Novelties in the area of credit cards

1. Novelties in the area of credit cards Press Conference Prague, March 15, 2007

2. Table of Contents • Czech republic‘s credit cards market – latest developments • Reasons for using credit cards • Trends in the area of credit cards • Citibank and credit cards market in the CR • Developments in Citibank credit cards • Citibank‘s position in the market • Novelties in the area of credit cards • Credit card affordable to anyone • Credit card accessible anywhere • Citibank GOLD credit card – new appearance

3. Developments in the credit cards market in the CR Rizwan Qazi, Director, Citibank a.s. Credit Cards.

4. Credit cards development in the CR * Zdroj: Statistiky SBK • During the last few years, credit cards have become the most dynamic sector in payment cards. • The aggregate number of credit cards issued grew 56% y/y (MasterCard data) • The number of credit cards issued by banks grew 44% y/y (SBK data) • In numbers, credit cards are still lagging behind debit cards; only 10% of all the cards that are in circulation are credit cards. • Rapidly growing demand for credit cards reflects a growing disposable income of Czech consumers.

5. Situation in the credit cards market in the CR – reasons for using credit cards • Czech credit products market was the subject of a recent survey carried out by MasterCard*. • The survey was namely focused on the perception and usage of credit cards as one of the credit products. Most frequently cited reasons for one‘s getting a credit card: The MasterCard survey was carried in November of 2006. In total, 847 males and females participated in the 1:1 ratio, age group: fm 25 to 55.

6. Credit card = security and financial freedom • The MasterCard survey findings identify credit cards as a preferred tool for financing needs. • 62% of the credit cards customers use their cards actively. • Czechs arepredominantlyusingtheir credit card for purchasing electronics (51 %), groceries and consumer goods (37 %), furniture and household equipment (23 %) and clothing (22 %). • 86% of the customers surveyed find security and financial freedom as main advantages of credit cards. • Credit cards‘ flexibility, security and possibility to use it anytime and anywhere as spontaneously stated by 56 % of the respondents. Among very often mentioned positives related to credit cards also was the option to use the no-interest period.

7. Bright future for the Czech credit cards market • It is estimated that, during the 2006-2010 period, the number of credit cards in circulation will more then double. • As the debit cards market is maturing, massive developments in the credit cards market will create new opportunities for further growth in this area. • Credit cards in the CR will become a tool for day-to-day payments, which represents a shift from an earlier emphasis that was put on more extensive, more controlled models of spending. • Banks will introduce additional users‘ benefits as a means to win over more customers. • Card issuers will enhance their product offering with co-branded cards, with the aim to offer their clients higher value added and more benefits. • Banks will enhance their distribution channels to include new and attractive ways of sale.

8. Citibank and the credit cards market in the CR Rizwan Qazi, Director, Citibank a.s. Credit Cards

9. Leader in co-branded cards ČSA, Shell, O2 Citibank Co-branded credit cards have received 3 awards from the beginning of 2007: Citi ČSA credit card = Best Novelty of 2006 (awarded by MasterCard) Shell MasterCard from Citibanka.s.= Best co-branded card from the point of view of client‘s benefits(awarded by . MasterCard) Shell MasterCard from Citibanka.s. = Best Financial Product of 2006 (award from the Computer Press publishing house) Market innovator Unique credit cards pricing program - “Free for the entire life” Unique benefits and discounts for GOLD cards holders Unique supplementary services – („Credit on Phone,“ „Installment Purchase“) Citibank‘s standing in the Czech credit cards market

10. Financial Security Differentiated level of security available in the market; Cardholder‘s photo and signature imprinted on the card‘s front side Regular monitoring of the transactions made Immediate assumption of liability by the Bank from the moment when loss/theft report is lodged Fee-free stoplisting and issue of replacement card upon loss/theft Access to online information about your account only with a Hard token No fee for blocking of the account, if lost/stolen Optional Fraud Insurance for protection against unauthorized activity on the card Citibank – Products & Services where client’s preferences are no.1 priority Best Value for the Customers • No-interest period of up to 55 days • No need to open one‘s C/A with Citibank • Wide range of optional insurances available; • Credit Shield • Hospitalization insurance • Fraud insurance • Travel insurance • Up to 3 supplementary cards for the cardholder‘s loved ones • 24-hour customer service via CitiPhone • Interest rate from as low as 9.9% p.a. • ‘Instalment Plans’ available over the phone for short and long term financing needs • Option to convert large ticket purchases into affordable smaller instalments

