beyond plastics - banking with citi | citi. · pdf filebeyond plastics jeff george ......
TRANSCRIPT
2011 GSA SmartPay® Training Conference
Beyond Plastics
Jeff GeorgeVice President, Citi
®
A Winning Hand: Solutions, Savings and Sustainability with GSA SmartPayThe 13th Annual GSA SmartPay Training Conference, Las Vegas
®
3
To ensure the best possible learning experience for participants, please adhere to the following house rules:
• Turn cell phones and pagers to vibrate• Hold questions to end of session• Ensure your participant badge is scanned to receive CLP credits− For each course− Must leave room and re-enter
• Take advantage of opportunities to provide feedback − Please select the Citi Q&A icon on any Citi PC at the conference− Answers to be e-mailed after the conference within 60 days
House Rules
Beyond Plastics
Experienced AOPC
®
4
This course is designed to assist you in achieving the following objectives:
• Learn about Citi’s non-plastic alternatives• Learn how to help drive efficiencies and
drive down costs• Learn how Citi can help analyze which
solution may work best for your agency
Goals & Objectives
Beyond Plastics
Experienced AOPC
®
5
Industry Challenges and Trends
Review Citi Products– Ghost Cards– Virtual Cards– Paylink for Cards– Procure to Pay
How Citi can help – Citi Working Capital Analytics
Agenda
Beyond Plastics
Experienced AOPC
®
1. Industry Challenges and Trends
Beyond Plastics
6
®
Beyond Plastics
Agencies face common challenges in managing payables effectively– Agencies are under pressure to reduce
expenses, increase efficiency and optimize budgets
– Agencies and their suppliers may be affected by credit constraints and their access to capital and liquidity
– Agencies are moving away from a silo approach to managing the procurement to payment cycle and budget optimization initiatives together
– Agencies are moving towards an electronic solution and automation of the supply chain
Accounts Payable and Procurement focus on the tangible tasks of managing the supply chain– Manage Supplier Relationships– Operating Efficiencies – Smooth
operations equal happy internal partners– Control – Understand and manage
processes tightly– Compliance – Ensuring that the process
follows the rules
Market Environment: The Current Challenge Experienced AOPC
7
®
8
Beyond Plastics
With improved efficiencies, shortened cycle time, and improvements in budget optimization, agencies can:– Unlock cost savings and increase efficiency: Automate payments Electronify accounts payable and any manual/paper-based processes Shorten invoice cycle time to open up working capital opportunities
– Optimize budgets, cash management, and days payable outstanding: Early visibility into cash and payables requirements Access early payment discount opportunities Purchasing Card rebates and payment terms
– Strengthen compliance and control: Put electronic controls in place (invoice matching, contract compliance, etc.)
Market Environment: The Goal Experienced AOPC
®
ACH13%
Check80%
Commercial Card2%
Wire Transfers
5%
70%
60%
50%
40%
30%
20%
10%
2006
Electronic Invoices
2008 2009 2011 2011 2012
Paper Invoices
2007
Per
cent
of I
nvoi
ces
by D
eliv
ery
Met
hod
0%* This chart only takes into account B2B invoices traded within the US
Wholesale Non-Cash Payments: 2006
Payment Automation
Wire Transfers7%Commercial
Card5%
Check68%
ACH20%
Wholesale Non-Cash Payments: 2011
Invoice Automation
PayStream and Aberdeen
Beyond Plastics
The Market is Moving to Electronic Payables Experienced AOPC
9
®
Introduction Growth Maturity Decline1 2 3 4
PayStream Advisors
Beyond Plastics
Stages of Automation Vary Experienced AOPC
10
®
Beyond Plastics
Summarizing Our Clients’ Needs Experienced AOPC
Reduce processing costs Eliminate paper purchase orders,
invoices, and checks Speed payment and invoice
reconciliation
Enhanced tracking and security of payments
Instant View of Payables Manage cash needs upon
invoice arrival Provide visibility to Suppliers Reduce risk exposure
Budget Drivers Access supplier discounts Increase card rebates Manage Days Paid
Outstanding (DPO) – limit PPI
Efficiency Control
BudgetVisibility
Improved timing, tracking, and security
11
®
2. Ghost Card
®
Beyond Plastics
12
®
13
Beyond Plastics
Features:
• Non-card account for preferred supplier relationship• Account number held by vendor• A Seller Initiated Payment • Allows many employees to purchase without issuing multiple cards• Integrates with ERP systems or Electronic Purchasing Systems
Ghost Cards – Supplier Initiated Experienced AOPC
Applications and Uses:
• Central travel airline accounts• Purchases made via internet or intranet• Elimination of low value invoices (i.e. UPS, FedEx, etc.)
