Sales and Service Transformation Leads to Exceptional Performance STEP Up! Sales and Service Transformation Leads to Exceptional Performance STEP Up! provides our people with the tools to drive business success through sales and service excellence. It is a transformational way of doing business that defines and trains consistent national processes.

Why STEP Up!? STEP Up! is what we need to Improve on 2008 Performance Consistent approach to achieving exceptional performance with identified best practices Straightforward clear operating model, every branch, every day, all the time Detailed process guidance to support the team on the one best way to execute Inspection system with standards that are defined and well-articulated STEP Up! answers a question central to our business: how do we help all of our folks – currently performing at all different levels - be more successful. If we can answer this challenge, the bank – the company -- will be more successful. As good as our results have been, we know we’re not perfect, and we know we can do better. STEP Up! is a transformational program -- not a tweak to our processes or the way we structure our business. It is a program by the field, for the field, designed to bring out the best performance in everyone. It captures the best practices in sales and service as identified by some of our top achievers, so everyone can develop the skills and strategies they need to drive our shared success. Sales and Service Transformation Leads to Exceptional Performance

What is STEP Up!? Tool to Improve Sales & Service Performance Consistent National Process Specific Activities & Frequencies Inspection & Accountability Investment that will support and enable execution Training & Communication Tool kit Inspection Process What STEP Up! is Not Not invented in Court Square Not just a message to do more Not a one-time event STEP Up! is a way of life that we will be living and breathing. It is not a one time event, or campaign. In short, it’s a way to consistently apply what we know to be is the best practice for something, and apply it in every branch, everyday. There are many things that happen every day, to which we say, “that shouldn't have happened.” There are also many instances in which we say, “that really works. If we could do it this way every day, we’re really getting somewhere.” Through the development of STEP Up!, we captured those things that really work, documented them, and codified processes that ensure we use them. With our launch of STEP Up!, we are beginning the process of communicating, training, enforcing and inspecting upon those best practices. It’s how we do business. Sales and Service Transformation Leads to Exceptional Performance

Where Did STEP Up! Come From? Field Feedback Accelerated Development Timeframe 8/12 – 14 Division Sales Directors 8/19 – 22 Field Participants 9/9 Division Managers – 1st Draft 9/11 Senior Team – Green Light 10/6 Division Managers – Final Review Working groups representing all divisions and all job families came together in meetings in August. STEP Up! is the product of their work, of their definition of the best practices that lead to sales and service excellence. In late October, our field leadership team came together to train on this new process and to define how we will embed STEP Up! across the business to maximize return. Sales and Service Transformation Leads to Exceptional Performance

Cross Functional Division Teams Personal Bankers Business Bankers Area Directors AODs and Assistant Branch Managers The cross-functional division teams came together with one goal in mind: to define our process in such a way that the organization is substantially improved and positioned to take advantage of unique market opportunities. Branch Managers Commercial Banking Sales and Service Transformation Leads to Exceptional Performance

How Was STEP Up! Developed? Core Tasks Documented Top Seller & Manager Techniques Core Tasks Agreed Standards Documented Best way to Execute in the Process guide Meetings Communications and Team meetings Branch visits and performance reviews Business reviews Sales & Service Activities Sales activity planning Telemarketing and National Call Nights Outbound sales POS utilization Micromarketing Lobby and line management In-Branch activities Coaching Administrative Activities The color coding highlights how the program identifies Core Tasks for each category of work. Everybody will understand what their role in STEP Up! will be. STEP Up! considers the core tasks that must occur in every facet of the business, from meetings and coaching, to the way we handle branch administration. Sessions / Account Opening Sales and Service Transformation Leads to Exceptional Performance

How Does STEP Up! Fit in? Inspect Plan Activities Manage Activities Sales & Service Activities + Process Guides & Standards + Inspection Plan Activities Weekly, Monthly, Quarterly, Annual Manage Activities Daily Huddle, Midday inspection, EOD recap Telemarketing (LMS), Outbound Leverage POS Micro-Marketing Events Leverage Partnerships Action X Frequency = Results Recognize & Reinforce Provide Coaching & Training Observation & Feedback (RTSS) Success Share Measure Sales Dashboards Activities MIS CitiMax Assessment Worksheet Teller / CSR Referral Tracker Inspect We’re familiar with many of these activities, but the key difference in STEP Up! is the addition of the inspection piece. We inspect, then recognize and reinforce best practices performance. When we share expectations clearly, it becomes easier to measure results, and follow-up to make sure it’s being done everywhere. Sales and Service Transformation Leads to Exceptional Performance

