Citigroup ADR Mid Year 2004 Report 1 First Half 2004 Depositary Receipt Capital Raising Reaches $2.5 Billion With Continuing Momentum Driven by Asia/Pacific.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Emerging market activity underlies volume increase of 42% and trading value increase of 87% over 1st Half of 2003 Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. (NYSE NYSE See: New York Stock Exchange :C) today reported that year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. capital raised in the form of American Depositary Receipts American Depositary Receipt (ADR) Certificates issued by a US depository bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. (ADRs) by non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. companies through June June: see month. 23rd was $2.5 billion, with Asian companies accounting for 100% of the total. This momentum continues a trend seen in the second half of 2003, with emphasis on Asian companies in the technology and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. sectors. The $2.5 billion figure represents a 502% increase over the same period in 2003, when markets were suppressed sup·press tr.v. sup·pressed, sup·press·ing, sup·press·es 1. To put an end to forcibly; subdue. 2. To curtail or prohibit the activities of. 3. by the SARS virus crisis in Asia and a period of market uncertainty globally. Taiwan's AU Optronics Optronics, or optoelectronics in its less abbreviated form, is the science and technology making use of optics and electronics. It is sometimes synonymous with photonics, however the latter has a lesser emphasis on electronics. Corp. topped the list, raising $480.0 million. Other sizeable capital raisings included transactions by Semiconductor Manufacturing International Corp. (SMIC SMIC Salaire Minimum Interprofessionnel de Croissance (French: guaranteed minimum wage) SMIC Semiconductor Manufacturing International Corp (Shanghai) SMIC Side Mount Intercooler , China, $475.4 million), plus HannStar Display (Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan , $301.6 million), plus ProMOS Technologies (Taiwan, $271.4 million), China Telecom (China, $251.1 million), United Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. (Taiwan, $204.3 million), Macronix International (Taiwan, $173.3 million), Chunghwa Picture Tubes (Taiwan, $132.0 million), Tom Online (Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , $91.3 million), and Associated Cement Companies The Associated Cement Companies Limited(ACC) is an Indian company in the cement manufacturing business. Its registered office is called Cement House. It is located on Maharishi Karve Road, Mumbai. It is a blue chip company. (ACC See adaptive cruise control. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. , $40.0 million). "Overall, the continued momentum in capital raisings for Asian companies represents a trend that's going to continue," said Sanjeev Nanavati, Managing Director of Citigroup Depositary Receipt depositary receipt A negotiable certificate that represents a company's publicly traded debt or equity. Depositary receipts are created when a company's shares or bonds are delivered to a depositary's custodian bank, which instructs the depositary to issue Services. "We are particularly pleased that Citigroup was the depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. of choice for companies generating 46% of the capital raised using depositary receipts (DR) in the first half of 2004." May 2004 year-to-date DR trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. was 16.9 billion shares, up 42% over the same period last year, and trading value was $396.6 billion, an 87% increase. By contrast, for the U.S. market (excluding DRs), May 2004 YTD See Year-to-date. YTD See year to date (YTD). trading volume was 344 billion shares, up 18% from last year, while May 2004 YTD value is projected to be $8.8 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. , an increase of 40% from 2003. This increased investor appetite for non-US stocks was reflected in a 28 percentage point spread between the 61% YOY YOY Year Over Year YOY Year On Year YOY Young of the Year YOY Yield on Year increase in U.S. investment in non-US equities between 1Q2003 and 1Q2004, from $1.27 trillion to $2.04 trillion, and the 33% YOY increase in the S&P 500 Index over the same period, from 848.2 to 1,126.2. The 42% growth in trading volume was primarily driven by the Asia/Pacific region, but all regions showed significant year-on-year gains. Growth in DR Trading Volume Worldwide (Volume in millions)