®
3. Virtual Cards
Beyond Plastics
14
®
Beyond Plastics
Virtual Cards – Overview – Supplier Initiated Experienced AOPC
The Banker Technology Awards – Citi’s Virtual Card Account wins 2010 innovation in Payments Technology Award
● Non-plastic account number for purchases– The “real” billing account/card is never shared with
merchants– Unique virtual card numbers (VCNs), linked to real
card, are created for secure purchasing
● Transparent to merchant at point-of-sale– Standard 16-digit account number, expiration date,
3-digit security code created for seamless transacting by the merchant
● Virtual Card Numbers can be requested by authorized users or a system interface– Web interface, batch file, real-time XML API
What is a Virtual Card Account (VCA)?
Virtual Card Accounts (VCA) is an electronic global payment solution that offers unparalleled control and flexibility without the need to issue plastic cards
15
®
Beyond Plastics
Virtual Cards – Overview – Supplier Initiated Experienced AOPC
Security
Efficiency
Control Clients’ real card number is never shared with
suppliers VCA users can only access specific purchase types
and have individual spend limits Single-use virtual card numbers – lock-down
potential misuse
Set VCN with appropriate authorizations / controls:– Single or multi-use– Maximum amount– Validity Period– MCC Groups– Supplier
Web user interface:– Create user groups for different access types– Multi level approval flows
Policy Compliance Controls:– Issue VCNs with amount, MCC, supplier, and
date controls
Internal Controls
Merchant Controls
Real-time VCN requests and management Automated processes using the batch or XML API
interfaces Secure delivery of VCNs by encrypted email
available Streamlined record keeping with one-to-one VCN
transaction mapping Able to assign custom data fields per VCN for
simple reconciliation and reporting
16
®
Beyond Plastics
Virtual Cards – Uses Experienced AOPC
VCA is a powerful, flexible product which is used in a variety ways. There are four major categories of use which address different needs
Use of the VCA website to generate card numbers by a limited group of users
Utilize VCA controls to reduce risk for higher value payments and non-key suppliers
Centralized Payments
Utilize the VCA controls to define how, when, and where a virtual card can be used
Separate certain categories of spend to track separately from main card program
VCA Controlled Spend
Enable third party programs to make virtual card payments on your behalf
Utilize the groups on the VCA website to provide limited, controlled access to third parties and internal requestors
Third-Party Programs & Internal Workflows
Integrate VCA into your back-end systems to automatically generate single-use card numbers for every payment
Advanced Uses
Sample Use Cases
High Value Payments– Advertising Expenses– Legal and Court Fees– Telecom Expenses– Meeting and Event
Spend
Out-of-Policy (High Dollar/Infrequent Vendor) Payments
Overseas Vendors
Sample Use Cases
3rd Party Property Management
3rd Party Event Planning
3rd Party Central Travel Booking
Internal Approval Workflows and Controls (Pre-Approval to Spend)
Sample Use Cases
High Volume Payments / Disbursements– Franchise Payments– Online Travel Agents– Warranty Payments– Benefits Claims
Purchase Orders & Enhanced Reconciliation
A/P Integration
Catalog Integration
Sample Use Cases
Distressed Employees
Project Spend
Relocation/Repatriation
Recruiting Programs
17
®
Reporting Reconciliation Allocation
Improved spend monitoring and compliance with capture of purchase description, employee ID, etc.
Increased spend insight and pattern analysis from additional client-provided transaction information
Automate matching of POs or Invoices with virtual card transactions by using the PO or Invoice # as a Client Defined Field (CDF )to serve as a unique key
Export Data file from Citi GDR
Easily allocate expenses by requiring accounting code information at the time of VCN creation
Use an automated process to map expenses to general ledgers based on the custom data fields
Agency ERP Merchant
VCN request with CDFs (PO #, Invoice #, GL code, etc.)
