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Strictly Private and Confidential
University of Utah Top Jobs in Finance Career Conference
March 1, 2008
Table of Contents
1. Introduction
2. What is Investment Banking?
3. The Analyst Role
5. Getting Hired
1. Introduction
Introduction
Analyst
– Global Health Care Group
Graduated from the University of Utah, DESB in May 2006
Former VP, Top Jobs in Finance Honor Society
Member of 2005–2006 Student Investment Fund
Participant in 2006 New York Trip
Lewis M. Allen
Analyst
– Global Consumer Group
Graduated from the University of Utah, DESB in May 2007
Former President, Top Jobs in Finance Honor Society
Member of 2005–2006 Student Investment Fund
Participant in 2007 New York Trip
Lee McClure
Analyst
– Latin America Group
Graduated from the University of Utah, DESB in May 2007
Former Secretary, Top Jobs in Finance Honor Society
Member of 2006–2007 Student Investment Fund
Participant in 2007 New York Trip
Burton J. Flynn
1
is the No.1 Global Bookrunner (2007)
Source: Wall Street Journal and Thomson. Tuesday, January 2, 2008.
THE WALL STREET JOURNAL
YEAR-END REVIEW OF MARKETS & FINANCER18 Wednesday, January, 2, 2008
Who's No. 1?Leading stock and bond underwriters, by 2006 proceeds
Global Stocks and BondsU.S. public, Rule 144a, domestic and int’l equity and euro-market issues, ranked by 2207 proceeds
’ -
2007 2006
Proceeds Market No. of Proceeds Market Manager (billions) Share Issues (billions) Share Rank Citi $617.6 8.2% 1,740 $682.1 8.7% 1 JP Morgan 554.1 7.4 1,606 517.3 6.6 2 Deutsche Bank 481.9 6.4 1,411 508.8 6.5 3 Merrill Lynch 431.5 5.8 1,429 468.2 6.0 4 Morgan Stanley 425.9 5.7 1,326 467.1 6.0 5 Lehman Brothers 395.0 5.3 1,008 465.8 5.9 6 Goldman Sachs 357.1 4.8 905 399.2 5.1 7 Barclays Capital 352.8 4.7 960 381.2 4.9 8 UBS 326.0 4.3 1,270 336.4 4.3 10 Credit Suisse 319.5 4.3 1,065 374.8 4.8 9 Top 10 Totals $4,261.6 56.9% 1,2720 $4,600.9 58.8% - Industry Totals 7,510.0 100.0 2,2256 7,842.3 100.0 % -
Proceeds Market Share Manager (billions) 2007 2006 Citi $546.5 8.2% 8.7% JP Morgan 476.3 7.2 6.6 Deutsche Bank 429.7 6.5 6.7 Merrill Lynch 370.8 5.6 5.8 Lehman Brothers 365.6 5.5 6.2 Morgan Stanley 361.2 5.5 5.8 Barclays Capital 349.4 5.3 5.3 Goldman Sachs 286.5 4.3 4.6 Royal Bank of Scotland Group 282.2 4.3 4.6 Banc of America Securities 276.5 4.2 4.4 Top 10 Totals $3,744.9 56.6% 58.7% Industry Totals $6,633.6 100.0% 100.o%
Amount Market Share Manager (billions) 2007 2006 UBS $81.2 9.3% 8.3% JP Morgan 77.8 8.9 6.5 Citi 71.1 8.1 8.5 Goldman Sachs & Co 70.6 8.1 9.7 Morgan Stanley 64.7 7.4 8.0 Merrill Lynch 60.6 6.9 7.6 Credit Suisse 54.6 6.2 5.9 Deutsche Bank AG 52.2 6.0 4.9 Lehman Brothers 29.4 3.4 3.8 China International Capital Co 20.2 2.3 1.6 Top 10 Totals $582.4 66.6% 64.8% Industry Totals $876.4 100.0% 100.0%
Global Equity and Equity - RelatedU.S. public, Rule 144a, domestic and international equity and equity-related markets
Global DebtU.S. public, Rule 144a and euro-market issues-
Loan-
Book ManagersSyndicated loans in the U.S., ranked by 2007 amounts
Global Junk BondsCorporate high – yield debt in U.S. and int’l markets,
-
ranked by 2006 proceeds