Commercial Banking Interaction STEP Up! also launches for CB Team on Jan 1 Kickoff timing is December – Retail Management Will be Invited Includes: Retail Partnership Sales & Service POB calls with Branch Managers, BBs, and Citi@Work RMs COI development, events, local community groups/businesses Joint calling with Branch Staff Coaching & Mentoring Sharing best practices and product expertise Field Activities Introduce Branch Manage, BB, Citi@Work RM to new to bank customers Share pipeline reports with Retail Area Managers Email Branch Manager/BB on changes in customer relationship – line/loan increases or services issues Share best practices RM, BDO, CB AD Standards Sales and Service Portfolio/Production Reviews Visit two Top 50 Customers weekly Strengthen internal product and business partnerships Field Activities Pre-call planning presentations Development Product Training Joint POB calls with CB Area Director / Division Manager Are we only asking the branches to do this? No. We all feel better when we’re all in it together. Commercial Banking is committed to putting a common structure in place, so when the branches are speaking one language, they’re not speaking a different language. For the RMs, BDOs, CBs, AMs, here are the standards that they are going to live up to, so we’re all on the same page. Sales and Service Transformation Leads to Exceptional Performance

How do We Know this Works? Our Best Sellers & Managers Top Sellers 6X to 10X productivity 20% - 35% Lift In Institutions that Have Implemented This Type of Program Every year we show the results of the top performers at our Citi Stars event. We think a large part of their being top performers is that they’ve got their arms around best practices. At the end of 2007 – rolling out Citimax, nobody ever believed that a new compensation plan is really about people making more money. Our people were skeptical that Citimax would deliver. When we look at 2008 results, Citimax made a huge difference in our performance, and will continue to make a huge contribution as we go into 2009. By working together, implementing the core practices outlined in STEP Up!, we can deliver on our goals. There will be a learning curve, just as there was with Citimax, but we’ll get through it, and deliver results just as we have with Citimax. Sales and Service Transformation Leads to Exceptional Performance

What Goes Away / Improves – Highlights We’re Looking at HR, Finance, Operations, Micromarketing…Everything Project Liberty 1 and 2 HR – New Employee Onboarding – GEID, SOEID, RITS ID, Email, LAN Access Communications Division Meetings Limited to Three Hours Weekly Weekly CitiMax Area Director Meeting Eliminated Simplified MIS, Easier to Use, More Clickthroughs Micromarketing – MasterCard Purchasing Card, in Pilot, to Eliminate Diners>T&E>Approval Complications and provide Immediate Payment Capability …More to Come STEP Up! should not be a bureaucratic burden to anyone. It is there to improve performance. It is there so we can spend more of our time in the field, so that our folks can spend more of their time talking to customers and working on valued based activities. Sales and Service Transformation Leads to Exceptional Performance

How Can You Help? Champion STEP Up! Don’t Underestimate Change Management Focus on Inputs / Activities, Not Just Outputs High Performers as well as Lower Performers Inspect Launch with Your Teams – Videos available 11/6 We need you to be champions of this. We need you to say, “this is mine.” This is my process. It may be a national program, but it belongs to all of us. Don’t underestimate how difficult this will be. People hold onto things for a long time Change is hard Often we fool ourselves into thinking that only the lower performers need attention. The highest performers can also do better. This is a program designed to bring out the best performance in everyone. Sales and Service Transformation Leads to Exceptional Performance

Building a Customer-Centric Culture. When service is the foundation of our organization, everything exponentially gets better. We’re the leaders, we set the tone We’ve been challenged by Terri Dial to improve our customer experience. We have the talent to win the hearts and minds of our customers. Sales and Service Transformation Leads to Exceptional Performance

Where Should We Focus? Problem Incidence increased in both syndicated and proprietary studies 33% of Citibank customers reported experiencing a problem Most frequent problems revolve around policy-driven issues and poor service in interpersonal interactions Problem Resolution has increased but improvement still needed 34% of all problems remain unresolved compared to industry average of 25% On average, Citibank customers have to wait 11 days to get problems resolved which is substantially higher than the industry average of 6.2 days In-Person Transactions represent the greatest opportunity for us Below industry average in ’08 Courtesy and Friendliness show our largest gap versus the competition All great teams look at how they can improve processes – how they can get better as a team. Here are the three areas we should focus on: Problem Incidence is an area of opportunity for us. Project Liberty has helped us here, but there’s more to do. Problem Resolution – we’ve made progress, but we can’t have 34% of our problems remaining unresolved. Especially when we compare it to the industry benchmark of 25% -- we can do better. In Person Transactions. You’ll see in the chart at the bottom that this is the largest gap in our service. We own and control these things . . . Together, we can solve them. Index Weights Industry Mean Citibank Wtd. Gap In-Person 40.5% 7.98 7.80 Amount of time spent waiting 21.3% 7.57 7.36 85 Speed of completing the transaction 16.0% 7.87 7.62 76 Courtesy and friendliness of the teller/representative 29.3% 8.11 7.78 182 Knowledge of the teller/representative 15.4% 7.76 7.48 82 Range of services that can be performed 18.0% 7.65 58 Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance 13