ReportReconcileAllocate
Transaction data with CDFs
Pre-transactionPost-transaction
Beyond Plastics
Virtual Cards – How it works – AP Automation Example Experienced AOPC
18
®
4. Paylink for Cards
Beyond Plastics
19
®
● File-based payment process– Buyer initiates payment via file submission (modified EDI 820) to Citi & the
Payment Gateway– Payments settle on a master purchase card account (s)– Payment is straight through to the vendor’s bank account
● Payment Gateway– Central infrastructure where suppliers must securely register to receive
straight through payment– Matches payment detail in Buyer’s file to registered vendors without the need
for transmission of sensitive bank account details– Online portal which provides email remittance and houses payment status
and details for use by Buyer or Vendor in reconciliation process
What is a Citi Paylink for Card?
Beyond Plastics
Citibank Paylink for Cards – Buyer Initiated Experienced AOPC
Citi Paylink for Card automates end-to-end payment processing on a commercial card platform while increasing security, control, and efficiency
20
®
Security Efficiency
Control
Card number(s) is never shared outside of Buyer organization– Reduce risk of wrongful use/fraud
Sensitive bank account details are never transmitted
Buyer initiates payment to Vendor at their discretion– Eliminates uncertainty of check clearing
timeline– Eliminates uncertainty of vendor card payment
initiation
Offers consistency across electronic payment processes– Similar to ACH processing
Streamlines payment processing directly from ERP
Provides rich remittance detail via email and download from online portal for Buyer or Vendor
Reduces payment processing and handling time– Check creation, cutting, mailing– Manual keying of card account number
Removes paper (and associated costs) from payment process
Beyond Plastics
Citibank Paylink for Cards – Buyer Initiated Experienced AOPC
21
®
1. Buyer sends purchase order to supplier and subsequently receives/approves invoice
2. Buyer sends transaction instruction file to Citi
3. Citi validates file, matches supplier data and sends to Boost for authorization andsettlement
4. Vendor receives payment directly into its acquiring bank account
5. Buyer and vendor receive remittance detail
1
Purchase Order
Invoice
Supplier
ABank
Supplier
BBank
Supplier
CBank
5
2
5
3
4Buyer
Beyond Plastics
Paylink for Cards – Process Flow Experienced AOPC
22
®
Based on experience, we recommend and will help you implement the following steps to ensure a successful program
Announce implementation and directive for product use within organization– Obtain buy-in from Treasury,
A/P, Shared Services, Procurement/Sourcing
– Ensure objective is aligned: working capital gains and process efficiency
Include Payables Account/Gateway as default payment type when negotiating new contracts
Organizational Alignment
Work with Citi and partners to target suppliers appropriately– Annual spend– Historical average transaction
size data (> $10,000)– Current payment type (check)– Number of annual payments
(between 5 – 20)– Review Current payment terms
Provide contact information and work with Citi and partners to navigate suppliers’ organization to enroll
Vendor Targeting and Contact Information
Mandate enrollment to target suppliers
Provide incentive by way of expedited payment terms to target suppliers
Provide dedicated ongoing resource to work with Citi and partners to maintain and grow program
Campaign Configuration and Support
Paylink for Cards – Best Practices Experienced AOPC
Beyond Plastics
23
®
Buyer Initiated Supplier Initiated
• Buyer initiates P-Card payment by routing charge/payment detail
• Card number maintained in secure Electronic Payment Gateway database
• File-based process mimics existing ACH processes in accounts payable and ERP systems
• Buyer controls process– Timing of payment, amount,
card/account number
• Vendor impact– Eliminates need to manually process
transactions at POS terminal and retain a card number
• Supplier processes P-Card transaction by entering card details in POS/acquiring bank interface
• Card / account number communicated to vendor with each transaction, or specific card maintained by vendor
• Vendor controls process– Uses existing hardware/software/
process/reporting
– Controls timing of transaction
– Potential for vendor to modify timing/ amount, resulting in reconciliation issues
• Supplier impact– Traditional card transaction posting, payment,
allocation, and reconciliation (potentially manual)
Buyer Initiated vs. Supplier Initiated Experienced AOPC
Beyond Plastics
24
®
25
Beyond Plastics
Comparison of Non-Traditional Cards Experienced AOPC
Buyer-initiated and control of payments
Module of Citi’s P2P electronic payments platform
Consistent processing / integration
Capture recurring payments to core suppliers
Enhanced controls versus traditional ghost card approaches
Ease of integration – real-time, batch file or web user interface
Capture strategic, one-off, and large ticket purchases within card program
Card/account number communicated to vendor with each transaction, or specific card maintained by vendor
Standard transaction process – limited ability to set transaction controls
Traditional card transaction posting, payment, allocation and reconciliation (potentially manual)
Citi Paylink for Cards
File-based, buyer-initiated, straight-through payments
settled via card
Citi Virtual Card Accounts
Dynamically generated single or multiple use
virtual cards with robust controls
Traditional Ghost Cards
Card number used with traditional transaction
and reconciliation processes
®
Citi’s Extensive Product Range
Traditional Plastic P-card– Traditional Plastic Card Account with credit line.