2007 Change Market from 2006 MARKET SECTOR No. 1 Ranked Manager Share (pct. pts.) Global Debt, Equity & Equity-related Citi 8.2% -0.5 U.S. Debt, Equity & Equity-related Citi 10.6 0.7 STOCKS Global Common Stock UBS 10.1% 1.4 Global Convertible Offerings JP Morgan 14.8 -0.5 Global Common Stock - U.S. Issuers Merrill Lynch 12.3 2.6 Global Convertible Offerings - US Issuers Citigroup 17.0 -0.2 BONDS U.S. Asset-backed Securities Citi 12.4% 2.7 U.S. Investment Grade Corporate Debt Citi 14.9 0.5 U.S. High Yield Corporate Debt JP Morgan 13.5 -1.1 U.S. Mortgage-backed Securities Lehman Brothers 10.4 0.1 SYNDICATED LOANS U.S. Syndicated Loans JP Morgan 23.7% -2.6
Amount Market Share Manager (billions) 2007 2006 JP Morgan $449.4 25.3% 27.4% Bank of America 293.4 16.5 18.7 Citi 280.5 15.8 14.3 Wachovia Securities 92.1 5.2 5.8 Credit Suisse 81.3 4.6 4.4 Deutsche Bank 71.7 4.0 3.3 Goldman Sachs & Company 62.2 3.5 1.8 Lehman Brothers 46.2 2.6 1.3 Merrill Lynch & Company 40.6 2.3 1.4 Wells Fargo & Company 32.5 1.8 1.5 Top 10 Totals $1,449.8 81.8% 80.0% Industry Totals $1,773.3 100.0% 100.0%
Amount Market Share Manager (billions) 2007 2006 JP Morgan $20.0 12.1% 13.7% Credit Suisse 18.6 11.3 12.0 Citi 16.6 10.0 12.2 Deutsche Bank 14.2 8.6 11.0 Goldman Sachs 13.8 8.3 6.0 Merrill Lynch 12.9 7.8 9.3 Banc of America Securities 11.4 6.9 6.7 Lehman Brothers 10.9 6.6 5.2 Morgan Stanley 7.5 4.5 6.5 Wachovia Corp 5.3 3.2 2.1 Top 10 Totals $131.3 79.3% 84.7% Industry Totals $165.6 100.0% 100.0%
Last year, Citi continued to dominate and maintained No.1 position as underwriter of global stocks and bonds.
2
is the No.3 Global M&A Advisor (2007)
Source: Securities Data Company, Inc.Note: Ranks based on M&A volume for deals rank-eligible from January 1, 2007–December 31, 2007. Europe includes Middle East and Africa.
Global US Europe
Volume ($bn) Rank
Volume ($bn) Rank
Volume ($bn) Rank
1, 424.1 1 768.9 1 550.1 3
1,333.4 2 625.4 2 748.0 1
1,141.5 3 517.2 3 663.5 6
1,1087.7 4 516.3 4 674.6 5
1,000.7 5 269.1 9 791.0 2
989.0 6 397.1 7 684.8 4
885.1 7 407.8 6 529.1 9
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2. What is Investment Banking?
What is an Investment Bank?
An “investment bank” typically consists of three distinct, but related businesses:
Investment Banking
Capital raising
– Debt
– Equity
Strategic advisory services
– Mergers and acquisitions
– Restructuring
– Takeover defense
Sales and Trading
Distribution and execution arm of the investment bank
Sells and trades stocks and bonds
Manages the firm’s risk and makes markets for the securities underwritten by the investment bank
Research
Analysis and recommendations of stocks and bonds
Includes company coverage and sector coverage
4
Structure of an Investment Bank
Chinese Wall
Investment BankingDivision
ClientsResearch Debt Equity
Sales and Trading Investing Public
ProductGroups
CoverageGroups
Capital Markets Bank Loans Inv. Grade Debt High Yield Equity
Private Client Services Private Banking Merchant Banking Asset Management
5
Leading Domestic Investment Banks
Global/ “Bulge Bracket”
Regional
6
What Exactly Do Investment Bankers Do?A banker will provide any service that generates fees for the bank. He’ll even shine your shoes for you if the fees are high enough. (On second thought, he wouldn’t do it personally but he’d have an Analyst do it!).
