Citi - ICG JD

8/9/2019 Citi - ICG JD

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Securities Services & Issuer Services

IIM Lucknow Presentation

Aashish MishraJanuary 2015


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Citi India- 112 year old legacy

112 year old legacy in India1

Citi continued its leadership into a dominant market shareposition in 2014 in both Equity Capital markets and USDBond issuance

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As the largest Foreign Bank in India, Citi moves ~6% ofIndia’s payment flows, ~13% of FX flows and~8% of tradeflows

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Employer of choice to 11,000+ employees, 4500 + employeesengaged with centers of excellence (COEs) supporting global

businesses

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Over 52,000 Corporate Clients (including SME / MME /Citi Business)

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Over 1,600 large local corporate and multinational clients5

1.7 million credit card customers and 1.2 million retailcustomers

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44 Citibank branches in 28 cities across India;550+ ATMs across the country

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Represents one of the largest foreign direct investments

in financial services in India ($4 Billion + of Capital) 2

Indore

Jaipur

Hyderabad

Lucknow

Noida

Kolkata

Ahmedabad

Baroda

VapiSurat

Bhopal

Akola

Pune

Nasik

Nanded

Ludhiana

Chandigarh

Kurnool

Bangalore

Coimbatore

Kochi

Chennai

Mumbai

Bhubaneswar

DelhiGurgaon

Citibank Branch

Citi Back Offices

Centres of Excellence

Citi Non Resident Indian Offices1

Citi India Desks

Korea Desk

Japan Desk

Citi Front Offices


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Citi Structure- Securities Services & Issuer Services

Regional Consumer Banking Citi Branded Cards

Retail Banking Citi Retail Services

Global Consumer Banking Institutional Clients Group

Capital Markets OriginationCorporate and

Investment Banking

Treasury andTrade Solutions

Private Bank

Markets andSecurities Services


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Capital Markets Origination Corporate andInvestment Banking


Private Bank


MunicipalsFX and EM Local

MarketsInvestor Services

Direct Custodyand Clearing

Credit Products

Markets and Securities Services

EquitiesRetail Structured

Products

G10 Rates /Risk Treasury /

FI Finance

Global SecuritizedMarkets

Commodities

Prime Finance

Investor Services

Futures, Clearing,and Collateral

• Futures• OTC Clearing• Collateral Management

• Prime Finance• Delta One• Agency Securities Lending

• Fund Administration• Transfer Agency• Middle Office Services

Global Custody and Alternative Investor Services

• Global Custody• Private Equity Services

Global Fund ServicesPrime Finance


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Capital Markets OriginationCorporate and

Investment Banking


Private Bank


Capital Markets Origination

Debt Capital Market Syndicated Loans

Equity Capital Market Issuer Services


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SS & IS: Client and Solution Set

Specialized, but highly linked product set integrated into client solutions

I n v e s t o r

S e r v i c e s

D i r e c t C u s t o d y &

C l e a r i n g

I s s u e r

S e r v i c e s

Pensions/SWF Asset Managers HF’s, FoF, PE Insurance Cos. Central Banks

Broker-Dealers

MTF’s/Infra HFT/ Algo Trader Global Custodian

Corporate Governments Financial Institutions

Clients Products Value Proposition

Middle Office Fund Services/ TA Agent Sec. Lending Global Custody & Alternative

investor Services Prime Finance Futures, Clearing & Collateral

Settlement (cash & securities

movement in the securitiesdepository)

FX/Funding Services Corporate Actions Processing Income Processing Proxy Voting Services Market Information services

Conventional Debt Structured Finance Specialized Paying Agent Depositary Receipts

Solutions orientation, tailoredservice, best –of-breed platform Open architecture with modular

approach

Local presence in 61 markets

Deep market expertise & influence Widest network- global in-market

presence in 98 countries 5 Regional securities finance desks

Expertise in solution engineeringfor complex transactions

Supporting cross-jurisdictionECM/DCM transactions


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Investment Services Product Portfolio

Fund Services

Comprehensive fund administration, accounting,middle office and investor recordkeeping

Award winning hedge and private equity solutions

Global Custody

The world’s most extensive proprietary settlement

and cash processing network

Prime Finance

Prime Brokerage, Delta One & Securities Financeincluding Agency Securities Lending

Futures, Clearing & Collateral Management

Market access and expertise in 100+ countries

through our global network Agnostic connectivity to viable clearing houses

throughout the world

Investment services designed from an investors’

perspective

Investor Prime

Finance Custody

FundServices

Futures, Clearing& Collateral

Modular solutions tailored to firms’ specific requirements

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Direct Custody & Clearing Product