Ideal for low to medium value purchases needed tosupport business flexibility
Ghost Card– Card Account is held in trust by a key supplier,
charged at buyer’s instructions– Ideal recurring for purchases and Catalog buy
Virtual Card Account (VCA)– Non-plastic Card Account setup for a specific amount
and timeframe, with customized control fields for automatic reconciliation
Paylink for Cards (BIPC)– File based solution to make payments by effectively
“pushing” (straight-through processing) the transaction to the supplier. Perfect to pay for large strategic purchases without showing account info while still delivering remittance information to the merchant
Low
Hig
h
Low High
Tran
sact
ion
Siz
e
Spend per SupplierVery H
ighH
ighC
ontrol
Ghost Pcard
Pcard
Virtual Card
Paylink for
Cards
Beyond Plastics
Comparison of Non-Traditional Cards Experienced AOPC
26
®
Use Area Description Examples
Reconciliation issues Lack of reporting/spend level details for multiple purchases; manual or complex processes; vendor accuracy
Volume purchases, ad hoc purchases, de-centralized purchasing like office supplies, couriers, facilities maintenance
Compliance concerns Need to enforce compliance with policies and purchase thresholds
High employee turnover, restricted commodities, large-ticket purchases (e.g. recruiting travel, software, etc.)
Risk of fraud or misuse Nature of purchase -who is making purchase, vendor, amount -create greater concerns re control
Purchases from non-core suppliers, one-time purchases, purchases for satellite offices, contractors
High transaction volume High volume transactions in certain businesses require significant efficiencies on card processing
Online ordering and bookings (e.g. travel) that support thousands of transactions daily
Inefficient manual processes
Faxed timesheets, handwritten signatures, paper checks
Temporary staffing
Beyond Plastics
Identifying Opportunities Experienced AOPC
27
®
5. Citi Procure to Pay
Beyond Plastics
28
®
Paper-Based
10 Days
30-60 Days
The procure-to-pay cycle
Electronic
Citi Procure to Pay – Overview Experienced AOPC
Beyond Plastics
The collective set of accounts payable processes that begins with the issuance of a Purchase Order and ends with payment to the supplier:
29
®
Purchase Order Management
• Automated PODelivery & Mgmt
• Contract Mgmt
Electronic Invoicing
• Supplier Connectivity• Automated Invoice Delivery
Workflow Approval
• Automated WorkflowMatching & Approval
• Reduces exceptions, errors & cycle time
E-Payables• Automated Payment via Check to ACH
• Remittance Delivery
Purchasing Card• Increased Rebate• Reduce low valuetransactions
Early Payment Discount
• Maximize Capture ofTrade Discounts
• Dynamic DiscountCapture
Supplier Financing
• DPO Extension• Improved Cash Mgmt& Visibility
Procure to Pay
Procure to PayAutomation Tools
PayablesWorking Capital Tools
Procure Pay
Beyond Plastics
Citi Procure to Pay – Payables Continuum Experienced AOPC
30
®
• Electronic Purchase Order and Invoice Processing
• P.O. and Invoice Status Reports
• Approval Routing and Workflow
• Paper to Electronic Invoice Conversion
• Contract Compliance
• Settlement via Purchasing Card or ACH
• Integration with MasterCard Payment Gateway, which provides:
– Buyer-initiated P-Card processing
– Rich Remittance Data
– Registry for managing P-Card and supplier bank account data
• Citi Supplier Finance
• Discount Management
– Dynamic Discount Management
– Standard Terms
Purchasing Card
Comprehensive supplier enablement and supplier value-added services across all modules
Invoice Automation Electronic Payment Solutions
Working Capital Solutions
Comprehensive reporting and analytics across all modules
Beyond Plastics
Citi Procure to Pay – Integrated Solution Experienced AOPC
31
®
Payment Gateway Platform
SupplierFinancePlatform
Buyer Supplier1 2
34
5
SettlementACHClearinghouse
Credit CardNetwork
ACHClearinghouse
Wire Transfer
7
Citi® Procure to Pay Portal
• Invoice Automation