Capital Structuring
StrategicAdvisory
Capital Raising
Structure DealsValuation
“Any servicea man in a suitcan provide”
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Investment Banking—Core Products
Advisory
Divestitures
Acquisitions
Mergers
Restructuring
Defense
Strategy
Fixed Income
Investment Grade Debt
High Yield
Bridge Loans
Syndicated Loans
Derivatives
Securitization
Liability Management
Equity
IPOs
Secondary Equity Offering
Preferred
Convertibles
Derivatives
Initial Public Offering
Joint Bookrunning Manager
$75mmDecember 2006
Follow-on Equity Offering
Joint Bookrunning Manager
$112mmNovember 2006
Sale of Conor Medsystems
$1.4bnNovember 2006
Senior SecuredCredit Facility
Joint Bookrunning Manager
$18.8bnNovember 2006
Acquisition of HCA
$32.7bnJuly 2006
Private Investor Group
Senior Notes
Joint Bookrunning Manager
$2.0bnJune 2006
Convertible Offering
Joint Bookrunning Manager
$4.0bnApril 2006
Convertible Offering
Joint Bookrunning Manager
$5.0bnFebruary 2006
Acquisition of Schering AG
$19.7bnMarch 2006
Acquisition of Well Choice
$6.5bnSeptember 2005
Yen DenominatedInvestment Grade Offering
Joint Bookrunning Manager
$970mmFebruary 2006
Investment GradeDebt Offering
Joint Bookrunning Manager
$3.0bnFebruary 2006
8
IBD Organizational Structure
Investment Bank(Corporate Finance)
Industry CoverageGroups
Consumer Products
FinancialInstitutions
Telecom
Power and Energy
Energy
RealEstate
Paper andPackaging
Lodging
FinancialEntrepreneurs
Media
Automotive
HealthCare
GeneralIndustrials
Chemicals
ProductGroups
EquityCapitalMarkets
Restructuring
DebtCapitalMarkets
Mergers andAcquisitions
Lewis
Lee
Burton
RegionalCoverage
Latin America
9
Structure of the Deal Team
The Coverage Officer has primary client responsibility and Associate and Analyst ensure that all members of the working party, both internal and external, are informed and working together.
Client
Investment BankingCoverage Officer
IBD Support
Accountants
Director / Vice President
Associate
Capital Markets
Compliance/Legal
Attorneys
Research
Analyst
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Responsibilities of the Deal Team
Associate Transaction execution Has to answer to the MD/VP if
something the Analyst does is messed up
Important part of coverage team
Supervises valuation and financial analysis
Assists on due diligence Drafts contracts and other
legal documents
Managing Director Manages client
relationship Transaction coordination Leads the
transaction process
Director/Vice President Important part of
coverage team Team Leader Transaction Supervisor Coordinates contracts
with different teams in the transaction (lawyers, accountants)
Responsible for the day-to-day execution of the transaction (due diligence, and review contracts and other legal documents)
Reviews valuation and financial analysis
Analyst Performs valuation and
financial analysis Important part of
coverage team Works on legal and
other documentation Industry and company
research and analysis Supports senior team
members in the various tasks
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3. The Analyst Role
What Does an Analyst Actually Do?
Responsibilities
– Preparing presentations (Pitch Books, Management presentations, roadshow presentations)
– Financial modeling (LBO, Combo, Standalone, Acc/Dil, etc.)
– Valuation work (Comps, Precedents, DCF)
– Industry research (Educating the clients on current market dynamics in their space, current multiples, etc.)
– Deal coordination (Internal, legal, roadshow, client, printer, etc.)
– Event and travel management (Closing event coordination, last-minute travel arrangements, etc.)
– Package delivery service (Drive all over Manhattan delivering books)
– Almost anything else a Senior Banker could conjure up
Demands
– Very, very long hours (e.g. 100 hours / week) (Total and complete devotion to the job)
– Unpredictable hours (Unable to ever make plans)
– Can be very stressful at times
Rewards
– Excellent pay
– Ability to travel (Nice hotels, limos, private jets, etc)
– Learn a ton
– Excellent exit opportunities
Stare at a computer screen for an absurd amount of hours on end and try to stay sane.
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Modeling
Valuation Models
– “Comp” Models
– Precedent Transactions
– Discounted Cash Flows (DCF)
Standalone Modeling
– In depth model analyzing and projecting financials
Merger Modeling
– “Mini-Combo”
– “Super Mini-Combo”
– “Full Combo’s”
LBO Modeling
Financing Models
Modeling takes up a large portion of the Analysts time. Once an Analyst is up the learning curve, modeling in excel becomes second nature. Terms like macros, hotkeys, shortcuts and the infamous “F2—Esc” routine become the Analyst’s best friends.
