CITI CSA CREDIT CARD

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CITI CSA CREDIT CARD
London, June 26, 2006 Bert Pijls, GCG Business
Manager, Czech Republic
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CONTENT

• Who is Citibank
• Credit card market
• All on one card - Citi CSA Credit Card

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Citibank in the world

• Citibank part of Citigroup, the largest
  financial services company in the world
• Citibank the largest Consumer Bank in the world
• First branch opened in New York in 1812
• Citibank the largest Card Issuer in the world
• Global presence of Citigroup
• Countries - 100
• Profit 2005 - US 24.6 Billion
• No of customers - 200 Million
• No of employees - 300 Thousand
• Global Brand, in synch with local realities

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Citibank and Global Credit Card Market

• The largest credit card issuer in the world
• Active in 45 markets worldwide, with over 157
  million accounts
• Leadership positions in North America and many
  high-growth international markets

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Citibank in the Czech Republic

• 1991 Citibank commenced operation in CR as the
  bank focused on providing banking services to
  international corporations and large Czech
  companies and financial institutions
• 1999 CitiBusiness - Citibank started to finance
  and service small and medium sized companies
• 2001 Citibank launched personal banking
  including
• Deposit and payment products
• Credit Cards
• Personal Instalment loans
• Citibank Online Internet banking
• 2003 Citibank launched CitiGold, a range of
  services for affluent clients, a unique
  distribution system, a network of sales
  representatives
• 2005 Citibank opened its first center focused on
  SME-segment within a new Citibank branch in
  Liberec
• Citibank focuses on the following four key areas
• Higher income clients group (CitiGold Wealth
  Management)
• Clients from small and mid-sized companies
  (CitiBusiness)
• Credit Cards
• Consumer loans

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Citibank and Czech Credit Card Market

• Market innovator
• Unique concept of credit card pricing - Free for
  Life
• Unique supplementary services (Loan on phone,
  Purchase on instalment)
• Leader in co-branded cards
• CSA, Eurotel
• Issuer of best value credit cards
• Highest security due to the holders photograph
  and signature placed on
• The cards face side immediate guarantee upon
  the receipt of theft/loss report
• Fee-free stoplisting upon theft or loss
• CreditShield - optional liabilities insurance
  upon the event of permanent disability or death
• Interest-free period of up to 55 days
• No need for the opening of current account
• Annual interest rate from as low as 8.9 - 26.4

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European Credit Card Market

• Europe
• Debit cards are dominant for several reasons
• They have a very high penetration rate in most
  markets as they tend to be issued as standard to
  bank account holders.
• They are used regularly by many consumers for
  everyday purchases, such as groceries and petrol,
  due to their convenience, ease of use and wide
  merchant acceptance.
• Credit cards represent the second largest
  sector, with a share of 15 of value
  transactions.
• Credit cards are a mature sector in many
  markets, and are well established with a wide
  range of well-segmented products available.
• Credit cards are generally reserved for larger
  scale purchases than debit cards, but are used
  less frequently.

• Poland
• Market is dominated by debit cards, but credit is
  growing extremely fast (1998-2004 CAGR 78 2 to
  16 issuers in 7 years)
• Market is evolving rapidly as customers become
  more sophisticated (features, utility, pricing,
  rewards)

• UK
• With 55.3 of all credit cards, the UK market
  dominates the rest of Europe.
• Over the next few years the credit card industry
  will achieve penetration of 73 of the
  population, which will still be below current US
  levels of around 85.
• Only one in every seven new cards is issued to a
  consumer that does not already have a card.
• The consumer credit market is becoming more
  price-sensitive, due partly to product comparison
  websites. The long-term impact of this is likely
  to be an erosion of margins and reduced loyalty.

• Czech Republic
• Credit cards emerged as the most dynamic
  financial cards products between 1999-2004,
• Growing 24-fold in the number of cards in
  circulation
• Credit cards are still far behind debit card
• Only 10 of all cards in circulation are credit
  cards
• The surge in demand for credit cards reflects
  Czech consumers' rising disposable incomes.

DUE TO THE FACT THAT THE CREDIT CARD MARKET IS
LESS DEVELOPED, IT OFFERS THE HIGHEST POTENTIAL
FOR DYNAMIC GROWTH
Source Euromonitor international
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Bright future for Czech Credit Card Market

• Over the 2004-2009 period, the number of credit
  cards in circulation is predicted to grow by
  640.
• As the market for debit cards matures, the mass
  credit card market will create a new avenue for
  business growth.
• Volume numbers of credit card transactions are
  predicted to achieve the highest growth rates
  over the forecast period, well ahead of
  transaction value, numbers of credit cards in
  circulation and numbers of accounts.
• This reflects the growing trend for people to use
  their credit cards more often and for
  increasingly smaller payments.
• Credit cards in the Czech Republic will become
  tools for everyday payments, shifting from the
  previous focus on larger, more controlled
  spending patterns.
• Banks will introduce more usage benefits, as a
  means of attracting more customers.
• Card issuers will be enhancing their offering of
  co-branded cards with the aim to offer to their
  customers both, a higher added value and more
  benefits.

Source Euromonitor international
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• A Real co-branded Credit Card by
  market leaders

ALL IN ONE CARD BUY MORE, TRAVEL MORE
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Who are our customers?

• Anyone who travels abroad and values quality
  service
• Members of the frequent flyer program OK Plus
• Travelers who fly with CSA and partner airlines
• Citibank customers
• Anyone who already enjoys benefits of credit
  cards and would like to get moreadded value to
  their card

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Unique benefits of Citi CSA Card

• All On One Card
• Payment tool
• Identification card for OK Plus program
• Internationally accepted embossed MasterCard
  credit card
• 1 award mile for every 100 CZK spent on the
  Classic card, 2 award miles for every 100 CZK
  spent on the Gold card
• Welcome bonus
• 5,000 award miles for CSA Credit Card Classic
• 10,000 award miles for CSA Credit Card Gold
• Grace period up to 55 days at 0 interest rate
• Highest security on the market optional photo
  and signature on the front side of the card
• Up to three supplementary cards

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Product Value Proposition
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EXAMPLE
CSA CitiGold Credit Card holder purchases a
return ticket twice a year Minimum miles required
20 000 (Economy Class) 1. To London Ticket
price (in average) CZK 11,500 Award miles
from Citibank 230 Award miles from OK
Plus 2,000 Welcome bonus 10,000 2. To
New York Ticket price (in average) CZK
21,000 Award miles from Citibank 420
Award miles from OK Plus 8,152 Total
earned award miles 20,802 !!!
CSA Citi Credit Card holder can earn enough
award miles for a flight award within Europe!
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More benefits for travelers

• Worldwide acceptance
• Travel insurance
• Online shopping on Internet
• Convenient tool for hotel reservation, flight
  ticket booking and car rental and payment
• Secure payments abroad
• A quick and reliable credit in your pocket
• 24/7 service thru Citibank Online and CitiPhone
• Citibank Alerting Service

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Where to use

• Anywhere in the world where you see MasterCard
  logo
• In over 30 million stores, restaurants and
  service points
• In over 800 thousand ATMs
• Online shopping and bookingand, of course,
• Pay for your tickets at CSA or its partner
  airlines