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

22 LIQUIDITY MANAGEMENT: CASH CONCENTRATION 63% of companies have cash pooling in place concentrated at Global or Regional level with 80% of companies concentrating cash on a daily basis. Of those participants exhibiting such best-in-class characteristics, on average 79% have KPIs in place to measure performance. 83% of companies have completely or partially automated their cash concentration and 62% have more than 75% participation where allowable. Similar to observations made for IHB adoption, as companies scale (revenue) they are more likely to have Cash Concentration structure in place. 87% of those with revenues greater than $25bn concentrate cash at a global or regional level. Less than $2 billion $2 — 10 billion $10 — 25 billion Greater than $25 billion Global Regional Country No concentration Revenue Demographics for Cash Concentration Clients 23% 20% 18% 39% 24% 29% 36% 11% 15% 50% 29% 6% 8% 20% 67% 5% KPIs used to measure/monitor Treasury performance Don’t use KPIs Global Regional Country No concentration Cash Concentration Level 79% 21% Global 19% 18% 25% 38% 63% 83% Daily Weekly Monthly Periodically Concentration Frequency 77% 23% Daily 7% 4% 9% 80% Completely Automated Partially Automated No Automation Automation of Concentration Completely Automated 78% 22% 17% 44% 39% 82% 18% More than 75% More than 75% 51-74% 26-50% Less than 25% Flows Participation 62% 13% 9% 16% Cash Concentration Characteristics