Direct Custody & Clearing provides post-trade processing for equities and fixed income

Research, Analysis &Risk Mgmt

OrderEntry &

ExecutionFinancing

Accounting, Admin &

Trustee Svc

InvestorServices

Clearing andSettlement

Custody and AssetServicing

Post-Trade Other ServicesPre-Trade and Trade

Pre-matching of settlement details (e.g., quantity,amount, date) with counterparties

Settlement (cash & securities movement in thesecurities depository)

Credit extension to facilitate settlement

FX/Funding Services

Fails Coverage Services (temporary lending ofsecurities to clients to cover settlement obligations)

Safekeeping of holdings in the local market

Corporate Actions Processing (e.g., rights, splits, tenders)

Income Processing (e.g., dividends, interest)

Tax Reclamation Services Proxy Voting Services

Cash & Liquidity Management

Market Information services

These services are provided to all Direct Custody & Clearing clients, though some clients may requiremore clearing and settlement, while others require more custody and asset servicing

Exchanging Cash for Securities (or viceversa) in Local Markets

Holding and Managing SecuritiesPositions for Clients


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Issuer Services Product Portfolio

Global A&T & DR Services

Debt Issues/MTNprogram

Mergers &Acquisitions

Project FinanceStructuredFinance

Escrow Services

Note Trustee Debenture

holders’

representative Issuing & paying

agent Security trustee Common

depositary Fiscal/Principal

Paying agent Registrar/

Transfer agent Calculation

agent

Escrow agent(cash,securities etc.)

Calculationagent

Closing agent Accounts bank Real estate

property trust

Tender agent Escrow agent Registrar Exchange

agent

Accounts bank Closing agent Paying bank Institutional

acceptancefacility agent

Trustee Paying agent Accounts bank Calculation

agent

Bond analytics Investor

reporting Transaction

administrator Back-up

servicer

Facility agent Security

trustee(offshore andonshore)

Collateralagent

Escrow agent Accounts

bank Real Estate

Property Trust

DepositaryReceipts

Citi provides issuers with an end-to-end solution to execute their strategy

Capitalmarketssolution tofacilitate tradeexecution

andsettlement Account

management&administration

Investorrelations- IRadvisory &intelligence


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SS & IS Career opportunity

Roles Snapshot of a typical day

Plan for market changes in the next quarter

Meet with SEBI & Ministry of Finance for new capital market products and related

regulations Monitor business P&L for the current month

Analyze client revenue trends to detect deviations and take corrective action

Keep a lookout on competitor activities for identifying opportunities for Citi

Present business strategy to a Global business head

Meet with top-tier fund manager to understand their market asks

Represent Citi on various committees set up by regulators and provide feedback on

expected regulations

Engage with Legal, Compliance and internal control functions for managing the product

Plan for Roadshows in next quarter to US, Europe and Japan

Call the Regional Prime Brokerage & FX Sales teams to co-ordinate Prospect pitches

Meet an Indian fund manager advising an international pension fund for client contacts

Speak with the Lead trader of an international mutual fund for India opportunities

Structure solutions for an international investor keen to invest in Indian Debt

Pull together colleagues across Equities, Debt, FX teams for structuring solutions

Engage actively with clients for managing implementations of large mandates

Jointly pitch on Level 1 ADRs along with Investment Banking or Commercial Banking teamto local corporates

Keep in touch with intermediaries like law firms, brokers, tax consultants on a regular basisfor sourcing new clients and deals

ProductManager

Client SalesManager


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SS & IS Case Studies

A multi- billion dollar pension fund wanted to take exposure in Indian equity market

Citi India helped the pension fund in obtaining an FPI licence and advised the investmentmanager on the best way of accessing India market

Citi India managed their transactions through custody & safekeeping offering, monitoredincome processing along with corporate action processing on their India portfolio

Overseas Pension Fund

A local corporate wanted to access US capital market

Citi India offered a Level 1 American Depositary Receipt program which will be listedin OTC exchange and provide the local corporate access to US equity market atrelatively low cost and practically no SEC compliance

Local Corporate

A domestic mutual fund wanted to outsource their asset and NAV valuation across30+ schemes

Citi India provided the comprehensive fund accounting and NAV valuation offering formanaging their NAV computation, reporting, corporate action servicing and incomeprocessing requirements. Further, Citi India also provided custody and safekeeping

offering for managing their capital market transactions on a daily basis

Domestic Mutual Fund

A leading hedge wanted to access Indian market with leverage

Citi’s local Delta1 desk provided a synthetic access to India while the Citi on -shoredesk helped in providing futures exposure for creating leverage

Hedge Fund


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Securities Services in India

