT MIX 2021 REVENUE4 my (Financial Institutions / Investors HB Large Corporates MN Commercial Clients PRODUCT MIX 2021 REVENUE ME services HB Banking (9)
Slide 5: How We Serve Clients Across ICG
How We Serve Clients Across ICG + Payments and collections SERVICES BANKING * Liquidity optimization and working capital financing a~ citl * Securities and derivatives administration MARKETS ¢ Liquidity for financial transactions * Risk transformation + Access to public and private markets + Advise
Slide 6: Clients Benefit from Our Interconnected Platform
Clients Benefit from Our Interconnected Platform CLIENT SYNERGIES PRODUCT SYNERGIES (as a % of ICG client revenues, FY 2021) SERVICES ONLY CLIENTS BANKING ONLY CLIENTS ICG SYNERGIES 86%! MARKETS ONLY CLIENTS Note: As of December 31, 2021. All footnotes are presented beginning on slide 53. 5 Manageme
Slide 7: The Unique Banking Partner for Cross-Border Commerce
The Unique Banking Partner for Cross-Border Commerce GLOBALITY DRIVES REVENUE & RETURNS FOR LARGE CORPORATE CLIENTS! NETWORK BENEFITS ($M) 13.8 18% 15% 12% I FY 2021 Avg. Rev/Client ° — RoTCE? 4.8 Lo a # OF COUNTRIES? 2-10 11-20 21-36+ AVG # OF PRODUCTS 10 15 18 Note: As of December 31, 2021. All fo
Slide 8: Our Global Network Evolves to Meet Changing Client Needs
Our Global Network Evolves to Meet Changing Client Needs 1950s 1990s 2010+ Today GLOBAL ASSET MULTI-NATIONAL MANAGERS AND GLOBALIZATION OF CORPORATES FINANCIAL INSTITUTIONS ALL TO ALL MIDDLE MARKET P&G BlackRock @p TATA Fflywire gM} general motors Allianz @) E2Alibaba Group APCO worldwide Note: Blac
Slide 9: Strong Performance Given Current ICG Business Mix
Strong Performance Given Current ICG Business Mix’ (2017-2021 Avg) REVENUE ($B) EFFICIENCY RATIO RoTCE2 18.7% 52 67% 38 37 51% NIR 26 23 “Ee — Peer 1 citi Peer2 Peer3 Peer4 Peer1 Peer 4 Peer1 Peer2 Peer3 citi Peer 4 LOANS ($B) DEPOSITS ($B) TCE3($B) 739 441 in 28 84 ” 285 52 4 61 60 () Peer1 Peer2 c
Slide 10: Delivering Leading and Integrated Product Capabilities
Delivering Leading and Integrated Product Capabilities POSITIONING 2017-2021 BUSINESS TODAY AVG. RoTCE! BUSINESS FOCUS SECURITIES 2 ~DE0, Continue Recent Share Gains 0 SERVICES #4 26% and Client Wins g Fa uw | TTS #1 ~22% Build on Established Leadership 2) BANKING #57 ~15% Targeted Investing to Gain
Slide 11: Strategic Priorities to Improve Returns and Grow
Strategic Priorities to Improve Returns and Grow LEAD WITH SERVICES SHAHMIR KHALIQ HEAD OF TREASURY AND TRADE SOLUTIONS 10 INVEST IN COMMERCIAL CLIENTS TASNIM GHIAWADWALA HEAD OF CITI COMMERCIAL BANK TARGETED SHARE GAINS citi
Slide 12: Our Business Today - Securities Services
Our Business Today - Securities Services (FY 2021) $3.4B $134B $24T 71% ~25% Revenue Deposits AUC/AUA' Efficiency RoTCE? GEOGRAPHIC MIX CLIENT MIX 2021 REVENUE 2021 REVENUE? #1 Direct Custody* [NAM (6) Financial Institutions MM EEMEA HEE Asset Owners (i AsIA (0) Asset Managers 14 LATAM Corporates #4
Slide 13: Winning in Securities Services
Winning in Securities Services Leveraging our Leading Custody Service Offering to Accelerate Wallet Share Gains PIPELINE OF MANDATES Lead the industry with Custody and Issuer Services, with significant upside in Fund Services and Execution Services DATA AS A SERVICE, DIGITIZATION & CLIENT Continue t
Slide 14: Shahmir Khaliq, Head of Treasury and Trade Solutions
SHAHMIR KHALIQ HEAD OF TREASURY AND TRADE SOLUTIONS INSTITUTIONAL CLIENTS GROUP citi
Slide 15: Our Business Today - TTS