14.0x 13.1x 12.0x 11.6x 11.2x 11.0x 10.7x 10.3x
1.2x 1.3x 1.7x 1.4x 2.1x 1.6x 1.7x1.6x
0.0x4.0x8.0x
12.0x16.0x20.0x24.0x
MDT SYK ZMH ABT BAX BSX BDX J NJ
FV / CY 2007E EBITDA 2007 P / E/Growth
MDT SYK ZMH ABT BAX BSX BDX JNJ
Price $54.11 $55.45 $77.50 $47.96 $45.01 $16.27 $72.49 $65.47
% of 52-week High 90.9% 100.0% 100.0% 96.9% 95.3% 61.4% 98.2% 94.7%
Equity Value $62,978 $23,222 $18,765 $74,444 $30,030 $24,067 $18,661 $193,237
Firm Value 65,407 22,152 18,593 82,836 30,771 30,856 18,938 196,296
CY 2007E Revenue $9,087 $4,872 $3,286 $22,338 $9,849 $8,739 $5,415 $54,392
CY 2007E EBITDA 3,624 1,305 1,298 6,123 2,110 2,688 1,419 16,219
% EBITDA Margin 39.9% 26.8% 39.5% 27.4% 21.4% 30.8% 26.2% 29.8%
FV / CY 2007E EBITDA 14.0x 13.1x 12.0x 11.6x 11.2x 11.0x 10.7x 10.3x
FV / CY 2008E EBITDA 12.4 11.3 10.7 10.7 10.5 9.9 9.7 9.6
CY 2007E P/E 22.9 23.0 19.9 17.2 18.0 21.1 19.0 16.8
CY 2008E P/E 20.0 19.4 17.5 15.3 15.9 16.6 17.0 15.3
Five-year. Proj. Growth 14.0% 20.0% 15.0% 10.0% 13.0% 10.1% 12.0% 10.0%
2007 P/E/Growth 1.64x 1.15x 1.32x 1.72x 1.38x 2.09x 1.58x 1.68x
Source: Company filings, First Call and Wall Street Research. Market data as of 12/20/06.
KraftTen Year Discounted Cash Flow AnalysisTerminal EBITDA Multiple Approach
Projected Fiscal Year Ending December 31
($ in Millions) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Earning Before Interest and Taxes $5,351.8 $5,869.9 $6,418.0 $6,997.9 $7,626.2 $8,305.2 $9,037.4 $9,824.1 $10,664.3 $11,565.3
Marginal Tax Rate 39.0% 39.0% 39.0% 39.0% 39.0% 39.0% 39.0% 39.0% 39.0% 39.0%
Taxes (2,087.2) (2,289.3) (2,503.0) (2,729.2) (2,974.2) (3,239.3) (3,524.6) (3,831.4) (4,159.1) (4,510.5)
Earning Before Interest $3,264.6 $3,580.7 $3,915.0 $4,268.7 $4,652.0 $5,066.5 $5,512.8 $5,992.7 $6,505.2 $7,054.8
Depreciation 990.3 1,092.2 1206.0 1,332.2 1,457.2 1,580.7 1,705.4 1,831.3 1,963.4 2,098.3
Amortization of Intangibles 550.0 550.0 550.0 550.0 550.0 550.0 550.0 550.0 550.0 550.0
Changes in Net Working Capital (30.2) (31.1) (32.1) (33.2) (34.2) (35.3) (36.4) (37.6) (38.8) (40.0)
Capital Expenditure (1,492.7) (1,565.8) (1,848.0) (1,939.0) (1,808.6) (1,898.0) (1,842.6) (1,934.1) (2,030.3) (2,016.3)
Unlevered Free Cash Flow $3,282.0 $3,625.9 $3,790.8 $4,178.8 $,4,816.3 $5,264.0 $5,889.2 $6,402.3 $6,949.6 $7,646.8
Terminal EBITDA $14,213.6
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Presentations
Pitch Books
Financial Documents
– Prospectuses
Investor Presentations
– Roadshow presentations
Board Presentations
– Fairness opinions
– Commitment memo’s
Pitchbooks are the bankers ammunition for convincing the management that we are the best choice to manage / underwrite the given deal. An army of Analysts pumps these bad boys out.
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Presentations (Cont’d)
15
Analyst Grandeur
Traveling
– E.g. Limo’s, private jets, nice hotels
Excellent Pay
Town cars and free meals when working late or on the weekends
Analysts work crazy hours sometimes with little or no sleep and lots of stress. It’s not all bad though, the pay isn’t half bad and you get to travel once you start doing deals.
