Redução de custos e gerenciamento de imóveis nos "tempos de ...

Expenses reduction and portfolio management to uncertain times. Prepared by Renato Fusaro Brazil Real Estate Head Citigroup Summary Portfolio AC versus DC Action plan Portfolio Evolution Branches PAEs e PABs Citifinancial 160 134 140 120 130 123 130 127 100 110 100 101 80 60 73 45 44 40

44 38 28 20 0 53 60 42 43 2005 2006 62 51 9 2003 2004 2007 2008 sept 2009 fcst Portfolio Occupancy costs 6% 3% 1% 10% 4%

44% 10% 22% Rent/Tax/Condominium Depreciation Utilities Repair & Maintenance Cleaning Contract Services Permits PSP AC versus DC Hypergrowth versus reality 500 434 450 400 334 350 300 250 200 134 150 100 50 0 9 38 2003 28 45 2004

53 234 310 210 130 130 110 123 127 2006 2007 2008 sept 73 2005 410 100 101 2009 fcst Action Plan Reduce portfolio size Rentable Square Meters 160.000 137.322 140.000 140.509 120.000 98.187 97.316

100.000 80.000 60.000 40.000 44.980 28.690 27.204 2003 2004 20.000 0 2005 2006 2007 2008 sept 2009 fcst Improve space utilization Torre Los Angeles Torre Nova York Citibank Citibank Prodam Prodam Prodam Prodam Prodam Prodam Prodam Citibank Citibank Citibank Citibank Citibank IBM IBM

IBM IBM Prodam Prodam Citibank NS Sion Citibank Citibank CAF Citibank Citibank Novo Nordisk Novo Nordisk Citibank Capgemini Capgemini Unilever Citibank Sion Info Sion Info IBM Planeta Barsa Ingram Planeta Barsa Ingram Ingram 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2

1 Torre Torino Torre Milano Price Price Price Price Price Price Price Price Price Price Price Price Price Price Price Price Price Price Price Price Citibank Citibank Rohr Hold Citibank CC Assoc CC Assoc Quintiles Brasil Ltda Quintiles Brasil Ltda Air Products Air Products Genzyne Citibank Citibank Viacom Phelphs Nickelodeon Citibank Citibank Citibank Citibank

Citibank Bco Brasil Citibank Improve space utilization Torre Los Angeles Torre Nova York Citibank Citibank Prodam Prodam Prodam Prodam Prodam Prodam Prodam Citibank Citibank Citibank Citibank Citibank IBM IBM IBM IBM Prodam Prodam Vacant NS Sion Capgemini Vacant CAF Vacant Vacant Novo Nordisk Novo Nordisk Vacant Capgemini Capgemini Unilever Vacant Sion Info Sion Info IBM

Planeta Barsa Ingram Planeta Barsa Ingram Ingram 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Real Estate expense reduction per year R$ 2.613 M (rent) R$ 508 M (condominium) R$ 158 M (tax) Torre Torino Torre Milano Price Price Price Price Price Price Price Price Price Price Price Price

Price Price Price Price Price Price Price Price Citibank Citibank Rohr Hold Citibank CC Assoc CC Assoc Quintiles Brasil Ltda Quintiles Brasil Ltda Air Products Air Products Genzyne Citibank Citibank Viacom Phelphs Nickelodeon Citibank Citibank Citibank Citibank Citibank Bco Brasil Citibank 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 Reduce vacant space Legend Citi Occupancy Vacant Third Party Reduce vacant space Batel Branch 1st floor ground floor RSM and Annual Rent 352 396 R$ R$ 95.993,40 144.000,00 396 R$ 144.000,00 748 R$ 239.993,40

396 R$ 144.000,00 R$ 95.993,40 1st floor ground floor Trianon Branch ground floor RSM and Annual Rent 833 R$ 470.665,56 417 R$ 360.000,00 833 R$ 470.665,56 417 R$ 360.000,00 R$ 110.665,56 ground floor Legend

Citi Occupancy Vacant Third Party 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 Review and Cleaning scope : R$ 4.13 MM/year R$3,50 d e z /0 9 n o v /0 9 o u t/0 9 s e t/0 9 a g o /0 9 ju l/0 9 ju n /0 9 Lease Negotiations 2007 - 2008 - 2009 m a i/0 9 a b r/0 9 m a r/0 9

fe v /0 9 ja n /0 9 d e z /0 8 n o v /0 8 o u t/0 8 s e t/0 8 a g o /0 8 ju l/0 8 ju n /0 8 m a i/0 8 a b r/0 8 m a r/0 8 fe v /0 8 ja n /0 8 d e z /0 7 n o v /0 7 o u t/0 7 s e t/0 7 a g o /0 7 ju l/0 7 ju n /0 7 m a i/0 7 a b r/0 7 m a r/0 7

fe v /0 7 ja n /0 7 M illio n s Rent decrease Without closures/negotiations Rent Paid R$5,90 R$5,70 R$5,50 R$5,30 R$5,10 R$4,90 R$4,70 R$4,50 R$4,30 R$4,10 R$3,90 R$3,70 If you dont reduce expenses, you will be the expense to be reduced ...!!! Thanks !!!