Balancing Digital Aspirations While Addressing Risk Management Fundamentals: Observations From Citi Treasury Diagnostics

21 RISK MANAGEMENT CONSTRUCTS: IN-HOUSE BANK Less than half (43%) of those companies surveyed have deployed an IHB. 79% of those that have an IHB, utilize KPI to manage performance. Majority concentrating cash and risk through an IHB entity have deployed a Single Global IHB (72%) with more than 50%of flows being accounted in the construct (79%). 81%of thosewithmore than75%allowable participationmanage performance throughKPI. As companies scale (revenue) they are more likely to have an IHB structure in place. 66% of those with revenues greater than $25bn have an IHB in place. Revenue Demographics for IHB Clients IHB No IHB 76% 57% 45% 34% IHB No IHB In-House Bank Construct 57% 43% KPIs used to measure/monitor Treasury performance Don’t use KPIs Single Global In-House Bank 79% 21% IHB 79% 21% Virtual/ledger accounts in TMS/ERP 84% 16% Single Global In-House Bank Multiple Regional In-House Banks IHB Type 28% 72% Virtual/ledger accounts in TMS/ERP Physical bank accounts per participant Recording of Participant Positions 43% 57% Flows Participation 9% 12% 62% 17% 81% 19% More than 75% 79% Less than $2 billion $2 — 10 billion $10 — 25 billion Greater than $25 billion 24% 43% 55% 66% IHB Characteristics More than 75% 51-74% 26-50% Less than 25%