Tremendous exit opportunities
– Private Equity, Hedge Funds, Third Year in IBD
Deal toys and Lucite’s for closing deals
Opportunity to meet the client
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4. Getting Hired
How Do You Get a Job in Investment Banking?
Understand the job description and its required skills
– Talk to as many people as possible
Work hard to get top grades and join student organizations
– Take honors finance courses
– Join the student investment fund and / or the venture fund
Don’t waste the summers
– Chase investment banking internships (Makes getting hired full-time a lot easier)
– Stay away from summer school going into your Junior and Senior years unless absolutely necessary
Try to gain relevant experience through internships in related fields if you cannot get an i-banking summer internship
– E.g. Private wealth management, corporate finance, etc. JUST GET SOMETHING!!!
Customize resume to reflect the required skill set
– Ask to see the resumes of current Analysts that you know (i.e. those of us in the room)
Be Aggressive
– Don’t be intimidated
– Be persistent
– Don’t let anyone tell you that you’re not qualified or cannot get the job
– “If you want something, go get it, period.”
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Preparation is the Key
Preparationis the Keyto Success
Know the Industry Know
the Job
Know What
Banks Want
Know Your Story
PracticeYourStory
Master the
Mechanics
Distinguish Yourself
18
Know the Industry and the Job
The Markets Be cognizant of recent developments in the markets
Understand basic financial concepts and business fundamentals
Investment Banking
Know the differences among investment banking, sales and trading, research and asset management
Know how investment banking, consulting and startups differ and what each industry looks for
The Firm Know why the firm you are interviewing with is unique (e.g. Bulge bracket, mid-market, culture, group selection process, training, career opportunities, etc.)
The Analyst Know what you will be doing
Know what you are getting yourself into
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Know What Banks Want
Intelligence
Drive and ambition
Communications skills
Quantitative ability
Technical aptitude
Leadership ability
Risk-taker
Obsessive curiosity
Open-mind
Creativity
Ability to work well in teams
A sense of humor
I-banks wants hard working, motivated individuals with a great attitude.
Qualities Investment Banks Seek … … And What it Takes to Succeed Once You’re in
20
Know Your Story
What Banks Want
YourExperiences
Specific AccomplishmentsExamples of Your Strengths
Why You AreWhat Banks
Want
21
Master the Mechanics: The Resume
Highlight your accomplishments
Keep it to one page
Be clear and succinct
Always use layman’s terms
Be able to “tell a story” for every line in your resume
Do not lie or exaggerate
Use an easy to read format
Absolutely no spelling and formatting errors
Avoid gimmicks (e.g., logos)
Include GPA
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Master the Mechanics: The Interview
Know your story
– Specific accomplishments, examples of your strengths
– Why you are what banks want
Be prompt
Dress appropriately
Be polite to everyone
Maintain good eye contact
Show confidence
Use good posture
Be composed, confident and articulate
Show enthusiasm without being hyperactive
Ask questions to show your interest
Try to match your interviewer’s style and tone
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Interview Assessments
Structure and Assessment of the Interview
Personality / Qualifications
– Ability to handle pressure
– Communication skills
Industry commitment—why Investment Banking?
– Must be concise and compelling; must have own story
– Understand the industry
– Understand bank differentiation
Technical—Finance / Accounting
– Explain interaction of all of the financial statements
– How do you value a company?
– What is free cash flow?
Q&A Session—critical final moments
– In the questions you ask, seem genuinely interested in the interviewer / position / firm
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Down the Road…
Two YearProgram
Third YearOpportunity
Promotion to Associate
Business School
Private Equity
Venture Capital
Hedge Fund
Corporate Development
Other?
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A ny te rm s se t fo rth he re in a re in tended fo r d iscuss ion pu rposes on ly and a re sub jec t to the fina l te rm s as se t fo rth in sepa ra te de fin itive w ritten ag reem en ts . T h is p resen ta tion is no t a com m itm en t to lend , synd ica te a financ ing , underw rite o r pu rchase secu rities , o r com m it cap ita l no r does it ob liga te us to en te r in to such a com m itm en t, no r a re w e acting as a fiduc ia ry to you . B y accep ting th is p resen ta tion , sub jec t to app licab le law o r regu la tion , you agree to keep con fiden tia l the ex is tence o f and p roposed te rm s fo r any transac tion con tem p la ted he reby (a “Transac tion ”).