• ApprovalWorkflow
• Spend Visibility
• Exception Management
• Discount Management
• Business Rule Validation
• Contract Compliance
Electronicpurchase order
Buyer receives invoices and routes for approval
Supplier receivespurchase order
Sends back invoice
PaymentInstruction
ApprovedInvoice Fileor
EnrichedACH
Buyer InitiatedPurchasing Card
6
Electronic Payment Remittances 7
Beyond Plastics
Citi Procure to Pay – How it works Experienced AOPC
32
®
• Eliminate paper
• Decrease accounts payable costs
• Reduce cycle times
Accounts Payable
• Optimize working capital
• Maximize payables discounts
• Increase audits and controls
Treasury and Finance
• Supplier management
• Price and contract compliance
• Spend analysis
Procurement
• Extend capability of ERP investment
• Decrease IT costs
• Limit interference with existing infrastructure
Information Technology
Beyond Plastics
Citi Procure to Pay – Agency Wide Value Experienced AOPC
33
®
6. How Citi Can Help – Citi Working Capital Analytics
Beyond Plastics
34
®
Background:
As described by the OMB, Strategic Sourcing is the driving force in business to business purchasing & payment
Enterprise spend analysis is critical to the success of Strategic Sourcing
Purchase to payment optimization is a Strategic Sourcing, Treasury & Accounts Payable sub-objective
Spend analysis is a key activity for best-of-breed purchase to payment optimization
Beyond Plastics
Citi Working Capital Analytics – Budget Optimize Experienced AOPC
®
36
What can Citi Working Capital Analytics do for you? Citi will mine your agency’s payables data to make specific payment
recommendations on how to improve your budget and supply chain processes
Data will be selectively enriched to provide more targeted and realistic results
Once the analysis is completed, Citi will provide a step-by-step action plan for unlocking opportunities within our Commercial Cards and Procure to Pay Solutions sets
Your agency data will also be analyzed and compared to the best-in-class organizations in your industry for increased visibility into your working capital standing
Beyond Plastics
Citi Working Capital Analytics Experienced AOPC
®
37
Control– Macro-to- Microscopic visibility into payments and timing, program and policy
compliance
Cash Flow– Extend your payables while paying your suppliers faster; take better advantage of
vendor discounts and rebates, reduce borrowing costs, and leverage card float
Efficiency– Identify the business case for electronic processing conversion to reduce the time and
the costs associated with paper-based invoicing and payments
Beyond Plastics
Citi Working Capital Analytics – Benefits Experienced AOPC
®
Citi performs an analysis to determine which areas need improvement, and provides recommendations
Evaluate Opportunity
Analyze Accounts
Payable DataBest Practice Assessment
Citi Payment Solutions ACH conversion
campaigns
Citi Supplier Finance Existing discount
capture Dynamic discounting
Citi Commercial Cards Purchase card
expansion Buyer Initiated
Purchasing Card Virtual card
Deliver Results
Implement Results &
Track Progress
Beyond Plastics
Citi Working Capital Analytics – How It Works Experienced AOPC
38
®
7. Final Thoughts
Beyond Plastics
39
®
40
Am I not able to pay supplier invoices via a card due to an approval process requirement?
Are there reconciliation issues currently with certain types of payments?
Does my agency have a large amount of one-off ad hoc spend that is paid via checks?
Am I spending a great deal of time with offline processes and manual reconciliation?
Would I like to put more controls on card usage and spend categories?
Would additional information help reconcile my agency’s accounts payables better?
Is there a spend category my agency could put on a non-traditional card product?
Some questions you may want to think about …
Beyond Plastics
Final Thoughts Experienced AOPC
®
Beyond Plastics
Jeff George Experienced AOPC
41
®
42
Thank you for attending!