Our Business Today - TTS (FY 2021) $9.2B $3.5B $664B 55% ~21% Revenue NIR Average Deposits Efficiency RoTCE! CLIENT MIX GEOGRAPHIC MIX 2021 REVENUE 2021 REVENUE 95 Countries (ME Large Corporates (i NAM Financial Institutions / (0 EMEA . = Investors ASIA ~1 8 K Clients M0 Commercial Clients = LATAM 9
Slide 16: Our Integrated Business Enables Client Growth
Our Integrated Business Enables Client Growth OUR BUSINESS HIGHLIGHTS * #1 with large institutional clients with ~10% wallet share in a ~$100B market! Payments * 250+ of the largest E-Commerce companies are Citi's clients? TREASURY AND TRADE SOLUTIONS * TTS generates ~50% of total Citi deposits Trad
Slide 17: TTS's Integrated Capabilities and Scale Drive Our Global Reach
TTS's Integrated Capabilities and Scale Drive Our Global Reach PAYMENTS LIQUIDITY MANAGEMENT TRADE & WORKING CAPITAL * Direct connectivity to ¢ Virtual account offering in * 10% market share in Trade! 7) 270+ Clearing systems 17 countries 2 + $250B supplier finance S | © Proprietary cross-currency *
Slide 18: Delivering a Strong Financial Profile
Delivering a Strong Financial Profile! CONSISTENT REVENUE GROWTH ($B) STRONG NIR GROWTH ($B) DIVERSIFIED REVENUE MIX 2.13% 3.5 1.00% 30 > 0.08% 428% 4 (ex Cards)? (HE Liquidity Management 9.2 HE Paying & Collecting — (0 Trade Services | 85 | ( Trade Financing FY 2017 FY 2021 FY 2017 FY 2021 mRevenue
Slide 19: We are Differentiated Within the Competitive Landscape
We are Differentiated Within the Competitive Landscape A LEADER IN THE LARGE INSTITUTIONAL SEGMENT... «.WITH AN OPPORTUNITY TO GROW WITH NEW SEGMENTS FY 2021 Revenue! FY 2021 TTS Commercial Client Market Share? ~$100B annualized wallet! 8.3 44 3.8 uy 2.2% 21% 21% 0.5% | | || | = = Peer 1 Peer 2 Peer
Slide 20: Our Clients Select Citi as Their Trusted Partner
Our Clients Select Citi as Their Trusted Partner Citi's competitive advantages DEEP CLIENT DIGITALLY GROUND PRESENCE, RELATIONSHIPS AND INTEGRATED NUANCED LOCAL TRUSTED ADVISOR OFFERINGS, KNOWLEDGE, ROBUSTNESS AND CONNECTIVITY WITH SCALABILITY OF THE REGULATORS AND INFRASTRUCTURE NETWORK 19 CREDIBIL
Slide 21: Growth Will Come from Existing Clients and Emerging Opportunities
Growth Will Come from Existing Clients and Emerging Opportunities GROW WITH CORE CLIENTS INVEST IN NEW SEGMENTS FINANCIAL MARKETPLACES COMMERCIAL LARGE CORPORATES INSTITUTIONS AND SMBS BANK CLIENTS * Increased wallet share by 70 bps since 2017! * Number of Marketplaces and SMB clients and expect add
Slide 22: Growing with Key Clients Through Continued Investments
Growing with Key Clients Through Continued Investments TTS Tech budget of An increase of ~$1B for 2022 ~40% vs. 2020 SOLUTIONS CLIENT EXPERIENCE INNOVATION TECH PLATFORM + Payments * Channels * Alternative * Scalable M * Liquidity Management * Onboarding Payment Methods * Nimble . j i M * Trade and
Slide 23: Continue to Drive E-Commerce Flows
Continue to Drive E-Commerce Flows B2C & C2B CLIENT NEEDS Scale, Always-on, Payment Ubiquity, Differentiated Payments Experience SCALE Low Value / High Volume / API enabled EXAMPLE Virtual | Instant | Request | Digital | Cards | eWallets | Buy Now, SOLUTIONS Accounts Payments to Pay Collections APMs
Slide 24: TTS: Positioned to Continue Leading
TTS: Positioned to Continue Leading! #11N INSTITUTIONAL SEGMENT2 Established leadership with room to grow DIVERSIFIED, ANNUITY-LIKE EARNINGS Extensive client base between institutional, E-Commerce/digital clients CLIENT AND PRODUCT STRATEGY Enhance customer experience by developing market leading so
Slide 25: Tasnim Ghiawadwala, Head of Citi Commercial Bank
TASNIM GHIAWADWALA HEAD OF CITI COMMERCIAL BANK INSTITUTIONAL CLIENTS GROUP
Slide 26: Our Client Segment Today - CCB