May May
Region 2003 2004
YTD YTD% Change
Asia/Pacific 2,127 4,500 111.6%
Latin America 1,669 2,400 43.8%
Western Europe 6,845 8,578 25.3%
CEEMEA* 1,258 1,418 12.8%
Total World 11,899 16,895 42.0%
Source: NYSE, NASDAQ, and AMEX, Bloomberg Financial Markets
*Central, Eastern Europe, Middle East & Africa
The 87% growth in trading value was paced by the emerging markets. Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). also had a strong 51% increase over last year. Growth in DR Trading Value Worldwide (Volume in US$ millions)
May May
Region 2003 2004
YTD YTD% Change
Asia/Pacific 27,518 94,312 242.7%
Latin America 25,020 57,841 131.2%
CEEMEA* 23,809 39,290 65.0%
Western Europe 136,230 205,160 50.6%
Total World 212,578 396,602 86.6%
Source: NYSE, NASDAQ, and AMEX, Bloomberg Financial Markets
*Central, Eastern Europe, Middle East & Africa
Greatest Increases Seen in Technology and Media Sectors Industry sector analysis reveals that the strongest growth in DR trading value worldwide over 2003 occurred in Technology, with a 176% gain to $51.3 billion, Media, with a 145% gain to $16.1 billion, and Chemicals & Pharmaceuticals, with a 124% gain to $63.1 billion. The large Banking sector had a 17% YOY decline in trading value. DR Trading by Sector
% %
Change Change
Sector in in
Value Value Volume
May 2004 over Volume over
YTD May May 2004 May
(US$ 2003 YTD 2003
billions) YTD (Billions) YTD
Technology 51.3 176% 3.4 82%
Media 16.1 145% 0.5 79%
Chemicals and Pharmaceuticals 63.1 124% 2.3 85%
Business & Public Services 18.8 111% 0.8 34%
Telecommunications 95.3 97% 4.4 27%
Mining and Metals 26.9 76% 1.3 23%
Energy 62.1 63% 1.5 34%
Banking 17.1 -17% 0.7 -3%
Sub-Total 350.7 90% 14.9 44%
Total All Sectors 396.6 87% 16.9 42%
Source: NYSE, NASDAQ, and AMEX, Bloomberg Financial Markets
Appetite for Non-U.S. Equities Continues to Grow Among U.S. Investors According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the U.S. Federal Reserve, total U.S. investment in non-U.S. equities (both DRs and non-U.S. shares) increased by $91 billion (4.7%) during the first quarter of 2004 to $2.0 trillion, an all time record high. Increasing asset values accounted for $71 billion of the total increase, while net capital inflows accounted for $20 billion. U.S. Investment in Non-U.S. Equities (DRs and Ordinary Shares) Net Cash Flow (US$ billions)
US Investment Change Due Due to Change
in Non-US to Capital Asset Net
Year Equities Flows Values Change% Change
1996 1,003
1997 1,208 57.6 147.4 205.0 20.4%
1998 1,476 101.3 166.7 268.0 22.2%
1999 2,004 114.3 413.7 528.0 35.8%
2000 1,853 106.7 (257.7) (151.0) (7.5%)
2001 1,613 109.1 (349.1) (240.0) (13.0%)
2002 1,345 17.7 (285.7) (268.0) (16.6%)
2003 1,949 91.3 512.7 604.0 44.9%
1Q2004 YTD 2,040 19.6 71.4 91.0 4.7%
Source: U.S. Federal Reserve, "Flow of Funds Accounts of the United
States," June 10, 2004
Citigroup has also found that individual investor appetite for non-U.S. equities continued to grow through self-directed self-di·rect·ed adj. Directed or guided by oneself, especially as an independent agent: the self-directed study of a language. self mutual funds. According to the Investment Company Institute, nearly $25 billion flowed into international equity mutual funds (both DRs and non-U.S. shares) during the first four months of 2004, equivalent to 33% of total U.S. equity mutual fund inflows. In 2003, nearly $21 billion flowed into international mutual funds, accounting for 16% of total equity mutual fund inflows. Growth in Self-Directed Mutual Funds with non-U.S. Equities (DRs and Ordinary Shares) Net Cash Flows (US$ billions)
April
Fund Type 2004 FY
YTD 2003
All Equity Funds 108.4 152.8
Emerging Markets 2.6 3.5
International Developed (1) 19.2 15.1
Regional Equity (2) 3.1 2.0
Total Int'l Funds 24.9 20.6
Global Equity 7.9 2.9
Total U.S. Equity (3) 75.6 129.2
Source: Investment Company Institute
(1) Excludes global funds that include both U.S. and non-U.S.
equities.
(2) Includes both developed and emerging market regions.
(3) Excludes global and international equity funds.