Visit the Citibank Welcome Center– Level 3 – Foyer West– National Industries for the Blind will have
a display of products– Conference Slide Show – come see
yourself shine!
Visit the Citibank One-on-One Lab – Lido 3101 A/B
Visit the Citibank Mini Sessions – Lido 3001 A/B
Citi Q&A Link – Tell us your thoughts
®
Reminders Experienced AOPC
Beyond Plastics
Experienced AOPC
®®
Schedules Available at the Welcome Center Experienced AOPC
Beyond Plastics
43
®
44®
Interactive Training Events – DoD
Beyond Plastics
Citi offers on-site training at no cost for agencies meeting the required minimum participant level of 20 or more as set forth in the GSA SmartPay2 Master Contract.
Regional Citi Training Locations– Norfolk, VA– Washington, DC– Visit www.defensetravel.dod.mil/passport to view and register for these sessions
Upcoming Training– Visit www.defensetravel.dod.mil/passport to view and register for these sessions
On-site at your base or installation– 20-participant minimum– Visit www.citimanager.com/dodhome and under Resources to download the On-site
Training Request Form
Distance Learning – Video Conferences
Please e-mail us at [email protected] and a Citi training coordinator will work with you directly for on-site or Distance Learning sessions.
Experienced AOPC
®
45®
Interactive Training Events – GSA
Beyond Plastics
Citi offers Computer Based Training (CBT) via the Citi Commercial Card Learning and System Support (CLASS) in CitiManager.
Visit home.cards.citidirect.com and from the Web Tools tab select the CLASS link
Please contact your Account or Client Manager if you are interested in setting up a training session. Training can be conducted at a Citi Training Location, on-site at your office or via the Web.
Regional Citi Training Locations– Norfolk, VA– Washington, DC
Experienced AOPC
®
Terms & Disclosures
Tuesday, July 28, 2009
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.
Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate definitive written agreements. This presentation is not a commitment to lend, syndicate a financing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a commitment. Nor are we acting in any other capacity as a fiduciary to you. By accepting this presentation, subject to applicable law or regulation, you agree to keep confidential the existence of and proposed terms for any Transaction.
Prior to entering into any Transaction, you should determine, without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these risks) as well as the legal, tax and accounting characterizations and consequences of any such Transaction. In this regard, by accepting this presentation, you acknowledge that (a) we are not in the business of providing (and you are not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should receive (and rely on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting advice (and any risks associated with any Transaction) and our disclaimer as to these matters. By acceptance of these materials, you and we hereby agree that from the commencement of discussions with respect to any Transaction, and notwithstanding any other provision in this presentation, we hereby confirm that no participant in any Transaction shall be limited from disclosing the U.S. tax treatment or U.S. tax structure of such Transaction.
We are required to obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID number. We may also request corporate formation documents, or other forms of identification, to verify information provided.
Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. These indications are provided solely for your information and consideration, are subject to change at any time without notice and are not intended as a solicitation with respect to the purchase or sale of any instrument. The information contained in this presentation may include results of analyses from a quantitative model which represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof and are subject to change without any notice. We and/or our affiliates may make a market in these instruments for our customers and for our own account. Accordingly, we may have a position in any such instrument at any time.
Although this material may contain publicly available information about Citi corporate bond research, fixed income strategy or economic and market analysis, Citi policy (i) prohibits employees from offering, directly or indirectly, a favorable or negative research opinion or offering to change an opinion as consideration or inducement for the receipt of business or for compensation and (ii) prohibits analysts from being compensated for specific recommendations or views contained in research reports. So as to reduce the potential for conflicts of interest, as well as to reduce any appearance of conflicts of interest, Citi has enacted policies and procedures designed to limit communications between its investment banking and research personnel to specifically prescribed circumstances.
© 2011 Citibank, N.A. All rights reserved. Citi, Citi Arc Design, CitiDirect, Citimanager, Citibank Custom Reporting System, Citibank Electronic Reporting System, are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with a broad range of stakeholders on the issue of climate change to help advance understanding and solutions. Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.
46
®©2011 Citibank, N.A. All rights reserved. Citi, Citi and Arc Design and CitiDirect are trademarks and service marks of Citigroup Inc., used and registered throughout the world.
®