Our Client Segment Today - CCB' (FY 2021) $2.7B $25B $84B 55% ~37% Revenue Avg. Loans Avg. Deposits Efficiency RoTCE? SEGMENT MIX GEOGRAPHIC MIX 2021 REVENUE 2021 REVENUE ~60 countries Mid-Corporates ATTY “24 Clients/$1.78 _ wane ~14K clients Seton (i EMEA ~1.3K Bankers . LATAM Emerging Corporates ~
Slide 27: Citi Commercial Bank Value Proposition
Citi Commercial Bank Value Proposition SOLUTIONS, MULTIPLE CLIENT NOT LENDING LED GLOBAL FOOTPRINT TOUCHPOINTS * Full ICG suite tailored to * Serving clients in multiple * Continuum of coverage Commercial clients geographies from Wealth to very Large . . ae . . Corporates * Differentiated coverage m
Slide 28: Our Established Track Record
Our Established Track Record REVENUE GROWTH ($B) ACCRETIVE RETURNS' (%) RoTCE ~T% —_—_—__—__———__ CAGR 37 29 28 25 Avg 25% a i i al io : 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 ASSETS AND LIABILITIES ($B) RESILIENT CREDIT RISK PROFILE (bps) NCL/ANR _— _— i 84 Avg. Loans Avg. Deposits 10% 8
Slide 29: How We Are Driving Growth
How We Are Driving Growth PRODUCT MIX (%) BUILDING DEEP CLIENT RELATIONSHIPS (Sk) Product Revenue Breakdown Total CCB Revenues/Client 9 (ll Investment Banking 8 19 a I Markets 20 5 194 MB Treasury and Trade Solutions 138 146 152 163 lm Lending 45 34 er ae [| 2017 2021 CCB CROSS-BORDER REVENUES 2017
Slide 30: Value of CCB within a Common Citi Platform
Value of CCB within a Common Citi Platform Services Banking Leverage Citi's leading platform Customize client experience
Slide 31: Growing from a Position of Strength
Growing from a Position of Strength GLOBAL TRENDS CLIENT NEEDS ARE EVOLVING... «AND INFORMING CCB'S INVESTMENTS BORN GLOBAL & FAST GLOBAL Instant Global Access Geographic Expansion GROWTH CLIENTS ARE MORE Industry Insights Investing in talent and sales tools SOPHISTICATED CLIENT DIGITAL CAPABILITY S
Slide 32: Opportunity to Grow is Significant
Opportunity to Grow is Significant CURRENT MARKET SHARE! Citi Share % / Total Addressable Wallet (2021) Global Target ~2% / ~$150B Market Share INCREMENTAL REVENUE OPPORTUNITY ~A% » ~$3.0B There is a sizable addressable wallet untapped by Citi Addressable Wallet is ~30% of Total Global Commercial Ba
Slide 33: Investing in a Differentiated Client Experience
Investing in a Differentiated Client Experience 32 SERVING CLIENTS BANKERS p> Industry Specialist Geographic Presence Global Tailored Solutions DIGITAL PORTAL » Single Portal Onboard, Insights, Transact Self-service HOST TO HOST ) Direct Integration to Client Systems Built Into Client Workflows API
Slide 34: Driving Growth for Commercial Clients
Driving Growth for Commercial Clients ACHIEVE SCALE > Accelerate investments in large markets and leverage ICG infrastructure DEEPEN > Provide seamless global client experience through banker and CLIENT RELATIONSHIPS digital channels Gain market share from 2% to 4% and become a significant client DR
Slide 35: Paco Ybarra, CEO Institutional Clients Group
PACO YBARRA CHIEF EXECUTIVE OFFICER INSTITUTIONAL CLIENTS GROUP citi
Slide 36: Our Business Today - Investment Banking
Our Business Today - Investment Banking (FY 2021) $6.6B #4 #5 #5 51% ~28% Revenue DCM! ECM! M&A" Efficiency RoTCE? INDUSTRY MIX PRODUCT MIX REGIONAL MIX 2021 REVENUE 2021 REVENUE 2021 REVENUE ME Industrials HM Tech + FinTech 17% | 20% ME Financials Institutions May ME M&A — nea MM NRCET a EEC 8% 18%
Slide 37: Focus on Maintaining Positive Momentum & Closing Gaps in our Wallet
Focus on Maintaining Positive Momentum & Closing Gaps in our Wallet EXECUTION ON STRATEGIC PRIORITIES OVERVIEW OF FRANCHISE POSITION! IS ALREADY UNDERWAY (2021 Revenue, $B) YoY 44% 23% 43% 41% 55% * Continue investing in talent in high-growth sectors - 1 Tech, FinTech, Healthcare - with focus on U.S
