Presented by: Anthony Muh For: Shanghai Stock Exchange Asian Corporate Governance Association

1. Enhancing Competitiveness and Market Value through Corporate Governance” Local Insight Global View Presented by: Anthony Muh For: Shanghai Stock Exchange Asian Corporate Governance Association services provided by: Salomon Brothers Asset Management Smith Barney Asset Management Citibank Global Asset Management and affiliated advisory entities

2. Warsaw Global Presence Global Perspective with Local Insights • 15 investment centres and 9 global research centres located in key strategic markets London Tokyo Stamford New York San Francisco Hong Kong Singapore São Paulo Melbourne As at 30-Sep-2004.

3. Citigroup Asset Management A Snapshot Global presence • 15 investment centers and 9 global research centers located in key strategic markets • Approximately 2,600 employees in 20 countries worldwide Competitive position • US$5012 billion in client assets under management • The 9th largest asset manager based on worldwide assets1 Investment capabilities • Full spectrum of equity, fixed income, balanced and alternative investment strategies • 400 investment professionals • Sophisticated, proprietary technology combined with market experience help us manage risk As at 30-Sep-2004. 1 This ranking is based on the 2004 Pensions & Investments Money Manager Survey The investment advisory services of Citigroup Asset Management are provided by Salomon Brothers Asset Management Inc, Smith Barney Asset Management (a division of Citigroup Global Markets Inc.), Citibank Global Asset Management (a unit of Citibank, N.A. and Citibank International plc), Citigroup Asset Management Limited and affiliated advisory entities. 2 The Asset Management businesses include Citigroup Asset Management (CAM), Citigroup Alternative Investments’ (CAI) Institutional business, Banamex Asset Management and Retirement Services businesses, Koram Asset Management, Travelers Property and Casualty/Travelers Asset Management International Corporation Fixed Income business and Citigroup’s other retirement services businesses (includes Citistreet’s Retirement Services and Latin America Retirement Services businesses) in North America and Latin America.

4. The Investment Platform • Proprietary fundamental research combined with disciplined valuation framework identifies attractive investment opportunities • Portfolio Management, Fundamental Research and Quantitative Research work as a team to aim to maximise the impact of proprietary information and insights • Apply repeatable, successful processes with world-class research resources PortfolioManagement 28 teams worldwide QuantitativeResearch Over 30 quantitative analysts Fundamental Research Over 130 global equity research analysts and associates

5. Philosophy and Style “we believe by using proprietary research to define intrinsic value and combining that with shorter term earnings momentum will deliver consistent outperformance”.

6. Research is based on identification of sustainable long term cash generation 20 15 Average = 12% ROE ROE 10 5 Time Sustainable Growth Rate Historic Normalised Earnings 70 60 50 40 Operation earnings per share 30 20 10 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

7. Deriving for an appropriate discount rate Country Liquidity Country Momentum Country Risk Country Valuation Top-down Sector Bottom-up Earnings Variability Balance Sheet Earnings Forecastability

8. Corporate Governance – how it really impacts valuation? • Corporate governance a useful tool for measuring management commitment to creating shareholder value. • Various studies, including those by McKinsey (2000) and the City University of Hong Kong (2003), suggest that good governance tend to lead to lower capital costs, higher valuations and stronger stock price performance as investors appear willing to pay some premium for investments in companies that display superior corporate governance standards.

9. Defining intrinsic value Source: Internal. This is for illustration purposes only and does not represent our forecasts or any recommendation to purchase/ sell any security.

10. Ranking intrinsic value

11. Standardised Research Template Disciplined and Structured Approach to Fundamental Credit Assessment StandardisedCredit Report • Financial Analysis • Equity research template • Financial flexibility • Operating performance • Capital structure • Financial policies • Company Analysis • Industry/markets • Country of domicile • Management • Corporate structure/governance • Ownership • Event risk • Citigroup Ratings • Long-term rating • Rating outlook • Event risk • Probability rating Global High Grade Credit Research • Fundamental equity research output is the starting point for credit analysis • Financial forecasts including credit ratios • Company-specific risk analysis • Industry outlook

12. Ratings Comparison Case Study – Telecoms • For companies under coverage, CAM has been ahead of the Rating Agencies A A- BBB+ BBB For illustrative purposes only. This example should not be construed as investment advice or a recommendation to buy or sell a security. Please see endnotes for additional information.

13. Important Note The information in this presentation is of a general nature only and is not intended to be, and is not, a complete or definitive statement of the matters described in it. The information does not constitute specific investment advice and does not include recommendations on any particular securities or markets. Although statements of fact in this presentation have been obtained from and are based upon sources we believe to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions and estimates included in this communication constitute our judgment as of the date of this communication and are subject to change without notice. This presentation has not been prepared to take into account the investment objectives, financial objectives or particular needs of any particular person. Before making an investment decision you should consider, with or without the assistance of a financial adviser, whether such an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. We do not accept any liability for any direct or indirect loss arising from any reliance on the information contained in this presentation. The contents of this document may not be reproduced or distributed in any manner without prior permission by Citigroup Asset Management.