For more information on Citibank CITIBANK First National City Bank DR programs, as well as industry trends and developments, please visit citigroup.com/adr. About Citigroup Depositary Receipt Services Citigroup Depositary Receipt Services is a market leader in bringing quality issuers to the U.S. market and promoting American Depositary Receipts as an effective capital markets tool. Citibank began offering ADRs in 1928 and today is widely recognized for providing non-U.S. companies with a gateway to the world of resources Citigroup has to offer. In addition, our financial strength and global presence provides clients with access to Citigroup's on-the-ground presence and in-depth in-depth adj. Detailed; thorough: an in-depth study. in-depth Adjective detailed or thorough: an in-depth analysis knowledge of 90 local markets. Depositary Receipt Services is a business line within Citigroup(R) Global Transaction Services, a leading provider of integrated cash management, trade finance and securities services for corporations, financial institutions, intermediaries and governments around the world. With over $ 115 billion in average liability balances, more than $ 6.7 trillion in assets under custody and the largest proprietary branch network, Citigroup's award-winning operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. and Internet-based delivery channels enable clients to manage and monitor working capital and investments more efficiently, streamline transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. cycles, and re-engineer receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed and payment processes. Citigroup(R) Global Transaction Services provides clients with access to Citigroup's full range of capabilities and solutions along with an on-the-ground presence and in-depth knowledge of more than 90 local markets. For additional information, see www.transactionservices.citigroup.com About Citigroup Citigroup (NYSE: C), the preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae global financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. , Banamex, and Travelers Life and Annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. . Additional information may be found at: www.citigroup.com. Top 20 Cross-Listed DRs by Trading Volume - May 2004 YTD
Issuer Country Exchange Ticker Volume
(mill-
ions)
1 Nokia Corporation Finland NYSE NOK 1,496
2 Elan Corp plc Ireland NYSE ELN 819
3 Taiwan Semiconductor
Manufacturing Company Ltd. Taiwan NYSE TSM 703
4 LM Ericsson Telephone Co. Sweden NASDAQ ERICY 433
5 Durban Roodepoort Deep Ltd South Africa NASDAQ DROOY 430
6 ASML Holding, NV Netherlands NASDAQ ASML 374
7 BP plc U.K. NYSE BP 362
8 United Microelectronics
Corporation (UMC) Taiwan NYSE UMC 353
9 AU Optronics Corp. Taiwan NYSE AUO 334
10 Royal Dutch Petroleum Company
N.V. Netherlands NYSE RD 333
11 Bookham Technology plc U.K. NASDAQ BKHM 330
12 Vodafone Group plc U.K. NYSE VOD 302
13 Teva Pharmaceutical Industries
Ltd. Israel NASDAQ TEVA 289
14 Senetek plc U.K. NASDAQ SNTK 272
15 News Corporation Limited, The Australia NYSE NWSA 223
16 Alcatel S.A. France NYSE ALA 210
17 Telefonos de Mexico S.A. de C.V. Mexico NYSE TMX 203
18 Gold Fields Ltd. South Africa NYSE GFI 191
19 SAP Aktiengesellschaft Germany NYSE SAP 189
20 America Movil, S.A. de C.V. Mexico NYSE AMX 183
Source: NYSE, NASDAQ, and AMEX, Bloomberg Financial Markets
Top 20 Cross-Listed DRs by Trading Value - May 2004 YTD
Value
Issuer Country Exchange Ticker (US$
mill-
ions)
1 Nokia Corporation Finland NYSE NOK 26,830
2 Teva Pharmaceutical Industries
Ltd. Israel NASDAQ TEVA 18,283
3 BP plc U.K. NYSE BP 18,265
4 Royal Dutch Petroleum Company
N.V. Netherlands NYSE RD 16,208
5 Elan Corp plc Ireland NYSE ELN 13,012
6 LM Ericsson Telephone Co. Sweden NASDAQ ERICY 11,516
7 SAP Aktiengesellschaft Germany NYSE SAP 7,620
8 Vodafone Group plc U.K. NYSE VOD 7,562
9 Taiwan Semiconductor
Manufacturing Company Ltd. Taiwan NYSE TSM 7,321
10 News Corporation Limited, The Australia NYSE NWSA 7,285
11 Telefonos de Mexico S.A. de C.V. Mexico NYSE TMX 7,013
12 GlaxoSmithKline plc U.K. NYSE GSK 6,965
13 ASML Holding, N.V. Netherlands NASDAQ ASML 6,894
14 AU Optronics Corp. Taiwan NYSE AUO 6,474
15 America Movil, S.A. de C.V. Mexico NYSE AMX 6,342
16 Total Fina Elf S.A. France NYSE TOT 5,352
17 AstraZeneca Group plc U.K. NYSE AZN 5,336
18 Petroleo Brasileiro S.A. -
Petrobras Brazil NYSE PBR 5,230
19 News Corporation Limited, The Australia NYSE NWS 5,188
20 VimpelCom, Open Joint Stock
Company Russia NYSE VIP 4,586
Source: NYSE, NASDAQ, and AMEX, Bloomberg Financial Markets
Capital Raisings Using DRs - YTD Through June 23, 2004
Event Value
Issuer Country Exchange Date (US$
millions)
AU Optronics Corp. Taiwan NYSE 06/23/04 480
Semiconductor Manufacturing
International Corporation (SMIC) China NYSE 03/18/04 475
HannStar Display Corporation Taiwan PORTAL 01/20/04 302
ProMOS Technologies Inc. Taiwan PORTAL 03/11/04 271
China Telecom Corporation Limited China NYSE 05/19/04 251
United Microelectronics Corporation
(UMC) Taiwan NYSE 01/02/04 204
Macronix International Co., Ltd. Taiwan N/A 04/05/04 173
Chunghwa Picture Tubes, Ltd. Taiwan PORTAL 03/09/04 132
Tom Online Inc. Hong Kong NASDAQ 03/11/04 91
Linktone Ltd. China NASDAQ 03/09/04 86
Associated Cement Companies Limited
(ACC) India PORTAL 03/18/04 40
Elder Pharmaceuticals Ltd. India N/A 04/30/04 12
Cranes Software International Ltd. India N/A 03/31/04 12
Crest Communication Ltd. India N/A 01/22/04 6
Source: Citibank and other depositaries
YTD through June 23, 2004
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