Slide 38: Investing in Talent and Aligning Coverage
Investing in Talent and Aligning Coverage INVESTING IN MD TALENT... ..WHILE ALIGNING COVERAGE WITH KEY SECTORS! We are strategically investing in talent, with a focus on high growth sectors and key regions MDs HIRED 2019-2021 ~70 ~40 ~25 MDs Hired Globally MDs Hired in NAM MDs Hired in Technology, H
Slide 39: Driving Growth with Sponsors and Private Capital
Driving Growth with Sponsors and Private Capital IMPROVING POSITIONING WITH FINANCIAL SPONSORS... «TO SERVE AS AN ADDITIONAL GROWTH CATALYST con citi Top 4 24% Financial Sponsor . 31% Wallet (all products) Other Wallet 2021 2021 Fame Top 4 al erage Ss Wallet 2 ern Rank’ #14 Note: All footnotes are p
Slide 40: Banking Connectivity Across ICG
Banking Connectivity Across ICG CCB CLIENT PIPELINE CRITICAL FOR FUTURE GROWTH ENABLING BANKING CROSS-SELL Corporate & Investment Banking Large Corporates CcB Lending, M&A, Mid-Corporates ECM & DCM CCB Emerging Corporates 39 Private Capital Sourcing Episodic Derivatives, Banking Working Capital Mana
Slide 41: Winning in Banking
Winning in Banking INVESTING IN TALENT AND ALIGNING COVERAGE DRIVING GROWTH WITH SPONSORS AND PRIVATE CAPITAL BANKING CONNECTIVITY ACROSS ICG M&A WALLET SHARE! Focus on high growth sectors, including Tech and Healthcare, particularly in the U.S. Use platform to take advantage of growing AUM and asso
Slide 42: Capital Productivity and Targeted Share Gains - Markets
on CAPITAL PRODUCTIVITY AND TARGETED SHARE GAINS MARKETS ce
Slide 43: Our Business Today - Markets
Our Business Today - Markets (FY 2021) $18B #2 #5 64% ~9% Revenue Fixed Income! Equities? Efficiency RoTCE3 CLIENT MIX FIXED INCOME REVENUES ($B) EQUITIES REVENUES¢ ($B) 2021 REVENUE Large Corporates WB Financial Institutions/ Investors ily Commercial Clients Client-drive nchise en 16.9 =. Peer1 cIi
Slide 44: Path to Deliver Higher Returns
Path to Deliver Higher Returns IMPROVE EXPAND DELIVER DIGITAL FINANCIAL RESOURCE HIGH MARGIN SOLUTIONS PRODUCTIVITY EPISODIC BUSINESSES a citi
Slide 45: Improve Financial Resource Productivity
Improve Financial Resource Productivity MACRO DRIVERS IMPACTING REVENUE / RWA! 2021 TO MEDIUM-TERM RETURN IMPROVEMENTS 2017-19 AVG 2021 TO TO 2021 MEDIUM-TERM BEGINNING OF PERIOD 5.1% 4.5% REGULATORY CAPITAL 67% 0.5% WACROIMERCT OM osm Cncerta PERFORMANCE 0.5% 0.5% CAPITAL EFFICIENCY 0.5% 1.0% END O
Slide 46: Expand High Margin Episodic Businesses
Expand High Margin Episodic Businesses SHIFT TOWARDS PRIVATE CAPITAL GROWTH & GENERATE DESIRABLE ASSETS WITH FINANCING & SECURITIZATION Private Asset Market Growth! Citi F&S Balance Sheet Mix? Total AUM, ($T) ($B) 9.8 108 4 Other Leveraged Loans Residential Real Estate Commercial Real Estate Real As
Slide 47: Deliver Digital Solutions
Deliver Digital Solutions MANUAL EXECUTION INTEGRATED SOLUTIONS UNIQUE GLOBAL SERVICE COMBINATION FX Business Illustration nm * Unparalleled Cross-border Payments Network - 190+ Countries, 140+ Currencies - Real-Time & Alternative Payments é \ Voice - 24/7 Coverage oc ay g + * Customized Client Hedg
Slide 48: Winning in Markets
Winning in Markets IMPROVE FINANCIAL RESOURCE . . weg . a PRODUCTIVITY Invest in our capital management capabilities to increase productivity EXPAND HIGH MARGIN EPISODIC Support the changing high-value added needs of our clients BUSINESSES Create opportunities for scalable, stickier, integrated solu
Slide 49: Strategic Priorities to Improve Returns and Grow