How do we Build a Customer-Centric Culture? Brand Purpose and Beliefs “What we believe” We are relentless in driving winning performance for our clients and our franchise any time, anywhere. Shared Purpose, Guiding Values and Principles “What we value” We are relentless in partnering with our customers... building lifetime relationships... one customer at a time... to anticipate and meet customers’ needs... We always start with the customer’s needs and have a desire to surpass their expectations . . . We are determined to win for our customers and company. . . We create an easy and inviting place for our customers to do business Customer Experience Model “Our Promise to our Customers” W 3 Driven by Nine Action Principles Moments of Truth “How we execute on the Promise” Always Make the first Move (Connect in a great Way) Every Complaint is an opportunity (Recover with your heart) Lifetime Customer relationship (Build Loyal Fans with dare) Client success is our success Build long-term relationships Anticipate client needs Be approachable and connect Offer solutions “Woo” Engagement “Wow” Resolution “Win” Loyalty We’ve been given license from the very top of the organization to build a customer- centric culture. BRAND PURPOSE From the highest levels of the company to every business Citi operates: client success is our success. SHARED PURPOSE – CBNA -- this is our level This is about what we value as a team. Three times in one sentence we talk about the customer, and this is not by accident. CUSTOMER EXPERIENCE MODEL: (see next slides for detail). The new training program, Ultimate Secrets, will position us for the future. MOMENTS OF TRUTH: Where the rubber meets the road. Every year we have 1.2 billion opportunities as a team create these moments. Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance

A Balanced Customer – Centric Model Clear, Consistent Customer-Centric Strategy for the Business Unified message, proven training, Process improvement Discipline Consistent Balanced Approach to Running the Business Balance across our key drivers Accountability for Results Clear expectations, internal and external metrics Each company creates a unique customer experience through a set of five inter-related aspects of their business. It’s all about balance – The Five “P”s All these things have to be focused on the customer. We do this by thinking about: - How we speak as leaders to our folks -- the language we use. - How many times do we talk about sales versus service? One out of two? One out of Three? Our people will take the hill with us, but we have to talk about what matters with a balanced perspective. Sales and Service Transformation Leads to Exceptional Performance 15

Ultimate Secrets – A Catalyst for Cultural Change Program adopted across multiple organizations within the US and Globally – building towards a common language and customer experience 26,000 Citi Employees have been trained between March 2006 – August 2008 Ultimate Secrets is a cultural change in the way we interact with our clients Directly links and reinforces Client First, Shared Values and One Citi branding The Customer Interaction Model is based on a relationship vs. a transaction Simple, easy to understand, and proven training experience Incorporates the best concepts from iconic brands like the Ritz-Carlton, FedEx and Singapore Airlines Supports the “One Citi” vision Creates a consistent, branded service delivery across multiple touch points including branches, back office, call centers, etc. Links to overall Citi Business Strategies and drives Quality Metrics Net Promoter Score, Loyalty Factors, mystery shop, external benchmarks Supports better Problem Resolution at first point of contact – a key opportunity for Citi Why Ultimate Secrets? One customer, one customer experience globally. Brings a message home that we can unite around one program. A program was rolled out in Asia Pac. We brought that over, and it’s everything we want and need, and it takes us to the next level. Let me be clear that this is for every part of our business (front, middle, back). Our teams in the back office have already started and we know from their feedback that this will set up apart from our peers. Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance

Customer Experience Progression Model LOYALTY To Secure LOYAL Customers “WIN” Service RECOVERY To Improve RETENTION Of Customers “WOW” Customer ENGAGEMENT To Better ATTRACT Customers “WOO” Referrals Portfolio Growth Build Relationships New and Existing Engagement: The “woo-ing” phase, building relationships and connecting with our customers. Service Recovery – doing it right the first time, problem resolution in real time, and wow-ing the customer. Customer Loyalty – winning their hearts and minds – getting the referrals, gaining and keeping customers for life. Better Deeper Greater Share of Mind + Share of Wallet + Share of Heart Relationship Profitability = Quality + Longevity Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance

What are the Nine Action Principles? Ultimate Secrets centers around Nine Action Principles comprised of our promise to the client and creating the foundation to Woo, Wow and Win with every interaction, every day with our clients! P roject Professionally R espond Actively O bserve Intently M ake Personal Connections I dentify Service Gaps S olve Issues Promptly E stablish Emotional Bond M eet Unexpressed Needs E ncourage Commitment There are nine principles that drive the behavioral components around Ultimate Secrets. If you look down the page, you can see that the 9-principles spell out “Promise Me “. This is our promise to our customers. Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance 18

Service Secret # 1: WOO The Customers Mission To ATTRACT Customers By Establishing Immediate Rapport and Initiating Meaningful Customer Conversations Action Principles PRO Please Reach Out 1. Project Professionally 2. Respond Actively 3. Observe Intently Connect In A GREAT Way Check Your Image Assess Satisfaction Radiate Interest Thank Warmly Greet First Extend Help Establishing relationships and business rapport. Reaching out and connecting with them. The “Action Principles” in each of these slides are the key customer expectations. See models below that are used in Ultimate Secrets training. Check Your Image Connect In A Great Way VISUAL: How You Look VERBAL: What You Say VOCAL: How You Say It Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance

Service Secret # 2: WOW The Customers Mission To RETAIN Customers By Providing Delightful Experiences And Delivering A Sustainable Value Proposition Action Principles MIS Make It Special 4. Make Personal Connections 5. Identify Service Gaps 6. Solve Issues Promptly Apply the FEEL Skills Recover With Your HEART Feel Their Pain Hear Out Retaining our customers for a lifetime. Doing it right the first time and making it special. To create that memory, we need to Make It Special. Two models used in the training: FEEL skills and “HEART.” Empathize Sincerely Live In The Moment Accept Shortcoming Express Your Concern Regain Trust Take Action Eliminate TDIs Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance

Service Secret # 3: WIN The Customers Mission To Secure LOYAL Customers By Establishing Deep Connections And Creating Reciprocal Lifelong Relationships Action Principles EME Exceed My Expectations 7. Establish Emotional Bond 8. Meet Unexpressed Needs 9. Encourage Commitment Apply the CARE Skills Build Loyal Fans With DARE Delight Each Moment Keeping the customer connection meaningful over time. Clients have an expectations around these key Action Principles – to go beyond what’s merely expected. You can see from these and the other models like “CARE” and “DARE,” that this training is very unique. It creates a bond between the customer and our employees. Choose Your Attitudes Express Your Gratitude Ask for Negative Feedback Exceed Expectations LIFETIME CUSTOMER RELATIONSHIP Accept Responsibility Reflect Positive Energy Recover Service Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance

Citibank Client Services (CCS) Results Business Group FY’07 (Top Box) Aug ‘08 Movement Client Escalation Unit 38.4% 55.3% Up 16.9% TeleSales 48.4% 70.7% Up 22.3% Premium Client Services 52.5% 73.5% Up 21.0% Business Banking Client Services 50.6% Up 22.9% Primerica 62.3% 75.7% Up 13.4% Internet Client Services 44.7% 56.0% Up 11.3% New Account Servicing 34.9% Up 21.1% New Account Opening 56.2% 57.1% Up 0.90% Results: 20% improvement in Top Box Rep Sat 53% (Jul’07)  73% (Aug’08) Results: 20% improvement in Top Box Customer Satisfaction 44% (Jul’07)  64% (Aug’08) These are the results These are significant moves in a very short period of time. Every one in the group experienced a significant lift. Anecdote: Vendor who administers the survey called us half way into the survey, astounded at the positive upswing in the results from previous surveys. On April 1, 2008, we moved from a five point to a ten point scale to line up with Cards and Mortgage. Our goal is currently 64%. Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance

Next Steps Ultimate Secrets Training for CBNA Leadership Revise existing programs and service measurements to align with Ultimate Secrets Refine internal metrics to be statistically valid and random 1Q ’09 Revise Mystery Shop categories and questions to align – Target 1Q ’09 Revise Real Time Feedback categories and questions to align – Target 1Q ’09 Develop a “Meeting in a Box” to launch program to field 1Q ’09 Create training plan and schedule for full in the branches Determine best strategy for implementation Develop metrics and tracking to monitor progress Next Steps: Ultimate Secrets Training for CBNA Leadership Targeted for 1Q09: Revise existing programs and service measurements to align with Ultimate Secrets: Refine internal metrics to be statistically valid and random Revise Mystery Shop categories and questions to align Revise Real Time Feedback categories and questions to align Develop a “Meeting in a Box” to launch program to the field for 1Q09 Create training plan strategy for implementation, and metrics/tracking to monitor progress. Sales and Service Transformation Leads to Exceptional Performance Sales and Service Transformation Leads to Exceptional Performance 23