30%Share of FII trade

volumes

50%

Custodian to 50% ofIndian asset managers

16%

No. 1 in USD / INRFX flows

13‘Top-rated’ by Global

Custodian for 13 years

Citi Market Advocacy Efforts – Key Influencer Citi India SFS Overview

Citi is the leading provider of custodial services in India

FICCICapitalMarkets

Committee

SEBI’sForeign

InvestmentCommittee

PASLA andRegulators on

SecuritiesLending

NSDL(central

depository)executivecommittee

Advisorycommittee ofNSCCL (NSE

ClearingCorporation)

Market Leadership

Dominant market share across FPIs & local mutual funds

Comprehensive suite of services – Custody, QDP, SLB, FX,Futures Clearing (Equity, Interest, FX), Fund Admin, Escrow

Won the largest fixed income & largest equity mandates in

India in 2014 with assets of over $15bn now being held by Citi Largest team of 200 people split across two cities

Client Focused Innovation

Most flexible funding and margining solutions – first to enablemargin netting and non-cash collateral for equities

First-to-market FX benchmarking, netting & 3rd party FX

First custodian QDP to enable erstwhile QFI regime

First & only custodian providing a program based securities

lending solution (OpenLend) First custodian to offer e-voting services in India

First Custodian DDP to register Foreign Portfolio Investors(FPI) in India on 1st June 2014

Awards & Recognition

Awarded ‘Best Direct Custody Bank’ for India by Asian

Investor Magazine for four consecutive years (2010-13)

‘Top rated’ by Global Custodian for consistently 13 years

100%Settlement Rate

>99%STP Rate

70%Capacity kept below 70%

2Live processing from two cities

185 AUC (USD Billion)

875,000Transactions per year

Citi SFS by numbers

SEBI’s Core

Committee ofMarket

Intermediaries


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SS & IS: Industry Recognition & Client Testimonies

“Citibank's service is unparalleled. Marketknowledge is exceptional, responsiveness

excellent and Citi has great market influence.”

“The Service provided by Citi at all times hasbeen exceptional from account statements toQuery resolution”

“Excellent service, responsiveness and giving usa feeling that they are always there”

“Citibank India demonstrated their always pro-active approach in getting the information to theclient.”

“Citibank is our preferred provider in this

market and is viewed by us as the goldstandard. They are proactive on issues andinitiatives as well as forward thinking andflexible.”

“It takes very special people to put aside theirwork or personal life to assist in helping us getour requests completed on time and in anefficient manner”

Consistently Top Rated for 13 years in Global Custodian Emerging Markets Survey

Awarded AsianInvestor's Best Direct Custody Bank in India for four consecutive years, 2010-13


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TALENT DEVELOPMENT ATCITI


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A Galaxy of Leaders

Jamie Dimon-

CEO, JP Morgan

Jerry Rao- Founder

Mphasis

Sanjay Nayar-

CEO, KKR India

Ajay Banga- CEO,

MasterCard

Gunit Chadha-

CEO, Deutsche

APAC

Antony Jenkins,

CEO, Barclays

Aditya Puri- CEO,

HDFC Bank

Pramit Jhaveri-

CEO, Citi India Mike Corbat, CEO,

Citigroup

Jane Fraser- Head

Consumer Bank N.A.

Citi

Sally Krawcheck-

Ex CEO Smith

Barney

Victor Menezes-

Vice Chairman, Citi


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The Essence

GLOBALITY

BREADTHINNOVATION


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What we stand by?

Citi works tirelessly to serve individuals, communities, institutions and nations. With 200 years

of experience meeting the world's toughest challenges and seizing its greatest opportunities,we strive to create the best outcomes for our clients and customers with financial solutionsthat are simple, creative and responsible. An institution connecting over 1,000 cities, 160countries and millions of people, we are your global bank; we are Citi.

The four key principles—the values that guide us as we perform our mission—are:

Common PurposeOne team, with one goal: serving our clients and stakeholders.

Responsible Finance Conduct that is transparent, prudent and dependable.

Ingenuity

Enhancing our clients’ lives through innovation that harnesses the breadth and depth ofour information, global network, and world-class products.

LeadershipTalented people with the best training who thrive in a diverse meritocracy that demandsexcellence, initiative and courage.

Citi Mission Statement and Principles:


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MANAGEMENT ASSOCIATEPROGRAM

M t A i t P


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Management Associate Program

A-Max - 14Day Induction

for allManagement Associates

Cross -functional

rotations

InternationalTraining

program -MAGIC

Networking

Opportunities

Final Role

Allocation

2 Year Program


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Thank

You

Documents

Citi - ICG JD