Strategic Priorities to Improve Returns and Grow LEAD WITH INVEST IN TARGETED SHARE SERVICES COMMERCIAL CLIENTS GAINS ng citi
Slide 50: ICG Key Drivers and Projected Growth
ICG Key Drivers and Projected Growth KEY PERFORMANCE REVENUE GROWTH BUSINESS BUSINESS FOCUS INDICATORS (MEDIUM-TERM CAGR) . . * Assets Under Custody / . 1) bbc deihld corte Recent Share Gains Assets Under Administration! Si rn it 4 * Deposits ingle-Digits 1S) z * Average Deposits WW . . . ” TTS Buil
Slide 51: Forward-looking Statements
Forward-looking Statements Certain statements in this presentation are “forward-looking statements” within the Private Securities Litigation Reform Act of 1995, including statements made orally by Citi’s management. Such statements may be identified by words such as believe, expect, anticipate, inte
Slide 52: Investor Day
INVESTOR DAY PROPRIETARY AND PROTECTED INFORMATION. MAY NOT BE COPIED, SHARED OR DISTRIBUTED WITHOUT CITIGROUP WRITTEN CONSENT. ©2022 CITIGROUP INC.
Slide 53: Non-GAAP Reconciliation
2021 2020 2019 2018 2017 ($ in M) Reported Net Income (Loss) $14,225 $10,761 $11,626 $11,422 $8,402 Impact of Tax Reform1 - - - - (2,000) Adjusted Net Income (Loss) $14,225 $10,761 $11,626 $11,422 $10,402 Average TCE $94,338 $84,081 $78,951 $82,851 $78,581 RoTCE2 15.1% 12.8% 14.7% 13.8% 10.7% Adjust
Slide 54: Footnotes
Footnotes Slide 3 1 Securities Services and issuer services managed $24.0 trillion in assets under custody and administration at December 31, 2021, of which Citi provides both custody and administrative services to certain clients related to $1.9 trillion of such assets. 2. Cross-Border Transaction
Slide 55: Footnotes (continued)
Footnotes (continued) Slide 9 1. Return on Tangible Common Equity (RoTCE) is a non-GAAP financial measure. RoTCE represents annualized net income as a percentage of average allocated TCE. Historical average RoTCE are revised to largely conform with our current TCE allocation approach and also reflec
Slide 56: Footnotes (continued)
Footnotes (continued) Slide 15 1. Source: Coalition Greenwich. As of December 31, 2021, preliminary results. Results are based upon Citi's internal product offering taxonomy and Citi internal revenues. Wallet Share based on Industry Revenue Pools. Peer Group includes BAC, BARC, BNP, DB, HSBC, JPM, S
Slide 57: Footnotes (continued)
Footnotes (continued) Slide 22 1. Based on internal estimate of wallet share data as of December 31, 2021. Slide 23 1. In Constant Dollars. Constant dollar excludes the impact of foreign exchange translation into U.S. dollars for reporting purposes and is a non-GAAP financial measure. For a reconcil
Slide 58: Footnotes (continued)
Footnotes (continued) Slide 31 1. Source: Coalition Greenwich. As of December 31, 2021, preliminary results. Addressable wallet is based upon Citi's internal product offering taxonomy and Citi internal revenues. Wallet Share based on Industry Revenue Pools. Slide 35 Note: Excludes Corporate Lending,
Slide 59: Footnotes (continued)
Footnotes (continued) Slide 44 1. The following table reflects an internal analysis to inform an attribution of the changes of Revenue to RWA ratio: Regulatory Capital Changes include changes in regulation as well as policy implementation on certain activity/assets; Macro impact on Model Calculation
Slide 60: Glossary of Terms
Glossary of Terms ACL ACLL APM AUA AUC AVG BAC BPS CAGR ccB CECL CETI 59 Allowance for Credit Losses Allowance for Credit Loan Losses Alternative Payment Methods Assets Under Administration Assets Under Custody Average Bank of America Basis Points Compound Annual Growth Rate Citi Commercial Bank Cur