11. Citibank and the credit cards market in the CR • Citibank has grown faster than the market. While, year-on-year, the number of bank cards issued grew by 44%, Citibank increased the number of credit cards issued twice as much (90%). Citibank získává za své kreditní karty 3 ocenění: Nejlepší novinka roku 2006, Karta s největším přínosem pro klienta a Finanční produkt 2006 Citibank uvádí na trh kartu s Českými aeroliniemi – Citi ČSA kreditní karta Citibank jako první banka v ČR představila unikátní doplňkovou službu – Hotovost na zavolanou Citibank uvádí na trh kartu se Shellem – Shell MasterCard od Citibank Citibank jako první zavádí možnost získat kreditní kartu přes Internet Citibank uvádí na trh kartu s Eurotelem (O2) – Citi ČSA kreditní karta Citibank zavádí unikátní cenový program –kreditní karta zdarma na celý život

12. Novelties in Citibank credit cards Ondřej Moravec, Head, Citibank Credit Cards Product Department.

13. Credit cards made affordable for anyone • Citibank Classic credit card = the only card in the market that is genuinely free • Effective April 16th, Citibank waives the precondition for an annual spend of at least CZK 36,000 to qualify for no annual fee on the card.Classic Card will have NO ANNUAL FEE.

14. Credit card available anywhere In 2006 Citibank enhanced markedly its credit cards selling network. Today, Credit Cards can be applied for at: • 10 sale stands located at most important shopping malls across the CR • 21 gas filling stations (Shell MasterCard from Citibank a.s.) • 4 sale kiosks place at the Prague airport (Citi ČSA credit card) • Through networkof 45 sales agents that visit companies in CR • Through an extensive network of over 100 external sales agents • 8 Citibank branches • Via the phone • Via the Internet • The sales network consist of more than 900 external sales agents. When applying for Credit Card it will suffice to fill-out the application and submit a copy of a personal ID document.Subesquently the credit card is mailed to the applicant to his home address.

15. Citibank GOLD credit card • Citibank accommodates its clients requirements, thus, effective April, 2007, new terms for Citibank GOLD credit cards will apply: • Lowered Interest rate • Fraud Insurance Free of charge • Enhances value proposition with the “Privilege Guide” • Citibank GOLD credit cards holders will enjoy the following benefits: • Interest rate from 9.9% p.a. to 22,8% p.a.(26,4% p.a. before); • Free fraud insurancethat covers risks associated with unauthorized card transactions upon the credit card’s loss/theft up to CZK 50,000 if the same occurred within 72 hours, at the maximum, from the time when stop-listing request is received • Significant discounts (up to 20%) at partners of the Privilege Guide Program for discriminating clients (more than 60 prestigious partners from the field of fashion, gastronomy, luxury accommodation, entertainment and lifestyle) • Option to get up to twice as high discount at „Partner of the Month“ (each month, for the entire year, special campaigns will be run at selected partners of the Privilege Guide Program in the form of significantly higher discounts compared to standards offerings) • In March, the Partner of the Month will be the Beltissimo stores - 11% discount on each purchase plus an extra gift. • In April, the Partner of the Month will be Escada stores - 14% discount on any merchandise.

16. Another unique advantages of Citibank Gold Credit Cards A high credit limit up to Kc 600 000; No-interest period up to 55 days; Worldwide usage; Unique security features system available on the market • the holder’s photo and signatures imprinted on the card’s front side • regular monitoring of all card-made transactions • Immediate assumption of liability by the Bank from the moment when loss/theft report is lodged • fee-free stoplisting and issue of replacement card upon theft/loss Possibility to create own PIN code for cash withdrawals; Fee-free stoplisting and issue of replacement card upon theft/loss; Widest range of optional insurance coverage; • life insurance • hospitalization insurance • insurance against the card‘s fraudulent misuse • travel insurance Truly unique supplementary services; • Cash on Phone • Instalment Purchase Up to three supplementary cards that are provided to the core card free of charge; 24-hour Access to Credit Card via Internet or CitiPhone; On-line shopping via Internet;

17. GOLD credit cards - comparison