Expenses reduction and portfolio management to uncertain times.

1. Expenses reduction and portfolio management to uncertain times. Prepared by Renato Fusaro Brazil Real Estate Head Citigroup

2. Summary • Portfolio • AC versus DC • Action plan

3. Portfolio Evolution

4. Portfolio – Occupancy costs

5. AC versus DC

6. Action Plan

7. Reduce portfolio size

8. Improve space utilization

9. Improve space utilization Real Estate expense reduction per year R$ 2.613 M (rent) R$ 508 M (condominium) R$ 158 M (tax)

10. Close locations • Office consolidation JK Financial Center (R$ 90/rsm) to CEAB (R$ 45/rsm) • Rent reduction : R$ 2.167M/year • Performance analysis 30 Citifinancial Branches • Rent reduction : R$ 1.870M/year • Proximity analiysis 21 Citibank Branches • Rent reduction : R$ 4.200M/year

11. Reduce vacant space

12. Reduce vacant space

13. Renegotiate • Use appraisal to assure market rent • Start one year early • Use inflation rate increase to reduce rent • IGPM april 2003 : 32% (less R$ 1MM/year) • IGPM july 2008 : 15% (less R$ 270M/year) • Maintenance and Cleaning • Review scope : R$ 4.13 MM/year

14. Rent decrease

15. “If you don´t reduce expenses, you will be the expense to be reduced ...!!!”Thanks !!!