P rio r to en te ring in to any Transac tion , you shou ld de te rm ine , w ithou t re liance upon us o r ou r a ffilia tes , the econom ic risks and m erits (and independen tly de te rm ine tha t you a re ab le to assum e these risks) as w e ll as the lega l, tax and accoun ting cha rac te riza tions and consequences o f any such Transac tion . In th is regard , by accep ting th is p resen ta tion , you acknow ledge tha t (a ) w e a re no t in the bus iness o f p rov id in g (and you a re no t re ly ing on us fo r) lega l, tax o r accoun ting adv ice , (b ) the re m ay be lega l, tax o r accoun ting risks assoc ia ted w ith any Transaction , (c ) you shou ld rece ive (and re ly on ) sepa ra te and qua lif ied lega l, tax and accoun ting adv ice and (d ) you shou ld apprise sen io r m anagem en t in your o rgan iza tion as to such lega l, tax and accoun ting adv ice (and any risks assoc ia ted w ith any Transac tion ) and ou r d isc la im er as to these m atte rs . B y accep tance o f these m a te ria ls , you and w e he reby ag re e tha t from the com m encem ent o f d iscuss ions w ith respec t to any Transac tion , and no tw iths tand ing any o the r p rov is ion in th is p resen ta tion , w e he reby con firm tha t no partic ipan t in any Transac tion sha ll be lim ited from d isc los ing the U .S . tax trea tm en t o r U .S . tax s truc tu re o f such Transac tion .
W e a re requ ired to ob ta in , ve rify and reco rd ce rta in in fo rm a tion tha t iden tifies each en tity tha t en te rs in to a fo rm a l bus iness re la tionsh ip w ith us . W e w ill ask fo r you r com p le te nam e, s tree t add ress , a nd taxpaye r ID num ber. W e m ay a lso request co rpo ra te fo rm a tion docum ents , o r o the r fo rm s o f iden tifica tion , to ve rify in fo rm a tion p rov ided .
A ny p rices o r leve ls con ta ined he re in a re p re lim ina ry and ind ica tive on ly and do no t rep resen t b ids o r o ffe rs . T hese ind ica tions a re p rov ided so le ly fo r your in fo rm a tion and cons ide ra tion , a re sub jec t to change a t any tim e w ithou t no tice and a re no t in tended as a so lic ita tion w ith respect to the pu rchase o r sa le o f any ins trum ent. T he in fo rm a tion con ta ined in th is p resen ta tion m ay inc lude resu lts o f ana lyses from a quan tita tive m ode l w h ich rep resen t po ten tia l fu tu re even ts tha t m ay o r m ay no t be rea lized , and is no t a com p le te ana lys is o f eve ry m a te ria l fac t rep resen ting any p roduc t. A ny es tim a tes inc luded he re in cons titu te ou r judgm en t as o f the da te he reo f and a re sub ject to change w ithou t any no tice . W e and /o r ou r a ffilia tes m ay m ake a m arke t in these ins trum en ts fo r ou r cus tom ers and fo r ou r ow n accoun t. A cco rd ing ly, w e m ay have a pos ition in any such ins trum en t a t any tim e .
A lthough th is m ateria l m ay conta in pub lic ly availab le in form ation about C iti corporate bond research or econom ic and m arket ana lysis , C iti po licy (i) p roh ib its em ployees from offering, d irectly or ind irectly, a favorable or negative research op in ion or o ffering to change an opin ion as considera tion or inducem ent for the rece ip t o f business or fo r com pensation; and (ii) p roh ib its ana lysts from be ing com pensated for specific recom m endations or v iew s conta ined in research reports. So as to reduce the po tentia l fo r conflic ts o f in terest, as w ell as to reduce any appearance o f conflic ts o f in terest, C iti has enacted po lic ies and procedures designed to lim it com m unications betw een its investm ent banking and research personnel to specifica lly p rescribed c ircum stances.
IR S C ircu la r 230 D isc losu re : C itig roup Inc . and its a ffilia tes do no t p rov ide tax o r lega l adv ice . A ny d iscuss ion o f tax m atte rs in these m ate ria ls (i) is no t in tended o r w ritten to be used , and canno t be used o r re lied upon , by you fo r the pu rpose o f avo id ing any tax pena lties and (ii) m ay have been w ritten in connection w ith the "p rom otion o r m arke ting" o f the Transaction . A ccord ing ly, you shou ld seek adv ice based on your pa rticu la r c ircum stances from an independent tax adv iso r.
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